Looking for Crypto Asset Backed Loan…Numerous of you have asked for a comparison between Celsius, BlockFi, YouHodler, and Nexo which are all platforms that permit you to make interest on your stablecoins and cryptocurrencies. As asked for, in this video, we will be comparing the business model of individual platforms, the return rates, the trustworthiness and track record, use of their apps and we will also talk about some of the dangers that you must think about when transferring your crypto on one of these platforms.
Let’s very first provide you a short intro to every platform before we dive deeper into the contrast. Celsius Network is the fastest-growing crypto lending platform in the world, which was established in 2017 by Alex Mashinsky. The platform offers its services worldwide, however, they are currently not releasing loans in the United States due to local policies.
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The platform uses crypto-backed loans in 47 US states and their crypto interest account is readily available worldwide with exception of sanctioned countries. Nexo is another European platform that provides crypto lovers the option to earn interest not only on their coins but also fiat deposits. Nexo is in reality, one of only 2, to us known, crypto loaning platforms that use interest on fiat deposits.
And the platform is likewise preparing to launch a BlockFi credit card which will produce 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 interpretation from Nexo’s organization design as the platform doesn’t have A dedicated area about
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this on their website. Now let’s discuss the returns. If you are seeing this video, you want to earn money by depositing your coins on one of the platforms right? Prior to we compare the rates, there are a couple of things that you should consider though. When it comes to using interest on your coins, every platform has specific limitations and terms. For example, Celsius Network alters the rates every week to reflect the existing market circumstance. Also, you are just able to earn higher rates if you decide to get the interest in Celsius’s own energy token. The higher benefit rates are also not available for United States residents. If you would not wish to pay your rewards in the CEL token, you can currently expect 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 get. The rate of interest for Ethereum ranges in between 0.5% and 4.5%, the rate for bitcoin is in between 0.5% and 5%, and the rate for the two stablecoins is presently at
9% per year. What’s worth discussing is that if you wish to save some charges, and bring more stability into your crypto interest account, you can also deposit the Binance USD coin for which you will not require to pay the hefty gas fee, as the currency runs on the Binance Smart Chain with way lower fees in comparison to stablecoins that operate on the ethereum network. The Binance USD coin is currently 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 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 uses greater benefits for those who want to get 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 need to keep in mind is that platforms tend to adjust the rates from time to time, so you can’t actually forecast the real return from your deposits. Likewise, 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 think about. So now, that you know the returns let’s briefly evaluation the reliability of the platforms and their track record. Celsius Network is likely the most genuine platform in this area. The creator Alex Mashinsky is a widely known business owner. 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 an eye on the progress and review a few of the statistics. As we are recording 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 Crypto Asset Backed Loan
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The platform is not transparent when it comes to sharing its financial reports, however 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 funded by lots of institutional financiers and the platform is primarily targeting the US market. According to our research, it seems like he has actually transferred to Switzerland to release his crypto financing platform YouHodler in 2017.
deposit quantity as compared to the users on the Celsius Network. We are not delighted about Nexo’s reporting requirements as we have pointed out together with other red flags in our previous video. At the start 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 development even if we consider the hype in the crypto space. What about Nexo’s management? Nexo is co-founded by Antoni Trenchev and Kosta Kantchev. Based on our research, Antoni was a Bulgarian politician with experience in the fashion Retail industry. On his LinkedIn profile, he describes Nexo as the leading managed financial institution for digital assets. I would be truly interested by whom Nexo is regulated, as the company doesn’t have a lending license in Estonia, where they are a legal entity Nexo Solutions OU is based. During our research, we discovered connections to Bulgaria, Estonia, the UK, and the Cayman Islands however their legal address is no place to be found on the website. The 2nd co-founder of Nexo is Kosta Kantchev who likewise established Credissimo, a Bulgarian payday loan business that obviously is financing Nexo. According to our recent research study, the executive board doesn’t even consist of Antoli, but only 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 “misuse of clients money”. When evaluating some of Nexo’s comments from the CEO
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Nexo is the only platform that provides interest on fiat. Now that we have evaluated some of the track records of the 4 mentioned platforms, let’s briefly go over the usability of every crypto lending website. While the crypto loans on BlockFi are only readily available to U.S. people, the platform is likewise working on a Bitcoin rewards credit card which will be contending with the credit card from Crypto.com YouHodler offers some of the most innovative services among the crypto financing platforms.
YouHodler is also one of the platforms with flexible loan terms and a maximum LTV of 90%. Now you have a really solid concept of what every crypto lending platform is using. What you must consider however, is that as quickly as you transfer your crypto on any platform, you are not owning your private secrets anymore and your assets might get jeopardized either by third parties or by the platform itself. Crypto Asset Backed Loan
The only way to safeguard your crypto is to keep it on a dedicated hardware wallet like this one from Trezor. The drawback of this technique is that you will just benefit from the increased worth of your coin but not the interest on your deposits, which is something you can do on one of the crypto lending platforms. Based on our in-depth contrast, let’s have an appearance at our independent rankings of every classification for every platform.