Cryptocurrency Q&A
What are the problems with peer-to-peer lending?
What are the problems with peer-to-peer lending?
Stefano
Tue Jan 21 2025
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I've heard about peer-to-peer lending and I'm considering investing in it. However, I also want to understand the potential issues or problems that might arise from this type of lending. What are the common challenges or risks associated with peer-to-peer lending?
7 answers
GyeongjuGlory
Thu Jan 23 2025
Peer-to-peer lending involves several primary risks.
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Sara
Thu Jan 23 2025
One significant risk is related to the lender themselves.
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CryptoWarrior
Thu Jan 23 2025
This is termed as psychological risk, where the lender might face emotional distress due to financial losses.
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EthereumElite
Thu Jan 23 2025
Another critical risk is the lack of diversification.
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Caterina
Wed Jan 22 2025
When a lender concentrates their investments in a single borrower or a small group of borrowers, it leads to concentration risk.
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