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Review of MyConstant – diversify with P2P investing

If you have been thinking of diversifying into alternative investments, and peer-2-peer investing is on your list, then check out this review of MyConstant.MyConstant logo

Name:MyConstant
Services:Cryptocurrency loans and income services
Price/Fees:No fees for lenders or borrowers (partners may charge wire transfer fees)
Website:https://www.myconstant.com/
Main features:3 basic products i) pooled lending, ii) peer2peer lending, iii) crypto liquidity lending
My rating:4/5

Affiliate Disclosure: This article contains affiliate links. If you click on a link and buy something, I may receive a commission. You will pay no more so please go ahead and feel free to make a purchase. Thank you!



Executive Summary

MyConstant is a US-based cryptocurrency peer-2-peer investing and lending platform.

For investors, MyConstant has three products:

  • Instant Access is an investing pool that pays 4% APY where you can withdraw your funds anytime with no penalty.
  • Crypto-backed is an investment product where you choose to lock up your funds from 1 to 6 months. 1 month will earn you 6% APY while 6 months will earn you 7% APY.
  • Crypto-lend is where your cryptocurrency provides liquidity to the markets. You earn 4% APY and can withdraw at any time.

The advantage for investors is you gain access to much higher rates of fixed return than are available from other sources such as certificates of deposit, and you can diversify your portfolio into cryptocurrencies as alternative investments.

For borrowers on MyConstant, you put up your cryptocurrency as collateral, and the platform loans you either in cryptocurrency or fiat currency charging you interest. The loan approval process is much simpler than with conventional sources of loan capital.

The MyConstant platform also has 24-7 customer support, charges no fees, and has a library of helpful online educational financial materials.

However, MyConstant uses partner organizations as custodians and exchanges. ACH transfer fees do apply. Also, MyConstant is a young and growing company. Customer complaints show that they have struggled at times with processing requests for withdrawals. On the positive side, MyConstant engages and responds to all customer complaints and seeks to resolve any issues.



MyConstant Instant Access

Open an Instant Access account with MyConstant and your funds will be earning interest every second of the day and night. You receive 4% APY constantly compounded and updated to your account balance.

Make withdrawals anytime, there are no fees. The minimum investment is $10 and there is no maximum. You also receive a $15 reimbursement for any wire transfer of $1,000 or more.

With an Instant Access account, your rate of interest beats the rate on a savings account by a factor of fifty times and you still have access to all your funds at any time with no fees, hidden costs, or penalties.

Your funds will form part of a collateralized lending pool from which borrowers can take out loans then pay interest on those loans. Your deposit is protected because MyConstant monitors the value and exchange rates of the components of the pool calling in collateral on loans if the value drops to preset threshold levels.

MyConstant is a US-based cryptocurrency company. It is not a bank or a financial institution that is covered by the Federal Deposit Insurance Corporation or FDIC. However, MyConstant manages its assets and liabilities to ensure that your deposits are protected.


MyConstant Crypto-backed

If you are able to tie up your funds for fixed terms, MyConstant crypto-backed investments will pay you higher rates of return. This is peer-2-peer investing and lending. The rates and terms available are:

  • 5% APY for 30 days
  • 6% APY for 60 days
  • 7% APY for 180 days

The minimum investment is $50 and there is no maximum. Like with the Instant Access account, MyConstant cashback $15 for each deposit equal to or larger than $1,000

MyConstant protects your investments by requiring borrowers to put up 150 to 200% of the sum they borrow, depending on the types of cryptocurrencies they are using as collateral. MyConstant sells the collateral if the borrower defaults on the loan or if the value of the collateral drops to a threshold level set to 110% of the loan plus any unpaid interest. This is not the same as FDIC coverage but it does give investors confidence that their funds are protected.



MyConstant Crypto lend

MyConstant crypto lend is another product that gives you instant access to your funds. With Crypto lend you are putting up your cryptocurrency to provide liquidity to crypto exchanges and lending pools. For your Bitcoin/BTC, Ethereum/ETH, or Binance Coin/BNB you will earn 4% APY. Interest is accrued to the balance on your account every second round the clock.

An account minimum of 0.001 BTC applies. MyConstant also applies a maximum of $3 million on these accounts. You can withdraw funds at any time with no fee or penalty.


MyConstant for borrowers

Borrowing on MyConstant can be achieved in a matter of minutes. You use any combination of up to 71 cryptocurrencies as collateral. You choose whether your loan has a 30-day, 60-day, or 180-day term. You choose whether you want to receive your loan in cryptocurrency or in fiat currency. There are no fees. Your funds are held in secure escrow using smart contracts and Prime Trust. This way your collateral is protected and MyConstant can return it to you as soon as you repay your loan without delay. There are no background checks or credit score checks.


Promotions


If you are interested to give peer-2-peer investing a try MyConstant currently has a free trial offer. With this promotion you open an account, MyConstant will credit your account with $4,000. You will experience compounding interest for 15 days. At the end of the 15 days, MyConstant reclaims the $4,000 but the interest earned stays on your account. This offer only applies to US citizens and is for a limited time.


