Showing posts with label crypto loan platforms. Show all posts
Showing posts with label crypto loan platforms. Show all posts

YouHodler vs BlockFi: Overall Platform Analysis...

Youhodler or Blockfi
A year ago, this review would never have been possible. However, as both YouHodler and BlockFi quickly evolve their products, there are more overlaps between the two platforms than ever before. In one corner, we have the New York-based BlockFi. A regulated institution in the highly regulated state of New York backed by some big-name investors. In the other corner, we have the Europe-based YouHodler. An ever-evolving FinTech platform with strong connections in Switzerland’s “Crypto Valley” and some unique features not seen anywhere else. Now it’s time to compare these two beasts of blockchain and see which one comes out on top.

What is BlockFi? 

photo of blockfi

BlockFi labels themselves as a “wealth management” platform offering products crypto investors need such as cryptocurrency savings account, crypto-backed loans, and exchange capabilities. They also claim to be the “first and only interest-earning crypto account to offer compound interest and trading,” a statement that will certainly be challenged by the end of this article.

Founded in 2017 by Zac Prince and Flori Marquez, BlockFi started out as a credit service provider for crypto assets. At the moment, the company is the only independent lender with institutional backing from investors from Valar Ventures, Galaxy Digital, Fidelity, Akuna Capital, SoFi, and Coinbase Ventures. BlockFi claims its mission is to “redefine banking.”

What is YouHodler?

a picture of youhodler

A year younger than BlockFi, YouHodler is a FinTech platform focusing on crypto-backed lending solutions, crypto/fiat/stablecoin conversions, high-yield savings accounts and creative asset utility solutions. Based in Europe, YouHodler offers loans in USD, EUR, CHF and GBP currencies and deals with the top 20 cryptocurrencies for collateral and other uses on the platform.

Users crypto assets are securely guarded with Ledger Vault’s advanced custody and security options and the team comes from a strong background in Commercial Finance, FX/CFD trading, e-commerce, blockchain, and distributed ledger technology. Unlike other platforms in the industry, YouHodler claims to bridge the gap between both old traditional finance and the new era of blockchain technology to bring a more efficient financial ecosystem for the world.

YouHodler vs BlockFi: Core features

Crypto interest accounts for BTC, ETH, USDC, and more where users can earn compounding interest up to 8.6% annually.
Currency trading lets users exchange crypto pairs between BTC, ETH, LTC, USDC, and GUSD. BlockFi uses Gemini as a primary custodian.
Crypto backed loans with 50% loan to value ratio, 4.5% interest rate and up to the 12-month duration
No credit checks
Fast loan processing

Cryptocurrency and stablecoin savings accounts (up to 12% APR)
Compounding interesting
14+ coins/stablecoins/tokens to earn interest on
Crypto-backed loans with 90% loan to value ratio, three different loan plans and direct to bank account/bank card withdrawal
Original crypto “multiplication” tools like Multi HODL and Turbocharge with fewer fees than margin trading platforms

YouHodler vs BlockFi: Pros and Cons

BlockFi Pros
No need to stake native tokens to get higher interest rates on savings accounts
Reputable team with regulation and good backers
Wallets insured by AON and stored by Gemini, regulated exchange in New York.
No minimum amount on savings accounts
Accept USA citizens
Web, iOS and Android app

YouHodler Pros
The highest interest rate on savings accounts (12% APR)
No need to stake native tokens to get higher interest rates on savings accounts
Highest loan to value ratio in the industry (90%)
A constantly growing list of collateral options (20 +)
Instant loans without any credit checks and four fiat options (USD, EUR, GBP, CHF)
24/7 customer support with live agents
Unlimited loan terms
Weekly interest payouts
Low minimum loan amount ($100)
Option to receive loans in Bitcoin (BTC)
Web, iOS and Android app
$150 million pooled crime insurance from Ledger Vault
Creative tools like Multi HODL that help users profit in both bull and bear markets

BlockFi Cons
Basic website
Complaints of up to 7 days to withdraw assets
Interest compounding monthly
High minimum loan amount ($5,000)
Low loan to value ratio (50%)
Not many collateral options (3)
Loan term-limited to 12 months
Only one option to receive a loan in (USD)
No platform credit card available

YouHodler Cons
Not available in the USA or China.
Higher fees on loans than BlockFi
No platform credit card available
Android app can be buggy at times

YouHodler vs BlockFi: Unique traits

Both YouHodler and BlockFi offer some unique calling cards that help them stand out from the rest. BlockFi, for example, was one of the first platforms to ever introduce cryptocurrency savings accounts and crypto-backed loans. Because of this early start, they found instant success due to their good product, competitive interest rates, and reputable investors.

YouHodler is unique because it really grabbed the attention of the industry with its incredibly high-interest rates on savings accounts and record-high loan to value ratio on loans. Aside from that, YouHodler’s development team created two features that are 100% original and cannot be found anywhere else. Multi HODL and Turbocharge use the “chain of loans” principle to help users buy and sell more crypto for their benefit in both bullish and bearish market situations. YouHodler continues to evolve its platform in a way that cannot be defined in a single category, which makes it dangerous to its competitors.

