Blog Getting started P2P Mobile Lending: A Way to Diversify Your Portfolio?

P2P Mobile Lending: A Way to Diversify Your Portfolio?

date March 19, 2022 time 5 min read 820 views

Most people wouldn’t consider P2P mobile lending to be a “safe” or “traditional” investment, but the market has grown significantly and often offers impressive returns. If you’re wondering whether it’s time to get involved, you’re in the right place. Let’s take a look at the evolution of P2P loans, from online lending to mobile to crypto.

The last few years have seen the rise of mobile P2P lending, and for some people, the industry might have negative connotations. But are the criticisms fair, or is this new way of investing worth a go? As the P2P model matures and the industry enjoys something of a renaissance, with more transparency and regulations than ever before, now could be the perfect time for curious investors to test it out.

If you need a little more convincing to make mobile P2P lending part of your systematic investment plan, we don’t blame you. Here’s a breakdown of where the market is at now so you can decide if it’s the right choice for you.

Emergence of mobile P2P lending

Online peer-to-peer lending first emerged in the early twenty-first century as a way of allowing investors to lend money directly to borrowers without middlemen like banks taking their cut. The online-only approach resulted in lower overhead costs, meaning that investors could earn higher returns and borrowers could access lower rates (and more poor-credit access) than anything banks could offer—meaning a win-win situation. 

Our phones are the center of everything we do—now, we can even use them to lend funds to peers.
Our phones are the center of everything we do—now, we can even use them to lend funds to peers. (Source: Unsplash)

It was initially a niche pursuit ignored by the mainstream, but over time, it caught on. Many P2P lending platforms for investors sprung up, including some big names like Zopa in the UK and Prosper in the US. Now, the market is projected to reach $558.91 billion by 2027.

Naturally, there have been hiccups along the way. Some have criticized P2P lenders for failing to match the comprehensive security protocols that banks use to favor borrowers or felt skeptical at the industry’s lack of regulation. To make matters worse, the P2P boom in China led to a very prominent pyramid scheme, and there have been similar stories elsewhere in the world.

But don’t rule P2P out. The most successful lenders have found ways to follow high standards and create their own security protocols, such as requiring borrowers to provide collateral or letting investors adjust their investment choices to their risk tolerance (which affects who they lend to). 

What about mobile P2P?

Over the last couple of decades, we’ve seen just about everything shift to mobile, so it’s not surprising that P2P lending has followed the same trend. 

Part of the appeal here is the convenience—when we lend or borrow by mobile, we can do everything from the comfort of our own homes, or even halfway across the world, without ever having to set foot in a bank’s physical premises. 

And now we’re already doing just about everything from our phone apps rather than on our desktops, it makes sense for P2P to follow that approach. It’s simply more flexible and fast.

We’ve also seen applications of P2P principles spring up outside of the lending world. P2P payments—payment processors that send money directly from one person to another without going through banks—have been on fire over the last few years. Just think of Venmo, PayPal, and CashApp.

Clearly, mobile P2P platforms aren’t going anywhere any time soon.

Introducing crypto lending 

As if it wasn’t innovative enough that P2P lending was invented in the first place, or that it’s now become something that we can do solely from tiny devices, there’s now been another evolution: Crypto P2P lending, which is one of the hot investment trends.

The cryptocurrency world has embraced mobile P2P over the last few years, and it’s offering appealing returns.
The cryptocurrency world has embraced mobile P2P over the last few years, and it’s offering appealing returns. (Source: Unsplash)

This might sound like an unnecessary combination at first, but think about it a little more and the pairing of crypto and P2P makes sense. The cryptocurrency world is all about decentralization, which is why it created alternative ways to use and transfer money without involving middlemen. 

Although Bitcoin focused on being an alternative currency, other crypto protocols have since launched to imitate other applications related to money, from gambling to debit cards.

There are now various crypto lending protocols. One of the best-known is the Celsius network, which uses its own native token CEL to allow its members to take out a loan, receive rewards, and make payments. 

At the moment, these types of platforms are mostly reserved for crypto pros who want to use them to maximize their liquidity when trading. However, crypto lending may be gradually making its way to the mainstream.

Crypto lending on MyConstant

At MyConstant, our flagship crypto lending product offers up to 14% APY if you deposit USDT or USDC. Once you add your money, you’ll be lending it directly to borrowers to earn interest on cryptos through our lending pool (which we redistribute among exchange partners). Even better, the MyConstant guarantee keeps your funds safe from loss and theft, and we make sure our borrowers meet strict collateral requirements.

If you’re looking for a platform to test out P2P mobile lending, consider MyConstant.
If you’re looking for a platform to test out P2P mobile lending, consider MyConstant. (Source: MyConstant)

You can also deposit a wide variety of other cryptocurrencies to earn interest, including SOL, ETH, BTC, neo coin and BNB. However, these offer a lower return of 4% APY.

Plus, you can do everything from the MyConstant app, giving you access to all the best parts of mobile P2P functionality. 

Beat the bank with MyConstant

Hopefully, you’re now convinced that P2P mobile lending is worth a go. If you want a little bit of everything for your peer-to-peer investing platform, you should give MyConstant a try.

We provide a wide range of investment products of varying liquidity with rates between 4-9%. 

Our crypto-backed loans have loan terms that range from 1-6 months, offering from 6-7% APR. You can lend either USD or crypto directly to individual borrowers for a fixed term. 

Meanwhile, our anytime withdrawal investment account allows you to invest into an investment pool offering 50x better interest than a savings account. As the name implies, you can withdraw any amount at any time with no extra fees.

And you can even lend your cryptocurrencies like BTC, ETH, and USDT for up to 14% APY with our Crypto Lend feature. Our goal is to make P2P lending for bad credit as accessible and safe as possible, so why not come see what we’re all about today?

Sign up and receive your trial $4000 bonus right now.

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George Schooling

George Schooling

Join our lending lottery to earn 1% APR and a chance to win up to $10 million

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