Looking for Youhodler Vs Compound…Many of you have requested a comparison between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that allow you to make interest on your stablecoins and cryptocurrencies. As requested, in this video, we will be comparing the business design of specific platforms, the return rates, the trustworthiness and track record, use of their apps and we will also talk about some of the threats that you ought to consider when transferring your crypto on one of these platforms.
consider subscribing and hit the like button to see more material like this in the future. So let’s first give you a brief intro to every platform prior to we dive deeper into the comparison. Celsius Network is the fastest-growing crypto lending platform worldwide, which was founded in 2017 by Alex Mashinsky. Currently, there are over 650,000 users using Celsius Network to make or take a crypto loan interest on their stablecoins and cryptocurrencies. In total, Celsius handles more than $17 B worth of possessions. The platform uses its services worldwide, nevertheless, they are presently not releasing loans in the United States due to local 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 worldwide with exception of sanctioned countries. Nexo is another European platform that provides crypto enthusiasts the alternative to earn interest not just on their coins however also fiat deposits. Nexo is in truth, one of only 2, to us known, crypto loaning platforms that use interest on fiat deposits.
let’s discuss how they make money in the first place. Celsius makes money from the interest they charge to the debtors which are either retail debtors or institutions, they also make money from their CEL token which is an utility token that you can utilize to increase your rewards on Celsius Network. Another earnings stream is the rehypothecation which indicates that Celsius uses the collateral from the debtors and releases it in order to generate extra earnings. BlockFi is also earning money through the interest that is being charged to customers. In addition to that, the platform likewise charges a 2% origination cost for anybody who wishes to take a loan. Another earnings stream is BlockFi’s exchange function. The platform makes money from the spread when exchanging currencies. BlockFi also charges withdrawal costs after your one free withdrawal per month. And the platform is likewise planning to launch a BlockFi charge card which will generate another income stream. YouHodler is also making money from the interest credited borrowers. In addition to that, there is a little withdrawal cost and charges for extra services such as the Multi HODL tool, which is a function that lets you utilize your crypto possessions in exchange for possible returns. Like all the other platforms, Nexo likewise takes a cut from the interest that is being paid by the customers. Nexo likewise makes earnings with their Nexo token. That’s at least our interpretation from Nexo’s company model as the platform does not have A devoted section about
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this on their site. Now let’s talk about the returns. If you are enjoying this video, you want to earn money by depositing your coins on one of the platforms right? Before we compare the rates, there are a couple of things that you ought to consider however. Every platform has certain limits and terms when it comes to providing 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 greater rates if you choose to get the interest in Celsius’s own energy token. The higher reward rates are likewise not available for US residents. If you would not wish to pay out your rewards in the CEL token, you can currently 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 on the number of your possessions. The more bitcoin or ethereum you deposit, the less interest you will get. The interest rate for Ethereum varieties 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’s worth pointing out is that if you wish 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 require to pay the large gas cost, as the currency works on the Binance Smart Chain with method lower charges in comparison to stablecoins that operate on the ethereum network. The Binance USD coin is presently 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 offers 5.5% on Ethereum and 4.8% on your bitcoin deposits. Nexo is another platform that offers higher benefits for those who want to get 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 keep in mind is that platforms tend to change the rates from time to time, so you can’t really forecast the real return from your deposits. Keep in mind that by depositing your crypto, the value of the currency may decrease Which will make it hard for you to liquidate your assets if that’s something you would otherwise consider. So now, that you understand the returns let’s briefly review the trustworthiness of the platforms and their performance history. Celsius Network is likely the most legitimate platform in this area. The creator Alex Mashinsky is a popular entrepreneur. Before introducing the Celsius network, he has co-founded 3 startups worth more than $1 Billion each. On the Celsius App, you are likewise able to keep track of the development and review a few of the statistics. As we are taping 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 Youhodler Vs Compound
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The platform is not transparent when it comes to sharing its financial 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 profitable. BlockFi is likewise funded by lots of institutional investors and the platform is mainly targeting the United States market. According to our research study, it appears like he has actually relocated 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 five months later, the platform claims 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. The second co-founder of Nexo is Kosta Kantchev who also established Credissimo, a Bulgarian payday loan company that obviously is financing Nexo. According to our recent research, the executive board does not even consist of Antoli, but just 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 “abuse of customers cash”.
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Nexo is the only platform that uses interest on fiat. Now that we have examined some of the track records of the 4 mentioned platforms, let’s briefly go over the usability of every crypto financing website. While the crypto loans on BlockFi are just offered to U.S. people, the platform is also working on a Bitcoin benefits credit card which will be contending with the credit card from Crypto.com YouHodler provides some of the most innovative services among the crypto loaning platforms.
YouHodler is also 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 lending platform is providing. What you must think about though, is that as quickly as you deposit your crypto on any platform, you are not owning your private keys anymore and your assets may get jeopardized either by 3rd parties or by the platform itself. Youhodler Vs Compound
The only way to safeguard your crypto is to store it on a devoted hardware wallet like this one from Trezor. The drawback of this method is that you will only benefit from the increased worth 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 thorough contrast, let’s have an appearance at our independent ratings of every classification for every platform.