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Some people believe the only way to invest money is to buy stocks and bonds.
However, this is not the case nowadays. In fact, pension funds and other sophisticated financial institutions understand that portfolio diversification is the key to long-term success. By expanding the range of asset classes they invest in, investors can increase the odds of generating attractive risk-adjusted returns.
Of course, there’s much more to it than that. To follow in the footsteps of the professionals who manage the assets of millions of individuals and organizations around the world, it is important to have an idea of what matters most when it comes to making your money work harder for you.
Among other things, a well-designed investment approach requires a solid understanding of where to invest money, how to invest money, and what kinds of opportunities there are in the marketplace. In certain respects, the options are unlimited, but that doesn't mean they should all be included in a discussion about the best ways to invest money.
In truth, while some people have done well by investing in fancy cars, undeveloped land, and unusual collectibles, there are plenty of risks involved. For the most part, making money from these types of investments requires specialized knowledge and expertise that most of us simply don’t have. Also, these assets tend to be illiquid–they are hard to buy or sell, especially when many are trying to do the same thing at the same time.
But there is another asset class that strikes a good balance between risk and reward. Indeed, savvy investors, including those who invest money online, have discovered that peer-to-peer investments have not only done well in their own right, they have also enhanced overall portfolio performance, making it easier to achieve long-term financial goals.
The fact that the “smart money” is capitalizing on this strategy doesn't mean it complicated or beyond the reach of average investors, however. When they invest in loans–or more precisely, invest in P2P loans, they are making the most of an asset class that has had a solid record of success. In fact, amateurs and professionals alike now consider peer-to-peer investing to be one of the best ways to invest money online.
You only have to look around to see how much personal computers, smartphones, and the Internet have changed our everyday lives. The same holds true when it comes to our finances. Unlike in the past, when a bank or broker determined how you could invest – and charged you plenty of fees for the "privilege" – nowadays, you can easily find a range of attractive online alternatives to the old-line bricks-and-mortar firms. Nowhere is this more apparent than in peer-to-peer lending, which has been a leader in the financial revolution.
Indeed, the first thing you'll notice when you invest money online in P2P lending is that you are in charge of your financial future. That doesn’t mean, of course, that every firm’s offerings are the same. When it comes to the Bondora online investing approach, for instance, we’ve not only gone out of our way to help clients generate attractive risk-adjusted returns, we’ve also made it easy for them to do so in the manner they prefer.
Interestingly enough, while these online marketplaces originally came about to meet the needs of individuals who were looking to either borrow or invest, they have attracted the interest of institutions seeking to invest money in assets that help them to diversify their portfolios and enhance aggregate risk-adjusted returns. Under the circumstances, it’s not hard to see why P2P volumes have expanded dramatically in recent years.
Still, just because a particular strategy is popular doesn't mean that investors should forget about proper due diligence. Whether it is a matter of allocating funds to "plain vanilla" securities such as stocks and bonds or investing in P2P loans, there are any number of factors that they should be taking into account. In addition to focusing on the upside potential, they should also be considering the risks involved.
When it comes to the nuts and bolts of how to invest online, we don't make you jump through lots of hoops, either. When you sign up with Bondora, you simply provide us with the details necessary to set up your account, which generally takes only a few minutes. After that, you can fund your account with as much (or as little) money as you like. In our case, you can do this in various ways, including via credit card or bank transfer, or through payment services such as Wise or Trustly.
Better yet, regardless of what you know or how long you've been investing, our automatic tools and other cutting-edge features will enable you to be as involved or as hands-off as you like. In other words, being in control of your financial destiny doesn't have to be a full-time exercise, though that option is certainly available if it’s what you want. As with any service designed to help make your money work harder for you, you have the resources and tools you need to get the job done.
The fact is, while there are plenty of ways to invest online nowadays, they don't all provide you with the resources, flexibility, and transparency you need – and want – to achieve your financial goals. More importantly, even in those cases where firms seem to be giving you just what you are looking for, there is often a catch. They might have a fairly high minimum initial deposit or average balance requirement, or they don’t offer the kind of flexibility that suits the way you live and invest.
At Bondora, we cater to investors of every stripe – large, small or somewhere in-between – from a number of different countries around the world. If you are just starting out, we can show you how online investing works and what you need to do to invest and earn money online. But if you have plenty of investing experience, you can easily be up and running in no time at all. Either way, our user-friendly interface and extensive resources detailing what you can do to make the most of our platform are at your fingertips.
