Yes so… Neo Crypto Exchange Nex…Numerous of you have requested a contrast between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that permit you to make interest on your cryptocurrencies and stablecoins. As asked for, in this video, we will be comparing the business design of specific platforms, the return rates, the credibility and track record, usability of their apps and we will also talk about some of the threats that you need to consider when transferring your crypto on one of these platforms.
Let’s 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 in the world, which was founded in 2017 by Alex Mashinsky. The platform offers its services worldwide, however, they are currently not releasing loans in the United States due to regional guidelines.
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The platform provides crypto-backed loans in 47 US states and their crypto interest account is offered worldwide with exception of approved nations. Nexo is another European platform that offers crypto lovers the alternative to earn interest not only on their coins but likewise fiat deposits. Nexo is in fact, one of only 2, to us known, crypto financing platforms that provide interest on fiat deposits.
let’s speak about how they make money in the first place. Celsius makes money from the interest they charge to the customers which are either retail borrowers or organizations, they also make money from their CEL token which is an energy token that you can use to increase your benefits on Celsius Network. Another earnings stream is the rehypothecation which indicates that Celsius uses the collateral from the customers and releases it in order to generate extra income. BlockFi is also generating income through the interest that is being credited customers. The platform also charges a 2% origination cost for anybody who wants to take a loan. Another income stream is BlockFi’s exchange function. The platform makes money from the spread when exchanging currencies. BlockFi likewise charges withdrawal costs after your one complimentary withdrawal monthly. And the platform is also preparing to introduce a BlockFi credit card which will produce another income stream. YouHodler is also making money from the interest credited borrowers. There is a little withdrawal fee and fees for additional services such as the Multi HODL tool, which is a feature that lets you utilize your crypto assets in exchange for prospective returns. Like all the other platforms, Nexo also takes a cut from the interest that is being paid by the borrowers. Nexo also makes earnings with their Nexo token. That’s at least our analysis from Nexo’s company design as the platform does not have A devoted section 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 limitations and terms when it comes to using interest on your coins. You are only able to earn higher rates if you decide to receive the interest in Celsius’s own utility token.
9% annually. What’s worth mentioning is that if you wish to conserve some charges, and bring more stability into your crypto interest account, you can likewise transfer the Binance USD coin for which you will not require to pay the significant gas charge, as the currency runs on the Binance Smart Chain with method lower costs in comparison to stablecoins that run on the ethereum network. The Binance USD coin is presently only supported on Celsius Network and BlockFi. YouHodler offers currently the most competitive rates for your USDC coins without the need to stake the platform’s own energy tokens. You can make 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 offers greater rewards for those who want to receive 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 ought to keep in mind is that platforms tend to change the rates from time to time, so you can’t truly predict the genuine return from your deposits. Likewise, keep in mind that by transferring 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 consider. So now, that you are aware of the returns let’s briefly review the credibility of the platforms and their performance history. Celsius Network is likely the most genuine platform in this space. The creator Alex Mashinsky is a widely known entrepreneur. Before releasing the Celsius network, he has co-founded three start-ups worth more than $1 Billion each. On the Celsius App, you are also able to monitor the development and examine some of the data. As we are taping 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 Neo Crypto Exchange Nex
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paid out more than $367 M worth of benefits. 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 uncommon in this area. The platform is not transparent when it comes to sharing its financial 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 co-founded by Zac Prince and Flori Marquez. The CEO Zac Prince has more experience within the business development space instead of the fintech area. BlockFi is also financed by numerous institutional financiers and the platform is primarily targeting the United States market. While you can use the crypto interest account worldwide, the crypto loans are available Only for U.S residents as BlockFi has the necessary lending licenses only in the U.S. If you wish to examine BlockFi’s statistics you will not be happy as there are none readily available. Some external sources suggest that there are more than 125,000 registered users, nevertheless, we were not able to validate 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, it seems like he has relocated 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 comments on previous videos, sadly, the platform isn’t openly revealing any financial reports, nor statistics about their user base or properties under YouHodler’s management. This is something you ought to certainly consider when using YouHodler. Proceeding to Nexo. Nexo claims to manage $12 B worth of possessions from more than 1.5 M of users. If this is proper, it would suggest that Nexo is twice as huge in regards to user base as Celsius with a much lower average
deposit quantity as compared to the users on the Celsius Network. We are not delighted about Nexo’s reporting requirements as we have explained together with other red flags in our previous video. Also, at the beginning of January, Nexo had just $4B under its management from 1 M users, now five months later on, the platform claims to manage $12B from 1.5 M users, which we believe is a little a steep growth even if we think about the buzz in the crypto space. What about Nexo’s management? Nexo is co-founded by Antoni Trenchev and Kosta Kantchev. Based upon our research study, Antoni was a Bulgarian political leader with experience in the style Retail market. On his LinkedIn profile, he describes Nexo as the leading regulated banks for digital assets. I would be really interested by whom Nexo is controlled, as the company does not have a loaning license in Estonia, where they are a legal entity Nexo Provider OU is based. During our research study, we discovered connections to Bulgaria, Estonia, the UK, and the Cayman Islands but their legal address is no place to be discovered on the website. The second 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 include Antoli, however just Kosta and 2 other gentlemen, from which one is William Arthur Vesilind who was previously the executive director at TrustBuddy, a Swedish p2p loaning platform, which is understood for the “abuse of customers money”. Also when reviewing a few of Nexo’s comments from the CEO
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Nexo is the only platform that offers interest on fiat. Now that we have reviewed some of the track records of the 4 discussed platforms, let’s briefly go over the functionality of every crypto lending site. While the crypto loans on BlockFi are just readily available to U.S. citizens, the platform is likewise working on a Bitcoin rewards credit card which will be completing with the credit card from Crypto.com YouHodler uses some of the most innovative services amongst the crypto lending platforms.
YouHodler is also one of the platforms with versatile loan terms and an optimum LTV of 90%. Now you have a really solid idea of what every crypto financing platform is providing. What you ought to consider however, is that as soon as you deposit your crypto on any platform, you are not owning your personal secrets any longer and your assets might get jeopardized either by third parties or by the platform itself. Neo Crypto Exchange Nex
quit your ownership of the assets as long as you hold them in the platform’s wallet. The only method to safeguard 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 disadvantage of this strategy 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 financial investment, it always comes down to the threat and return and your danger profile. So based upon our in-depth contrast, let’s take a look at our independent ratings of every classification for every single platform. Keep in mind, that we have actually appointed the scores based upon our own research. One represents the most affordable score while five stands for the greatest score. Within the business design category.