Referral program

As a US citizen, if you sign up friends or acquaintances for MyConstant you will also earn a $10 bonus once they have passed Know Your Customer, or KYC requirements and deposited at least $10. You will also earn 10% of the interest they earn during their first year of investing with MyConstant.


Protections and risk

It would be untrue and misleading to claim that there is no risk in this investment model. There is always risk involved in any type of investment. However, MyConstant is very careful about which cryptocurrencies it accepts as collateral, ensuring that only liquid assets are held that can be sold instantly should the need arise.


Transfer times

It is important to note that MyConstant is not a bank and it uses partners as custodians of fiat currencies and cryptocurrencies. This is intended to add extra layers of protection for both customers and for MyConstant.

The effect though is that transfer processes, in particular, ACH transfers can take a number of business days.

While MyConstant does not charge fees, their partners often do. In particular, you will be charged fees for ACH transfers.


Customer reviews


MyConstant is registered on Trustpilot and there are many customer reviews. I read through all the bad ones and all of them had responses from MyConstant and attempts from MyConstant to resolve the issue.

Many of the very positive reviews are quite short and from people who seem new to the platform.

However, there are many elements to investing with MyConstant that you should carefully consider before taking the plunge. Firstly, it seems to me that transfers take time and often more time than anticipated and you have to understand the process to avoid making any mistakes.

From the complaints, it seems that customers often have problems if they try to cancel or change a transfer before it has gone through and been verified. It seems advisable to read and carefully follow all instructions. It also seems that you need to have reasonable expectations of the time it takes to process transfers. If you experience problems then reach out to their customer service. It does look as if MyConstant seeks to resolve these issues though.

A number of complaints also related to transfers using Zelle. MyConstant has stopped using Zelle.

It also looks as if MyConstant was understaffed at times during 2020. Both MyConstant and some of their partners were having trouble keeping up with the volume of requests for withdrawals.

Some borrowers also complained about losing their collateral when MyConstant sold it to cover the loan. There is a risk of this happening during flash crashes. You should be aware that flash crashes happen from time to time in the cryptomarkets.

Generally, MyConstant takes all feedback whether positive or negative and tries to use it to correct issues and grow the company.

If you are unsure about this area, this article explains more about cryptocurrency exchanges.

You will probably also have heard of the term blockchain, in connection with cryptocurrencies.

This article explains blockchain technology and the differences between Bitcoin and Ethereum.


I hope you found this article interesting and useful. Do leave me a comment, a question, an opinion, or a suggestion and I will reply soonest. And if you are inclined to do me a favor, scroll down a bit and click on one of the social media buttons, and share it with your friends. They may just thank you for it.

You can also subscribe to email notifications. We will send you a short email when a new post is published.


Disclaimer: I am not a financial professional. All the information on this website and in this article is for information purposes only and should not be taken as personalized investment advice, good or bad. You should check with your financial advisor before making any investment decisions to ensure they are suitable for you.


Affiliate Disclosure: This article contains affiliate links. If you click on a link and buy something, I may receive a commission. You will pay no more so please go ahead and feel free to make a purchase. Thank you

 

MyConstant

8

APY

9.0/10

Customer reviews

7.0/10

Client responsiveness

8.0/10

Pros

  • Ease of use
  • High APY
  • Secure custodial arrangements
  • Diversify into P2P investing

Cons

  • Young company growing pains
  • Transfers take time

Share and Enjoy !

Shares

Andy

22 Comments

  1. Hi Andy, I have looked into peer-to-peer lending a few years ago, but was worried about losing my investment, so didn’t pursue peer-to-peer lending more at the time. I have not come across My Constant before, so found this post to be very interesting and helpful. 

    You mention that the introductory offer is only available to US citizens. So as a non-US citizen, can I not use the platform at all, or is it just that I would not qualify for the $4,000 trial?

    • Hi Line, thanks for the comment. Anyone can sign up with MyConstant and invest or borrow whether you are a US citizen or resident or you are a national and resident of another country. All you need is an internet connection, an account with a bank or other financial institution that can make transfers and you have to be able to prove your identity in line with Know-Your-Customer KYC requirements. KYC requirements are designed to prevent money laundering and other kinds of financial fraud. I hope this helps. Best regards, Andy

  2. Hi Andy. Thank you for very interesting review. I was looking for some ways of investing money, and your post for sale will safe me lot of time. Mycostant platform seems trustful, opinions are quite positive and offer they are presenting seems quite interesting. Especially Crypto-lend is very innovative product and return of investment is decent. Looking forward to test it in practice.

    • Hi Cogito. Thanks for the comment. Yes, peer-to-peer lending is quite innovative and an interesting way to diversify your investments. I am also testing how it works in practice. Best regards, Andy.

