Blockfest – Everything You Need to Know

Looking for Blockfest…Numerous of you have requested a contrast in between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that enable you to earn interest on your stablecoins and cryptocurrencies. As asked for, in this video, we will be comparing the service design of individual platforms, the return rates, the reliability and track record, usability of their apps and we will likewise talk about some of the threats that you need to consider when depositing your crypto on one of these platforms.

 

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. The platform uses its services worldwide, however, they are currently not providing loans in the United States due to local policies.

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The platform provides crypto-backed loans in 47 US states and their crypto interest account is offered around the world with exception of sanctioned countries. Nexo is another European platform that offers crypto enthusiasts the choice to make interest not only on their coins however likewise fiat deposits. Nexo is in reality, one of only two, to us known, crypto lending platforms that use interest on fiat deposits.

 

let’s talk about how they generate income in the first place. So Celsius earns money from the interest they charge to the borrowers which are either retail debtors or institutions, they also generate income from their CEL token which is an energy token that you can use to increase your rewards on Celsius Network. Another earnings stream is the rehypothecation which suggests that Celsius utilizes the collateral from the debtors and deploys it in order to generate additional earnings. BlockFi is likewise making money through the interest that is being credited customers. In addition to that, the platform likewise charges a 2% origination fee for anybody who wants to take a loan. Another income stream is BlockFi’s exchange function. The platform earns money from the spread when exchanging currencies. BlockFi also charges withdrawal costs after your one totally free withdrawal monthly. And the platform is also planning to launch a BlockFi charge card which will create another income stream. YouHodler is likewise making money from the interest credited customers. There is a small withdrawal fee and costs for extra services such as the Multi HODL tool, which is a function that lets you take advantage of your crypto properties in exchange for prospective returns. Like all the other platforms, Nexo likewise takes a cut from the interest that is being paid by the debtors. Nexo likewise makes earnings with their Nexo token. That’s at least our interpretation from Nexo’s business design as the platform doesn’t have A devoted section about

money fees on celsius services priced about stablecoins  profit margin Blockfest

this on their site. Now let’s talk about the returns. If you are seeing this video, you wish to make money by depositing your coins on one of the platforms right? Prior to we compare the rates, there are a couple of things that you should consider. Every platform has certain limitations and terms when it comes to providing interest on your coins. For example, Celsius Network changes the rates every week to show the current market situation. Likewise, you are only able to make higher rates if you decide to receive the interest in Celsius’s own utility token. The higher reward rates are also not offered for United States citizens. If you would not wish to pay out your rewards in the CEL token, you can currently expect to receive 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 number of your assets. The more bitcoin or ethereum you deposit, the less interest you will get. The rate of interest for Ethereum varieties in 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’s worth mentioning is that if you wish to save some charges, 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 fee, as the currency runs on the Binance Smart Chain with method lower charges in comparison to stablecoins that work on the ethereum network. The Binance USD coin is currently only supported on Celsius Network and BlockFi. YouHodler provides currently the most competitive rates for your USDC coins without the requirement to stake the platform’s own energy tokens. 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 provides higher benefits for those who wish 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 should keep in mind is that platforms tend to change the rates from time to time, so you can’t actually predict the real return from your deposits. Keep in mind that by depositing your crypto, the value of the currency might 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 review 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 well-known entrepreneur. Before launching 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 an eye on the development and review a few of the data. As we are tape-recording this video, there are over 650,000 users and the platform is managing $17 billion worth of properties. Alone in the last 12 months, Celsius has Blockfest

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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 find out that the platform is not lucrative. BlockFi is likewise financed by lots of institutional investors and the platform is primarily targeting the United States market. According to our research study, it appears like he has actually relocated to Switzerland to launch his crypto lending platform YouHodler in 2017.

 

At the start 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 bit of a steep development even if we think about the buzz in the crypto space. The 2nd co-founder of Nexo is Kosta Kantchev who likewise established Credissimo, a Bulgarian payday loan company that apparently is financing Nexo. According to our recent research, the executive board does not even consist of Antoli, but only Kosta and 2 other gentlemen, from which one is William Arthur Vesilind who was formerly the executive director at TrustBuddy, a Swedish p2p loaning platform, which is understood for the “misuse of customers cash”.

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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 use of every crypto loaning website. While the crypto loans on BlockFi are just readily available to U.S. citizens, the platform is also working on a Bitcoin benefits credit card which will be completing with the credit card from Crypto.com YouHodler uses some of the most innovative services amongst the crypto financing platforms.

 

YouHodler is also one of the platforms with flexible loan terms and an optimum LTV of 90%. Now you have a truly strong idea of what every crypto loaning platform is offering. What you need to consider though, is that as soon as you transfer your crypto on any platform, you are not owning your personal secrets any longer and your properties may get jeopardized either by third celebrations or by the platform itself. Blockfest

 

The only way to protect your crypto is to save it on a devoted hardware wallet like this one from Trezor. The drawback 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 lending platforms. Based on our extensive comparison, let’s have a look at our independent scores of every classification for every platform.