Yes so… Loan On Cryptocurrency…Many of you have requested a contrast in between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that allow you to earn interest on your stablecoins and cryptocurrencies. As requested, in this video, we will be comparing the service design of specific platforms, the return rates, the trustworthiness and track record, functionality of their apps and we will also talk about some of the threats that you should think about when depositing your crypto on one of these platforms.
think about subscribing and hit the like button to see more material like this in the future. So let’s very first provide you a quick intro to every platform prior to we dive deeper into the comparison. Celsius Network is the fastest-growing crypto lending platform in the world, which was founded in 2017 by Alex Mashinsky. Presently, there are over 650,000 users using Celsius Network to make or take a crypto loan interest on their cryptocurrencies and stablecoins. In total, Celsius handles more than $17 B worth of possessions. The platform uses its services worldwide, nevertheless, they are currently not providing loans in the United States due to regional regulations. BlockFi is the biggest
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competitor to Celsius Network. The US-based company has trading and loaning licenses in different US states. If you are searching for a wealth-management app for your crypto assets BlockFi is certainly worth thinking about. The platform provides crypto-backed loans in 47 US states and their crypto interest account is offered around the world with exception of approved nations. YouHodler is likely the most genuine crypto loaning platform in Europe. The business is signed up in Cyprus, with a dedicated branch in Switzerland. YouHodler uses very competitive rates on your crypto assets along with numerous other features which you won’t discover on any other platforms. The platform is offered in lots of countries with the exception of Germany and the U.S.A.. So if you live in the states, you will not be able to utilize YouHodler’s services. Nexo is another European platform that offers crypto lovers the choice to make interest not just on their coins however likewise fiat deposits. Nexo remains in fact, among just 2, to us understood, crypto financing platforms that offer interest on fiat deposits. The platform provides its services worldwide, with exception of Bulgaria and Estonia. Now that you have a brief summary of every platform
And the platform is likewise planning to launch a BlockFi credit card which will produce another earnings stream. Like all the other platforms, Nexo also takes a cut from the interest that is being paid by the customers. That’s at least our interpretation from Nexo’s organization design as the platform doesn’t have A dedicated section about
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this on their site. Now let’s talk about the returns. If you are viewing this video, you desire to make money by depositing your coins on one of the platforms? Before we compare the rates, there are a few things that you need to consider though. When it comes to offering interest on your coins, every platform has specific limitations and terms. For example, Celsius Network alters the rates every week to reflect the present market circumstance. You are only able to earn higher rates if you decide to get the interest in Celsius’s own utility token. The greater reward rates are likewise not readily available for United States residents. If you would not want to pay 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 get. The interest rate for Ethereum ranges 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% each year. What deserves 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 hefty gas charge, as the currency works on the Binance Smart Chain with method lower charges in comparison to stablecoins that operate on the ethereum network. The Binance USD coin is currently 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 energy 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 uses higher rewards for those who want to get the interest in the native NEXO tokens instead of the deposited currency. The platform uses 6% for non-Nexo token holders on bitcoin and ethereum and 10% on the USDC coin. What you need to bear in mind is that platforms tend to change the rates from time to time, so you can’t really anticipate the genuine return from your deposits. Also, bear in mind that by depositing your crypto, the value of the currency might decrease Which will make it hard for you to liquidate your properties if that’s something you would otherwise think about. So now, that you are aware of the returns let’s briefly review the trustworthiness of the platforms and their performance history. Celsius Network is likely the most legitimate platform in this space. The founder Alex Mashinsky is a popular entrepreneur. Before launching the Celsius network, he has co-founded three start-ups worth more than $1 Billion each. On the Celsius App, you are likewise able to keep an eye on the progress and examine some of the statistics. As we are recording this video, there are over 650,000 users and the platform is handling $17 billion worth of possessions. Alone in the last 12 months, Celsius has Loan On Cryptocurrency
bitcoin amount of lending service with value feature trading
