P2P Lender Robo.cash Recommends Investment Diversification Strategies, Shares Recent Crypto Survey Results
Peer-to-peer lender Robo.cash Note that depending on the maturity of the loan, 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 example, you can split an investment portfolio into two or more types, which is yet another “alternative” that Robo.cash has recently explored and suggested to its clients.
As Explain by Robo.cash, diversification is a way to ‘mitigate’ risk by spreading your assets over ‘a wide range of investments in your portfolio’. The P2P lender wrote in a blog post that “despite the apparent complexity, this method is suitable for both experienced and novice investors”.
As stated by Robo.cash:
“What does Robocash offer in terms of diversification? If you put half of your portfolio in two-year Singaporean loans and the other half in short-term Spanish 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 through a peer-to-peer platform is primarily “associated with a possible default”. In order to keep your security concerns’ at zero ‘, the Robo.cash platform also provides a’ 100% redemption guarantee.
As explained by the P2P lender, this means that it “reimburses you for the amount invested and the interest for both the term of the loan and the redemption period”.
As stated in a blog post from Robo.cash:
“In the event of potential default by the lender, we subscribe to the Group Guarantee. We closely monitor the financial flows of our loan originators and, in the event of a threat, we suspend the lender’s activities on the platform and fulfill all obligations to investors, including interest earned.
Currently, there are many ways to build a portfolio, “depending on your goals and desires,” the Robo.cash team added while noting that it is “only important to periodically review the distribution proportions by due to the introduction of new types of loans, interest rate changes or new offers to increase the efficiency of the investment.
While sharing other updates, the Robo.cash team revealed that a recent survey by analysts at the digital investment platform “shows that 65.8% of European investors have crypto assets in their wallets “. 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%, compared to 31% in 2020”. Additionally, “a third of those who deal with cryptocurrency said they are making a significant profit.”
But “the overwhelming majority of crypto investors (82.9%) have limited their share to a quarter of the total investment portfolio,” noted the Robo.cash team while adding that only 34.2% of respondents have “no digital currency in their wallet”. “
As indicated by the P2P lending platform:
“When asked directly if this year’s bitcoin rally had influenced the evolution of investor asset balance, only 15.5% responded that this was why the share of crypto -money was increased. Three in 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 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 security guarantee (Redemption Guarantee , etc.). ”
In particular, gold, the “first asset of 2021” as predicted by Robo.cash analysts, gained “a modest 3.2%”.
As reported by analysts at Robo.cash:
“Apparently, the traditional asset, despite its fairly high reliability, finds little response from the ‘new generation’ of modern investors. Rather, the interest in crypto is driven by the broad outlook for P2P investors looking for optimal investment opportunities.
Analysts further noted:
“Another supporting factor is the constantly 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 attractive to European investors, and this interest is growing. This is confirmed by the fact that 46.7% of respondents intend to increase their share of P2P investments in wallets this year.
It should be noted that major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) have consistently outperformed P2P investment options over a longer period of time over the past decade.
For investors with a longer time horizon (at least 4 years or more), it may be more beneficial at this stage to allocate significantly more funds to crypto-assets in an investment portfolio compared to P2P investments, but only if the investor has a greater appetite for risk and truly understands the digital asset market (by doing independent research).