Yes so… Youhodler Security…Numerous of you have requested a comparison in between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that permit you to make interest on your stablecoins and cryptocurrencies. As requested, in this video, we will be comparing the company model of individual platforms, the return rates, the reliability and track record, usability of their apps and we will likewise talk about some of the dangers that you should think about when transferring your crypto on one of these platforms.
Let’s first provide you a brief introduction to every platform prior to we dive deeper into the comparison. Celsius Network is the fastest-growing crypto financing platform in the world, which was founded in 2017 by Alex Mashinsky. The platform uses its services worldwide, nevertheless, they are presently not providing loans in the United States due to regional regulations.
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competitor to Celsius Network. The US-based business has trading and loaning licenses in various US states. If you are trying to find a wealth-management app for your crypto possessions BlockFi is certainly worth thinking about. The platform offers crypto-backed loans in 47 US states and their crypto interest account is readily available around the world with exception of approved countries. YouHodler is most likely the most genuine crypto financing platform in Europe. The company is signed up in Cyprus, with a devoted branch in Switzerland. YouHodler uses really competitive rates on your crypto possessions in addition to several 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.. If you reside in the states, you will not be able to use YouHodler’s services. Nexo is another European platform that offers crypto lovers the alternative to earn interest not just on their coins but also fiat deposits. Nexo remains in truth, among only two, to us known, crypto lending platforms that provide interest on fiat deposits. The platform uses its services worldwide, with exception of Bulgaria and Estonia. Now that you have a short introduction of every platform
let’s discuss how they generate income in the first place. So Celsius earns money from the interest they charge to the debtors which are either retail borrowers or institutions, they also earn money from their CEL token which is an energy token that you can utilize to increase your benefits on Celsius Network. Another earnings stream is the rehypothecation which implies that Celsius uses the collateral from the customers and releases it in order to generate additional income. BlockFi is also earning money through the interest that is being credited customers. In addition to that, the platform likewise charges a 2% origination fee for anybody who wishes to take a loan. Another earnings stream is BlockFi’s exchange function. When exchanging currencies, the platform makes cash from the spread. BlockFi likewise charges withdrawal fees after your one free withdrawal per month. And the platform is also preparing to introduce a BlockFi credit card which will produce another earnings stream. YouHodler is likewise generating income from the interest credited debtors. In addition to that, there is a small withdrawal cost and fees for extra services such as the Multi HODL tool, which is a feature that lets you leverage your crypto assets in exchange for potential returns. Like all the other platforms, Nexo also takes a cut from the interest that is being paid by the customers. Nexo likewise makes profits with their Nexo token. That’s at least our interpretation from Nexo’s service model as the platform doesn’t have A dedicated section about
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this on their site. Now let’s discuss the returns. If you are watching this video, you want to generate income by depositing your coins on among the platforms right? Prior to we compare the rates, there are a couple of things that you should consider though. Every platform has particular limitations and terms when it concerns offering interest on your coins. So for instance, Celsius Network alters the rates every week to show the present market situation. Likewise, you are just able to earn greater rates if you choose to get the interest in Celsius’s own energy token. The greater benefit rates are also not readily available for United States people. If you would not want to pay your benefits 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 upon the variety of your assets. The more bitcoin or ethereum you deposit, the less interest you will get. The rate of interest for Ethereum ranges in 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 presently at
You can earn 12% interest on your USDC holdings and the platform provides 5.5% on Ethereum and 4.8% on your bitcoin deposits. Nexo is another platform that uses higher rewards for those who desire to receive the interest in the native NEXO tokens rather of the deposited currency. What you should keep in mind is that platforms tend to adjust the rates from time to time, so you can’t truly forecast the genuine return from your deposits. Youhodler Security
