Peer-to-peer lender Robo.cash notes that depending on the loan maturity, you can either stick to an “urgent liquidity strategy” or “wait for your passive income.” According to the Croatian P2P lending platform, a third option is also possible. For instance, you may divide an investment portfolio into two or more types – which is yet “another solution” that Robo.cash has recently explored and suggested to its clients.
As explained by Robo.cash, diversification is a way to “mitigate” the risks by spreading your assets across “a wide range of investments in your portfolio.” The P2P lender writes in a blog post that “despite the apparent complexity, this method is suitable for both experienced and novice investors.”
As noted by Robo.cash:
“What does Robocash offer in terms of diversification? If you put half of your portfolio in two-year Singapore loans and the other half in Spanish short-term loans, your return at the end of the first year could be 11.4%. If you divide the portfolio into five parts based on the different interest rates on the platform, then at the end of the year your profitability can reach 11.5%.”
The company also mentioned that the emergence of risks when investing via a peer-to-peer platform is mainly “associated with a possible default.” In order to keep your safety concerns “down to zero,” Robo.cash platform also provides a “100% Buyback guarantee.”
As explained by the P2P lender, this means that they “refund you the invested amount and interest for both the loan term and the buyback period.”
As stated in a blog post by Robo.cash:
“In the event of a potential lender default, we adhere to the Group Guarantee. We closely monitor the financial flows of our loan originators, and if a threat arises, we suspend the lender’s activities on the platform and fulfill all obligations to investors, including earned interest.”
Currently, there are many ways to build a portfolio, “depending on your goals and desires,” the Robo.cash team added while noting that it’s “only important to periodically review the distribution proportions due to the introduction of new types of loans, interest rate changes or new offers to increase investment efficiency.”
While sharing other updates, the Robo.cash team revealed that a recent survey carried out by analysts of the digital investment platform “shows that 65,8% of European investors have crypto assets in their portfolios.” Virtual currency “ranks third in popularity among other assets, after P2P investments and stocks.”
As noted by the P2P lender, the number of investors who “increased the share of this alternative asset in 2021 is 42%, up from 31% in 2020.” Moreover, “every third of those who deal with cryptocurrency said that they make a significant profit.”
But the “overwhelming majority of crypto investors (82.9%) limited its share to a quarter of the total investment portfolio,” the Robo.cash team noted while adding that just 34.2% of respondents have “no digital currency in their portfolio at all.”
As noted by the P2P lending platform:
“When asked directly whether this year’s bitcoin rally influenced the change in the balance of investors’ assets, just 15.5% answered that this was the reason to increase the cryptocurrency share. Three out of five respondents (61.8%), in turn, confirmed that the surge in bitcoin quotes had no effect on them.”
The Robo.cash team also mentioned:
“The determining factor in choosing an asset is the combination of reliability and profitability. Thus, according to the respondents, the best options are stocks (38,4%) and P2P investments (20,6%), which offer an attractive rate of return in conjunction with a good degree of safety guarantee (Buyback guarantee, etc.).”
Notably, gold, the “top-asset of 2021” as predicted by analysts of Robo.cash, gained “a modest 3.2%.”
As stated by Robo.cash analysts:
“Apparently, the traditional asset, despite its fairly high reliability, finds little response from the ‘new generation’ of modern investors. The interest in crypto is explained, rather, by the broad outlook of P2P investors in search of optimal investment opportunities.”
The analysts further noted:
“Another supporting factor is the steadily increasing strategic trend. However, the extremely high volatility of cryptocurrency prices is undoubtedly a serious deterrent. In this sense, the guaranteed high profitability inherent in P2P investments is much more interesting for European investors, and this interest is growing. It is confirmed by the fact that 46.7% of surveyed intend to increase their share of P2P investments in portfolios this year.”
It’s worth noting that major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) have consistently outperformed P2P investment options over a longer-term period during the past decade.
For investors with a longer-term horizon (at least 4 years or more), it may be more beneficial at this time to allocate significantly more funds to crypto-assets in an investment portfolio compared to P2P investments, but only if the investor has a greater risk appetite and really understands the digital assets market (by doing independent research).