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As bitcoins have become more popular and the market volatility has dropped, the profit you can make from simply buying and holding bitcoins has dropped significantly.
Luckily, there is another way to make money with bitcoin: Peer to peer lending. Since this method is less traditional than many other methods, you can generate great returns on your investment with just a bit of research and smart decision making.
Keep reading to find out how you can achieve a 20% ROI each year on your bitcoin investment.
Bitcoin Investment – Best Practices
Before we go into the top 5 bitcoin investment sites, let’s cover how you can safely and securely invest your money. Since most bitcoin loans offer a high interest rate, it’s more important to verify the credibility of the person you’re loaning to rather than looking solely at the interest rate.
After setting up an account, there are several elements you should look for before choosing someone to loan your bitcoins to:
- Solid credentials
- Member of the site for a sufficient period of time
- Reputation and no negative reviews
- Specific borrower interactions
Now that you’ve confirmed the reliability and credibility of the borrower, you can finally look into the interest rate of the investment. A few tips for lending money:
- Find loans that are almost 100% funded. These are likely more reliable.
- Look for people that have already repaid some earlier loans.
- Look for projects with very specific descriptions.
Now that you know how to identify a reliable person to loan money to; what kind of loans you should look out for.
Here are the top 5 investment sites for investing your bitcoins:
Site 1: BTCPop.com
BTCPop is the first site we cover that allows you to lend to your peers using cryptocurrency technology. Their lending site is based solely on reputation; not credit score, which has its own benefits and drawbacks. Follow the steps outlined above and you can minimize the risk of loaning out your money on this site.
BTCPop also allows you to exchange your money into different cryptocurrencies, move your money into large pools, and invest in startups that are using the site.
Site 2: BitLendingClub.com
BitLendingClub is another bitcoin lending site that has over 2073 borrowers, 9963 loans funded totaling over $7,963,687, and over 4718 active investors. In a few simple steps, you can sign up, get verified, and submit a loan request. Or, you can help fund an active loan on the site.
Site 3: BitBond.com
BitBond is the third bitcoin lending site that we suggest taking a look at. They offer profitable interest rates for individual investors, as well as loans for small businesses. BitBond successfully leverages bitcoin as a technology and payment network to create the first global market for small business loans or fixed income loans. With digital currency, BitBond makes loaning out to small business quicker and easier because they can bypass the slowness and expense of traditional payment transactions.
Site 4: Tether.to
Tether is a more recently created company that is built upon open blockchain technologies. It’s 100% backed, offers widespread integration, and is transparent and secure with all of its transactions.
Tether offers solutions for blockchain companies, exchanges, and the individual trader; making it a very versatile solution for any number of exchanges. It also allows you to make transactions with several different cryptocurrencies, so you’re not limited to bitcoin.
Site 5: CoinStaker.com
Last but not least is CoinStaker. They offer a nice overview of how P2P bitcoin lending can work, and allow you to also gamble, trade, monitor, and buy your bitcoins.
If you choose P2P bitcoin lending as a way to earn more bitcoin, do some thorough research on each of these sites before making a final decision. Peer to peer lending can be a great way to earn interest on your bitcoin, if you play it safe and make educated decisions about who you lend to. Be safe and enjoy lending.