Cryptocurrency Q&A
How do investors make money on Prosper?
How do investors make money on Prosper?
Rosalia
Tue Sep 17 2024
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6 answers
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I'm curious to know, how exactly do investors on Prosper make money? Is it through interest earned on the loans they fund, or are there other avenues for generating returns? I'm interested in understanding the mechanics behind the platform and how it benefits those who invest their money in it. Are there any risks associated with investing on Prosper, and if so, how can investors mitigate them? Additionally, what kind of returns can investors expect to see on their investments, and how does Prosper's performance compare to other investment opportunities?
6 answers
EthereumEagle
Thu Sep 19 2024
Prosper offers loans that are structured with an amortization schedule, enabling borrowers to maintain consistency in their financial obligations. Throughout the designated term of 2, 3, 4, or 5 years, borrowers are required to make fixed monthly payments.
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Carolina
Thu Sep 19 2024
These monthly payments are not solely for the repayment of the principal amount borrowed; they also encompass interest charges and any additional fees that may apply to the loan.
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CryptoTitan
Thu Sep 19 2024
The interest element of each payment reflects the cost of borrowing money from investors on the Prosper platform. As the borrower repays the loan, the interest portion gradually decreases, while the principal repayment increases.
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DavidLee
Thu Sep 19 2024
Investors who fund loans on Prosper benefit from a share of these monthly payments. The distribution of payments among investors is determined by their pro rata share of the loan, ensuring a fair and proportionate return.
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Daniele
Wed Sep 18 2024
The pro rata share is calculated based on the amount each investor contributes to the loan. For instance, if an investor funds 10% of a loan, they will receive 10% of each monthly payment made by the borrower.
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