There are a lot of new features at Crowdestate during the last few weeks. After I did an update not long ago, secondary market has been released. Nice thing to offer a possibility to liquidate to the investors. Firstly I want to tell you some things about the autoinvest feature, as you have only slight chances to invest manually on the primary market, despite the recent increase of new projects.
Projects yielding about 10 percent or more with a volume below 1 million Euro it is hard to bid manually, as all is sucked up by autoinvest settings nearly instantly. This means that sometimes not all investors using an autoinvest get their bit of the project if the demand is too big (which happened to me before). As per Crowdestate’s statement older (date of inception) are prefered to newer autoinvests. So I suggest you set up an autoinvest immediately after sign up. I set my autoinvest very wide barriers. All types of projects which yield at least 12 percent and have a duration of less then 24 months are allowed to invest. Maybe I will increase the duration as I got a secondary market at disposition. As new projects are announced 24 hours prior the first capped bids can be made, I still have a chance to pause my ai for that project if I dislike it (I am not sure if this would change my ai’s inception date though, but I don’t think so). Given there is only one project added at the time being. As per mentionned reasons I relinquish to fine tune my autoinvestment settings. But you can set it really subtle if you like to.
Secondary market is (still) lucrative
This week I discovered the secondary market randomly, I do not remeber having received a message about the implementation by Crowdestate. For the fun of it I put my project up for sale which I invested in a week earlier, with a premium of 2 Euro, which is 2 percent on my 100 Euro investment. I did not check if it has sold, and did not receive a confirmation. About 2 hours later I have received a message that my bid to the new project which went open for capped bids in the meantime was confirmed. In the background my sale went through within minutes and my autoinvest hit again with the money I just received form the sale. With a holding period of one week and an investment of 100 Euro I made 2 Euro, annualised the return would be over 100 percent. It is senseless though, as 2 Euro remain 2 Euro, annualised or not ;). As I had now another project in my portfolio I waited until it was sellable and tried to repeat. And voila, it sold this time for a premium of EUR 2.50 in less then a day. I pulled that one again, but with a premium of EUR 3.50. Of course it is not worth the hassle, but my play instinct awoke. I really hope this market situation does not last long as it prefers older investors over newer ones which is unfair. As I told you now about this possibilty I guess it will be over shortly anyway. As more people try this strategy, the lower prices should get, which would be fair.
Seling and purchasing is free at the moment, hopefully it stays like this. To be able to sell a project it needs the status as settled, then you can set the price by clicking sell. You need to confirm the sale by a code which you get delivered on your mobile phone.
I like Crowdestate more and more. I do hope that the supply of new loans increases, and of course we do not see big defaults. Follow me to Crowdestate’s registration.