deposit quantity as compared to the users on the Celsius Network. We are not excited about Nexo’s reporting standards as we have explained together with other warnings in our previous video. At the beginning of January, Nexo had just $4B under its management from 1 M users, now 5 months later on, the platform claims to handle $12B from 1.5 M users, which we believe is a bit of a high 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 style Retail industry. On his LinkedIn profile, he explains Nexo as the leading managed banks for digital properties. I would be really interested by whom Nexo is managed, as the business doesn’t have a financing license in Estonia, where they are a legal entity Nexo Services OU is based. Throughout our research study, we found connections to Bulgaria, Estonia, the UK, and the Cayman Islands but their legal address is nowhere to be found on the website. The 2nd co-founder of Nexo is Kosta Kantchev who likewise founded Credissimo, a Bulgarian payday advance company that apparently is financing Nexo. According to our recent research, the executive board does not even consist of Antoli, but only Kosta and two 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 “misuse of clients cash”. Also when reviewing a few of Nexo’s remarks from the CEO
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in the media, he is frequently only promoting crypto and predicting prices however does not have any much deeper insights into the crypto financing area or how Nexo is running. That’s just our impression from his Bloomberg talks. Also, Nexo is the only platform that offers interest on fiat. According to our understanding, you can not provide interest on fiat deposits unless you have a banking license which Nexo definitely does not have. Despite the fact that we are not attorneys, we struggle to understand the legal setup under which Nexo is offering its services. So now that we have evaluated some of the track records of the four discussed platforms, let’s briefly review the functionality of every crypto lending website. Celsius has started as a native mobile app. The app is well developed and it comes with different security features such as the biometric scan, HODL mode, and 2FA. Right in the dashboard, you have the ability to see how many assets you are holding and what are the currently used rates. You can move and withdraw supported coins however there is no exchange, so if you don’t deposit 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 presently 40 digital assets. BlockiFi makes a less industrialized impression. The app is very basic and so is the desktop variation of the platform. BlockFi supports presently only 10 digital currencies. The platform likewise offers a dedicated exchange so you can even trade them. We do not advise this function that much as the exchange rates are not the very best. While the crypto loans on BlockFi are only readily available to U.S. citizens, the platform is likewise working on a Bitcoin rewards credit card which will be taking on the credit card from Crypto.com YouHodler offers a few of the most advanced services among the crypto financing platforms. Currently, the platform supports 18 digital
currencies on which you have the ability to earn interest. YouHodler allows you to exchange between various currencies or deposit fiat by means of bank wire or other supported payment services. The minimum deposit quantities are really low, so you do not need to move hundreds of Dollars or euros 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 only earn interest on your crypto possessions. Apart from earning interest on your deposits or exchanging cryptos, YouHodler likewise uses you the alternative to obtain fiat money in exchange for security. The platform currently supports just loans in us euros or dollars. YouHodler is also one of the platforms with flexible loan terms and an optimum LTV of 90%. Apart from those services, YouHodler also provides 2 leveraging tools such as Turbocharged loans and Multi HODL, which appropriate for more opportunistic investors. As the performance of those functions exceeds this video, you can find out how it works in our dedicated youhodler review on p2pempire. Nexo’s use is similar to Celsius Network. Nexo is likewise using its utility tokens to offer much better rates on loans, higher interests on crypto and fiat deposits, or more free withdrawals each month. Likewise if you choose to stake your coins or fiat, meaning you lock your possessions for a specified term, you can get a higher rate of interest. Like BlockFi, Nexo also offers you to buy, or exchange crypto if you wish to hold your properties in different currencies. Now you have an actually solid concept of what every crypto loaning platform is using. What you need to consider though, is that as quickly as you transfer your crypto on any platform, you are not owning your private keys anymore and your possessions might get jeopardized either by third parties or by the platform itself. It’s like transferring your crypto on the exchange – if you do not own the secrets, the coin isn’t technically yours any longer. Platforms like Celsius and BlockFi are very clear about the fact that you Loan On Cryptocurrency
give up your ownership of the properties as long as you hold them in the platform’s wallet. The only way to protect your crypto is to store it on a devoted hardware wallet like this one from Trezor. That’s the best way to keep your cryptos safe. The drawback of this technique is that you will only gain 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 lending platforms. But, just like any financial investment, it constantly boils down to the risk and return and your danger profile. Based on our thorough comparison, let’s have a look at our independent rankings of every classification for every platform. Keep in mind, that we have designated the scores based on our own research. One represents the most affordable ranking while 5 stands for the highest rating. Within the business model category.