Looking for Crypto Exchanges That Offer Lending…A number of you have requested a comparison between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that allow you to earn interest on your stablecoins and cryptocurrencies. As requested, in this video, we will be comparing the business model of individual platforms, the return rates, the trustworthiness and track record, functionality of their apps and we will also talk about some of the risks that you should consider when depositing your crypto on among these platforms. We will also assemble the contrast with our independent score of the just-mentioned classifications for each platform. So keep watching till the end to find out how we scored specific 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 give you a short introduction to every platform before 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. The platform offers its services worldwide, nevertheless, they are presently not providing loans in the United States due to regional guidelines.
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The platform offers crypto-backed loans in 47 US states and their crypto interest account is available around the world with exception of approved nations. Nexo is another European platform that offers crypto lovers 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 financing platforms that offer interest on fiat deposits.
let’s discuss how they earn money in the first place. So Celsius generates income from the interest they charge to the debtors which are either retail debtors or institutions, they likewise generate income from their CEL token which is an energy token that you can utilize to increase your rewards on Celsius Network. Another earnings stream is the rehypothecation which implies that Celsius utilizes the security from the debtors and deploys it in order to create additional income. BlockFi is also generating income through the interest that is being credited customers. In addition to that, the platform also charges a 2% origination cost for anyone who wants to take a loan. Another earnings stream is BlockFi’s exchange feature. The platform makes money from the spread when exchanging currencies. BlockFi likewise charges withdrawal charges after your one free withdrawal monthly. And the platform is likewise planning to introduce a BlockFi charge card which will create another earnings stream. YouHodler is also generating income from the interest charged to borrowers. There is a little withdrawal fee and charges for additional services such as the Multi HODL tool, which is a feature that lets you utilize your crypto assets 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 service design as the platform does not have A devoted area about
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this on their website. Now let’s discuss the returns. If you are watching this video, you want to make money by depositing your coins on one of the platforms? Prior to we compare the rates, there are a few things that you must consider though. When it comes to offering interest on your coins, every platform has particular limits and terms. For example, Celsius Network alters the rates every week to show the existing market scenario. Also, you are just able to make greater rates if you decide to get the interest in Celsius’s own energy token. The greater reward rates are also not available for United States people. If you would not wish to pay your benefits 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 variety of your properties. The more bitcoin or ethereum you deposit, the less interest you will receive. The rate of interest for Ethereum varieties between 0.5% and 4.5%, the rate for bitcoin is in between 0.5% and 5%, and the rate for the two stablecoins is presently at
9% each year. What deserves mentioning is that if you want to save some fees, and bring more stability into your crypto interest account, you can also transfer the Binance USD coin for which you will not need to pay the hefty gas charge, as the currency works on the Binance Smart Chain with way lower costs in comparison to stablecoins that run on the ethereum network. The Binance USD coin is presently 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 offers 5.5% on Ethereum and 4.8% on your bitcoin deposits. Nexo is another platform that uses higher benefits for those who wish 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 must bear in mind is that platforms tend to adjust the rates from time to time, so you can’t actually forecast the real return from your deposits. Also, 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 assets if that’s something you would otherwise think about. So now, that you know the returns let’s briefly evaluation the credibility 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 widely known business owner. Before introducing the Celsius network, he has actually co-founded 3 startups worth more than $1 Billion each. On the Celsius App, you are likewise able to keep track of the development and evaluate some 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 Crypto Exchanges That Offer Lending
