There's a lot to say about the volatile cryptocurrency market. Our friends at Orca Money, a P2P commentator and analyst, share our curiosity.
They profess themselves "fascinated by the dramatic rise of cryptocurrencies in the past year. It's taken Nutmeg, the UK's leading robo-adviser 5 years and substantial marketing spend to reach 50,000 users. At the start of the month, Binance, one of the major cryptocurrency exchanges, announced that it on-boarded 250,000 new users in a single day. These large new investor numbers are common across all exchanges and not unique to a single day or exchange. It's worth caveating this point by stating that cryptocurrency investors reside globally while Nutmeg investors are UK-based only."
We are, as reported yesterday, watching the asset-backed ICO market. As all Money&Co. loans are backed by a legal charge on the assets of their lenders, this might offer an extra element of stability and security. This is an area to watch.
Two new loans are lined up and waiting to go.
Money&Co. Podcast: We asked David Buik of London investment bank, Panmure Gordon, Baroness Susan Kramer, who holds the Treasury brief for the Liberal Democrats in the House of Lords, and Money&Co. CEO, Nicola Horlick, for their views of the financial highlights of 2017 and their predictions for 2018. This podcast of over 25 minutes also focuses on the outlook for the UK?s small and medium-sized companies, the lifeblood of the UK economy - and of course the borrowers who find funding for growth via our platform.
Peer-to-peer (P2P) lending is about bringing individuals seeking a good return on capital together with businesses seeking funds to grow. The average gross return achieved by lenders is 8.6 per cent (7.6 per cent net). This compares with 1.3 per cent, which is the best return currently available on cash deposit with a bank or building society, according to comparison sites such as Moneyfacts. See also risk factors, at the foot of this page.
In addition to new loan offerings, our secondary loan market, offering existing loans for sale by lenders, is available to registered Money&Co. users.
All loans can be held, tax-free, in an Innovative Finance Individual Savings Account, or Innovative Finance ISA.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment.We write regularly about these three key factors. Here's an earlier article on security, access and yield.
If you haven't made a loan via Money&Co. before, please read the risk warnings and the FAQ section. You may also wish to consult a financial adviser before making an investment. Capital is at risk, once loaned.