Can I Secure A Loan With Bitcoin? – Everything You Need to Know

Looking for Can I Secure A Loan With Bitcoin?…A lot 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 business design of specific platforms, the return rates, the trustworthiness and performance history, usability of their apps and we will likewise talk about a few of the dangers that you need to consider when depositing your crypto on among these platforms. We will also assemble the contrast with our independent rating of the just-mentioned classifications for every single platform. So keep watching till completion to learn how we scored private platforms. If you are brand-new to this channel and your objective is to end up being a more informed P2P financier,

 

Let’s first provide you a brief intro to every platform before 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 provides its services worldwide, nevertheless, they are currently not releasing loans in the United States due to local guidelines.

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The platform provides crypto-backed loans in 47 US states and their crypto interest account is readily available around the world with exception of approved nations. Nexo is another European platform that uses crypto enthusiasts the option to make interest not just on their coins but also fiat deposits. Nexo is in fact, one of only two, 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 money 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 use to increase your rewards on Celsius Network. Another earnings stream is the rehypothecation which indicates that Celsius utilizes the security from the customers and releases it in order to produce extra income. BlockFi is likewise generating income through the interest that is being charged to borrowers. 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 charges after your one complimentary withdrawal monthly. And the platform is likewise planning to introduce a BlockFi credit card which will produce another income stream. YouHodler is likewise making money from the interest credited customers. There is a little withdrawal fee and costs for additional services such as the Multi HODL tool, which is a feature that lets you utilize your crypto properties in exchange for prospective returns. Like all the other platforms, Nexo also takes a cut from the interest that is being paid by the customers. Nexo likewise makes revenues with their Nexo token. That’s at least our analysis from Nexo’s service design as the platform doesn’t have A devoted area about

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If you are enjoying this video, you want to make cash by depositing your coins on one of the platforms? Every platform has certain limitations and terms when it comes to providing interest on your coins. You are just able to earn greater rates if you decide to get the interest in Celsius’s own energy token.

 

9% per year. What’s worth discussing is that if you wish to conserve some costs, and bring more stability into your crypto interest account, you can also deposit the Binance USD coin for which you will not require to pay the large gas charge, as the currency runs on the Binance Smart Chain with method lower charges in contrast to stablecoins that operate 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 make 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 offers greater rewards for those who want to get the interest in the native NEXO tokens instead of the deposited currency. The platform uses 6% for non-Nexo token holders on bitcoin and ethereum and 10% on the USDC coin. What you should remember is that platforms tend to change the rates from time to time, so you can’t actually anticipate the real return from your deposits. Keep in mind that by transferring your crypto, the worth of the currency may decrease Which will make it hard for you to liquidate your properties if that’s something you would otherwise think about. So now, that you understand the returns let’s briefly evaluation the reliability of the platforms and their performance history. Celsius Network is most likely the most legitimate platform in this space. The creator Alex Mashinsky is a popular entrepreneur. Before introducing the Celsius network, he has co-founded 3 start-ups worth more than $1 Billion each. On the Celsius App, you are also able to keep track of the development and evaluate a few of the statistics. As we are recording this video, there are over 650,000 users and the platform is handling $17 billion worth of assets. Alone in the last 12 months, Celsius has Can I Secure A Loan With Bitcoin?

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paid out more than $367 M worth of benefits. While we have not managed to get answers to our concerns, 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, but with a little bit of digging, you can get your hands on the financial report for 2020, where you will learn that the platform is not profitable yet. BlockFi is co-founded by Zac Prince and Flori Marquez. The CEO Zac Prince has more experience within business development area rather than the fintech space. BlockFi is likewise financed by many institutional financiers and the platform is generally targeting the United States market. While you can utilize the crypto interest account worldwide, the crypto loans are readily available Just for U.S residents as BlockFi has the necessary financing licenses only in the U.S. , if you want to inspect BlockFi’s data you will not be pleased as there are none available.. Some external sources recommend that there are more than 125,000 signed up users, however, we were unable 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, it looks like he has relocated to Switzerland to release his crypto financing platform YouHodler in 2017. I know that YouHodler has actually been applauded by some of you in the discuss previous videos, regrettably, the platform isn’t publicly exposing any monetary reports, nor data about their user base or assets under YouHodler’s management. This is something you need to certainly think about when utilizing YouHodler. Proceeding to Nexo. Nexo declares to manage $12 B worth of assets from more than 1.5 M of users. It would indicate that Nexo is two times as huge in terms of user base as Celsius with a much lower average if this is right

