Looking for Crypto Lending Risk…Many of you have actually asked for 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 service model of individual platforms, the return rates, the credibility and track record, usability of their apps and we will also talk about some of the threats that you must consider when depositing your crypto on one of these platforms.
consider subscribing and struck the like button to see more material like this in the future. Let’s first offer 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. Presently, there are over 650,000 users using Celsius Network to earn or take a crypto loan interest on their cryptocurrencies and stablecoins. In overall, Celsius manages more than $17 B worth of properties. The platform uses its services worldwide, nevertheless, they are currently not issuing loans in the United States due to regional regulations. BlockFi is the largest
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competitor to Celsius Network. The US-based business has trading and loaning licenses in numerous US states. If you are looking for a wealth-management app for your crypto possessions BlockFi is certainly worth considering. The platform uses crypto-backed loans in 47 US states and their crypto interest account is offered around the world with exception of sanctioned nations. YouHodler is most likely the most legitimate crypto financing platform in Europe. The business is registered in Cyprus, with a dedicated branch in Switzerland. YouHodler provides really competitive rates on your crypto assets in addition to a number of other functions which you will not discover on any other platforms. The platform is readily available in numerous nations with the exception of Germany and the U.S.A.. So if you reside in the states, you will not have the ability to use YouHodler’s services. Nexo is another European platform that provides crypto lovers the alternative to earn interest not only on their coins but also fiat deposits. Nexo remains in reality, among only 2, to us known, crypto financing platforms that use interest on fiat deposits. The platform uses its services worldwide, with exception of Bulgaria and Estonia. Now that you have a brief summary of every platform
And the platform is likewise preparing to launch a BlockFi credit card which will create another income stream. Like all the other platforms, Nexo also takes a cut from the interest that is being paid by the debtors. That’s at least our interpretation from Nexo’s company design as the platform does not have A dedicated area about
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this on their website. Now let’s speak about the returns. If you are viewing this video, you want to generate income by transferring your coins on among the platforms right? Before we compare the rates, there are a few things that you ought to think about. Every platform has specific limitations and terms when it pertains to offering interest on your coins. For example, Celsius Network changes the rates every week to reflect the current market situation. Likewise, you are only able to make higher rates if you choose to get the interest in Celsius’s own utility token. The greater benefit rates are likewise not readily available for US people. If you would not wish to pay your benefits in the CEL token, you can currently anticipate to get 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 on the number of your properties. The more bitcoin or ethereum you deposit, the less interest you will receive. The rate of interest for Ethereum ranges between 0.5% and 4.5%, the rate for bitcoin is between 0.5% and 5%, and the rate for the two stablecoins is currently at
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 rewards for those who want to receive the interest in the native NEXO tokens instead of the deposited currency. What you should keep in mind is that platforms tend to adjust the rates from time to time, so you can’t actually anticipate the genuine return from your deposits. Crypto Lending Risk
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The platform is not transparent when it comes to sharing its monetary reports, but 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 successful. BlockFi is also financed by lots of institutional financiers and the platform is mainly targeting the United States market. According to our research, it appears like he has transferred to Switzerland to release his crypto financing platform YouHodler in 2017.
deposit amount as compared to the users on the Celsius Network. We are not excited about Nexo’s reporting standards as we have pointed out together with other warnings in our previous video. Likewise, at the start 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 think is a bit of a steep development even if we consider the hype in the crypto space. So what about Nexo’s management? Nexo is co-founded by Antoni Trenchev and Kosta Kantchev. Based on our research, Antoni was a Bulgarian political leader 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 managed, as the company doesn’t have a loaning license in Estonia, where they are a legal entity Nexo Provider OU is based. During our research, we discovered connections to Bulgaria, Estonia, the UK, and the Cayman Islands however their legal address is nowhere to be discovered on the site. The second co-founder of Nexo is Kosta Kantchev who likewise founded Credissimo, a Bulgarian payday advance company that apparently is financing Nexo. According to our recent research, the executive board does not even consist of Antoli, however only 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 “misuse of customers cash”. Also when reviewing some of Nexo’s remarks from the CEO
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in the media, he is typically only promoting crypto and anticipating prices but lacks any much deeper insights into the crypto financing area or how Nexo is running. However that’s simply our impression from his Bloomberg talks. Also, Nexo is the only platform that offers interest on fiat. According to our understanding, you can not use interest on fiat deposits unless you have a banking license which Nexo certainly does not have. Despite the fact that we are not lawyers, we struggle to understand the legal setup under which Nexo is providing its services. Now that we have examined some of the track records of the 4 discussed platforms, let’s briefly go over the use of every crypto lending site. Celsius has started as a native mobile app. The app is well developed and it comes with numerous security features such as the biometric scan, HODL mode, and 2FA. Right in the dashboard, you are able to see the number of possessions you are holding and what are the presently offered rates. You can transfer and withdraw supported coins however there is no exchange, so if you don’t deposit your cryptos from another wallet, you can acquire them straight through the app. Keep in mind, nevertheless, that there might be fees for credit card purchases or SEPA transfers. Celsius Network supports currently 40 digital assets. BlockiFi makes a less developed impression. The app is very basic and so is the desktop variation of the platform. BlockFi supports currently only 10 digital currencies. The platform also provides a dedicated exchange so you can even trade them. We don’t advise this feature that much as the currency exchange rate are not the best. While the crypto loans on BlockFi are only available to U.S. residents, the platform is also working on a Bitcoin rewards credit card which will be taking on the credit card from Crypto.com YouHodler uses a few of the most advanced services among the crypto financing platforms. Currently, the platform supports 18 digital
currencies on which you have the ability to earn interest. YouHodler allows you to exchange between numerous currencies or deposit fiat through bank wire or other supported payment services. The minimum deposit amounts are really low, so you do not need to move 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 assets. Apart from earning interest on your deposits or exchanging cryptos, YouHodler likewise uses you the alternative to obtain fiat money in exchange for security. The platform currently supports only loans in us dollars or euros. YouHodler is likewise among the platforms with versatile loan terms and an optimum LTV of 90%. Apart from those services, YouHodler likewise provides two leveraging tools such as Turbocharged loans and Multi HODL, which are suitable for more opportunistic investors. As the performance of those functions goes beyond this video, you can learn how it works in our devoted youhodler review on p2pempire. Nexo’s functionality resembles Celsius Network. Nexo is also utilizing its energy tokens to provide much better rates on loans, greater interests on crypto and fiat deposits, or more totally free withdrawals per month. Likewise if you choose to stake your coins or fiat, indicating you lock your assets for a specified term, you can get a greater rates of interest. Like BlockFi, Nexo likewise provides you to buy, or exchange crypto if you want to hold your possessions in various currencies. Now you have a really strong concept of what every crypto financing platform is providing. What you ought to consider though, is that as soon as you transfer your crypto on any platform, you are not owning your private keys anymore and your properties might get compromised either by 3rd parties or by the platform itself. It’s like depositing 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 really clear about the truth that you Crypto Lending Risk
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 technique is that you will just 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 loaning platforms. Based on our in-depth contrast, let’s have a look at our independent ratings of every classification for every platform.