Yes so… Youhodler Ÿ¥Ÿ±Ÿ≠…Numerous of you have actually requested a contrast in between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that allow you to make interest on your stablecoins and cryptocurrencies. As requested, in this video, we will be comparing the business model of private platforms, the return rates, the trustworthiness and track record, usability of their apps and we will also talk about some of the risks that you must think about when transferring your crypto on one of these platforms.
think about subscribing and hit the like button to see more content like this in the future. So let’s very first provide you a quick introduction to every platform prior to we dive deeper into the contrast. 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 take a crypto loan or earn interest on their cryptocurrencies and stablecoins. In total, Celsius handles more than $17 B worth of properties. The platform provides its services worldwide, nevertheless, they are currently not issuing loans in the United States due to regional guidelines. BlockFi is the biggest
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The platform uses crypto-backed loans in 47 US states and their crypto interest account is available worldwide with exception of approved nations. Nexo is another European platform that uses crypto enthusiasts the choice to earn interest not just on their coins but likewise fiat deposits. Nexo is in reality, one of just two, to us known, crypto loaning platforms that provide interest on fiat deposits.
And the platform is likewise planning to release a BlockFi credit card which will produce another earnings stream. Like all the other platforms, Nexo likewise takes a cut from the interest that is being paid by the borrowers. That’s at least our interpretation from Nexo’s business design as the platform does not have A devoted section about
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If you are enjoying this video, you desire to make money by depositing your coins on one of the platforms? Every platform has certain limits and terms when it comes to using interest on your coins. You are just able to earn higher rates if you decide to get the interest in Celsius’s own utility token.
You can earn 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 benefits for those who desire to get the interest in the native NEXO tokens instead of the deposited currency. What you ought to keep in mind is that platforms tend to adjust the rates from time to time, so you can’t actually anticipate the real return from your deposits. Youhodler Ÿ¥Ÿ±Ÿ≠
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paid out more than $367 M worth of rewards. While we have not managed to get answers to our questions, the CEO does hold a weekly AMA session where he is resolving 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 that the platform is not rewarding yet. BlockFi is co-founded by Zac Prince and Flori Marquez. The CEO Zac Prince has more experience within the business advancement area instead of the fintech space. BlockFi is also funded by numerous institutional investors and the platform is mainly targeting the US market. While you can utilize the crypto interest account worldwide, the crypto loans are available Only for U.S residents as BlockFi has the necessary loaning licenses just in the U.S. If you wish to check BlockFi’s data you will not more than happy as there are none offered. Some external sources suggest that there are more than 125,000 registered users, however, we were unable to verify 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, it seems like he has actually transferred to Switzerland to introduce his crypto loaning platform YouHodler in 2017. I know that YouHodler has been applauded by some of you in the comments on previous videos, sadly, the platform isn’t publicly revealing any financial reports, nor statistics about their user base or possessions under YouHodler’s management. This is something you must certainly 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 right, it would suggest that Nexo is twice as big in regards to user base as Celsius with a much lower average
At the start of January, Nexo had only $4B under its management from 1 M users, now 5 months later on, the platform declares to handle $12B from 1.5 M users, which we think is a bit of a high development even if we think about the hype in the crypto area. The second co-founder of Nexo is Kosta Kantchev who likewise established Credissimo, a Bulgarian payday loan company that obviously is funding Nexo. According to our recent research study, the executive board does not even include 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 lending platform, which is known for the “abuse of clients cash”.
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in the media, he is frequently only promoting crypto and anticipating costs however does not have any much deeper insights into the crypto financing area or how Nexo is operating. But that’s just our impression from his Bloomberg talks. Also, Nexo is the only platform that provides interest on fiat. According to our understanding, you can not offer interest on fiat deposits unless you have a banking license which Nexo certainly does not have. Even though we are not attorneys, we have a hard time to understand the legal setup under which Nexo is using its services. Now that we have evaluated some of the track records of the 4 mentioned platforms, let’s briefly go over the use of every crypto financing site. Celsius has begun as a native mobile app. The app is well developed and it includes different security features such as the biometric scan, HODL mode, and 2FA. Right in the dashboard, you are able to see the number of possessions you are holding and what are the presently offered rates. You can move and withdraw supported coins but there is no exchange, so if you do not transfer your cryptos from another wallet, you can buy them directly through the app. Note, nevertheless, that there might be charges for credit card purchases or SEPA transfers. Celsius Network supports presently 40 digital properties. BlockiFi makes a less industrialized impression. The app is very easy therefore is the desktop version of the platform. BlockFi supports currently only 10 digital currencies. The platform likewise uses a devoted exchange so you can even trade them. We don’t suggest this function that much as the currency exchange rate are not the best. While the crypto loans on BlockFi are just available to U.S. citizens, the platform is likewise working on a Bitcoin benefits credit card which will be competing with the credit card from Crypto.com YouHodler provides some of the most innovative services among the crypto lending platforms. Currently, the platform supports 18 digital
currencies on which you are able to earn interest. YouHodler allows you to exchange between different currencies or deposit fiat via bank wire or other supported payment services. The minimum deposit amounts are very low, so you don’t need to transfer hundreds of Dollars or euros to check 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 also uses you the option to obtain fiat money in exchange for security. The platform currently supports just loans in us euros or dollars. YouHodler is likewise one of the platforms with versatile 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 functionality of those functions exceeds this video, you can learn how it operates in our devoted youhodler evaluation on p2pempire. Nexo’s usability is similar to Celsius Network. Nexo is also using its utility tokens to provide much better rates on loans, higher interests on crypto and fiat deposits, or more free withdrawals per month. Also if you choose to stake your coins or fiat, meaning you lock your properties for a specified term, you can get a greater rate of interest. Like BlockFi, Nexo likewise provides you to buy, or exchange crypto if you want to hold your assets in various currencies. Now you have an actually strong idea of what every crypto financing platform is providing. What you should think about though, is that as quickly as you deposit your crypto on any platform, you are not owning your personal keys any longer and your properties might get compromised 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 extremely clear about the reality that you Youhodler Ÿ¥Ÿ±Ÿ≠
quit your ownership of the properties as long as you hold them in the platform’s wallet. The only way to safeguard your crypto is to store it on a dedicated hardware wallet like this one from Trezor. That’s the best method to keep your cryptos safe. The disadvantage of this method is that you will only take advantage of the increased value of your coin however not the interest on your deposits, which is something you can do on one of the crypto loaning platforms. However, similar to any financial investment, it always comes down to the threat and return and your danger profile. Based on our thorough comparison, let’s have a look at our independent scores of every classification for every platform. Keep in mind, that we have assigned the ratings based on our own research study. One represents the lowest score while 5 mean the highest ranking. Within the business model classification.