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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 explained together with other red flags in our previous video. At the start of January, Nexo had only $4B under its management from 1 M users, now 5 months later, the platform claims to handle $12B from 1.5 M users, which we think is a bit of a high growth even if we consider the buzz in the crypto area. What about Nexo’s management? Nexo is co-founded by Antoni Trenchev and Kosta Kantchev. Based upon our research study, Antoni was a Bulgarian politician with experience in the fashion Retail industry. On his LinkedIn profile, he describes Nexo as the leading managed banks for digital possessions. I would be really interested by whom Nexo is managed, as the business does not have a loaning license in Estonia, where they are a legal entity Nexo Provider 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 found on the site. The second co-founder of Nexo is Kosta Kantchev who likewise established Credissimo, a Bulgarian payday advance business that apparently is financing Nexo. According to our current research, the executive board doesn’t even include 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 financing platform, which is understood for the “abuse of clients cash”. When examining some of Nexo’s remarks from the CEO
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in the media, he is typically only promoting crypto and anticipating rates but lacks any much deeper insights into the crypto loaning space or how Nexo is operating. That’s simply our impression from his Bloomberg talks. Also, Nexo is the only platform that uses interest on fiat. According to our knowledge, you can not use 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 offering its services. Now that we have reviewed some of the track records of the 4 mentioned platforms, let’s briefly go over the use of every crypto loaning site. Celsius has started as a native mobile app. The app is well developed and it features numerous security functions such as the biometric scan, HODL mode, and 2FA. Right in the control panel, you have the ability to see how many assets you are holding and what are the currently used rates. You can move and withdraw supported coins however there is no exchange, so if you do not transfer your cryptos from another wallet, you can acquire them directly through the app. Keep in mind, however, that there might be charges for charge card purchases or SEPA transfers. Celsius Network supports currently 40 digital properties. BlockiFi makes a less developed impression. The app is really simple and so is the desktop variation of the platform. BlockFi supports presently only 10 digital currencies. The platform also uses 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 available to U.S. citizens, the platform is also working on a Bitcoin rewards credit card which will be taking on the charge card from Crypto.com YouHodler provides a few of the most sophisticated services among the crypto loaning platforms. Presently, the platform supports 18 digital
currencies on which you are able to make interest. YouHodler permits 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 require to transfer hundreds of Euros or Dollars 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 only make interest on your crypto properties. Apart from earning interest on your deposits or exchanging cryptos, YouHodler also uses you the choice to obtain fiat money in exchange for security. The platform currently supports only loans in us dollars or euros. YouHodler is also among the platforms with flexible loan terms and an optimum LTV of 90%. Apart from those services, YouHodler likewise provides 2 leveraging tools such as Turbocharged loans and Multi HODL, which are suitable for more opportunistic investors. As the performance of those features goes beyond this video, you can find out how it operates in our dedicated youhodler evaluation on p2pempire. Nexo’s use is similar to Celsius Network. Nexo is also utilizing its utility tokens to provide better rates on loans, greater interests on crypto and fiat deposits, or more complimentary withdrawals monthly. If you choose to stake your coins or fiat, implying you lock your assets for a defined term, you can get a higher interest rate. Like BlockFi, Nexo also offers you to buy, or exchange crypto if you wish to hold your properties in different currencies. Now you have a truly strong concept of what every crypto loaning platform is offering. What you need to think about however, is that as soon as you transfer your crypto on any platform, you are not owning your personal keys anymore and your assets might get compromised either by third parties or by the platform itself. It resembles transferring your crypto on the exchange – if you don’t own the secrets, the coin isn’t technically yours any longer. Platforms like Celsius and BlockFi are very clear about the fact that you Crypto Exchanges That Offer Lending
give up your ownership of the properties as long as you hold them in the platform’s wallet. The only method to protect your crypto is to keep it on a devoted hardware wallet like this one from Trezor. That’s the best way to keep your cryptos safe. The downside of this technique is that you will just gain from the increased value of your coin but not the interest on your deposits, which is something you can do on one of the crypto lending platforms. As with any financial investment, it constantly comes down to the threat and return and your threat profile. So based on our thorough comparison, let’s have a look at our independent rankings of every category for each platform. Keep in mind, that we have assigned the rankings based on our own research. One represents the lowest ranking while 5 mean the highest ranking. Within the business design category.