How To Spot A Bitcoin Loan Scam – Everything You Need to Know

Looking for How To Spot A Bitcoin Loan Scam…Many of you have requested a contrast between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that enable you to make interest on your stablecoins and cryptocurrencies. As asked for, in this video, we will be comparing business design of individual platforms, the return rates, the reliability and performance history, functionality of their apps and we will likewise discuss some of the risks that you should consider when transferring your crypto on one of these platforms. We will also assemble the contrast with our independent score of the just-mentioned classifications for every single platform. Keep enjoying until the end to find out how we scored specific platforms. if you are new to this channel and your goal is to become a more informed P2P financier

 

Let’s very first give you a quick introduction to every platform before 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 local guidelines.

youhodler crypto interest loans, platform for users

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

 

And the platform is also preparing to introduce a BlockFi credit card which will create another earnings stream. Like all the other platforms, Nexo also takes a cut from the interest that is being paid by the borrowers. That’s at least our interpretation from Nexo’s organization model as the platform does not have A dedicated area about

money fees on celsius services priced about stablecoins  profit margin How To Spot A Bitcoin Loan Scam

If you are watching this video, you want to make money by transferring your coins on one of the platforms? Every platform has certain limits and terms when it comes to providing interest on your coins. You are just able to make higher rates if you decide to get the interest in Celsius’s own utility token.

 

9% annually. What’s worth mentioning is that if you want to conserve 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 significant gas charge, as the currency works on the Binance Smart Chain with method lower costs in comparison to stablecoins that work on the ethereum network. The Binance USD coin is presently only supported on Celsius Network and BlockFi. YouHodler offers currently the most competitive rates for your USDC coins without the need 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 need to keep in mind is that platforms tend to change the rates from time to time, so you can’t actually forecast the genuine return from your deposits. Keep in mind that by transferring your crypto, the value of the currency may reduce Which will make it hard for you to liquidate your properties if that’s something you would otherwise consider. So now, that you are aware of the returns let’s briefly evaluation the credibility of the platforms and their performance history. Celsius Network is likely the most genuine platform in this space. The founder Alex Mashinsky is a widely known business owner. Prior to releasing the Celsius network, he has actually co-founded three startups worth more than $1 Billion each. On the Celsius App, you are also able to monitor the progress and examine a few of the data. As we are tape-recording 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 How To Spot A Bitcoin Loan Scam

bitcoin amount of lending service with value feature trading

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 monetary report for 2020, where you will discover out that the platform is not successful. BlockFi is likewise funded by many institutional investors and the platform is mainly targeting the United States market. According to our research study, it appears like he has moved to Switzerland to release his crypto lending platform YouHodler in 2017.

 

At the beginning of January, Nexo had just $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 consider the buzz in the crypto area. The second co-founder of Nexo is Kosta Kantchev who also established Credissimo, a Bulgarian payday loan business that apparently is financing Nexo. According to our current research study, the executive board does not even include Antoli, however 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 “abuse of customers money”.

turbocharge  stablecoins crypto assets  coins investment profile

 

in the media, he is frequently only promoting crypto and forecasting rates however does not have any much deeper insights into the crypto financing space or how Nexo is operating. That’s simply our impression from his Bloomberg talks. Likewise, Nexo is the only platform that uses interest on fiat. According to our knowledge, you can not offer interest on fiat deposits unless you have a banking license which Nexo certainly does not have. Even though we are not attorneys, we struggle to understand the legal setup under which Nexo is using its services. Now that we have actually examined some of the track records of the 4 mentioned platforms, let’s briefly go over the functionality of every crypto lending website. Celsius has actually begun as a native mobile app. The app is well established and it features various security functions such as the biometric scan, HODL mode, and 2FA. In the control panel, you are able to see how numerous assets you are holding and what are the currently used rates. You can withdraw and move supported coins however there is no exchange, so if you don’t deposit your cryptos from another wallet, you can purchase them directly through the app. Note, however, that there might be fees for charge card purchases or SEPA transfers. Celsius Network supports presently 40 digital assets. BlockiFi makes a less industrialized impression. The app is very basic and so is the desktop variation of the platform. BlockFi supports presently just 10 digital currencies. The platform also uses a devoted exchange so you can even trade them. We do not advise this feature that much as the exchange rates are not the very best. While the crypto loans on BlockFi are only offered to U.S. people, the platform is also working on a Bitcoin rewards credit card which will be competing with the charge card from Crypto.com YouHodler provides some of the most advanced services amongst the crypto loaning platforms. Presently, the platform supports 18 digital

 

YouHodler is likewise one of the platforms with versatile loan terms and a maximum LTV of 90%. Now you have an actually strong concept of what every crypto loaning platform is providing. What you must consider though, is that as quickly as you transfer your crypto on any platform, you are not owning your personal secrets anymore and your properties might get jeopardized either by 3rd parties or by the platform itself. How To Spot A Bitcoin Loan Scam

 

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