I am very slowly starting to invest some of the money that I have saved up, after finally realizing that keeping them in a savings account is not worth it. And one of the first platforms that I have decided to focus on, mainly due its ease of use and positive reviews online is Mintos, a peer to peer lending platform that, at least so far for me, is proving to be a perfect choice.
My decision to invest on Mintos wasn’t easy. I am a complete coward when it comes to taking risks – which is not really the best trait to have when it comes to trying to put your money at work. But I grew up in a family born and raised in communist Romania and they knew very little about investing. They did use to save some money each month out of their modest income – but keeping the money safe in a box near the bed was as far as they would go.
This behavior set the foundation for me being relatively thrifty and careful with my spending and I always put aside some money for emergencies ever since I was in high school and I saved a bit of my weekly allowance to have a cushion just in case. But the actual investing part was a mystery for me – first, and most importantly, because I always thought that you need to have a lot of money to start investing on a platform like Mintos, and I don’t have that.
Second, my family raised me with a pathological fear of getting loans. Their motto was “if you don’t have the money saved for it, it means you can’t afford it, so you shouldn’t buy it”. As a result, I have always been debt-free – which is a good thing. But I also missed and still probably am missing on some opportunities which would require me to get a loan in order to invest and potentially make money.
Sure, this is the safe way to go as losing everything is less likely to happen when you’re not risking anything, but you’re also missing on some major opportunities to strike it big. The fear of failure, combined with the fear of losing the little money I have worked so hard for, have always stopped me from taking risks. This way, I missed on some really big opportunities, the latest being late of the cryptocurrency craze.
But as somebody who wants to travel the world together with his family, just saving and not putting the saved money to work is rarely going to make it, especially when the monthly savings are not that impressive. So I have to risk a bit (while still being smart about it) and try various things. One of the first that I decided to try is Mintos – a peer to peer lending platform, which is a bit ironic considering my actual fear of getting loans. Sure, I am lending, not getting a loan, but still…
Why did I decide to invest on Mintos?
There are glowing reviews of the platform, it is considered very safe, there are reports from people making decent money from investing on Mintos and I also have a few online friends that I trust and follow who have been with Mintos for a while and are satisfied. Plus, you don’t have to invest a large amount of money in order to see how it works. These are the main reasons why I decided to give Mintos a try.
I actually started by testing the water with a minimum investment: just 10 Euros. And after seeing that they weren’t automatically swallowed by the platform and stolen away from me, I sent a bit more. I ended up with a bit over 500 Euros in my Mintos account, which was enough for starters. Then, I began investing in loans and, to my surprise, the returns were far better than I had anticipated as you can see in my snapshot overview below:
Sure, almost 10% per year with 500 Euros invested is not going to buy me a private island anytime soon, but it’s extra money that I’m getting with minimal work and which I wouldn’t have gotten by following the box near my bed method. 10% is actually an amazing return and the numbers can get impressive if you have more money to invest!
So, for now, I can say that I am extremely happy that I have signed up with Mintos. You can sign up too if you haven’t done so already – don’t be like me and turn this into a missed opportunity!
How does Mintos work?
First of all, Mintos does not work for US citizens – at least not at the moment. You must be located in the European Union, Russia or countries currently considered to have AML/CFT systems equivalent to the EU.
Once you create your account, which requires some basic verification (ID cards, proof of address) you can log in to your account and start investing. In order to do so, you will need to transfer some money to your Mintos account which can be done in various currencies and using various methods:
As you can see in the screenshot above, you can deposit EUR or USD, but also GBP, RUB, DKK, CZK, GEL, KZT, PLN or SEK. You can also use Mintos’ own currency exchange platform if you want to change currencies. I have never used it, personally, but I checked it out and the rates seemed fair to me. But it’s definitely better to deposit a currency and invest it in order to minimize losses due to taxes and exchange rates.
The money can be transferred using various methods (I always used Transferwise) and it might take a couple of days for the money to actually get to your Mintos account. Make sure that you use your indicated Investor ID when sending the money (the instructions are very clear on their website).
Next, once you have the money, you can start browsing through hundreds of thousands of loans and invest. The minimum amount you can invest is 10 Euros (and probably equivalents in various other currencies) and you have tons of options to narrow or widen the result counts, including the duration of the loan, the type of loan and Buyback Guarantee among many other:
The buyback Guarantee is what adds an extra layer of safety. This means that if the person or company receiving the money goes late with their payments, the company issuing the loan will pay you instead – not only the amount you have invested, but also the interest earned. In other words, you will only lose money if the company that issues the loan goes bankrupt, which probably shouldn’t happen that often. But with over 50 companies present on Mintos, based in different countries and operating for years, you can further diversify your loans and minimize the risks even more. It’s probably one of the best offers you can get!
And things are even easier: if you don’t want to manually go through all the loans and invest, you can set up automatic investment strategies and let the platform make the investments for you. This is something I am starting to experiment with right now, after doing everything by myself until now:
Mintos has a few strategies set up by default, but if you want to you can customize and create your own. You have full control even with auto investments, but save up some extra time:
Is Mintos safe?
As I said in the intro, I am still going for the lowest possible risks available when it comes to investing my money. I consider Mintos to be extremely safe – and that is why I personally decided to invest on this platform.
The fact that you can invest as much or as little as you want – and diversify through tens of loans or more, since the minimum investment in a loan is 10 Euros, gives you the opportunity not to put all your eggs in one basket and minimize losses if anything goes terribly wrong. Even if the people who get the money won’t pay, you will still get your money since you should only invest in loans with a buyback guarantee.
Sure, there is always the risk that one of the companies will go bankrupt due to unforeseen circumstances, but there are over 50 companies on the platform and Mintos adds new ones regularly. This means that you can further diversify your loans, working with each of the listed companies and minimizing the risks even more. Plus, each company has a risk rating associated to it, so you can always skip the riskier ones as well.
Are there risks? There always are risks when it comes to investing and you never know what happens tomorrow, but I consider Mintos to be extremely safe. I am not a financial advisor though and you’re the only one responsible for your decisions so make sure you do more research if you still have questions following my article.
If not and if you want to add a steady flow of income and put some of your savings to work, sign up for Mintos now and give it a try. I am extremely happy with how it all went so far and I will make sure to publish constant updates so that you always know if it’s still working or not.