Looking for Crypto Currcy Lend…Many of you have requested a comparison 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 company design of individual platforms, the return rates, the trustworthiness and track record, use of their apps and we will likewise talk about some of the dangers that you must consider when transferring your crypto on one of these platforms.
Let’s very first give you a brief introduction to every platform prior to we dive deeper into the comparison. 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, however, they are currently not issuing loans in the United States due to regional regulations.
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rival to Celsius Network. The US-based company has trading and loaning licenses in numerous US states. If you are looking for a wealth-management app for your crypto properties BlockFi is certainly worth considering. The platform provides crypto-backed loans in 47 US states and their crypto interest account is available around the world with exception of sanctioned nations. YouHodler is likely the most legitimate crypto lending platform in Europe. The company is signed up in Cyprus, with a dedicated branch in Switzerland. YouHodler offers really competitive rates on your crypto properties as well as a number of other functions which you will not discover on any other platforms. The platform is available in many nations with the exception of Germany and the USA. If you reside in the states, you won’t be able to use YouHodler’s services. Nexo is another European platform that uses crypto lovers the choice to earn interest not only on their coins but likewise fiat deposits. Nexo is in reality, among only 2, to us understood, crypto lending platforms that provide interest on fiat deposits. The platform offers its services worldwide, with exception of Bulgaria and Estonia. Now that you have a short introduction of every platform
let’s discuss how they earn money in the first place. So Celsius generates income from the interest they charge to the customers which are either retail debtors or organizations, they likewise make money from their CEL token which is an energy token that you can use to increase your rewards on Celsius Network. Another income stream is the rehypothecation which means that Celsius utilizes the collateral from the customers and deploys it in order to produce extra earnings. BlockFi is likewise earning money through the interest that is being credited customers. In addition to that, the platform likewise charges a 2% origination fee for anyone who wishes to take a loan. Another income stream is BlockFi’s exchange function. The platform generates income from the spread when exchanging currencies. BlockFi also charges withdrawal fees after your one free withdrawal per month. And the platform is also preparing to launch a BlockFi charge card which will create another earnings stream. YouHodler is also earning money from the interest charged to borrowers. In addition to that, there is a little withdrawal charge and fees for extra services such as the Multi HODL tool, which is a function that lets you take advantage of your crypto possessions in exchange for possible returns. Like all the other platforms, Nexo likewise takes a cut from the interest that is being paid by the debtors. Nexo also makes revenues with their Nexo token. That’s at least our analysis from Nexo’s company model as the platform doesn’t have A devoted area about
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If you are enjoying this video, you desire to make cash by depositing your coins on one of the platforms? Every platform has certain limitations 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 energy token.
9% per year. What deserves mentioning is that if you wish to save some fees, 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 substantial gas cost, as the currency operates on the Binance Smart Chain with method lower fees in contrast to stablecoins that work on the ethereum network. The Binance USD coin is currently only supported on Celsius Network and BlockFi. YouHodler provides 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 uses higher benefits for those who want to receive 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 need to bear in mind is that platforms tend to adjust the rates from time to time, so you can’t really predict the real return from your deposits. Also, bear in mind that by depositing your crypto, the worth of the currency may decrease Which will make it hard for you to liquidate your assets if that’s something you would otherwise think about. So now, that you understand the returns let’s briefly review the reliability of the platforms and their track record. Celsius Network is most likely the most legitimate platform in this area. The founder Alex Mashinsky is a popular business owner. Prior to introducing the Celsius network, he has actually co-founded 3 start-ups worth more than $1 Billion each. On the Celsius App, you are likewise able to keep an eye on the progress and evaluate 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 assets. Alone in the last 12 months, Celsius has Crypto Currcy Lend
