Why might an investor choose to peer-to-peer lend?

An investor might choose to peer-to-peer lend primarily to directly connect with borrowers, which can lead to potentially higher returns compared to traditional investment avenues. Peer-to-peer lending platforms facilitate a marketplace where lenders can engage with individual borrowers, allowing the investor to set the terms of the loan and choose whom to lend to based on desired interest rates and risk profiles. This ability to connect directly with borrowers not only provides opportunities for higher yields but also allows for a better alignment of the investor’s criteria with the borrower's needs.

Moreover, by selecting specific loans that match their risk tolerance and investment strategy, investors can construct a diversified portfolio within the peer-to-peer lending space that could enhance overall yield. This direct engagement with the borrowing side of the transaction is a defining feature of the peer-to-peer lending model and is often attractive to investors seeking to maximize their income through interest payments.

The other options do not adequately capture the essence of peer-to-peer lending. Avoiding market risks is not entirely feasible in this context, as the peer-to-peer marketplace can still be influenced by broader economic factors. Investing solely in crypto assets doesn't relate to lending practices, and while certain strategies can minimize exposure to interest rates, peer-to-peer lending specifically does not provide a means to completely avoid them