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paid 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, however with a little bit of digging, you can get your hands on the financial report for 2020, where you will discover out that the platform is not successful. BlockFi is co-founded by Zac Prince and Flori Marquez. The CEO Zac Prince has more experience within business advancement area instead of the fintech area. BlockFi is also funded by numerous institutional financiers and the platform is mainly targeting the US market. While you can utilize the crypto interest account worldwide, the crypto loans are readily available Just for U.S citizens as BlockFi has the necessary financing licenses just in the U.S. If you wish to check BlockFi’s statistics you won’t be happy as there are none offered. Some external sources suggest that there are more than 125,000 registered users, however, we were not able to confirm any of those claims directly with BlockFi. YouHodler is founded by Ilya Volkov, who brings previous experience from the fintech area in Russia. According to our research study, it seems like he has actually transferred to Switzerland to release his crypto loaning platform YouHodler in 2017. I understand that YouHodler has actually been praised by a few of you in the talk about previous videos, sadly, the platform isn’t publicly revealing any monetary reports, nor stats about their user base or assets under YouHodler’s management. This is something you ought to definitely consider when utilizing YouHodler. Carrying on to Nexo. Nexo declares to handle $12 B worth of possessions from more than 1.5 M of users. If this is proper, it would indicate that Nexo is two times as big 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 excited about Nexo’s reporting requirements as we have explained together with other red flags in our previous video. Likewise, at the beginning of January, Nexo had only $4B under its management from 1 M users, now 5 months later, the platform claims 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. What about Nexo’s management? Nexo is co-founded by Antoni Trenchev and Kosta Kantchev. Based on our research study, Antoni was a Bulgarian politician with experience in the fashion Retail industry. On his LinkedIn profile, he describes Nexo as the leading controlled financial institution for digital properties. I would be actually interested by whom Nexo is managed, as the company doesn’t have a financing license in Estonia, where they are a legal entity Nexo Provider OU is based. During our research, 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 2nd co-founder of Nexo is Kosta Kantchev who likewise established Credissimo, a Bulgarian payday loan business that apparently is funding Nexo. According to our current research, the executive board doesn’t even include Antoli, however 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 “abuse of customers cash”. Also when evaluating some of Nexo’s comments from the CEO
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in the media, he is often only promoting crypto and anticipating prices but does not have any deeper insights into the crypto lending space or how Nexo is operating. However that’s just our impression from his Bloomberg talks. Likewise, Nexo is the only platform that provides interest on fiat. According to our knowledge, you can not provide interest on fiat deposits unless you have a banking license which Nexo certainly does not have. Even though we are not legal representatives, we have a hard time to understand the legal setup under which Nexo is providing its services. So now that we have reviewed some of the performance history of the 4 mentioned platforms, let’s briefly review the functionality of every crypto financing site. Celsius has started as a native mobile app. The app is well developed and it comes with numerous security functions such as the biometric scan, HODL mode, and 2FA. In the control panel, you are able to see how numerous possessions you are holding and what are the presently provided rates. You can move and withdraw supported coins but there is no exchange, so if you don’t transfer your cryptos from another wallet, you can acquire them directly through the app. Note, nevertheless, that there might be costs for credit card purchases or SEPA transfers. Celsius Network supports currently 40 digital possessions. BlockiFi makes a less developed impression. The app is very easy therefore is the desktop variation of the platform. BlockFi supports presently only 10 digital currencies. The platform also offers a devoted exchange so you can even trade them. We don’t recommend this feature that much as the currency exchange rate are not the very best. While the crypto loans on BlockFi are only offered to U.S. citizens, the platform is likewise working on a Bitcoin benefits charge card which will be competing with the credit card from Crypto.com YouHodler provides a few of the most sophisticated services among the crypto financing platforms. Currently, the platform supports 18 digital
YouHodler is also one of the platforms with flexible loan terms and an optimum LTV of 90%. Now you have an actually solid concept of what every crypto financing platform is offering. What you must consider though, 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 third celebrations or by the platform itself. Youhodler Security
The only method to protect your crypto is to keep it on a devoted hardware wallet like this one from Trezor. The disadvantage of this method is that you will just benefit 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 financing platforms. Based on our in-depth contrast, let’s have a look at our independent ratings of every classification for every platform.