Peer-to-Peer (P2P) Bitcoin lending is my favorite way to invest my bitcoins. P2P lending is when you give somebody money, and expect to get it back over a given period of time with interests. Compared to investing in cloud mining for example, you can know exactly how much you can expect to get back from your investment, and over which period of time. You also have the possibility to talk directly to the people you are investing in, talk about their projects and drive in life, and even make some friends in the process.
However, lending money always comes with risks, whereas it’s with bitcoins, dollars, or any other currency. People can have problems paying back the loan, they can just disappear suddenly, the website where you lend money can go bankrupt … In this article, I will share with you the strategy that I use to reduce the risk that comes with Bitcoin lending.