There are many different ways to create passive income for yourself. P2P (peer to peer) lending is one of my personal favorites. Let's look at some crucial points.

Cash Flow

When you invest in a loan, as opposed to growth stocks, cryptocurrency, or commodities, you enter into a legally binding contract with the person to whom you lend money. This contract obligates the person to make a predetermined amount of money available to you every month for the duration of the loan. You will be able to depend on a stable and reliable income thanks to this.

High Yield

Even the stocks with the greatest dividends cannot compete with the annual return offered by peer-to-peer lending platforms. I placed a high priority on the preservation of my capital, so I selected very cautious diversification settings. As a result, I am currently realizing annualized returns, net of costs, that are averaging slightly more than 18 percent.

Interesting Risk/Reward Ratio

Have you ever woken up, opened your broker, and saw that the value of your investments had decreased by 20%+ since the previous day? If proper risk management is practiced, loans have an average success rate of 95%, making them a highly tempting financial product. Your account balance will most likely continue to increase years after years.


Naturally, you may reinvest your gains in new loans that will produce even higher returns, and you should do so whenever possible. I only invested one thousand dollars, but I already had sufficient returns to acquire a new loan every month, which in turn exponentially increased the rate at which my account grows.

Because the world is so large, you will need to conduct some investigation in order to select a peer-to-peer lending platform that is reliable and has a good reputation.

GoPeer is the platform I've chosen to use since, as a Canadian, it offers a superior User Experience, an auto-invest bot, and a comprehensive credit check on all borrowers. Because of this, there is a reduced chance that customers may flee with the money you've worked so hard to gain because it will hurt their credit. And if they do, GoPeer is here to try to get as much of your money back as they can, less a charge of 30% of whatever they are able to recover for you.

P2P loans have risks. Expect at least a 5% delinquency rate to avoid surprises.