Most p2p lending platforms offer a great variety of loans with rates ranging from 7% up to 35%. That doesn’t mean you wil earn as much.
Since risk-reward defines how much you will earn from p2p lending its all up to your risk appetite surely.
However, since this is still a fairly new type of investment I would advice on a more conservative approach.Number 1 rule I follow, and I am quite strict about this one cause thats the only way to safeguard my investmetns, is diversification
You can shortlist a number of p2p lending platforms and on those selected you could diversify by type of loans, currency and country exposure and all this can be done by investing the minimum amount required per loan.
In p2p lending currently I invest around 20% of my total investments, I begun about a year ago with only 5% but the results have been steady, hassle-free and good, so I have raised my exposure to 20%. I have been earning around 9.5% net per year. I do not use only 1 p2p lending platform and my total exposure is currently spread into 5 different platforms; 2 of which offer loans backed with buyback guarantees.
The reason I have allocated only 20% in p2p lending is because its a fairly new type of investment, most p2p platforms offer high rates but on unsecured loans, thus the default risk is always there.