YouHodler vs BlockFi: affiliate programs

Affiliate programs are gaining popularity in the crypto industry and its a great way for clients to get involved and also make a passive income from their online marketing initiatives. Of course, not all affiliate programs are created equal and that’s especially true for BlockFi and YouHodler. Here’s a quick rundown of each one.

BlockFi offers commission for affiliates that drive costumes to take a loan, open a saving account or use their trading feature. For a loan, the terms are as follows:

Customer takes a loan from $5,000 - $10,000 - affiliate gets $20
Customer takes a loan from $10,000 - $50,000 - affiliate gets $100
Customer takes a loan over $50,000 - affiliate gets $500

For savings accounts the affiliate gets $10 for every client that opens a savings account worth $100 - $1000. From there, there are additional tiers where the affiliates can earn more depending on if the client opens larger savings accounts.

You can see the full details of BlockFi’s affiliate program here

YouHodler’s affiliate program on the other hand seems a lot more simple and straightforward. The program features high payouts, monthly payments, with CPA model  available. Affiliates can get up to $100 cash for each lead or active client they invite to YouHodler, regardless of which feature they use. Multi-step CPA model allows affiliates to get paid for every step of the user’s post-registration lifecycle. The program also seems a bit more flexible, allowing users to choose different affiliate plans that suit their skills and interests.

YouHodler vs BlockFi: Safety and security

BlockFi and YouHodler are both platforms that have a great reputation when it comes to safety and security measures. BlockFi offers two-factor authentication (2FA) on its site and all their wallets are provided by Gemini Custody, one of the leading providers of wallet insurance which is regulated in the USA.

YouHodler, on the other hand, takes security a little step further with 3FA. The third factor being the ability to lock withdrawals in the account, just as one could do with a traditional bank account. This adds an additional layer of security to ensure no one can withdraw funds from YouHodler except the user and the user alone. Additionally, YouHodler uses Ledger Vault’s technology infrastructure to safeguard crypto assets with a multi-authorization self-custody management solution and $150 million pooled crime insurance.

All credit card operations on the platform fall under PCI Security Standards and all crypto operations are in accordance with Cryptocurrency Security Standard (CCSS). The team runs security audits on a regular basis and for dispute resolution, they are members of the Blockchain Association which assist clients with disputes if they feel they’ve been wronged. For an additional layer of credibility, YouHodler is an active member of the Crypto Valley Association in Switzerland.

YouHodler vs BlockFi: The Final Verdict

This is a tough one to decide since the two platforms both offer great features backed by an impressive reputation. For those based in the USA, BlockFi is the obvious choice since YouHodler cannot service those clients at this time. However, for those everywhere else, it’s hard to ignore YouHodler’s savings accounts with high earning potential and innovative features like Multi HODL.

Overall, YouHodler’s interface does seem more user friendly for all skill types and they really make it easy to ‘HODL”, earn and multiply crypto all in one easy to use application. Combine that with the great customer support, 90% LTV, top-tier security, and regular platform updates then I think for this round, YouHodler squeaks by BlockFi but we will certainly keep an eye on both platforms in the year to come to see how they stack up.

Author: Ryan Kalbari
Toronto Newsdesk

Bitcoin & Cryptocurrency Loans - Why You Need To Learn How To Get Them, and Where To Go When You Want One...

Bitcoin Loan With The Crypto Loan
There's no need to sell your coins when you need money - crypto loan interest rates are so low it shocks people! You get cash, but remain the owner of your coins.

Ask yourself - if the crypto loan's interest rates are LESS than 1% per month and you believe Bitcoin will go up by more than 1% - why would you EVER sell your crypto when lending platforms exist?

It honestly surprises me at this point when I hear someone deeply invested in crypto, and they've sold their coins instead of kept them by using them to get loans when they needed money.

The first Bitcoin loan I took out showed me what a lifesaver this is - it was a 6 month loan when Bitcoin was in the $5000's.  I took out $3000, but by the time my loan matured, the Bitcoin I initially gave the platform to hold as collateral had gone up so much in value I didn't owe anything I kept the cash too.

The Secret Advantages:

Multiplying Bitcoin: Using your Bitcoin to get loaned USD, using that USD to buy more Bitcoin. If the price goes up, you're holding more.  This can be repeated again and again, I covered how $500 was turned into $3000+ worth of Bitcoin in an article here.

It's Tax Free Cash: In Most countries, loan money isn't taxed!

Earn Interest: The same platforms that lend out crypto, will pay you interest if you let them lend out yours!  Banks are giving less than 2% but you can expect 5%+ in the crypto market!

No penalties: For paying a loan off early, or withdrawing if you've deposited your crypto to earn interest. 

We currently recommend:

If you're outside the US: YouHodler.

Inside the US: BlockFi.

Both have solid reputations, not only has our staff used both but they also have enough users that we were able to find countless reviews and mentions of them in various crypto communities. 

Author: Matt Miller
London News Desk
A Partner Site of The Global Crypto Press