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deposit quantity as compared to the users on the Celsius Network. We are not delighted about Nexo’s reporting standards as we have mentioned together with other red flags in our previous video. 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 manage $12B from 1.5 M users, which we think is a bit of a high growth even if we think about 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 politician with experience in the fashion Retail industry. On his LinkedIn profile, he explains Nexo as the leading controlled financial institution for digital assets. I would be really interested by whom Nexo is regulated, as the business doesn’t have a financing license in Estonia, where they are a legal entity Nexo Provider 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 second co-founder of Nexo is Kosta Kantchev who likewise founded Credissimo, a Bulgarian payday loan business that apparently is funding Nexo. According to our current 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 previously the executive director at TrustBuddy, a Swedish p2p financing platform, which is understood for the “misuse of customers money”. When evaluating some of Nexo’s remarks from the CEO
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in the media, he is often only promoting crypto and predicting rates but does not have any deeper insights into the crypto lending space or how Nexo is running. However that’s simply our impression from his Bloomberg talks. Also, Nexo is the only platform that provides interest on fiat. According to our knowledge, you can not offer interest on fiat deposits unless you have a banking license which Nexo definitely does not have. Although we are not lawyers, we have a hard time to comprehend the legal setup under which Nexo is using its services. Now that we have actually evaluated some of the track records of the four mentioned platforms, let’s briefly go over the usability of every crypto financing website. Celsius has started as a native mobile app. The app is well established and it comes with numerous security functions such as the biometric scan, HODL mode, and 2FA. In the dashboard, you are able to see how many assets you are holding and what are the presently used rates. You can transfer and withdraw supported coins but there is no exchange, so if you do not transfer your cryptos from another wallet, you can purchase them directly through the app. Keep in mind, nevertheless, that there might be charges for credit card purchases or SEPA transfers. Celsius Network supports currently 40 digital possessions. BlockiFi makes a less industrialized impression. The app is really easy therefore is the desktop variation of the platform. BlockFi supports currently just 10 digital currencies. The platform likewise offers a devoted exchange so you can even trade them. We don’t recommend this function that much as the exchange rates are not the best. While the crypto loans on BlockFi are just readily available to U.S. residents, the platform is likewise dealing with a Bitcoin rewards charge card which will be taking on the credit card from Crypto.com YouHodler provides some of the most innovative services among the crypto financing platforms. Currently, the platform supports 18 digital
currencies on which you are able to make interest. YouHodler allows you to exchange in between various currencies or deposit fiat by means of bank wire or other supported payment services. The minimum deposit quantities are extremely low, so you don’t need to transfer numerous Dollars or euros to test the platform. The minimum deposit is around 50 EUR or USD worth of cryptocurrency. As YouHodler doesn’t have a banking license, you can only earn interest on your crypto assets. Apart from earning interest on your deposits or exchanging cryptos, YouHodler also provides you the alternative to obtain fiat money in exchange for security. The platform presently supports only loans in us dollars or euros. YouHodler is likewise one of the platforms with versatile loan terms and an optimum LTV of 90%. Apart from those services, YouHodler likewise uses 2 leveraging tools such as Turbocharged loans and Multi HODL, which appropriate for more opportunistic financiers. As the performance of those functions surpasses this video, you can discover how it works in our dedicated youhodler evaluation on p2pempire. Nexo’s functionality resembles Celsius Network. Nexo is also utilizing its energy tokens to offer better rates on loans, higher interests on crypto and fiat deposits, or more totally free withdrawals per month. If you decide to stake your coins or fiat, implying you lock your possessions for a defined term, you can get a higher interest rate. Like BlockFi, Nexo likewise uses you to purchase, or exchange crypto if you wish to hold your assets in numerous currencies. Now you have a truly solid concept of what every crypto lending platform is offering. What you need to consider however, is that as quickly as you deposit your crypto on any platform, you are not owning your private secrets anymore and your properties might get jeopardized either by 3rd parties or by the platform itself. It resembles depositing your crypto on the exchange – if you do not own the keys, the coin isn’t technically yours anymore. Platforms like Celsius and BlockFi are very clear about the fact that you Crypto Currcy Lend
give up your ownership of the properties as long as you hold them in the platform’s wallet. The only method to safeguard your crypto is to keep it on a dedicated hardware wallet like this one from Trezor. That’s the very best way to keep your cryptos safe. The drawback of this strategy is that you will only gain from the increased worth of your coin however not the interest on your deposits, which is something you can do on among the crypto loaning platforms. However, similar to any financial investment, it constantly comes down to the risk and return and your threat profile. Based on our in-depth comparison, let’s have a look at our independent ratings of every category for every platform. Keep in mind, that we have actually designated the ratings based upon our own research. One represents the most affordable score while 5 represent the greatest rating. Within business model category.