 

deposit amount as compared to the users on the Celsius Network. We are not thrilled about Nexo’s reporting requirements as we have mentioned 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, the platform declares to manage $12B from 1.5 M users, which we believe is a little bit of a high development even if we consider the buzz in the crypto space. What about Nexo’s management? Nexo is co-founded by Antoni Trenchev and Kosta Kantchev. Based upon our research, Antoni was a Bulgarian political leader with experience in the fashion Retail industry. On his LinkedIn profile, he describes Nexo as the leading managed banks for digital assets. I would be actually interested by whom Nexo is managed, as the company doesn’t have a lending license in Estonia, where they are a legal entity Nexo Services OU is based. During our research, we found connections to Bulgaria, Estonia, the UK, and the Cayman Islands but their legal address is nowhere to be found on the site. The 2nd co-founder of Nexo is Kosta Kantchev who also established Credissimo, a Bulgarian payday advance loan business that apparently is financing Nexo. According to our current research, the executive board doesn’t even consist of Antoli, however just Kosta and two other gentlemen, from which one is William Arthur Vesilind who was formerly the executive director at TrustBuddy, a Swedish p2p lending platform, which is understood for the “abuse of clients money”. Likewise when evaluating a few of Nexo’s remarks from the CEO

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in the media, he is frequently only promoting crypto and forecasting costs but lacks any much deeper insights into the crypto lending space 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 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 providing its services. So now that we have evaluated a few of the track records of the four discussed platforms, let’s briefly discuss the usability of every crypto lending website. Celsius has started as a native mobile app. The app is well established and it features numerous security functions such as the biometric scan, HODL mode, and 2FA. Right in the control panel, you are able to see the number of properties you are holding and what are the currently offered rates. You can move and withdraw supported coins but there is no exchange, so if you don’t deposit your cryptos from another wallet, you can acquire them directly through the app. Note, however, that there might be charges for credit card purchases or SEPA transfers. Celsius Network supports currently 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 also offers a devoted exchange so you can even trade them. We do not recommend this feature that much as the exchange rates are not the best. While the crypto loans on BlockFi are only readily available to U.S. residents, the platform is also working on a Bitcoin benefits charge card which will be taking on the charge card from Crypto.com YouHodler offers some of the most innovative services amongst the crypto financing platforms. Currently, the platform supports 18 digital

 

currencies on which you are able to earn interest. YouHodler enables you to exchange between different currencies or deposit fiat via bank wire or other supported payment services. The minimum deposit quantities are very low, so you don’t need to transfer numerous Euros or Dollars to evaluate the platform. The minimum deposit is around 50 EUR or USD worth of cryptocurrency. As YouHodler does not have a banking license, you can just earn interest on your crypto properties. Apart from earning interest on your deposits or exchanging cryptos, YouHodler also offers you the alternative to borrow fiat money in exchange for security. The platform presently supports just loans in us dollars or euros. YouHodler is also one of the platforms with flexible 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 financiers. As the performance of those functions goes beyond this video, you can learn how it works in our dedicated youhodler review on p2pempire. Nexo’s usability is similar to Celsius Network. Nexo is likewise utilizing its energy tokens to use much better rates on loans, higher interests on crypto and fiat deposits, or more free withdrawals per month. Likewise if you decide to stake your coins or fiat, indicating you lock your assets for a specified term, you can get a higher rates of interest. Like BlockFi, Nexo likewise uses you to buy, or exchange crypto if you wish to hold your assets in numerous currencies. Now you have an actually strong idea of what every crypto lending platform is offering. What you need to think about though, is that as quickly as you deposit your crypto on any platform, you are not owning your private secrets anymore and your assets may get compromised either by third parties or by the platform itself. It’s like transferring your crypto on the exchange – if you don’t own the secrets, the coin isn’t technically yours anymore. Platforms like Celsius and BlockFi are very clear about the fact that you Can I Secure A Loan With Bitcoin?

 

The only way to protect your crypto is to save it on a devoted hardware wallet like this one from Trezor. The disadvantage of this method 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 lending platforms. Based on our in-depth comparison, let’s have an appearance at our independent ratings of every category for every platform.