Bitcoin Loaning 2021 – Crypto Loans

Yes so… Bitcoin Loaning…Many of you have asked for 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 business design of individual platforms, the return rates, the reliability and track record, use of their apps and we will likewise talk about some of the threats that you must consider when transferring your crypto on one of these platforms.

 

Let’s very first offer you a brief introduction to every platform before we dive deeper into the contrast. Celsius Network is the fastest-growing crypto loaning platform in the world, which was founded in 2017 by Alex Mashinsky. The platform provides its services worldwide, however, they are presently not issuing loans in the United States due to local guidelines.

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The platform provides crypto-backed loans in 47 US states and their crypto interest account is readily available around the world with exception of sanctioned countries. Nexo is another European platform that provides crypto lovers the option to make interest not just on their coins but likewise fiat deposits. Nexo is in truth, one of only two, to us known, crypto loaning platforms that use interest on fiat deposits.

 

let’s talk about how they make money in the first place. So Celsius earns money from the interest they credit the customers which are either retail customers or organizations, they also generate income from their CEL token which is an utility token that you can utilize to increase your benefits on Celsius Network. Another income stream is the rehypothecation which suggests that Celsius utilizes the collateral from the debtors and releases it in order to produce additional earnings. BlockFi is likewise generating income through the interest that is being credited customers. The platform likewise charges a 2% origination cost for anyone who desires to take a loan. Another income stream is BlockFi’s exchange function. When exchanging currencies, the platform makes money from the spread. BlockFi likewise charges withdrawal charges after your one free withdrawal each month. And the platform is also preparing to launch a BlockFi charge card which will generate another income stream. YouHodler is likewise earning money from the interest charged to customers. In addition to that, there is a little withdrawal cost and costs for extra services such as the Multi HODL tool, which is a feature that lets you utilize your crypto properties in exchange for possible returns. Like all the other platforms, Nexo also takes a cut from the interest that is being paid by the borrowers. Nexo also makes profits with their Nexo token. That’s at least our analysis from Nexo’s service design as the platform doesn’t have A dedicated area about

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If you are watching this video, you want to make cash by transferring your coins on one of the platforms? Every platform has certain limits and terms when it comes to using interest on your coins. You are only able to make greater rates if you choose to get the interest in Celsius’s own energy token.

 

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 benefits for those who want to receive the interest in the native NEXO tokens instead of the deposited currency. What you need to keep in mind is that platforms tend to adjust the rates from time to time, so you can’t actually forecast the genuine return from your deposits. Bitcoin Loaning

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The platform is not transparent when it comes to sharing its monetary reports, however with a little bit of digging, you can get your hands on the financial report for 2020, where you will find out that the platform is not lucrative. BlockFi is also funded by lots of institutional investors and the platform is mainly targeting the United States market. According to our research study, it seems like he has transferred to Switzerland to introduce his crypto lending platform YouHodler in 2017.

 

deposit quantity as compared to the users on the Celsius Network. We are not delighted about Nexo’s reporting standards as we have 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 5 months later on, the platform declares to handle $12B from 1.5 M users, which we think is a bit of a steep growth even if we think about the buzz 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 explains Nexo as the leading regulated banks for digital possessions. I would be actually interested by whom Nexo is regulated, as the company doesn’t have a lending license in Estonia, where they are a legal entity Nexo Solutions OU is based. During our research, we found connections to Bulgaria, Estonia, the UK, and the Cayman Islands but their legal address is nowhere to be found on the site. The 2nd co-founder of Nexo is Kosta Kantchev who also founded Credissimo, a Bulgarian payday loan company that apparently is financing Nexo. According to our recent research, the executive board does not even consist of Antoli, however only Kosta and two 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 “misuse of clients money”. Likewise when reviewing some of Nexo’s comments from the CEO

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in the media, he is frequently only promoting crypto and predicting prices but does not have any deeper insights into the crypto loaning area or how Nexo is running. However that’s simply our impression from his Bloomberg talks. Likewise, Nexo is the only platform that provides interest on fiat. According to our understanding, you can not use interest on fiat deposits unless you have a banking license which Nexo definitely does not have. Despite the fact that we are not lawyers, we struggle to understand the legal setup under which Nexo is offering its services. So now that we have examined some of the performance history of the 4 pointed out platforms, let’s briefly go over the use of every crypto lending website. Celsius has begun as a native mobile app. The app is well established and it includes different security features such as the biometric scan, HODL mode, and 2FA. In the dashboard, you are able to see how numerous possessions you are holding and what are the presently provided rates. You can withdraw and move supported coins but there is no exchange, so if you do not transfer your cryptos from another wallet, you can acquire them straight through the app. Note, nevertheless, that there might be costs for charge card purchases or SEPA transfers. Celsius Network supports currently 40 digital properties. BlockiFi makes a less industrialized impression. The app is really basic therefore is the desktop variation of the platform. BlockFi supports presently just 10 digital currencies. The platform also offers a devoted exchange so you can even trade them. We don’t advise this function that much as the currency exchange rate are not the best. While the crypto loans on BlockFi are only readily available to U.S. citizens, the platform is likewise dealing with a Bitcoin rewards charge card which will be taking on the charge card from Crypto.com YouHodler uses some of the most innovative services amongst the crypto lending platforms. Currently, the platform supports 18 digital

 

YouHodler is also one of the platforms with flexible loan terms and a maximum LTV of 90%. Now you have a really solid idea of what every crypto loaning platform is offering. What you should consider however, is that as quickly as you transfer your crypto on any platform, you are not owning your personal keys any longer and your assets might get jeopardized either by third parties or by the platform itself. Bitcoin Loaning

 

The only method to protect your crypto is to store it on a dedicated hardware wallet like this one from Trezor. The drawback of this strategy is that you will only benefit from the increased worth of your coin however not the interest on your deposits, which is something you can do on one of the crypto loaning platforms. Based on our in-depth comparison, let’s have an appearance at our independent ratings of every classification for every platform.