Drawbridge Crypto Loans – Everything You Need to Know

Looking for Drawbridge Crypto Loans…Many of you have asked for a contrast between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that enable you to make interest on your cryptocurrencies and stablecoins. As asked for, in this video, we will be comparing the company design of individual platforms, the return rates, the reliability and track record, functionality of their apps and we will also talk about some of the dangers that you need to consider when depositing your crypto on one of these platforms.

 

Let’s first provide you a quick introduction to every platform prior to we dive deeper into the contrast. Celsius Network is the fastest-growing crypto financing platform in the world, which was founded in 2017 by Alex Mashinsky. The platform provides its services worldwide, nevertheless, they are currently not issuing loans in the United States due to regional policies.

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The platform uses crypto-backed loans in 47 US states and their crypto interest account is offered worldwide with exception of approved nations. Nexo is another European platform that uses crypto enthusiasts the alternative to earn interest not only on their coins but likewise fiat deposits. Nexo is in truth, one of just 2, to us understood, crypto lending platforms that offer interest on fiat deposits.

 

let’s discuss how they generate income in the first place. Celsius makes money from the interest they charge to the debtors which are either retail debtors or institutions, 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 income stream is the rehypothecation which means that Celsius utilizes the security from the debtors and deploys it in order to produce additional income. BlockFi is also making money through the interest that is being credited customers. The platform also charges a 2% origination cost for anyone who wants to take a loan. Another earnings stream is BlockFi’s exchange function. When exchanging currencies, the platform makes money from the spread. BlockFi also charges withdrawal fees after your one free withdrawal monthly. And the platform is also preparing to launch a BlockFi credit card which will generate another earnings stream. YouHodler is likewise earning money from the interest credited borrowers. In addition to that, there is a little withdrawal fee and charges for extra services such as the Multi HODL tool, which is a feature that lets you leverage your crypto possessions 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 earnings with their Nexo token. That’s at least our interpretation from Nexo’s company design as the platform does not have A devoted section about

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If you are watching this video, you want to make money by depositing your coins on one of the platforms? Every platform has specific limitations and terms when it comes to offering 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% annually. What’s worth discussing is that if you want to save 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 large gas fee, 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 provides currently the most competitive rates for your USDC coins without the need to stake the platform’s own energy 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 offers higher benefits for those who wish to receive the interest in the native NEXO tokens instead of the deposited currency. The platform offers 6% for non-Nexo token holders on bitcoin and ethereum and 10% on the USDC coin. What you ought to remember is that platforms tend to change the rates from time to time, so you can’t really predict the real return from your deposits. Keep in mind that by depositing your crypto, the worth of the currency might decrease Which will make it hard for you to liquidate your assets if that’s something you would otherwise consider. So now, that you know the returns let’s briefly review the trustworthiness of the platforms and their performance history. Celsius Network is likely the most genuine 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 also able to keep an eye on the progress and evaluate a few of the statistics. As we are taping this video, there are over 650,000 users and the platform is handling $17 billion worth of possessions. Alone in the last 12 months, Celsius has Drawbridge Crypto Loans

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paid more than $367 M worth of benefits. While we have not managed to get answers to our questions, the CEO does hold a weekly AMA session where he is dealing with the most frequently asked questions, which is something rather rare in this space. 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 discover out that the platform is not profitable. BlockFi is co-founded by Zac Prince and Flori Marquez. The CEO Zac Prince has more experience within the business development space rather than the fintech area. BlockFi is also financed by numerous institutional investors and the platform is mainly targeting the US market. While you can use the crypto interest account worldwide, the crypto loans are offered Just for U.S residents as BlockFi has the required lending licenses only in the U.S. If you wish to examine BlockFi’s statistics you won’t enjoy as there are none available. Some external sources recommend that there are more than 125,000 registered users, nevertheless, we were not able to verify 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 seems like he has actually relocated to Switzerland to introduce his crypto financing platform YouHodler in 2017. I know that YouHodler has been applauded by some of you in the talk about previous videos, unfortunately, the platform isn’t openly exposing any financial reports, nor statistics about their user base or possessions under YouHodler’s management. When utilizing YouHodler, this is something you ought to definitely consider. Proceeding to Nexo. Nexo claims to manage $12 B worth of possessions from more than 1.5 M of users. It would mean that Nexo is two times as huge in terms of user base as Celsius with a much lower average if this is proper

 

At the start of January, Nexo had only $4B under its management from 1 M users, now five months later on, the platform claims to handle $12B from 1.5 M users, which we believe is a bit of a high growth even if we consider the hype in the crypto space. The second co-founder of Nexo is Kosta Kantchev who likewise founded Credissimo, a Bulgarian payday loan business that apparently is financing Nexo. According to our recent research, the executive board doesn’t even include 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 known for the “abuse of clients money”.

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Nexo is the only platform that provides interest on fiat. Now that we have reviewed some of the track records of the four discussed platforms, let’s briefly go over the use of every crypto financing website. While the crypto loans on BlockFi are only offered to U.S. people, the platform is likewise working on a Bitcoin rewards credit card which will be completing with the credit card from Crypto.com YouHodler provides some of the most sophisticated services amongst the crypto lending platforms.

 

YouHodler is likewise one of the platforms with flexible loan terms and an optimum LTV of 90%. Now you have an actually solid idea of what every crypto lending platform is providing. What you should think about though, is that as soon as you deposit your crypto on any platform, you are not owning your personal keys any longer and your possessions may get compromised either by third celebrations or by the platform itself. Drawbridge Crypto Loans

 

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