Swaper hails P2P as answer to market volatility
Estonia-based peer-to-peer lending platform Swaper has hailed P2P lending as a “non-volatile” alternative to mainstream investments.
Amid ongoing macro-economic instability, Swaper noted that “the modern financial timeline is linear, yet it is not a straight line.”
This means that stock market losses are often unavoidable, particularly during turbulent political events nationally and internationally. However, P2P lending could offer a viable alternative to wary investors.
Read more: P2P platforms are reaching key milestones earlier
“P2P marketplaces offer simple, non-volatile opportunities, which makes P2P marketplaces a safe haven of sorts for those who want to avoid the stress associated with traditional investment options while still enjoying the benefits of higher interest rates,” said a Swaper spokesperson in a blog post on the company’s website.
“Because P2P opportunities share minimal or no correlation with the market, as a marketplace customer, you know what and when to anticipate. As opposed to the stock market, where anything might happen at any given moment.”
Swaper noted that the stock market’s long-term returns average approximately 10 per cent yearly. By contrast, Swaper investors can earn yearly returns of up to 16 per cent.
Read more: Swaper investors have earned €6.5m in interest to date
The platform added that P2P marketplaces “have the upper hand” when it comes to investment liquidity.
“When you’ve made a purchase in a P2P marketplace (in most cases), your holdings typically do not lose their liquidity, because you’re able to sell them at any time for the price you bought them for,” said Swaper.
“This additional layer of flexibility is what really sets the P2P marketplace apart from other, more traditional investments.”
Meanwhile, the addition of P2P investments can diversify traditionally weighted investment portfolios.
“For most investors out there, the source of their investments come from hard-earned life savings, often earned literally through blood, sweat and tears,” added Swaper.
“It is safe to assume that these investors would do everything in their power to invest in safe and profitable assets. Utilizing a P2P marketplace provides exactly that – a fairly safe and profitable option that can either help you diversify your portfolio or become the portfolio.”
Read more: Swaper investors have earned €6.5m in interest to date
