How To Spot A Bitcoin Loan Scam 2021 – Crypto Loans

Yes so… How To Spot A Bitcoin Loan Scam…Much of you have actually requested a comparison between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that enable you to earn interest on your stablecoins and cryptocurrencies. As asked for, in this video, we will be comparing business design of specific platforms, the return rates, the trustworthiness and track record, use of their apps and we will likewise speak about some of the risks that you should consider when transferring your crypto on among these platforms. We will also assemble the contrast with our independent ranking of the just-mentioned classifications for each platform. Keep enjoying till the end to find out how we scored individual platforms. If you are new to this channel and your goal is to become a more educated P2P investor,

 

think about subscribing and struck the like button to see more material like this in the future. Let’s very first provide you a short intro to every platform prior to we dive deeper into the comparison. Celsius Network is the fastest-growing crypto loaning platform worldwide, which was founded in 2017 by Alex Mashinsky. Presently, there are over 650,000 users using Celsius Network to take a crypto loan or earn interest on their cryptocurrencies and stablecoins. In total, Celsius manages more than $17 B worth of assets. The platform uses its services worldwide, nevertheless, they are presently not providing loans in the United States due to regional policies. BlockFi is the largest

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The platform uses crypto-backed loans in 47 US states and their crypto interest account is available around the world with exception of approved countries. Nexo is another European platform that provides crypto enthusiasts the choice to earn interest not just on their coins but also fiat deposits. Nexo is in fact, one of only two, to us understood, crypto loaning platforms that provide interest on fiat deposits.

 

And the platform is likewise preparing to release a BlockFi credit card which will create another income stream. Like all the other platforms, Nexo also takes a cut from the interest that is being paid by the debtors. That’s at least our interpretation from Nexo’s company model as the platform does not have A devoted area about

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this on their website. Now let’s speak about the returns. If you are watching this video, you desire to make cash by transferring your coins on one of the platforms? Before we compare the rates, there are a few things that you ought to consider however. Every platform has certain limitations and terms when it concerns offering interest on your coins. So for instance, Celsius Network alters the rates weekly to show the existing market situation. Also, you are only able to make higher rates if you decide to get the interest in Celsius’s own utility token. The higher benefit rates are also not 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 on the number of your assets. The more bitcoin or ethereum you deposit, the less interest you will receive. The rate 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 currently at

 

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 offers higher rewards for those who want to receive the interest in the native NEXO tokens rather of the deposited currency. What you must keep in mind is that platforms tend to change the rates from time to time, so you can’t truly forecast the real return from your deposits. How To Spot A Bitcoin Loan Scam

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paid out more than $367 M worth of rewards. While we haven’t managed to get answers to our questions, the CEO does hold a weekly AMA session where he is addressing the most frequently asked questions, which is something rather rare in this area. The platform is not transparent when it pertains to sharing its financial reports, but with a little bit of digging, you can get your hands on the financial report for 2020, where you will learn that the platform is not profitable yet. BlockFi is co-founded by Zac Prince and Flori Marquez. The CEO Zac Prince has more experience within business development space instead of the fintech area. BlockFi is also financed by many institutional investors and the platform is generally targeting the United States market. While you can use the crypto interest account worldwide, the crypto loans are offered Just for U.S residents as BlockFi has the necessary financing licenses just in the U.S. , if you desire to check BlockFi’s data you won’t be delighted as there are none readily available.. Some external sources suggest that there are more than 125,000 registered users, however, we were not able to verify any of those claims straight with BlockFi. YouHodler is founded by Ilya Volkov, who brings previous experience from the fintech space in Russia. According to our research study, it seems like he has actually moved to Switzerland to release his crypto financing platform YouHodler in 2017. I know that YouHodler has been applauded by a few of you in the discuss previous videos, regrettably, the platform isn’t publicly exposing any financial reports, nor stats about their user base or properties under YouHodler’s management. This is something you should definitely think about when using YouHodler. Carrying on to Nexo. Nexo claims to manage $12 B worth of possessions from more than 1.5 M of users. If this is correct, it would mean that Nexo is two times as big in regards to user base as Celsius with a much lower average

 

At the beginning of January, Nexo had only $4B under its management from 1 M users, now 5 months later, the platform declares to manage $12B from 1.5 M users, which we think is a bit of a steep growth even if we consider the hype in the crypto space. The second co-founder of Nexo is Kosta Kantchev who likewise founded Credissimo, a Bulgarian payday loan business that obviously is financing Nexo. According to our current research, the executive board doesn’t even consist of 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 financing platform, which is understood for the “abuse of customers money”.

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Nexo is the only platform that uses interest on fiat. Now that we have actually reviewed some of the track records of the four pointed out platforms, let’s briefly go over the usability of every crypto financing site. While the crypto loans on BlockFi are just readily available to U.S. people, the platform is likewise working on a Bitcoin rewards credit card which will be competing with the credit card from Crypto.com YouHodler provides some of the most advanced services among the crypto lending platforms.

 

currencies on which you are able to make interest. YouHodler permits you to exchange in between different currencies or deposit fiat via bank wire or other supported payment services. The minimum deposit amounts are very low, so you do not need to move numerous Euros or Dollars to evaluate the platform. The minimum deposit is around 50 EUR or USD worth of cryptocurrency. As YouHodler doesn’t have a banking license, you can just earn interest on your crypto assets. Apart from making interest on your deposits or exchanging cryptos, YouHodler likewise provides you the option to obtain fiat money in exchange for collateral. The platform presently supports only loans in us euros or dollars. YouHodler is also among the platforms with flexible loan terms and a maximum LTV of 90%. Apart from those services, YouHodler likewise provides two leveraging tools such as Turbocharged loans and Multi HODL, which appropriate for more opportunistic financiers. As the functionality of those features goes beyond this video, you can find out how it operates in our dedicated youhodler evaluation on p2pempire. Nexo’s usability is similar to Celsius Network. Nexo is also utilizing its energy tokens to use much better rates on loans, greater interests on crypto and fiat deposits, or more complimentary withdrawals each month. If you decide to stake your coins or fiat, indicating you lock your assets for a defined term, you can get a greater interest rate. Like BlockFi, Nexo also provides you to buy, or exchange crypto if you want to hold your possessions in different currencies. Now you have a truly strong idea of what every crypto financing platform is using. What you must consider however, is that as quickly as you deposit your crypto on any platform, you are not owning your private keys anymore and your properties might get compromised either by 3rd parties or by the platform itself. It’s like depositing your crypto on the exchange – if you don’t own the keys, the coin isn’t technically yours anymore. Platforms like Celsius and BlockFi are very clear about the reality that you How To Spot A Bitcoin Loan Scam

 

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 keep it on a dedicated hardware wallet like this one from Trezor. That’s the very best method to keep your cryptos safe. The disadvantage 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 among the crypto financing platforms. As with any investment, it always comes down to the risk and return and your threat profile. So based on our thorough contrast, let’s take a look at our independent scores of every category for every platform. Keep in mind, that we have actually designated the ratings based on our own research. One represents the lowest score while five stands for the highest score. Within business design category.