Looking for Microstrategy Bitcoin Loan…Many of you have asked for a comparison between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that permit you to earn interest on your stablecoins and cryptocurrencies. As requested, in this video, we will be comparing the service design of private platforms, the return rates, the trustworthiness and track record, use of their apps and we will likewise talk about some of the dangers that you ought to think about when depositing your crypto on one of these platforms.
consider subscribing and hit the like button to see more content like this in the future. So let’s very first offer you a quick intro to every platform before we dive deeper into the comparison. Celsius Network is the fastest-growing crypto financing platform worldwide, which was founded in 2017 by Alex Mashinsky. Presently, there are over 650,000 users using Celsius Network to take a crypto loan or make interest on their cryptocurrencies and stablecoins. In total, Celsius handles more than $17 B worth of possessions. The platform uses its services worldwide, however, they are currently not providing loans in the United States due to regional regulations. BlockFi is the biggest
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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 enthusiasts the option to make interest not only on their coins however likewise fiat deposits. Nexo is in reality, one of just two, to us known, crypto loaning platforms that offer interest on fiat deposits.
And the platform is likewise planning to launch a BlockFi credit card which will generate 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 analysis from Nexo’s organization model as the platform does not have A dedicated area about
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this on their site. Now let’s discuss the returns. If you are watching this video, you want to make money by transferring your coins on one of the platforms? Prior to we compare the rates, there are a few things that you must consider however. Every platform has particular limitations and terms when it comes to providing interest on your coins. So for example, Celsius Network changes the rates each week to show the current market situation. Also, you are only able to earn greater rates if you choose to get the interest in Celsius’s own utility token. The greater reward rates are likewise not available for US residents. If you would not want to pay out your rewards in the CEL token, you can presently expect 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 number of your properties. The more bitcoin or ethereum you deposit, the less interest you will receive. The interest rate for Ethereum ranges in between 0.5% and 4.5%, the rate for bitcoin is between 0.5% and 5%, and the rate for the two stablecoins is presently at
9% per year. What deserves pointing out is that if you want to conserve some fees, and bring more stability into your crypto interest account, you can also deposit the Binance USD coin for which you will not need to pay the large gas cost, as the currency runs on the Binance Smart Chain with method lower fees in contrast to stablecoins that run on the ethereum network. The Binance USD coin is currently just supported on Celsius Network and BlockFi. YouHodler uses presently the most competitive rates for your USDC coins without the requirement to stake the platform’s own utility tokens. You can earn 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 provides greater rewards for those who want to receive the interest in the native NEXO tokens instead of the deposited currency. The platform provides 6% for non-Nexo token holders on bitcoin and ethereum and 10% on the USDC coin. What you should remember is that platforms tend to change the rates from time to time, so you can’t actually forecast the real return from your deposits. Keep in mind that by depositing your crypto, the worth of the currency might reduce Which will make it hard for you to liquidate your properties if that’s something you would otherwise think about. So now, that you know the returns let’s briefly review the credibility of the platforms and their performance history. Celsius Network is most likely the most legitimate platform in this space. The creator Alex Mashinsky is a well-known entrepreneur. Prior to releasing 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 track of the progress and evaluate 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 Microstrategy Bitcoin Loan
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deposit amount as compared to the users on the Celsius Network. We are not delighted about Nexo’s reporting standards as we have actually mentioned together with other red flags in our previous video. Also, at the start of January, Nexo had just $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 little bit of a high growth even if we think about the buzz in the crypto area. 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 fashion Retail market. On his LinkedIn profile, he describes Nexo as the leading controlled financial institution for digital assets. I would be actually 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 found connections to Bulgaria, Estonia, the UK, and the Cayman Islands but their legal address is no place to be found on the website. The second co-founder of Nexo is Kosta Kantchev who likewise established Credissimo, a Bulgarian payday advance business that apparently is funding 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 previously the executive director at TrustBuddy, a Swedish p2p financing platform, which is known for the “abuse of customers money”. When evaluating some of Nexo’s remarks from the CEO
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in the media, he is often only promoting crypto and anticipating prices however does not have any much deeper insights into the crypto financing space or how Nexo is running. That’s just our impression from his Bloomberg talks. Also, Nexo is the only platform that offers interest on fiat. According to our understanding, you can not provide interest on fiat deposits unless you have a banking license which Nexo certainly does not have. Although we are not lawyers, we struggle to understand the legal setup under which Nexo is using its services. Now that we have examined some of the track records of the 4 pointed out platforms, let’s briefly go over the usability of every crypto loaning website. Celsius has actually started as a native mobile app. The app is well developed and it includes various security features such as the biometric scan, HODL mode, and 2FA. Right in the control panel, you are able to see the number of properties you are holding and what are the currently used rates. You can transfer and withdraw supported coins but there is no exchange, so if you do not deposit your cryptos from another wallet, you can acquire them straight through the app. Keep in mind, however, that there might be fees for charge card purchases or SEPA transfers. Celsius Network supports presently 40 digital properties. BlockiFi makes a less industrialized impression. The app is very simple therefore is the desktop variation of the platform. BlockFi supports presently just 10 digital currencies. The platform likewise offers a dedicated exchange so you can even trade them. We don’t suggest this function that much as the currency exchange rate are not the best. While the crypto loans on BlockFi are just available to U.S. citizens, the platform is likewise dealing with a Bitcoin rewards charge card which will be taking on the credit card from Crypto.com YouHodler offers a few of the most sophisticated services amongst the crypto financing platforms. Currently, the platform supports 18 digital
YouHodler is also one of the platforms with flexible loan terms and an optimum LTV of 90%. Now you have a truly strong concept of what every crypto financing platform is offering. What you should consider though, is that as soon as you deposit your crypto on any platform, you are not owning your personal secrets any longer and your properties might get compromised either by third parties or by the platform itself. Microstrategy Bitcoin Loan
The only method to safeguard your crypto is to store it on a dedicated hardware wallet like this one from Trezor. The drawback 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 lending platforms. Based on our thorough contrast, let’s have a look at our independent ratings of every category for every platform.