Fast, cheap, good – what to choose (p2p)

Article from 2015 with small update 2025

Every now and then someone asks me a simple question: “Where should I invest?”

It sounds easy, but the real answer depends on several factors that people often overlook.  To explain it, let’s start with something familiar.

The Classic Triangle: Fast – Cheap – Good

Most of us know the classic rule: you can only pick two out of three.

If it’s fast and cheap → it probably won’t be good.
If it’s good and fast → it won’t be cheap.

When it comes to investing, there is a similar triangle — just with different corners:

• Time
• Money
• Planned return (Profit)

They don’t operate as strictly as “fast–cheap–good,” but they do affect each other.
In simple terms:

Your profit is a function of how much time and money you put in.
More time or more capital → higher potential returns.

Let’s look at each part of the triangle.

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1. Time

Time is an underrated investment resource. The more time you dedicate to understanding and managing your portfolio, the better your results can be — assuming you use that time well.

Time is needed for:

• understanding which borrowers are trustworthy
• choosing good loans
• deciding when to hold or sell (discount/premium, SM strategy)
• comparing returns across platforms
• exploring new platforms and their risks
• keeping track of results and taxes

If you want above-average profit, time becomes even more important.
You may need to:

• analyze datasets
• study borrower profiles
• follow platform history
• build simple models
• scrape site data
• use APIs
• write bots or automation tools

What I recommend based on how much time you have

✔ You have only a few hours per week
→ Choose platforms with strong AutoInvest and simple management.
→ Avoid overcomplicating your strategy.

✔ You can spend several hours per day, you enjoy data, or you’re a programmer/statistician
→ AutoInvest may limit you.
→ Look for platforms with good data export, API access, strong secondary market, and the ability to automate.

2. Money

Money affects two things: liquidity and diversification potential.

A. Liquidity

Ask yourself:
“Do I need part of my money available anytime?”

• If yes → pick platforms with a Secondary Market or short-term loans.
• If no → you can invest in longer-term loans with higher interest.

B. Investment amount

• Small amounts (a few hundred per month) are easy to invest almost anywhere.
• If you plan to invest €10,000 or more, you should consider:
  • • several platforms
    • platforms with active Secondary Markets
    • platforms with enough loan supply

Diversification depends heavily on capital:

• With small amounts, 2–3 platforms are enough.
• With €20,000–€50,000+, using more than 3 platforms may become important.

Why I recommend several platforms

The P2P market is growing fast, but not every platform will survive:

• some may be sold
• some may slow down
• some may fail

To protect yourself, spread your money across several platforms and consider adding some alternative platforms or traditional instruments as a small part of your portfolio.

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3. Profit

Now for the part everyone cares about: profit.

7–8-9% yearly

If this is enough for you:

• choose 2–3 platforms with good AutoInvest
• minimize platform risk
• don’t waste hours on micromanagement

12–16% yearly

To reach this range, you’ll likely need:

• a bit more time
• understanding how Secondary Markets work
• manually selling weaker loans
• manually buying good ones using filters

Some AutoInvest plans promise these returns, but usually you will still need some  light management.

18%+ yearly

Unless you are a programmer, statistician, or have 2–4 hours per day (realistically 5–14 hours) to analyze, automate, and monitor your portfolio, achieving a stable return above 18–20% is nearly impossible.

You will likely need:

• several platforms
• alternative/higher-risk instruments
• your own scripts or tools
• constant monitoring

Some platforms may give 12–16%, others 20–25%, but the risk and effort grow quickly.

Final Thoughts

This is not an article about risks — every investor must evaluate risk independently and decide what level is acceptable for them. My goal here is simply to highlight common sense: higher returns require more time, skills, and effort, while medium returns can often be achieved with far less stress and time investment. Before chasing the highest possible profit, it’s worth asking yourself whether a solid, moderate result might already be enough — especially if it saves your time, energy, and peace of mind.

Whatever your strategy is, check your portfolio regularly. Platforms change rules. Interest rates drop. Don’t be surprised if your return becomes lower — or even negative — unless you monitor it periodically.

P.S.  Update  from 2025:  For my Lithuanian readers (or for anyone using Google Translate): 
If you invest in P2P, I strongly recommend reading the articles on Buliaus Anatomija blog. There isn’t much about specific P2P investment strategies, but you will find many valuable insights on how to evaluate risk and what to look for when assessing platforms. You can find the collection of P2P-related articles here:
https://buliausanatomija.lt/irasai-ir-temos/

Thank you for your reading and thank you in advance for votes and comments!

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Disclaimer: The information provided in this post is for general informational purposes only and should not be construed as investment advice. It is not intended to be used as a basis for any investment decisions. The views expressed are solely those of the author and do not constitute an offer or solicitation to buy or sell any financial instruments. The author is not a licensed investment advisor and does not provide personalized investment recommendations. Readers should consult with a qualified financial professional before making any investment decisions.