Yes so… Bitcoin Flash Loan…Numerous of you have actually asked for a comparison in between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that enable you to earn interest on your cryptocurrencies and stablecoins. As asked for, in this video, we will be comparing the company model of private platforms, the return rates, the trustworthiness and track record, functionality of their apps and we will also talk about some of the risks that you ought to think about when transferring your crypto on one of these platforms.
Let’s first provide you a brief intro to every platform before we dive deeper into the comparison. Celsius Network is the fastest-growing crypto lending platform in the world, which was established in 2017 by Alex Mashinsky. The platform offers its services worldwide, nevertheless, they are presently not providing loans in the United States due to local policies.
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The platform provides crypto-backed loans in 47 US states and their crypto interest account is offered around the world with exception of approved countries. Nexo is another European platform that offers crypto lovers the alternative to make interest not only on their coins however also fiat deposits. Nexo is in truth, one of only two, to us known, crypto loaning platforms that offer interest on fiat deposits.
And the platform is likewise planning to introduce a BlockFi credit card which will create 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 service design as the platform doesn’t have A dedicated area about
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this on their website. Now let’s discuss the returns. If you are watching this video, you wish to earn money by transferring your coins on among the platforms right? Before we compare the rates, there are a few things that you should consider though. Every platform has certain limits and terms when it concerns providing interest on your coins. For example, Celsius Network alters the rates every week to reflect the present market scenario. Likewise, you are only able to earn greater rates if you choose to receive the interest in Celsius’s own utility token. The greater benefit rates are also not readily available for US citizens. If you would not wish to pay out your rewards in the CEL token, you can presently expect 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 variety of your properties. The more bitcoin or ethereum you deposit, the less interest you will get. The rates of interest for Ethereum ranges in between 0.5% and 4.5%, the rate for bitcoin is between 0.5% and 5%, and the rate for the two stablecoins is presently at
9% per year. What’s worth discussing is that if you want to save 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 substantial gas charge, as the currency operates on the Binance Smart Chain with way lower charges in contrast to stablecoins that work on the ethereum network. The Binance USD coin is presently only supported on Celsius Network and BlockFi. YouHodler offers presently the most competitive rates for your USDC coins without the requirement to stake the platform’s own utility tokens. You can make 12% interest on your USDC holdings and the platform uses 5.5% on Ethereum and 4.8% on your bitcoin deposits. Nexo is another platform that provides greater rewards for those who wish 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 need to remember is that platforms tend to adjust the rates from time to time, so you can’t really predict the real return from your deposits. Keep in mind that by depositing your crypto, the worth of the currency may reduce Which will make it hard for you to liquidate your properties if that’s something you would otherwise consider. Now, that you are mindful of the returns let’s briefly review the trustworthiness of the platforms and their track record. Celsius Network is most likely the most genuine platform in this area. The creator Alex Mashinsky is a widely known entrepreneur. Prior to launching the Celsius network, he has co-founded 3 start-ups worth more than $1 Billion each. On the Celsius App, you are also able to keep track of the development and review a few of the statistics. As we are tape-recording this video, there are over 650,000 users and the platform is managing $17 billion worth of assets. Alone in the last 12 months, Celsius has Bitcoin Flash Loan
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deposit amount as compared to the users on the Celsius Network. We are not thrilled about Nexo’s reporting standards as we have actually mentioned together with other red flags in our previous video. At the start of January, Nexo had only $4B under its management from 1 M users, now five months later, the platform declares to manage $12B from 1.5 M users, which we believe is a bit of a high development even if we consider the hype in the crypto area. So what about Nexo’s management? Nexo is co-founded by Antoni Trenchev and Kosta Kantchev. Based on our research, Antoni was a Bulgarian politician with experience in the fashion Retail market. On his LinkedIn profile, he describes Nexo as the leading controlled financial institution for digital assets. I would be actually interested by whom Nexo is managed, as the company does not have a lending license in Estonia, where they are a legal entity Nexo Solutions OU is based. During our research study, we found connections to Bulgaria, Estonia, the UK, and the Cayman Islands however their legal address is no place to be discovered on the website. The 2nd co-founder of Nexo is Kosta Kantchev who also established Credissimo, a Bulgarian payday advance loan company that apparently is funding Nexo. According to our recent research study, the executive board doesn’t even include Antoli, but just Kosta and 2 other gentlemen, from which one is William Arthur Vesilind who was previously the executive director at TrustBuddy, a Swedish p2p lending platform, which is understood for the “abuse of clients cash”. Likewise when reviewing some of Nexo’s remarks from the CEO
