Did you know that you can generate significant returns by investing in cryptocurrency? With a crypto lending app, you can earn passive income by depositing or lending your portfolio to cryptocurrency borrowers.
However, some crypto investors are hesitant to use the platform due to concerns regarding the app’s legitimacy and ability to generate profits. If you are a crypto investor and would like to know more about the platform, here is a YouHodler review of everything you need to know:
- 1 What Is YouHodler Platform?
- 2 The YouHodler KYC Process
- 3 Benefits of the YouHodler Platform
- 4 How Do You Solve These Complexities?
- 5 Access to Crypto Loans
- 5.1 Why Should You Open A Youhodler Saving Account?
- 5.2 The Crypto-Backed Loan Feature
- 5.3 Do Changes In The Cryptocurrency Prices Affect The Collateral For The Loan?
- 5.4 Turbocharge Loans
- 6 The Multihodl Feature
- 7 How Safe Is The YouHodler Platform?
- 8 YouHodler Compared To Other Crypto Lending Apps
- 9 Conclusion
What Is YouHodler Platform?
YouHodler is a Swiss-based crypto lending platform that allows players in the crypto market to earn money on their savings and loans. For instance, lenders can make interests in crypto assets held on their HODL accounts and loans.
Lending Interest Rates for Cryptos
(Cryptos Lending Rate %)
Borrowing Interest Rates for Cryptos
(Cryptos Borrowing Rate %)
Also, borrowers can use the app to access cheap loans on fiats and stablecoins using cryptocurrency to secure the loan.
In addition to the benefits above, YouHodler users enjoy the integrated exchange feature. You can use it to convert crypto to fiat, crypto to crypto, or even crypto to stable coins, and so on.
Also, borrowers can use the app to access cheap loans on fiats and stable coins using cryptocurrency to secure the loan.
The lending rate for Bitcoin cash is 16.2 while the borrowing rate is 5.5%.
That is not all about the YouHodler app. The app offers flexibility when it comes to savings.
You can withdraw your fiat to a personal bank account, credit card, or even Hodl them in the apps saving account. The latter is more beneficial as it offers the highest daily interest of up to 12%.
The YouHodler KYC Process
For regulation purposes, the YouHodler management team requires all the new users to the platform to pass through a verification process. As such, you must upload scanned documents of your current photos, personal information, and a proof document after downloading the app.
The proof could be any legal document in your host country, including a driving license, national identity card, passport, etc.
After submission, the YouHodler team will analyze your documents and approve your application if the documents are valid. You will become eligible to do any transaction within the app immediately after approval.
The management team will save your information for reference purposes. They can use it to take legal action against you if you apply the app for illegal practices.
Benefits of the YouHodler Platform
Provides Support for Different Cryptocurrencies
Youhodler will give you access to different cryptocurrencies, including USD, GBP, USDT, PAX, DAI, ETH, DASH, LTC, XRP, HUSD, HT, EOS, etc., in one wallet. As such, you can safely deposit or get loans in any of its supported assets without much struggle.
Do not get stranded if the assets in your portfolio don’t match the ones supported by the platform. Instead, use the exchange feature to convert your assets into any of the supported cryptocurrencies and then invest or obtain a crypto-backed loan against them.
If you decide to HODL your converted assets in your savings account, you will be earning weekly compound interest on your savings, depending on the type of asset held. And if you happen to withdraw your savings before seven days, you will still earn your interest since it is computed after every six hours.
You can always check your daily portfolio earnings by tapping the “earned” section, where you will see your payments in the form of either cryptocurrencies or stable coins. Additionally, you can withdraw all the earned funds anytime using your credit card or bank transfer.
Allows You to Earn Interest on Your Portfolio
When investing in cryptocurrencies without the aid of a crypto lending app, you can only maximize your returns by either participating actively in day trading or speculating on asset prices. Though these two options can be rewarding, they are coupled with various challenges.
If you opt for day trading, you have to understand the basics of online trading, including chart readings, technical analysis, setting price, message alerts, etc. This will take your time.
On the other hand, if you decide to hold your assets in anticipation of a bullish market, you are not sure when it will happen. And, this is unwise since you lose money in terms of opportunity cost in addition to the uncertainty involved.
How Do You Solve These Complexities?
One of the viable solutions to the volatility and risk involved in crypto trading is to store your crypto assets through the YouHodler platform. Rather than holding assets in anticipation of a market boom, YouHodler allows you to earn interest in your crypto assets by avoiding needlessly selling them.
For instance, you own three Bitcoins in your online wallet. You can opt to save these tokens using YouHodler. After depositing, you may decide to lend the three Bitcoins to a borrower for 30 days at the rate of 4.8% per year. At the end of the payment period, you will get your three Bitcoins plus the loan’s interest.
