Looking for How Safe Is Youhodler…Many of you have actually requested a comparison between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that enable you to make interest on your stablecoins and cryptocurrencies. As requested, in this video, we will be comparing the company design of specific platforms, the return rates, the credibility and track record, usability of their apps and we will also talk about some of the threats that you ought to consider when depositing your crypto on one of these platforms.
consider subscribing and hit the like button to see more material like this in the future. So let’s first give you a quick intro to every platform prior to we dive deeper into the comparison. Celsius Network is the fastest-growing crypto financing platform in the world, which was founded in 2017 by Alex Mashinsky. Currently, there are over 650,000 users utilizing Celsius Network to take a crypto loan or make interest on their cryptocurrencies and stablecoins. In total, Celsius manages more than $17 B worth of properties. The platform offers its services worldwide, however, they are currently not releasing loans in the United States due to local policies. BlockFi is the largest
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The platform offers crypto-backed loans in 47 US states and their crypto interest account is available worldwide with exception of sanctioned nations. Nexo is another European platform that provides crypto lovers the option to make interest not only on their coins but also fiat deposits. Nexo is in reality, one of just two, to us understood, crypto financing platforms that offer interest on fiat deposits.
let’s speak about how they earn money in the first place. So Celsius makes money from the interest they credit the borrowers which are either retail borrowers or institutions, they likewise make money from their CEL token which is an utility token that you can use to increase your rewards on Celsius Network. Another earnings stream is the rehypothecation which suggests that Celsius utilizes the collateral from the borrowers and deploys it in order to generate extra earnings. BlockFi is likewise earning money through the interest that is being credited debtors. In addition to that, the platform also charges a 2% origination charge for anybody who wants to take a loan. Another income stream is BlockFi’s exchange function. The platform makes money from the spread when exchanging currencies. BlockFi likewise charges withdrawal charges after your one totally free withdrawal per month. And the platform is likewise preparing to launch a BlockFi credit card which will produce another earnings stream. YouHodler is also making money from the interest credited customers. There is a small withdrawal fee and costs for extra services such as the Multi HODL tool, which is a function that lets you take advantage of your crypto possessions in exchange for possible returns. Like all the other platforms, Nexo likewise takes a cut from the interest that is being paid by the borrowers. Nexo likewise makes revenues with their Nexo token. That’s at least our interpretation from Nexo’s organization model as the platform does not have A devoted section about
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this on their website. Now let’s speak about the returns. If you are seeing this video, you want to make money by transferring your coins on one of the platforms right? Before we compare the rates, there are a couple of things that you ought to think about. Every platform has specific limitations and terms when it pertains to using interest on your coins. For example, Celsius Network alters the rates every week to show the present market circumstance. You are just able to make greater rates if you decide to receive the interest in Celsius’s own energy token. The greater reward rates are likewise not available for US citizens. If you would not want to pay out your rewards in the CEL token, you can presently anticipate to get 5.05% on your Ethereum, 3.51% on your Bitcoin, and 10% interest on your deposits in Binance USD or USDC which is the stablecoin from Coinbase. On BlockFi, the rate for your Ethereum and Bitcoin deposits depends upon the number of your possessions. The more bitcoin or ethereum you deposit, the less interest you will get. The rates of interest for Ethereum varieties between 0.5% and 4.5%, the rate for bitcoin is in between 0.5% and 5%, and the rate for the two stablecoins is presently at
9% per year. What’s worth pointing out is that if you want to conserve some costs, and bring more stability into your crypto interest account, you can also transfer the Binance USD coin for which you will not need to pay the significant gas fee, as the currency runs on the Binance Smart Chain with way lower charges in comparison to stablecoins that run on the ethereum network. The Binance USD coin is presently only supported on Celsius Network and BlockFi. YouHodler offers currently the most competitive rates for your USDC coins without the need to stake the platform’s own energy tokens. You can make 12% interest on your USDC holdings and the platform provides 5.5% on Ethereum and 4.8% on your bitcoin deposits. Nexo is another platform that uses higher rewards for those who want to receive the interest in the native NEXO tokens instead of the deposited currency. The platform provides 6% for non-Nexo token holders on bitcoin and ethereum and 10% on the USDC coin. What you must remember is that platforms tend to change the rates from time to time, so you can’t truly predict the real return from your deposits. Keep in mind that by depositing your crypto, the value of the currency may decrease Which will make it hard for you to liquidate your assets if that’s something you would otherwise consider. So now, that you are aware of the returns let’s briefly review the trustworthiness of the platforms and their track record. Celsius Network is most likely the most legitimate platform in this area. The founder Alex Mashinsky is a well-known entrepreneur. Prior to introducing the Celsius network, he has co-founded three startups worth more than $1 Billion each. On the Celsius App, you are also able to monitor the development and evaluate some of the stats. As we are tape-recording this video, there are over 650,000 users and the platform is managing $17 billion worth of possessions. Alone in the last 12 months, Celsius has How Safe Is Youhodler
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The platform is not transparent when it comes to sharing its financial reports, however with a little bit of digging, you can get your hands on the monetary report for 2020, where you will find out that the platform is not successful. BlockFi is also funded by numerous institutional financiers and the platform is primarily targeting the US market. According to our research study, it appears like he has actually moved to Switzerland to introduce his crypto lending platform YouHodler in 2017.
At the beginning of January, Nexo had only $4B under its management from 1 M users, now 5 months later, the platform claims to handle $12B from 1.5 M users, which we believe is a bit of a high growth even if we consider the hype in the crypto space. The second co-founder of Nexo is Kosta Kantchev who also founded Credissimo, a Bulgarian payday loan business that apparently is financing Nexo. According to our recent research study, the executive board does not even consist of Antoli, but only Kosta and 2 other gentlemen, from which one is William Arthur Vesilind who was previously the executive director at TrustBuddy, a Swedish p2p financing platform, which is known for the “abuse of clients money”.
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Nexo is the only platform that provides interest on fiat. Now that we have actually examined some of the track records of the 4 mentioned platforms, let’s briefly go over the functionality of every crypto financing website. While the crypto loans on BlockFi are just offered to U.S. citizens, the platform is likewise working on a Bitcoin rewards credit card which will be contending with the credit card from Crypto.com YouHodler uses some of the most innovative services among the crypto financing platforms.
YouHodler is likewise one of the platforms with versatile loan terms and a maximum LTV of 90%. Now you have a really strong idea of what every crypto financing platform is offering. What you must think about however, is that as quickly as you transfer your crypto on any platform, you are not owning your private keys anymore and your possessions may get compromised either by third parties or by the platform itself. How Safe Is Youhodler
The only method to protect your crypto is to store it on a devoted hardware wallet like this one from Trezor. The disadvantage of this method is that you will only benefit from the increased value of your coin but not the interest on your deposits, which is something you can do on one of the crypto financing platforms. Based on our in-depth comparison, let’s have an appearance at our independent scores of every category for every platform.