Yes so… 52M Youhodler…Many of you have requested a comparison between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that allow you to earn interest on your cryptocurrencies and stablecoins. As requested, in this video, we will be comparing the business design of specific platforms, the return rates, the credibility and track record, functionality 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 struck the like button to see more content like this in the future. Let’s first provide you a short intro to every platform prior to we dive deeper into the contrast. Celsius Network is the fastest-growing crypto loaning platform on the planet, which was founded in 2017 by Alex Mashinsky. Currently, there are over 650,000 users utilizing Celsius Network to make or take a crypto loan interest on their cryptocurrencies and stablecoins. In total, Celsius manages more than $17 B worth of properties. The platform provides its services worldwide, nevertheless, they are currently not providing loans in the United States due to local policies. BlockFi is the biggest
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The platform uses crypto-backed loans in 47 US states and their crypto interest account is readily available worldwide with exception of approved nations. Nexo is another European platform that offers crypto enthusiasts the option to make interest not just on their coins however likewise fiat deposits. Nexo is in reality, one of only two, to us known, crypto lending platforms that offer interest on fiat deposits.
And the platform is likewise preparing to introduce a BlockFi credit card which will generate another income stream. Like all the other platforms, Nexo likewise takes a cut from the interest that is being paid by the customers. That’s at least our interpretation from Nexo’s company design as the platform doesn’t have A devoted section about
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this on their site. Now let’s discuss the returns. If you are watching this video, you wish to earn money by depositing your coins on among the platforms right? Before we compare the rates, there are a few things that you must think about. When it comes to providing interest on your coins, every platform has certain limits and terms. For example, Celsius Network alters the rates every week to show the current market scenario. Likewise, you are just able to make greater rates if you choose to receive the interest in Celsius’s own energy token. The higher reward rates are likewise not readily available for United States people. If you would not wish to pay out your benefits in the CEL token, you can currently 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 on the number of your properties. The more bitcoin or ethereum you deposit, the less interest you will receive. The interest rate for Ethereum ranges in 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 currently at
9% annually. What deserves discussing is that if you wish to save some costs, and bring more stability into your crypto interest account, you can also deposit the Binance USD coin for which you will not need to pay the substantial gas charge, as the currency works on the Binance Smart Chain with method lower charges in contrast to stablecoins that operate on the ethereum network. The Binance USD coin is presently just supported on Celsius Network and BlockFi. YouHodler provides presently the most competitive rates for your USDC coins without the requirement to stake the platform’s own utility tokens. You can earn 12% interest on your USDC holdings and the platform offers 5.5% on Ethereum and 4.8% on your bitcoin deposits. Nexo is another platform that uses greater rewards for those who want to get 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 ought to remember is that platforms tend to adjust the rates from time to time, so you can’t really predict the genuine return from your deposits. Likewise, keep in mind that by depositing your crypto, the worth of the currency might reduce Which will make it hard for you to liquidate your properties if that’s something you would otherwise consider. Now, that you are conscious of the returns let’s briefly review the credibility 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 popular entrepreneur. Prior to releasing the Celsius network, he has actually co-founded 3 start-ups worth more than $1 Billion each. On the Celsius App, you are likewise able to keep track of the progress and evaluate some of the data. As we are tape-recording this video, there are over 650,000 users and the platform is handling $17 billion worth of properties. Alone in the last 12 months, Celsius has 52M Youhodler
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The platform is not transparent when it comes to sharing its monetary reports, but 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 profitable. BlockFi is likewise financed by many institutional investors and the platform is primarily targeting the United States market. According to our research, it appears like he has moved to Switzerland to introduce his crypto lending platform YouHodler in 2017.
deposit amount as compared to the users on the Celsius Network. We are not delighted about Nexo’s reporting standards as we have actually explained together with other red flags in our previous video. At the beginning of January, Nexo had just $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 think is a bit of a high development even if we think about the buzz in the crypto space. So what about Nexo’s management? Nexo is co-founded by Antoni Trenchev and Kosta Kantchev. Based on our research study, Antoni was a Bulgarian politician with experience in the style Retail market. On his LinkedIn profile, he explains Nexo as the leading controlled banks for digital properties. I would be really interested by whom Nexo is managed, as the business doesn’t have a loaning license in Estonia, where they are a legal entity Nexo Solutions OU is based. During our research, we discovered connections to Bulgaria, Estonia, the UK, and the Cayman Islands however their legal address is nowhere to be discovered on the site. The 2nd co-founder of Nexo is Kosta Kantchev who also founded Credissimo, a Bulgarian payday advance company that apparently is funding Nexo. According to our recent research, the executive board doesn’t even include Antoli, however just Kosta and 2 other gentlemen, from which one is William Arthur Vesilind who was formerly the executive director at TrustBuddy, a Swedish p2p loaning platform, which is understood for the “abuse of clients cash”. When reviewing some of Nexo’s comments from the CEO
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in the media, he is typically only promoting crypto and forecasting costs but does not have any much deeper insights into the crypto loaning space or how Nexo is running. That’s simply our impression from his Bloomberg talks. Likewise, Nexo is the only platform that uses interest on fiat. According to our understanding, you can not offer interest on fiat deposits unless you have a banking license which Nexo certainly does not have. Even though we are not legal representatives, we struggle to understand the legal setup under which Nexo is providing its services. Now that we have actually examined some of the track records of the 4 mentioned platforms, let’s briefly go over the use of every crypto financing website. Celsius has started as a native mobile app. The app is well established and it comes with different security features such as the biometric scan, HODL mode, and 2FA. Right in the control panel, you have the ability to see how many possessions you are holding and what are the currently offered rates. You can move and withdraw supported coins but there is no exchange, so if you do not deposit your cryptos from another wallet, you can buy them straight through the app. Note, nevertheless, that there might be fees for credit card purchases or SEPA transfers. Celsius Network supports presently 40 digital assets. BlockiFi makes a less industrialized impression. The app is extremely simple therefore is the desktop version of the platform. BlockFi supports presently only 10 digital currencies. The platform likewise uses a dedicated exchange so you can even trade them. We do not suggest this function that much as the currency exchange rate are not the very best. While the crypto loans on BlockFi are only offered to U.S. residents, the platform is likewise working on a Bitcoin benefits credit card which will be taking on the credit card from Crypto.com YouHodler uses some of the most advanced services amongst the crypto loaning platforms. Currently, the platform supports 18 digital
YouHodler is also one of the platforms with flexible loan terms and an optimum LTV of 90%. Now you have an actually strong idea of what every crypto loaning platform is offering. What you must think about however, is that as quickly as you deposit your crypto on any platform, you are not owning your private secrets any longer and your properties might get jeopardized either by 3rd celebrations or by the platform itself. 52M Youhodler
give up your ownership of the possessions as long as you hold them in the platform’s wallet. The only method to protect your crypto is to store it on a dedicated hardware wallet like this one from Trezor. That’s the best method to keep your cryptos safe. The downside of this strategy is that you will just gain from the increased worth of your coin but not the interest on your deposits, which is something you can do on among the crypto loaning platforms. However, similar to any financial investment, it always boils down to the danger and return and your danger profile. So based upon our in-depth comparison, let’s have a look at our independent ratings of every category for every single platform. Note, that we have appointed the scores based upon our own research study. One represents the most affordable rating while 5 stands for the highest score. Within the business model category.