Yes so… Youhodler Kosten…Many of you have actually requested a contrast 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 organization design of private platforms, the return rates, the reliability and track record, functionality of their apps and we will likewise talk about some of the threats that you must think about when depositing your crypto on one of these platforms.
think about subscribing and struck the like button to see more material like this in the future. Let’s first give you a quick introduction to every platform prior to 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. Presently, there are over 650,000 users utilizing Celsius Network to make or take a crypto loan interest on their stablecoins and cryptocurrencies. In total, Celsius handles more than $17 B worth of possessions. The platform provides its services worldwide, however, they are presently not issuing loans in the United States due to local guidelines. BlockFi is the largest
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The platform uses crypto-backed loans in 47 US states and their crypto interest account is offered worldwide with exception of approved countries. Nexo is another European platform that offers crypto enthusiasts the choice to earn interest not only on their coins but also fiat deposits. Nexo is in truth, one of just 2, to us known, crypto loaning platforms that offer interest on fiat deposits.
let’s talk about how they make money in the first place. Celsius makes cash from the interest they charge to the debtors which are either retail customers or organizations, they likewise make cash 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 implies that Celsius uses the collateral from the customers and deploys it in order to produce extra earnings. BlockFi is also generating income through the interest that is being charged to borrowers. In addition to that, the platform also charges a 2% origination fee for anyone who wants to take a loan. Another income stream is BlockFi’s exchange feature. The platform earns money from the spread when exchanging currencies. BlockFi likewise charges withdrawal fees after your one free withdrawal each month. And the platform is also planning to release a BlockFi credit card which will create another earnings stream. YouHodler is also making money from the interest charged to debtors. There is a small withdrawal charge and costs for extra services such as the Multi HODL tool, which is a function that lets you leverage your crypto properties in exchange for potential returns. Like all the other platforms, Nexo likewise takes a cut from the interest that is being paid by the borrowers. Nexo likewise makes profits with their Nexo token. That’s at least our analysis from Nexo’s organization design as the platform doesn’t have A dedicated area about
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If you are viewing this video, you desire to make money by transferring your coins on one of the platforms? Every platform has specific limits and terms when it comes to providing interest on your coins. You are only able to make higher rates if you choose to receive the interest in Celsius’s own utility 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 uses greater benefits for those who desire to get the interest in the native NEXO tokens rather of the deposited currency. What you should keep in mind is that platforms tend to change the rates from time to time, so you can’t really forecast the real return from your deposits. Youhodler Kosten
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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. Also, at the beginning of January, Nexo had only $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 think is a bit of a high development even if we consider the hype in the crypto area. What about Nexo’s management? Nexo is co-founded by Antoni Trenchev and Kosta Kantchev. Based upon our research, Antoni was a Bulgarian politician with experience in the fashion Retail market. On his LinkedIn profile, he describes Nexo as the leading regulated banks for digital properties. I would be actually interested by whom Nexo is controlled, as the company doesn’t have a lending license in Estonia, where they are a legal entity Nexo Provider OU is based. Throughout our research, we discovered connections to Bulgaria, Estonia, the UK, and the Cayman Islands but their legal address is no place to be found on the site. The 2nd co-founder of Nexo is Kosta Kantchev who also established Credissimo, a Bulgarian payday loan business that obviously is funding Nexo. According to our recent research, the executive board doesn’t even consist of Antoli, however only Kosta and 2 other gentlemen, from which one is William Arthur Vesilind who was formerly the executive director at TrustBuddy, a Swedish p2p financing platform, which is understood for the “misuse of customers cash”. Likewise when examining some of Nexo’s remarks from the CEO
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Nexo is the only platform that offers interest on fiat. Now that we have examined some of the track records of the four mentioned platforms, let’s briefly go over the functionality of every crypto financing site. While the crypto loans on BlockFi are only available to U.S. residents, the platform is also working on a Bitcoin rewards credit card which will be contending with the credit card from Crypto.com YouHodler provides some of the most sophisticated services among the crypto financing platforms.
YouHodler is also one of the platforms with versatile loan terms and an optimum LTV of 90%. Now you have a really strong idea of what every crypto financing platform is using. What you ought to think about though, is that as quickly as you transfer your crypto on any platform, you are not owning your personal secrets anymore and your assets might get compromised either by 3rd parties or by the platform itself. Youhodler Kosten
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 store it on a dedicated hardware wallet like this one from Trezor. That’s the best way to keep your cryptos safe. The drawback of this strategy is that you will just benefit from the increased worth of your coin however not the interest on your deposits, which is something you can do on among the crypto loaning platforms. But, as with any financial investment, it always comes down to the threat and return and your danger profile. So based upon our extensive comparison, let’s take a look at our independent ratings of every classification for each platform. Note, that we have actually designated the ratings based on our own research. One represents the most affordable ranking while 5 stands for the highest ranking. Within the business design category.