Looking for Cryptocurrency Exchange Compliance…Many of you have asked for a contrast in between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that enable you to earn interest on your cryptocurrencies and stablecoins. As asked for, in this video, we will be comparing the business design of private platforms, the return rates, the credibility and track record, functionality of their apps and we will also speak about a few of the risks that you should think about when transferring your crypto on among these platforms. We will also round up the contrast with our independent score of the just-mentioned classifications for every single platform. So keep watching till the end to discover how we scored private platforms. If you are new to this channel and your goal is to end up being a more educated P2P investor,
Let’s very first offer you a short intro to every platform before 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 releasing loans in the United States due to local policies.
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The platform provides 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 alternative to earn interest not only on their coins however likewise fiat deposits. Nexo is in fact, one of just two, to us known, crypto financing platforms that offer interest on fiat deposits.
let’s discuss how they make money in the first place. Celsius makes cash from the interest they charge to the customers which are either retail debtors or institutions, they also make money 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 means that Celsius uses the collateral from the borrowers and deploys it in order to generate extra earnings. BlockFi is also earning money through the interest that is being credited debtors. In addition to that, the platform likewise charges a 2% origination fee for anyone who wants to take a loan. Another income stream is BlockFi’s exchange feature. The platform earns money from the spread when exchanging currencies. BlockFi also charges withdrawal costs after your one free withdrawal monthly. And the platform is likewise preparing to launch a BlockFi credit card which will produce another income stream. YouHodler is also generating income from the interest charged to customers. There is a little withdrawal charge and charges for additional services such as the Multi HODL tool, which is a feature that lets you utilize your crypto properties in exchange for possible returns. Like all the other platforms, Nexo likewise takes a cut from the interest that is being paid by the borrowers. Nexo also makes profits with their Nexo token. That’s at least our analysis from Nexo’s organization design as the platform doesn’t have A dedicated section about
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If you are seeing this video, you want to make money by transferring your coins on one of the platforms? Every platform has particular limits and terms when it comes to using interest on your coins. You are only able to make greater rates if you decide to receive the interest in Celsius’s own energy token.
9% each year. What deserves 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 way lower charges in comparison to stablecoins that operate 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 higher rewards 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 should keep in mind is that platforms tend to adjust the rates from time to time, so you can’t really anticipate the real return from your deposits. Likewise, bear in mind that by depositing your crypto, the worth of the currency might reduce Which will make it hard for you to liquidate your possessions if that’s something you would otherwise consider. Now, that you are mindful of the returns let’s briefly evaluation the trustworthiness of the platforms and their track record. Celsius Network is likely the most genuine platform in this space. The creator Alex Mashinsky is a widely known entrepreneur. Before launching the Celsius network, he has co-founded three startups worth more than $1 Billion each. On the Celsius App, you are also able to keep track of the progress and examine some of the stats. 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 Cryptocurrency Exchange Compliance
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paid out more than $367 M worth of rewards. While we have not managed to get answers to our questions, the CEO does hold a weekly AMA session where he is addressing the most frequently asked questions, which is something rather uncommon in this space. The platform is not transparent when it comes to sharing its monetary reports, however 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 profitable. BlockFi is co-founded by Zac Prince and Flori Marquez. The CEO Zac Prince has more experience within business advancement space instead of the fintech space. BlockFi is also financed by numerous institutional financiers and the platform is primarily targeting the United States market. While you can utilize the crypto interest account worldwide, the crypto loans are readily available Just for U.S residents as BlockFi has the required financing licenses only in the U.S. , if you want to inspect BlockFi’s statistics you will not be pleased as there are none readily available.. Some external sources suggest that there are more than 125,000 signed up users, nevertheless, we were not able to validate any of those claims directly with BlockFi. YouHodler is founded by Ilya Volkov, who brings previous experience from the fintech space in Russia. According to our research study, 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 revealing any financial reports, nor data about their user base or assets under YouHodler’s management. When utilizing YouHodler, this is something you ought to certainly think about. Proceeding to Nexo. Nexo claims to manage $12 B worth of properties from more than 1.5 M of users. If this is appropriate, it would suggest that Nexo is twice as huge in regards to user base as Celsius with a much lower average
deposit amount as compared to the users on the Celsius Network. We are not delighted about Nexo’s reporting requirements as we have actually explained together with other warnings in our previous video. At the start of January, Nexo had just $4B under its management from 1 M users, now five months later on, the platform declares 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 assets. I would be truly interested by whom Nexo is managed, as the business doesn’t have a lending license in Estonia, where they are a legal entity Nexo Services OU is based. During our research study, we found connections to Bulgaria, Estonia, the UK, and the Cayman Islands however their legal address is no place to be found on the website. The second co-founder of Nexo is Kosta Kantchev who also established Credissimo, a Bulgarian payday advance business that obviously is funding Nexo. According to our current research study, the executive board doesn’t even consist of Antoli, but just 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 cash”. Likewise when examining a few of Nexo’s remarks from the CEO
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Nexo is the only platform that uses interest on fiat. Now that we have actually evaluated some of the track records of the four mentioned platforms, let’s briefly go over the usability of every crypto financing website. While the crypto loans on BlockFi are only available to U.S. people, the platform is also working on a Bitcoin benefits credit card which will be completing with the credit card from Crypto.com YouHodler provides some of the most innovative services among the crypto loaning platforms.
currencies on which you are able to make interest. YouHodler enables you to exchange in between various currencies or deposit fiat via bank wire or other supported payment services. The minimum deposit amounts are very low, so you don’t need to move hundreds of Dollars or euros to evaluate the platform. The minimum deposit is around 50 EUR or USD worth of cryptocurrency. As YouHodler does not have a banking license, you can only earn interest on your crypto possessions. Apart from making interest on your deposits or exchanging cryptos, YouHodler likewise uses you the alternative to borrow fiat money in exchange for collateral. The platform presently supports only loans in us dollars or euros. YouHodler is likewise one of the platforms with versatile loan terms and an optimum LTV of 90%. Apart from those services, YouHodler also offers 2 leveraging tools such as Turbocharged loans and Multi HODL, which are suitable for more opportunistic financiers. As the functionality of those features exceeds this video, you can discover how it operates in our dedicated youhodler review on p2pempire. Nexo’s usability is similar to Celsius Network. Nexo is also using its utility tokens to use much better rates on loans, greater interests on crypto and fiat deposits, or more free withdrawals monthly. If you decide to stake your coins or fiat, indicating you lock your possessions for a specified term, you can get a greater interest rate. Like BlockFi, Nexo likewise uses you to purchase, or exchange crypto if you want to hold your possessions in various currencies. Now you have a really strong idea of what every crypto loaning platform is offering. What you must consider though, is that as soon as you transfer your crypto on any platform, you are not owning your private keys anymore and your assets 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 keys, the coin isn’t technically yours any longer. Platforms like Celsius and BlockFi are very clear about the reality that you Cryptocurrency Exchange Compliance
The only way to protect your crypto is to save it on a dedicated hardware wallet like this one from Trezor. The downside of this technique 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 lending platforms. Based on our thorough comparison, let’s have a look at our independent ratings of every category for every platform.