Besides the annual interest, YouHodler will also offer you weekly compound interest on the deposit amount.
The weekly compound interest YouHodler offers ranges from 3% to 12% in the P2P crypto-lending space. And, the highest of 12% is applied in both fiat and digital coins. Thus, you can earn interest in your portfolio as long as you have saved your cryptocurrencies in your YouHodler wallet.
Access to Crypto Loans
With the YouHodler app, you can apply for loans on different assets, using your crypto assets as collateral. Unlike the bank process, the YouHodler loan process does not involve many requirements.
You can always get a loan immediately after application, provided that you have enough assets to pledge as collateral and a valid YouHodler account.
Typically, the YouHodler loans come in EURO, USD, Bitcoin, and Stable coins denominations. The interest on the loans depends on the Loan to Value ratio (LTV).
The higher the LTV, the riskier the loan is to the lender. This translates to higher interest rates and a shorter repayment period for the borrower. You can always recover your collateral after repaying the loan amount and the interest in full.
All you need to start earning interest is to open a YouHodler savings account, then deposit some assets, and then you are on the go.
Why Should You Open A Youhodler Saving Account?
In addition to interest income from the savings account, YouHodler avails the following perks to its users:
24/7 access to their funds-meaning you can deposit, withdraw, and check the status of the payments anytime without a sweat.
Free crypto withdrawals- you will incur no charges, whether you withdraw through the bank’s swifts or using a credit card. Also, you will incur no charges if you use your savings to buy cryptocurrency or stable coins from the exchange.
Liberal deposit restrictions of at least $100- meaning you can deposit anything provided that it does not go below the specified limit of $ 100
Other measures that YouHodler has taken to help its users maximize their earnings on savings include:
Interest Restrictions. Interest on savings should start after seven days, implying that you will not earn any interest on funds withdrawn before seven days are over and will not be paid.
Saving Account Top Up. One can top up more cryptocurrencies on their savings account. But they can only earn interest on the additional assets seven days after top-up.
Cryptocurrency withdrawal and holding. You can withdraw or hold interest earnings in your savings account. While you will incur no withdrawal cost, you will maximize your compound interest earnings by holding your interest earnings and the initial deposit.
Can You Open A Savings Account Without Owning Any Cryptocurrency?
Yes, you can always open a savings account without any digital assets. However, you will need to own some fiat to buy cryptocurrencies using the process below.
Deposit the fiat in your wallet. You can deposit the fiat in any currency since the YouHodler platform supports all exchanges. You can also make the transaction using the bank wire transfer or debit/credit cards that the app supports. While the credit card transaction is processed instantly, the bank wire transfer will take up to 24 hours to go through.
Exchange fiat currency for cryptocurrency. After depositing enough fiat currency, such as USD or GBP, into your digital wallet, you can proceed to exchange it for any of the available crypto assets.
On your YouHodler platform, tap the savings section.
Select your best cryptocurrency and then press the add coins section. While scrolling for the available cryptocurrencies, the platform will update you on the saving terms offered by every asset, including the annual earnings and the interest rates.
Can You Maximize Your Earnings With A YouHodler Savings Account?
Yes. There are countless strategies you can use on the YouHodler platform to maximize your earning potential. For example, if you are earning high interest on Etherum (ETH), you can use the interest to acquire a crypto-backed loan.
After the loan REF your wallet, you can use it to buy more crypto assets and then deposit them in a separate savings account. Opening a new savings account will result in another source of income.
That implies that the process of maximizing your interest earnings on savings is cyclical. The more you invest, the more you earn.
The YouHodler platform motivates its users through:
- The crypto-backed loan feature
- The multiHODL feature
- Turbocharge loan feature
The Crypto-Backed Loan Feature
As mentioned above, investors earning interest in their savings or loans can use their earnings as collateral for another loan. You can secure this type of loan using the following process:
Request for a loan on the YouHodler app using your available collateral (The collateral could take the form of either fiat or the cryptocurrency itself).
The loan approval will only take a few seconds, and then the platform will release the requested amount to your crypto wallet.
You need a credit card or a bank wire transfer to cash out the loan amount. If the amount is in crypto, you can deposit them directly in your savings account and maximize your earnings.
Closing the Crypto-Backed Loan
Typically, the financing agreement ends when the borrower repays the loan plus the accrued interest.
However, this is not the case with YouHodler loans since the platform provides three exit strategies that its users may find handy. They include:
Closing The Loan Without Repaying. If your loan bears the ‘close now’ feature, it implies that you are not required to pay the total loan amount to clear it. Instead, the platform will sell part of your crypto security and use it to cover any remaining loan amount. They will then send your collateral remains into your YouHodler wallet.
