With that, there’s a need to look into the various crypto loan platforms available. Several crypto platforms like Coinloan, Nexo crypto, BlockFi, and Youhodler specialize in crypto exchange, lending and borrowing, trading, and many other crypto-based transactions. A client can also earn cryptocurrency through various projects and services offered there.
What is Youhodler?
Youhodler is a crypto-based FinTech company founded in 2018 in Switzerland. It specializes in trading, exchanging, lending, borrowing, and generating crypto assets. The platform offers competitive crypto-asset rates. With its large and loyal following and consistent significant growth, Youhodler is one of the most trusted crypto lending platforms in Europe and the world. It’s famous for its well-structured crypto loans and high-interest rate savings accounts.
What is BlockFi?
In 2017, BlockFi was founded in the United States as a crypto-based platform. It specializes in lending, borrowing, and crypto-wealth generation and management, low-interest rates crypto-backed loans, and crypto deposits competitive rates. BlockFi started as a digital assets credit service for holding clients before becoming an independent international lender. Now, BlockFi has investment backing from institutions like Akuna Capital, Coinbase Ventures, Galaxy Digital, SoFi, and Valar Ventures. The Fintech platform generates revenue from loan systems, interest accounts, and a commission as a lending platform. With over a million clients, and assets worth more than $10 billion, the platform is a leader in the crypto industry. High-net-worth clients are also offered exclusive benefits by BlockFi.
Features
Youhodler and BlockFi are crypto-based lending platforms; hence, they have similar features with a few differences. They both offer crypto-backed loans at considerable rates; however, Youhodler rates are slightly lower than that of BlockFi, though its loan fees are higher than that of BlockFi. Both platforms also offer high-interest rate savings accounts, with Youhodler having a higher interest rate than BlockFi. Youhodler and BlockFi also allow for crypto exchange and crypto trading. Youhodler is known for its unique Multi HODL and Turbocharge for top-notch trading. Its lock trading feature also gives more margin for crypto traders. While BlockFi lacks these features, it has an automatic trading engine that helps traders too busy to trade, and not worry about their absence in the market
Currencies
Youhodler supports both fiat currencies and cryptocurrencies. The platform supports up to fifty different cryptocurrencies including BTC, ETH, and stablecoins like USDC and USDT. Fiat currencies used on the platform include USD, EUR, CHF, and GBP. On the other hand, BlockFi supports cryptocurrencies but does not support fiat currencies, instead, it converts your bank or wire transfer into a stablecoin. The cryptocurrencies it support include BTC, ETH, LTC, DOGE, BCH, LIINK, and DIA plus four stablecoins, USDC, USDT, and GUSD, (Gemini’s native currency).
Security
Youhodler platform is safe and highly secure with routine security audits that identify and fix potential weaknesses. The E.U regulates this platform, so all measures are implemented to ensure security per the union’s security policies. It also implements cold wallet storage, SSL encryption, and IP whitelisting for a more secured user experience. BlockFi on the other hand is affiliated with third-party reserves like Gemini, BitGo, and Coinbase, which partly provides its security. The platform also purchases CFTC-regulated futures and SEC-regulated equities, plus uses multi-factor authentication. The platform employs cold wallet storage, SSL encryption, and IP whitelisting to enhance security further.
Fees
Youhodler has no borrowing fees, but charges are based on the table. The platform does not charge deposit fees for digital currencies; however, collects a small amount in the form of bank wire or card fees for some fiat currencies. Payment mode determines withdrawal fees, and the charges for cryptocurrencies depend on each crypto asset. There may also be a blockchain fee due to an increment in workload requirements and capacity of the blockchain. BlockFi charges the same origination/borrowing fee regardless of LTV and interest rate. Its withdrawal fees depend on the digital asset and allow a one-month free withdrawal for BTC, LTC, and GUSD.
