Search
Close this search box.
Search
Close this search box.

Alternative Finance for Beginner Investors

Alternative finance

There are a lot of ways to describe alternative finance (AltFi). It is referred to as peer-to-peer lending, decentralized finance, democratized finance and so on.

Despite the colorful language, its essence is very simple to understand. Alternative finance is the use of many small payments from many different people to fund a given project. Alternative finance is just another way in our modern society to raise money.

Typically, when someone needs a lumpsum of money they go to the bank or one individual. But these days, you can crowdfund your requested loan from hundreds of random people online. Industry leaders of finance refer to this as microfinance.

Microfinance has become possible because of smart financial applications. The development of hi-tech software, advanced cybersecurity and widespread accessible internet has enabled our financial markets to reach heights we have never thought possible.

The special thing about alternative finance, rather what makes it “democratizing”, is how inclusive and decentralized its network is. Alternative finance is controlled by the lenders and borrowers in its market. The rates are determined and chosen by the borrowers and the lenders of the given platform.

At P2PIncome, we provide in-depth analyses on alternative finance-based platforms. We determine their sustainability and understand what is truly at the core of their services.

Five tips to consider before investing in Peer-to-Peer lending:

  • You will need at least 15 EUR or 20 USD
  • Be prepared to verify your identity
  • Do not invest what you cannot afford to lose
  • Vet the platform before you invest

Peer-to-peer lending applications, which constitute most of the alternative finance transactions, aim to be digital banks. They aspire to provide individuals a bank account, a savings account, and a way to earn money.

The arrival of peer-to-peer lending is only a small part of a movement divorcing itself from the clutches of the bank. Around the world, people are seeing the inefficiency of getting credit from only one source. Hi-tech companies around the world who are inspired by alternative finance have sought their own measures to create applications that may not replace banks, but will learn to live with them.

Alternative finance can be likened to the power of the masses, and the banks are akin to the power of the few. However, the beauty of smart applications is that they have the capacity and design to out scale physical banks. Online banks don’t have any of the overheard or need of physical presence that banks have. This same lack of overhead fees also allows peer-to-peer lending platforms to be made cheaper, more affordable for borrowers, and a profitable venture for lenders.              


Subscribe to Our Newsletter

Related Articles

Top Trending

po box 789 south windsor ct
P.O. Box 789 South Windsor CT: Everything You Need To Know
wwe elimination chambers in history
Complete List of All WWE Elimination Chambers in History
20 Reasons to Visit Venezuela at least Once in Your Life
20 Reasons to Visit Venezuela at Least Once in Your Life
Everton Points Deduction Reduced Appeal Outcome
Everton's Points Deduction Cut to 6 After Successful Appeal
Carbon Dioxide Fire Extinguishers
Carbon Dioxide Fire Extinguishers - The Eco-Friendly Solution for Fire Suppressio

LIFESTYLE

Egyptian Cotton Sheets for Your Bed
A Beginner's Guide to Choosing the Perfect Egyptian Cotton Sheets for Your Bed
Long Lehenga Choli
Elegance Redefined: Navigating the Diverse World of Long Lehenga Choli Designs
valentines day outfits
Top 20 Trendy Valentine's Day Outfits in 2024 For Every Occasion
eldritch foundry
Unleash Your Imagination With Eldritch Foundry Custom Miniatures
jayda wayda braids
How Long Do Jayda Wayda Braids Last [Durability and Maintenance Tips]

Entertainment

Taylor Swift Father Photographer Assault Accusation
Scott Swift, Taylor Swift's Dad, Faces Accusations From Photographer
female naruto characters
50 Most Iconic Female Naruto Characters [Ranked]
11 most paused movie scene
11 Most Paused Movie Scenes in Hollywood History
yugenanime
What Happened to Yugenanime: The Reason for Sudden Disappearance
Goth Cartoon Characters
The Evolution of Goth Cartoon Characters in Popular Culture [20 Iconic Characters]

GAMING

Most Played Games at Online Casinos
Discover the Most Played Games at Online Casinos
Crypto Gambling Innovations
Innovations in Crypto Gambling: Shaping the Future of Online Betting
User Experience Design in Online Casinos
The Role of User Experience Design in Online Casino Platforms
New Online Service for Fans of Sports Betting and Casino Games
A New Online Service for Fans of Sports Betting and Casino Games
Are Online Gaming Bonuses Worth Pursuing
Are Online Gaming Bonuses Worth Pursuing These Days?

BUSINESS

Work Life Balance Europe vs America Comparison
Europe vs America: Decoding Work-Life Balance Differences
Romania 28th Place EMEA Private Companies Ranking
Romania Rises to 28th in Top EMEA Destinations for Private Firms - PwC
Employee Advocacy
The Role of Employee Advocacy in Enhancing Your Online Reputation
Top 10 World's Wealthiest Men
Top 10 World's Wealthiest Men: 2024 Rankings Revealed
Complexities of Pricing Algorithms
Navigating the Complexities of Pricing Algorithms

TECHNOLOGY

Google Gemini Conversations Stored Years Default
Google's Gemini Set for Relaunch Post-Racial Controversy: Coming Soon!
Lenovo Transparent Laptop Future Computing
Lenovo's Transparent Laptop: A Glimpse into the Future of Computing
Google Apologizes for AI's Shocking Replies
Google Apologizes for AI's Shocking Replies on Controversial Figures
How to Encrypt Your Gmail Messages
Is Gmail Closing in August? Google Clears the Air
Software Development Career Success Tips
Tips For Succeeding In Your New Career As a Software Developer

HEALTH

Norovirus Cases Surge US Northeast CDC Report
US Norovirus Surge: CDC Highlights Spike in Northeast Cases
Top Healthiest and Unhealthiest Countries
Top Healthiest and Unhealthiest Countries Globally - 2024 Rankings
Best Way to Prevent Gum Disease
What is the Best Way to Prevent Gum Disease?
Norovirus Outbreak Northeast CDC Data
Norovirus Outbreak Hits Northeast: Latest CDC Data Reveals Spread
Brain Stimulation RTMS vs DTMS
Decoding Brain Stimulation Therapies: RTMS vs DTMS Explained