Looking for Uncollateralized Crypto Loan…Much of you have actually requested a contrast in between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that allow you to make interest on your cryptocurrencies and stablecoins. As asked for, in this video, we will be comparing the business model of specific platforms, the return rates, the credibility and track record, usability of their apps and we will also speak about a few of the dangers that you must think about when transferring your crypto on one of these platforms. We will also round up the comparison with our independent ranking of the just-mentioned classifications for every single platform. Keep watching up until the end to discover out how we scored private platforms. if you are new to this channel and your goal is to become a more informed P2P investor
think about subscribing and hit the like button to see more content like this in the future. So let’s very first give you a brief intro to every platform prior to we dive deeper into the comparison. Celsius Network is the fastest-growing crypto financing platform worldwide, which was founded in 2017 by Alex Mashinsky. Currently, there are over 650,000 users using Celsius Network to earn or take a crypto loan interest on their stablecoins and cryptocurrencies. In overall, Celsius manages more than $17 B worth of properties. The platform provides its services worldwide, however, they are presently not releasing loans in the United States due to regional regulations. BlockFi is the biggest
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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 countries. Nexo is another European platform that offers crypto enthusiasts the option to earn interest not just on their coins but also fiat deposits. Nexo is in fact, one of just 2, to us known, crypto financing platforms that use interest on fiat deposits.
And the platform is also preparing to release a BlockFi credit card which will create another income stream. Like all the other platforms, Nexo likewise takes a cut from the interest that is being paid by the customers. That’s at least our analysis from Nexo’s business model as the platform does not have A devoted area about
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this on their website. Now let’s speak about the returns. If you are seeing this video, you wish to generate income by depositing your coins on one of the platforms right? Before we compare the rates, there are a few things that you need to think about though. Every platform has specific limitations and terms when it concerns using interest on your coins. So for instance, Celsius Network alters the rates weekly to reflect the current market circumstance. You are just able to make higher rates if you choose to get the interest in Celsius’s own utility token. The higher reward rates are also not readily available for US residents. If you would not want to pay out your rewards in the CEL token, you can presently anticipate 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 possessions. The more bitcoin or ethereum you deposit, the less interest you will receive. The interest rate 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
9% annually. What deserves mentioning is that if you want to save some costs, and bring more stability into your crypto interest account, you can also transfer the Binance USD coin for which you will not require to pay the large gas fee, as the currency operates on the Binance Smart Chain with way 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 uses currently 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 uses 5.5% on Ethereum and 4.8% on your bitcoin deposits. Nexo is another platform that provides greater benefits for those who want to receive 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 ought to bear in mind is that platforms tend to adjust the rates from time to time, so you can’t actually anticipate the real return from your deposits. Also, keep in mind that by depositing your crypto, the value of the currency might reduce Which will make it hard for you to liquidate your possessions if that’s something you would otherwise think about. Now, that you are conscious of the returns let’s briefly review the trustworthiness of the platforms and their track record. Celsius Network is most likely the most legitimate platform in this area. The creator Alex Mashinsky is a popular entrepreneur. Before launching the Celsius network, he has actually 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 examine a few of the data. As we are recording this video, there are over 650,000 users and the platform is handling $17 billion worth of properties. Alone in the last 12 months, Celsius has Uncollateralized Crypto Loan
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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 monetary report for 2020, where you will find out that the platform is not rewarding. BlockFi is likewise financed by numerous institutional financiers and the platform is generally targeting the US market. According to our research study, it seems 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 mentioned 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 on, the platform claims to handle $12B from 1.5 M users, which we believe is a bit of a high development even if we think about the buzz in the crypto space. So what about Nexo’s management? Nexo is co-founded by Antoni Trenchev and Kosta Kantchev. Based on our research study, Antoni was a Bulgarian politician with experience in the style Retail market. On his LinkedIn profile, he explains Nexo as the leading regulated financial institution for digital assets. I would be really interested by whom Nexo is managed, as the company does not have a loaning license in Estonia, where they are a legal entity Nexo Provider OU is based. Throughout our research, we discovered connections to Bulgaria, Estonia, the UK, and the Cayman Islands but their legal address is no place to be found on the website. The 2nd co-founder of Nexo is Kosta Kantchev who also established Credissimo, a Bulgarian payday advance company that obviously is funding Nexo. According to our recent research study, 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 financing platform, which is understood for the “misuse of clients money”. Likewise when reviewing a few of Nexo’s remarks from the CEO
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in the media, he is frequently only promoting crypto and forecasting rates however does not have any much deeper insights into the crypto financing area or how Nexo is running. However that’s just our impression from his Bloomberg talks. Also, Nexo is the only platform that provides interest on fiat. According to our understanding, you can not provide interest on fiat deposits unless you have a banking license which Nexo definitely does not have. Although we are not legal representatives, we struggle to understand the legal setup under which Nexo is offering its services. So now that we have actually reviewed a few of the track records of the 4 mentioned platforms, let’s briefly review the use of every crypto loaning website. Celsius has actually begun as a native mobile app. The app is well established and it includes numerous security features such as the biometric scan, HODL mode, and 2FA. In the dashboard, you are able to see how many properties 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 don’t deposit your cryptos from another wallet, you can acquire them straight through the app. Note, nevertheless, that there might be costs for charge card purchases or SEPA transfers. Celsius Network supports currently 40 digital properties. BlockiFi makes a less industrialized impression. The app is very easy and so is the desktop version of the platform. BlockFi supports presently only 10 digital currencies. The platform also provides a dedicated 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 only available to U.S. residents, the platform is also dealing with a Bitcoin rewards credit card which will be competing with the charge card from Crypto.com YouHodler provides some of the most advanced services among the crypto financing platforms. Presently, the platform supports 18 digital
currencies on which you are able to earn interest. YouHodler enables you to exchange between various currencies or deposit fiat by means of bank wire or other supported payment services. The minimum deposit amounts are very low, so you do not require to move hundreds of Euros or Dollars 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 properties. Apart from making interest on your deposits or exchanging cryptos, YouHodler also provides you the alternative to obtain fiat money in exchange for collateral. The platform presently supports only loans in us euros or dollars. YouHodler is likewise one of 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 appropriate for more opportunistic investors. As the performance of those features goes beyond this video, you can learn how it operates in our dedicated youhodler review on p2pempire. Nexo’s usability is similar to Celsius Network. Nexo is likewise using its utility tokens to use much better rates on loans, higher interests on crypto and fiat deposits, or more complimentary withdrawals each month. Also if you choose to stake your coins or fiat, indicating you lock your properties for a specified term, you can get a greater rate of interest. Like BlockFi, Nexo also uses you to buy, or exchange crypto if you wish to hold your properties in various currencies. Now you have an actually strong idea of what every crypto loaning platform is using. What you need to consider however, is that as soon as you transfer your crypto on any platform, you are not owning your private secrets anymore and your possessions might get compromised either by third parties or by the platform itself. It’s like transferring your crypto on the exchange – if you do not own the secrets, the coin isn’t technically yours any longer. Platforms like Celsius and BlockFi are very clear about the fact that you Uncollateralized Crypto Loan
The only way to protect your crypto is to save it on a dedicated hardware wallet like this one from Trezor. The disadvantage of this strategy is that you will only 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 comparison, let’s have a look at our independent ratings of every classification for every platform.