Zach Prince Youhodler 2021 – Crypto Loans

Yes so… Zach Prince Youhodler…Many of you have requested a comparison 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, use of their apps and we will likewise talk about some of the threats that you ought to think about when transferring your crypto on one of these platforms.

 

Let’s first provide you a brief intro 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 established in 2017 by Alex Mashinsky. The platform uses its services worldwide, nevertheless, they are presently not issuing loans in the United States due to local guidelines.

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competitor to Celsius Network. The US-based company has trading and lending licenses in various US states. If you are searching for a wealth-management app for your crypto properties BlockFi is definitely worth considering. The platform uses crypto-backed loans in 47 US states and their crypto interest account is offered around the world with exception of sanctioned countries. YouHodler is most likely the most legitimate crypto financing platform in Europe. The company is registered in Cyprus, with a devoted branch in Switzerland. YouHodler uses really competitive rates on your crypto properties as well as a number of other functions which you won’t discover on any other platforms. The platform is readily available in lots of nations with the exception of Germany and the U.S.A.. So if you reside in the states, you will not have the ability to use YouHodler’s services. Nexo is another European platform that offers crypto lovers the option to earn interest not just on their coins but likewise fiat deposits. Nexo remains in truth, one of only two, to us understood, crypto financing platforms that provide interest on fiat deposits. The platform uses its services worldwide, with exception of Bulgaria and Estonia. Now that you have a quick overview of every platform

 

let’s talk about how they generate income in the first place. Celsius makes cash from the interest they charge to the borrowers which are either retail debtors or organizations, they also 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 debtors and deploys it in order to create additional earnings. BlockFi is likewise earning money through the interest that is being charged to borrowers. In addition to that, the platform likewise charges a 2% origination cost for anybody who wants to take a loan. Another earnings stream is BlockFi’s exchange feature. When exchanging currencies, the platform makes money from the spread. BlockFi also charges withdrawal charges after your one complimentary withdrawal monthly. And the platform is likewise planning to introduce a BlockFi charge card which will generate another income stream. YouHodler is likewise generating income from the interest charged to debtors. There is a little withdrawal fee and fees for extra services such as the Multi HODL tool, which is a feature that lets you take advantage of your crypto possessions in exchange for possible returns. Like all the other platforms, Nexo also takes a cut from the interest that is being paid by the borrowers. Nexo also makes profits with their Nexo token. That’s at least our analysis from Nexo’s company model as the platform does not have A dedicated section about

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this on their website. Now let’s speak about the returns. If you are viewing this video, you wish to generate income by transferring your coins on among the platforms right? Before we compare the rates, there are a few things that you need to think about. When it comes to using interest on your coins, every platform has specific limitations and terms. So for example, Celsius Network alters the rates weekly to show the existing market circumstance. You are just able to earn greater rates if you decide to get the interest in Celsius’s own energy token. The higher reward rates are also not offered for US citizens. If you would not wish 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 receive. The rates of interest for Ethereum ranges between 0.5% and 4.5%, the rate for bitcoin is between 0.5% and 5%, and the rate for the two stablecoins is presently at

 

9% per 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 likewise deposit the Binance USD coin for which you will not need to pay the substantial gas charge, as the currency works on the Binance Smart Chain with way lower costs in contrast to stablecoins that work on the ethereum network. The Binance USD coin is currently just 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 utility tokens. 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 greater benefits for those who want to get the interest in the native NEXO tokens instead of the deposited currency. The platform provides 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 actually predict the genuine return from your deposits. Likewise, keep in mind that by depositing your crypto, the value of the currency may decrease Which will make it hard for you to liquidate your possessions if that’s something you would otherwise consider. So now, that you understand the returns let’s briefly evaluation the trustworthiness of the platforms and their track record. Celsius Network is most likely the most legitimate platform in this area. The creator Alex Mashinsky is a widely known business owner. Prior to releasing 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 track of the progress and review a few of the stats. As we are recording this video, there are over 650,000 users and the platform is handling $17 billion worth of properties. Alone in the last 12 months, Celsius has Zach Prince Youhodler

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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 rewarding. BlockFi is likewise financed by many institutional financiers and the platform is mainly targeting the United States market. According to our research study, it appears like he has moved to Switzerland to introduce his crypto financing platform YouHodler in 2017.

 

deposit amount as compared to the users on the Celsius Network. We are not excited about Nexo’s reporting standards as we have mentioned 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 on, the platform claims to handle $12B from 1.5 M users, which we believe is a little bit of a steep growth even if we think about the hype 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 political leader with experience in the style Retail industry. On his LinkedIn profile, he explains Nexo as the leading controlled financial institution for digital assets. I would be actually interested by whom Nexo is regulated, as the company doesn’t have a lending license in Estonia, where they are a legal entity Nexo Solutions OU is based. During our research study, we found connections to Bulgaria, Estonia, the UK, and the Cayman Islands however their legal address is nowhere to be discovered on the site. The 2nd co-founder of Nexo is Kosta Kantchev who also founded Credissimo, a Bulgarian payday advance company that apparently is funding Nexo. According to our current research study, 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 loaning platform, which is known for the “misuse of customers money”. Also when reviewing some of Nexo’s comments from the CEO

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in the media, he is frequently only promoting crypto and forecasting rates however does not have any deeper insights into the crypto lending area or how Nexo is operating. However that’s just our impression from his Bloomberg talks. Nexo is the only platform that uses interest on fiat. According to our understanding, you can not offer interest on fiat deposits unless you have a banking license which Nexo definitely does not have. Despite the fact that we are not lawyers, we have a hard time to understand the legal setup under which Nexo is offering its services. Now that we have actually evaluated some of the track records of the 4 pointed out platforms, let’s briefly go over the use of every crypto loaning site. Celsius has actually begun as a native mobile app. The app is well established and it features different security functions such as the biometric scan, HODL mode, and 2FA. Right in the dashboard, you are able to see how many possessions you are holding and what are the presently provided rates. You can withdraw and move supported coins however there is no exchange, so if you don’t deposit your cryptos from another wallet, you can acquire them directly through the app. Keep in mind, however, that there might be fees for charge card purchases or SEPA transfers. Celsius Network supports presently 40 digital assets. BlockiFi makes a less industrialized impression. The app is extremely simple therefore is the desktop variation of the platform. BlockFi supports currently only 10 digital currencies. The platform likewise provides a devoted exchange so you can even trade them. We do not recommend this feature that much as the exchange rates are not the very best. While the crypto loans on BlockFi are only offered to U.S. citizens, the platform is also dealing with a Bitcoin benefits charge card which will be competing with the credit card from Crypto.com YouHodler offers some of the most innovative services amongst the crypto lending platforms. Presently, the platform supports 18 digital

 

YouHodler is also one of the platforms with versatile loan terms and a maximum LTV of 90%. Now you have an actually solid idea of what every crypto financing platform is offering. What you must consider though, is that as soon as you deposit your crypto on any platform, you are not owning your private keys anymore and your assets might get compromised either by third parties or by the platform itself. Zach Prince Youhodler

 

The only way to protect your crypto is to store it on a dedicated hardware wallet like this one from Trezor. The drawback of this strategy is that you will only benefit from 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. Based on our extensive comparison, let’s have an appearance at our independent ratings of every category for every platform.