For example, if you decide to invest money online, are you ascribing enough weight to the reputation and performance record of the financial partner you will be working with? Some firms might claim they offer the best way to invest in peer-to-peer lending, but is that true, or are they saying something that can’t be backed up with hard facts? In the case of a firm like Bondora, which has considerable experience in identifying and lending to high-quality borrowers, there is little doubt.
But even then, it is not enough to know that the firm you are working with can help you invest money successfully. Just as important is how easy they make it for those who are not full-time professionals to take advantage of opportunities in the marketplace. For most investors, the best bet is to stick with those that have cutting-edge platforms, in-depth knowledge, and the kind of front-line lending experience that can make a real difference. It also helps if they have the critical mass that leads people to try them first.
But the assistance that Bondora provides doesn't stop there. If, for example, you are looking for tips when investing money online, that's no problem. Aside from having ready access to an extensive database and online P2P lending that can help you make the most of the Bondora platform, you can also connect with our dedicated customer service team. While we know that having the right systems and technology in place is critical when doing business online, we also understand that some of our customers occasionally require more–they need the human touch.
On top of our wide range of support options, we also offer other online investing benefits that can help to ensure you are not flying blind. Aside from extensive historical data about lending trends and borrower creditworthiness, we also provide our customers with a level of transparency that is frequently lacking at traditional and online financial firms. When you invest through the Bondora online P2P platform, you know up front about any fees that may be involved and what happens, for example, when a borrower doesn’t live up to his or her responsibilities.
Other factors can also make a difference when it comes to where to invest and how to invest money online, especially regarding an asset class with prospects as attractive as those of peer-to-peer investing. Does the P2P firm you're working with understand what investors and borrowers actually need or want? More importantly, are its interests aligned with those of its clients—in other words, when you invest in p2p loans, is it a “win-win” situation for all sides?
Transparency is another important consideration. Does the firm act like a traditional middleman, capitalizing on its insider knowledge and sophisticated underwriting and technical capabilities at the expense of clients? Or does it freely share what it knows with those who want to invest money online, helping them to achieve their objectives and, hopefully, establish a mutually beneficial long-term relationship?
Frankly, in a world where people can change financial partners with the touch of a screen or the click of a mouse, firms that place the interests of clients at the top of the list are the ones most likely to be left standing when selfish old-line financial operators eventually fall by the wayside.
Unlike some P2P lending sites, we don't try to fool you into thinking that every loan you invest in is going to perform well. However, at Bondora, our successful track record as a lender in good times and bad, sophisticated underwriting capabilities, and risk-adjusted pricing – which enables us to offer terms to prospective borrowers that are carefully tailored to their circumstances – help us keep the "bad apples" to a minimum. In addition, we also have skin in the game, which means we are as keen as you are to see things work out as intended.
We also make it easy for you to invest in a variety of different loans (and borrowers). By diversifying in this way, it can help to reduce risk and enhance your long-term investing performance. In fact, when you invest money online through Bondora, you potentially get a double-helping of diversification, which is a phenomenon that sophisticated investors have long referred to as the financial world's only "free lunch." Instead of keeping all your money in, say, stocks or bonds, which seem riskier than ever nowadays, you can broaden your exposure by investing in an asset class that has proved its mettle, which can improve the overall health of your portfolio.
Certainly, there are many things to bear in mind when it comes to investing in what has proved to be an attractive asset class, including what it takes to get started, the resources required, and the risks involved. Indeed, a brief overview of the subject can't possibly be viewed as a complete guide to investing in p2p loans–or anything else, for that matter.
Even so, by considering a strategy that is different than what the traditional bricks-and-mortar operators might be trying to sell you, you will quickly find that one of the best ways to invest money–peer-to-peer lending–is a strategy designed with you in mind.
If you are ready to invest in a P2P platform online, the odds are that Bondora has the solution you are looking for. As with any investment approach, of course, you will want to be sure you understand the risks. You'll also want to satisfy yourself that you are working with a firm that is here to stay and understands what a win-win relationship is all about. But once you learn more about how online investing works at one of the world's leading Peer-to-peer lending platforms, we're confident you'll be ready to join the thousands of other investors who’ve already taken the plunge.
“I use the Portfolio Manager at Balanced mode. For an investment strategies and techniques newbie like me, this setting gives me comfort and confidence that my investments are handled in the most reasonable way.”
“I suggest to all of you to trust the platform, by starting with a small amount of money and then dropping in a monthly amount”
"I have decided to invest in Bondora because it is a further step towards financial independence and I believe Bondora is the best platform to generate passive income quickly and easily."
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