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in the media, he is frequently only promoting crypto and anticipating costs however lacks any much deeper insights into the crypto lending area or how Nexo is running. That’s just our impression from his Bloomberg talks. 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 attorneys, we have a hard time to understand the legal setup under which Nexo is providing its services. So now that we have evaluated a few of the track records of the four mentioned platforms, let’s briefly review the functionality of every crypto loaning website. Celsius has actually started as a native mobile app. The app is well established and it comes with various security features such as the biometric scan, HODL mode, and 2FA. In the dashboard, you are able to see how many possessions you are holding and what are the presently used rates. You can move and withdraw supported coins but there is no exchange, so if you don’t transfer your cryptos from another wallet, you can purchase them straight through the app. Note, however, that there might be charges for charge card purchases or SEPA transfers. Celsius Network supports currently 40 digital possessions. BlockiFi makes a less industrialized impression. The app is really simple therefore is the desktop version of the platform. BlockFi supports currently just 10 digital currencies. The platform likewise uses a dedicated exchange so you can even trade them. We do not suggest this feature that much as the currency exchange rate are not the very best. While the crypto loans on BlockFi are just offered to U.S. residents, the platform is also dealing with a Bitcoin rewards credit card which will be competing with the charge card from Crypto.com YouHodler offers a few of the most advanced services amongst the crypto loaning platforms. Presently, the platform supports 18 digital
currencies on which you are able to earn interest. YouHodler enables you to exchange in between different currencies or deposit fiat by means of bank wire or other supported payment services. The minimum deposit amounts are extremely low, so you don’t require to move hundreds of Euros or Dollars to test the platform. The minimum deposit is around 50 EUR or USD worth of cryptocurrency. As YouHodler does not have a banking license, you can only make interest on your crypto properties. Apart from making interest on your deposits or exchanging cryptos, YouHodler also uses you the option to borrow fiat money in exchange for security. The platform currently supports only loans in us dollars or euros. YouHodler is also one of the platforms with flexible loan terms and an optimum LTV of 90%. Apart from those services, YouHodler likewise uses two leveraging tools such as Turbocharged loans and Multi HODL, which are suitable for more opportunistic investors. As the functionality of those functions surpasses this video, you can discover how it works in our dedicated youhodler review on p2pempire. Nexo’s usability is similar to Celsius Network. Nexo is likewise utilizing its utility tokens to offer much better rates on loans, greater interests on crypto and fiat deposits, or more free withdrawals each month. If you choose to stake your coins or fiat, suggesting you lock your assets for a defined term, you can get a greater interest rate. Like BlockFi, Nexo also provides you to purchase, or exchange crypto if you want to hold your possessions in different currencies. Now you have a really solid idea of what every crypto lending platform is offering. What you ought to consider though, is that as soon as you transfer your crypto on any platform, you are not owning your private keys anymore and your properties may get compromised either by third parties or by the platform itself. It resembles depositing your crypto on the exchange – if you do not own the keys, the coin isn’t technically yours any longer. Platforms like Celsius and BlockFi are very clear about the reality that you Bitcoin Flash Loan
give up your ownership of the assets as long as you hold them in the platform’s wallet. The only method to protect your crypto is to save it on a dedicated hardware wallet like this one from Trezor. That’s the very best method to keep your cryptos safe. The drawback of this technique is that you will only gain from the increased worth of your coin but not the interest on your deposits, which is something you can do on one of the crypto lending platforms. As with any investment, it constantly comes down to the threat and return and your danger profile. So based upon our in-depth comparison, let’s take a look at our independent rankings of every category for every single platform. Note, that we have appointed the scores based on our own research. One represents the most affordable ranking while 5 mean the greatest ranking. Within business model classification.