| Youhodler | BlockFi |
| ● 1% close now fee from overdraft amount. ● 1% reopen fee from borrowed amount excluding interest fee. ● 1.5% extended Price Down Limit (PDL) from added collateral. ● 1.5% increase Loan-to-Value (LTV) from increased amount. ● 1% close now fee for Turbocharge use. | ● 2% origination fee. ● After one free withdrawal, the fee for withdrawing Bitcoin is 0.00075 BTC with a withdrawal limit of 100 BTC per 7-day period. |
Interest Rates
| Youhodler | BlockFi |
| ● Loan rates depend on the duration, which determines the fee, PDL, and LTV. They are as follows: 1. 30-day loan: 3% fee, 5% PDL, and 90% LTV 2. 60-day loan: 5% fee, 25% PDL, and 70% LTV 3. 120-day loan: 9% fee, 40% PDL, and 50% LTV ● Clients can earn up to 11.28% on their savings accounts annually for stablecoins. ● Youhodler wallets offer compound weekly interest rates depending on the crypto assets in the wallets. For instance, BTC has a 4.7% interest rate, while stablecoins have the highest interest rates, for example, USDT at 12.3%. | ● Loan rates depend on the loan duration, and it’s as follows: 1. 3% for 30-day loans 2. 5% for 60-day loans, and 3. 9% for loan terms longer than 120 days ● BlockFi offers savings account interest rate of 4.5-9.75%, depending on the digital asset. ● Stablecoins like USDT and USDC have the highest rates at 9.25%, while cryptocurrencies like BTC and ETH have rates of 4.5%. ● BlockFi operates a seven-day lock-in period and users can withdraw interest at the end of each week. |
Ease of Use
Youhodler and BlockFi platforms have similar usage styles. It’s easy to navigate through the sites, which is one of the reasons they are known as two of the best crypto loan sites.
Mobile App
Both platforms have mobile apps that are convenient to use on all supported crypto-related apps devices like android, iOS, macOS, etc.
Access
Access to both platforms is easy, seamless, and uncomplicated, as long as the client is registered and has undergone a KYC verification. Anyone that meets these requirements can access these platforms, while non-registered and verified people cannot visit the sites.
Wallets
Since both platforms specialize in generating wealth via crypto transactions for clients, they offer wallets for holding crypto assets. Youhodler and BlockFi wallets are available for crypto holders, exchanges and traders.
Insurance Coverage
No, the government does not insure Youhodler and BlockFi transactions like other cryptocurrencies due to decentralization. However, these platforms partner with private insurance firms to ensure their services. Youhodler employs a customized crime insurance program from Ledger Vault to insure crypto assets of about $150 million from employee theft, market manipulation, and many more. BlockFi, on the other hand, employs Gemini to safeguard customers’ funds during criminal or malicious activities.
Youhodler Pros and Cons
Pros
- It provides up to 11.28% interest on cryptocurrency holdings.
- It offers crypto loans at lower interest rates.
- A strict security policy with compulsory KYC
- It is regulated.
- It has top-notch trading tools like Multi HODL and Turbocharge.
- It supports multiple cryptocurrencies and blockchain platforms.
- It has no hidden charges.
- It provides crypto wallets with loans, savings, and conversion features.
- It offers quality customer service.
- It does not require “premium membership” to access high-interest rates.
- It is available worldwide except in a few countries.
Cons
- It is centralized
- It is unavailable in the US, China, and some other countries.
- Loan fees are a bit higher than other platforms though it offers higher savings account interest rates.
- There’s no platform credit card yet.
BlockFi Pros and Cons
Pros
- Quick trade execution.
- No hidden fees.
- Credit card system for rewards.
- SEC regulation boosts its credibility.
- Compulsory KYC requirements.
- No monthly fee or commission.
- Considerable minimum deposit requirements.
- It is available worldwide except in some sanctioned countries.
- Top-notch services for institutions.
- Offers amazing customer service
Cons
- Lengthy withdrawal processing time.
- Free withdrawals are limited from interest accounts.
- It does not allow capitalization on volatility.
- It does not offer joint or custodial investment accounts.
- There are frequent savings account and lending interest rate fluctuations.
- High fees on loans.
Which is better?
After considering the various features of both platforms, and their pros and cons, the million-dollar question is which is better? If you reside in the US, and are just starting, or still relatively new in the cryptocurrency industry, BlockFi is a suitable option. It’s easy to use, navigate, and its features are the best for beginners and intermediate crypto traders, holders, or investors.
The platform is also great for novice and intermediate crypto traders, holders, or investors. It has a unique Multi HODL and Turbocharge feature, lower interest rates on crypto loans, and higher interest rates on crypto savings accounts than BlockFi. However, both platforms are known for their credibility, security, transparency, and well-roundedness. They are two similar platforms on different continents of the world. However, if you reside outside the US, or need a more advanced platform, Youhodler is the best choice.
Conclusion
This guide looked into the comparison of crypto loan platforms Youhodler and BlockFi. We examined the platforms, their features, pros and cons, security, fees, interest rates, and ease of use. You can determine which is better from this guide and choose the best crypto lending platform.
