Why is a P2P Investing System Better Than a Centralized One?
People have been making offline and online investments for several decades now. However, in pretty much all use cases before blockchain and cryptocurrencies, the element of ‘centralization’ always bugged the efficiency and transparency of the system. That is exactly what MargiX addresses and by utilizing the two technologies mentioned above, we offer a robust P2P investment and trading option, ideal for traders planning to deal in all volumes.
Let’s briefly explore centralized investing before we move on to compare both of them in detail.
What is Centralized Investing?
Just focus on the term for a moment and you will realize that it has something to do with ‘one authority’ responsible for managing, moving and securing your funds. Well, in today’s World, when cybercrimes happen to be the limelight of several bulletins, the model needs to change.
Mapping this concept to the digital world, it implies that the investors are required to trust an organization for keeping the funds. If we add another dimension to it (i.e. lending) you are also required to trust the company for giving you the money required to make an investment. In that case, there is no competition and an absolute monopoly prevails.
What is P2P Investing?
That’s the exact opposite of centralized investing and lending. Please note that it is not a new concept and has been practiced for quite some time now. However, the scope or rather the extent of robustness, as practiced at MargiX platform, has only become possible due to the mixture of blockchain and cryptography.
Basically, it allows all the lenders and borrowers on a network to connect directly with each other, while getting rid of the intermediaries. Therefore, MargiX merely offers a platform where these two kinds of users can interact with each other, but they enjoy a significant amount of liberty for setting their terms and capturing the market by offering flexible conditions.
The Pros of P2P Investing Over Its Significant Other
This section will talk about a variety of benefits for selecting P2P as your preferred methodology. While plenty of factors mentioned here would seem obvious, we will cover them with a dynamic flair to give you a better idea.
Exceptionally High Returns
This is one of the prime advantages of P2P trading. See, basically, someone is giving you a loan to boost your investment portfolio. What does that mean?
It simply means that you get to invest more and as the market goes up, your RoI automatically boosts by several times than the initial ratio (investment: profit).
Some of you may argue that a centralized platform also offers such initiatives. Well, of course — you are right! But since you are allowed to deal with multiple lenders on the system, you have the liberty of trading with someone who offers the most lucrative option for you.
It’s a Win-win Situation for Both Parties
Most of the centralized platforms come up with strict plans and everything is decided in advance. You only get to select a pricing plan and then abide by its terms, whatever be the result on your end.
However, P2P lending is quite different and creates a very competitive landscape where borrowers can benefit from lenders and vice versa. It implies that at the time of putting up their ads for attracting borrowers, lenders have to offer the best rate and feasibility for securing a deal. On the other hand, borrowers can also decide to trade with a user offering the best value for money.
Another great perk in such use cases is that you could become a member and gain benefits without any burdening financial requirements. Since MargiX is based on a P2P system, you could start with literally ‘whatever you have’. The only considerable thing in this scenario is to look out for a lender who is also willing to trade with you on the specified volume/price.
Please note that there is a huge misconception as to P2P is exclusively for tech-savvy internet users. In fact, we have created MargiX while considering user-friendliness as one of the top requirements. So whether you happen to be a newbie or an experienced investor, the platform is equally suitable for everyone.
A Better Re-Investment Option
With the help of P2P lending, borrowers start making significant returns as soon as the price fluctuates (usually within a month). It implies that as a borrower, you get in a better position to re-invest the surplus into this stream and gain more in the future.
Even though we encourage you to conduct your own research as well and see what suits you the best, it is quite often observed that pouring back (even a partial profit) results in a significant gain and places you to play ‘bigger games’!
A Comprehensive KYC Procedure
While dealing with centralized authorities, you are indirectly forced to believe that they are trustable. Well, that may not be true in all instances and some of the traders still want to ‘investigate’ despite the decent standing of a company in the market.
If you look at P2P investment schemes like MargiX, they do not ask you to trust anybody. In fact, there happens to be a comprehensive and well-formulated KYC procedure before any user (whether lender or buyer) is allowed to interact with one another and sign a digital contract.
We Value Our Lenders
Since we provide feasibility for both borrowers and lenders, it is our prime responsibility to create use cases where both of them can benefit. Therefore, as an extra feature, we allow our lenders to explore the market insights and get a better idea of what their competitors are offering to see if they can work their way through the ‘trends’ and attract a great deal of borrowers.
Support requests please send to: support@margix.org
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- Official Website: https://margix.org
- Channel: https://t.me/MargiXchannel
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- Group KR: https://t.me/MargiXkorea
- Group TR: https://t.me/MargiXturkey
- Medium: https://medium.com/margix
- Github: https://github.com/margix
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- Youtube: https://www.youtube.com/c/Margix
