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What are the Advantages and Disadvantages of P2P Lending?

P2P crypto lending platform development
  • Peer-to-peer lending is a form of direct borrowing of money from one individual to another without any official financial center participating as an intermediate in the deal. 
  • P2P lending is generally done through online platforms that match lenders with potential borrowers.

In this guide, we will take a look at the pros and cons of peer-to-peer lending.

  • In a traditional lending process like bank loans, a person should need to spend a lot of time in processing the loan., Whereas, in the P2P lending platform, you can lend or borrow your money between two peers in no time.

  • P2P lending is composed of smart contract agreements to avoid conflicts, and it is an automated lending process.

  • In this, the investor gets higher returns when compared to other investments.

  • As there is no intermediate in the process, the investor is free from the transaction fee.

  • As the process remains more quick and uncomplicated, it is considered more flexible than traditional money lending.


  • Basically, the most important risk is when you decide to deploy your capital in a P2P platform, be clear in choosing your platforms because if something goes wrong, then your money is at risk.

  • Any interest if you earn from this process, you will be taxed, and also you need to declare on your annual tax return.

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Published by lillian jones

“Cryptocurrencies is everything you don’t understand about money combined about everything you don’t understand about computers,” said John Oliver. A tech geek like me would say it is easy to decipher; it all depends on how open you are to changes. Smitten by Blockchain, cursed with Intelligence! Hence the profession as a blockchain consultant. Have consulted for numerous projects and guided with the right solutions — not a nap queen. I am super hyper for Blockchain and cryptos and go around reading almost anything if it is about cryptos.

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