Managing The Loan Duration. If you can’t manage to cover the loan amount and the accrued interest in time, you can extend the repayment period by reopening the loan. Once you reopen the loan, the ‘reopen tab’ will pop on the loan portal. The feature will use the parameters of the previous loan. However, small YouHodler fees will apply for altering the loan terms.
Walk Away. If you secure a loan to the value of 90%, you can decide to evade the agreement and keep 85% of your asset value together with the credit amount. You don’t have to repay the loan, and there are no consequences for that. You will keep the cash, and the platform will close the loan.
Do Changes In The Cryptocurrency Prices Affect The Collateral For The Loan?
Yes. The changes in cryptocurrency prices can impact your collateral either positively or negatively, depending on the direction of prices.
An upward shift in the cryptocurrency prices would activate the ‘take profit’ (allows you to customize target profits) feature in the platform. If the surge hits the set target, YouHodler will sell your collateral and repay the loan. It will also send any excess amount into your wallet.
On the other hand, a downward shift would imply a reduction in your asset value but not a deduction on your loan amount and interest. That said, it is essential to set a price down limit (PDL) to allow YouHodler to sell your collateral to repay and close the loan.
Turbocharge loans feature allows the users to obtain a series of crypto loans using a small initial investment. In the loan process, the platform uses borrowed fiat to borrow cryptocurrency, devoid of commission. It then uses the loan amount as collateral for a chain of a specified number of loans.
The feature aims to generate more cryptocurrency to deposit in the savings accounts using a small initial amount.
The Procedure Of Applying For Turbo Loans
- Deposit the collateral into your wallet
- Select the number of loans you would like your chain to have. The number should range between 3 and 10 loans.
- Press the turbocharge button, and the platform’s automated system will compute the loan amount and display the same on the dashboard.
- Leverage the loan-upon tapping; the turbo charge button will prompt you to enter the initial amount used as leverage and the maximum limit you wish to reinvest. After that, the app will automate the chains of loans until you get your requested target.
The Multihodl Feature
The multiHODL investing feature is based on the Barbell Strategy of investing. According to Barbell, you can minimize your level of risk by investing 90% of your portfolio with risk-free savings. And use the remaining 10% to invest in risky but high-yielding investments.
YouHodler platform uses the same principle, as it encourages investors to deposit 80% of their cryptocurrency assets in their savings accounts and the remaining 20% using the turbocharge principle discussed above.
How Safe Is The YouHodler Platform?
YouHodler keeps most of the clients’ assets in cold storage. The cold storage implies that your assets are offline and hence safe from the hands of hackers. Additionally, the company works hand in hand with reputable banks in Switzerland and Europe to ensure that the fiat currencies are safely stored.
About the legitimacy of the platform, YouHodler complies with the EU rules and provisions regarding financial services. YouHodler is also an active player in the Blockchain Association of Financial Commission and the Crypto Valley Association.
Other security features of the YouHodler platform include:
Youhodler insurance – YouHodler has secured its crypto assets against crime with the Ledger Vaults insurance service provider.
3-factor authentication security level- if you have deposited more than USD 10,000 in your savings account, the 3FA requires you to disable withdrawals. Once disabled, you can only open it by requesting the YouHodler team to confirm your identity.
Anti-money laundering service: YouHodler has partnered with Ciphertrace and Elliptic to regulate all transactions and cushion the users from fraud, terrorist financing, money laundering, etc.
YouHodler Compared To Other Crypto Lending Apps
Here is a review of the YouHodler platform compared to some crypto lending apps
Youhodler Vs. Nexo
YouHodler beats Nexo with a loan to a value ratio of 90% by considering the apps’ competitiveness in crypto-backed loans and savings accounts. This is not to mention the 12% compound interest offered by YouHodler on savings on savings.
YouHodler vs. Blockfi
- Ability to offer all its services from one wallet
- Availability of credit/debit card which increases the convenience of the platform
- Fast processing speed
- The Blockfi app does no have the above features
- It offers the highest compound interest of up to 12% compared to other crypto lending apps like Nexo, Celsius, etc.
- Interest on savings is compounded weekly
- Top security for user information and crypto assets
- Offers flexible repayment options for crypto loans
- Allows the users to invest in a diverse portfolio
- An easy to use platform with minimal approval requirements for loans
YouHodler USA supported version is not yet available
As you can see, the YouHodler platform has all it takes to make a good crypto lending platform. Right from the best security features, through crypto saving accounts to highest interest yields of up to 12%. It is an app worth your investment.
Apply to join the YouHodler app today and earn interest on savings or trading cryptocurrency.