  3. Thank you for the very Informative review. I am a skeptical when it comes to crypto currency. This has opened my eyes some for sure. It’s possible crypto currency is something to Investigate and not be afraid of. I personally have always been very apprehensive about Investing. Your review here is going to make me open up and think outside the box about crypto Investing. 

    • Hi Jim and thanks for the comment. I think it is right to be cautious. If you are nervous about crypto but considering starting anyway, then I would suggest starting small. Good luck, Andy

  4. Hello,

    This is is very detailed. It’s well presented and organized, and yes, I found it to be very interesting and helpful. 

    I did not know about MyConstant before, I like the fact that the this platform also has 24-7 customer support, charges no fees, and has a library of helpful online educational financial materials, as you mentioned. 

    This is awesome.

    • Hi Kokontala and thanks for the comment. I am trying out MyConstant myself and when I have gathered more direct experience I will update the review. Best regards, Andy

  5. This is interesting…I didn’t know that you could get loans paid back in crypto…As I’m not a US citizen and don’t reside in the States, this wouldn’t apply to me.  However, MyConstant sounds like the beginning of a flurry of investment companies that will allow people to do transactions in crypto.

    I’m still not au fait with cryptocurrency, but fortunately, one of my neighbours is educating people in our area about crypto and Bitcoin.  This is very useful, and I’m sure I will learn a lot.

    Thanks for sharing!

    • Dear Stella, thanks for the comment. The only requirements to invest in MyConstant is that you are a real person who can prove your identity with some government-issued photo-ID such as a passport or drivers license and that you have an account with another financial institution such as a bank that you can make transfers from into and out of MyConstant. So if you are looking to invest in peer-2-peer lending and you meet those criteria, you can sign up and invest. Best regards, Andy

  6. Thanks for this information as I was not previously aware of this cryptocurrency platform. I like the higher rates of fixed return here. I also like the borrowing aspect available here. Also, 24/7 customer support is a valuable benefit of this platform as well. The educational library is also a big plus. I am definitely going to look further into the MyConstant program. 

  7. I landed on your post because I was searching about Crypto-lending. I have been exploring several options and I liked MyConstant very much. One of the first platforms that made me realize that I could have my cryptos earning for me, instead of just sitting in my wallet was BlockFi. But MyConstant seems better in a couple of features.

    • Hi Ann and thanks for the comment. From what I see BlockFi looks very similar to MyConstant in terms of products. I guess the differences will come down to how efficiently the transfer processes work and custodial arrangements. That will depend to an extent on the partners each works with. Best regards, Andy

  8. Hey there Andy,

    This is a great and thorough review of MyConstant. It seems like a really nice platform with great products. I really like the peer to peer investing product and the current special that they have. It is a pity though that it is only available to US citizens, I am from South Africa. The other concern is the fact that they are still a new platform and transactions and pay outs are slow.

    Regards

    Lawrence

    • Hi Lawrence and thanks for the comment. As an investor, the MyConstant platform is open to anyone who can prove their identity and who has a bank account that can be linked for transfers. So it is not limited to US citizens or residents. You are right that it is a new platform and showing some of the common growing pains associated with new companies. Best regards, Andy

  9. To be honest, personally, I am reluctant to invest any money in crypto at all at the moment now that the giants have taken control of it by buying up the stocks. They now control its rise and fall which goes against the main benefit of decentralization in the first place. Always a big guy manipulating all the little guys in there?

    • Hi, and thanks for the comment. I agree that the crypto markets for the big and popular tokens are now dominated by big institutional money. But I wouldn’t conclude that their objective is to make it difficult for small investors. I think the big institutions are just motivated by making their own profits. That could suggest that more and more of the price action of large popular cryptocurrencies is going to be driven by automated trading algorithms. You could make the counterargument that this is likely to mean it could be easier to spot and project levels of price support and resistance. I do think they are still very speculative so not necessarily an investment, but speculation. Best regards, Andy

  10. Hey Andy, thanks for sharing this article about MyConstant. Nowadays, a lot of people aren’t very familiar with cryptocurrency and have trouble making informed decisions when investing in this. But this article is great for those who are living in various parts of the world including the US. I don’t have much personal experience with crypto investing but I found your review very informative and useful. What are some benefits to investing in cryptocurrency?

    • Hi Gabriel, thanks for the comment.

      I think the benefits of investing in cryptocurrency are still potentially very considerable gains if you are lucky. However, because plenty of institutional funds have now moved into cryptos the days of the astronomical gains may be gone. In this case, it makes sense to use whatever cryptocurrency holdings you do have to try to earn from them by one of the methods explained in the article – either staking or loaning to investment pools, or peer-2-peer lending. Others may say that another benefit of holding funds in cryptocurrencies is the possibility of anonymity. However, that only really makes sense if you are trying to hide funds and there aren’t any legitimate, legal reasons for doing that.

      I do think cryptos are still high-risk and speculative though, so I would keep exposure manageable. Best regards, Andy

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