Crypto

YouHodler Review 2022: Interest-Earning and Crypto Loans

Written by CHANEL G.

YouHodler, a crypto lender and exchange, offers high interest rates on crypto deposits. YouHodler isn’t available in the U.S., so they could be more transparent on risks, rates and fees. Customers can borrow funds to trade advanced and short-term loans using crypto. YouHodler’s review will help you determine if YouHodler is a good option.

BOTTOMLINE

YouHodler is currently not available in the U.S. It does offer competitive fees and an income-generating program that can be lucrative for traders who are not from the U.S.

FEES:

Varies depending on transaction

ACCOUNT MINIMUM

$5

Full YouHodler review

This cryptocurrency lender is for customers who aren’t U.S citizens but want to earn interest on cryptocurrencies.

Pros

  • Earn interest with your crypto
  • Borrow against your crypto
  • Advanced trading tools
  • KYC (“know Your Customer”) and AML (Anti Money Laundering) processes
  • Good customer service

Cons

  • The U.S. is not available for purchase.
  • Minimum investment requirements
  • High APR Loans

Top perks

Earn interest with your crypto

If you are holding cryptocurrency for a long time, it makes sense to look for ways to earn interest. YouHodler pays approximately 5% for alt coins and approximately 12% for stablecoins, depending on the currency. The interest is compounded weekly and paid in the same currency. To earn dollars, you can’t deposit Bitcoin. You can withdraw your funds at any time.

These rates are comparable to other cryptocurrency lenders. However, it is important to shop around and compare your options. Staking cryptocurrencies can help you make money. This is when you tie them together to make it more stable. It also allows you to provide liquidity, which means that your coins are transferred to a trading platform for easy trading. Each option has its pros and cons.

Borrow against crypto

YouHodler lets you use your cryptocurrency to secure cash. YouHodler offers high loan-to-value ratios (LTVs). LTV is the maximum amount of collateral that can borrow. LTV refers to the amount of collateral that can be borrowed. For example, if someone has $1,000 in cryptocurrency and their LTV is 90% they can borrow $900.

The secured loan does not require credit checks and can often be approved within minutes. Before you apply for any loan, be careful. If the entire cost of the loan is paid upfront, you will be able to save interest.

Advanced trading tools

Customers can use YouHodler to buy crypto and access advanced trading tools. You can bet that cryptocurrencies will rise or fall, or go “long” or “short”. As we will discuss below, borrowing money can be used as a turbocharger for your investment.

KYC (strictly know your customer) & AML (anti-money laundering) processes

This can be a pro or a con depending on how you view it. If you want to trade cryptocurrency anonymously, YouHodler may not be the right place. YouHodler is a serious business in this field.

Good customer service

TrustPilot has given YouHodler a score 4.4 Reviewers praise YouHodler’s high interest rates and responsive customer service. One warning: YouHodler received negative reviews from some customers due to its withdrawal options. Before you transfer large amounts of money, make sure you are confident about how you will withdraw your funds from any cryptocurrency exchange.

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What could be done to improve?

Not Available in The U.S.

YouHodler is available only to U.S. citizens. The U.S. has strict rules regarding leveraged trading options. If YouHodler is used in the U.S., China, or any other prohibited country, your account may be frozen. Your investments may be canceled and you could lose any gains.

Customers must show proof of their physical address in order to withdraw money from an exchange. It would be a waste to use the platform in a country where it is not licensed. There are many great cryptocurrency exchanges in America that offer high interest rates and operate within the United States.

Minimum investment

Only $5 can be deposited. To earn interest, you must deposit $5 The minimum amount you can deposit depends on the cryptocurrency you choose. It is usually $100. This is the minimum amount that each coin can have. You cannot have more than $100. You must have at least $100 in each one of these currencies to earn interest: Ripple, Bitcoin (BTC), Ethereum(ETH), Ripple and Ripple.

While $100 isn’t a large amount, most interest-paying cryptocurrency exchanges do not require that you have an account minimum. The minimum account requirement can quickly increase if you have many coins. Your account can be limited to $2,500.

No transparency

Transparency is essential, no matter if you are a borrower or a saver. If you receive high interest rates, it is important to know where your money came. It is not easy to find the information in YouHodler’s case. Customers may be eligible for interest-free loans. This is not stated on the website. Decentralized Finance (DeFi), lenders may make high-risk loans to finance high returns.

The APR of personal loans must be disclosed by all U.S. lenders — that is, the total annual cost of borrowing plus interest to customers. It allows borrowers to compare apples and make informed decisions about borrowing. YouHodler displays the total cost of the loan, but not the APR.

Loans with high APRs

We calculated YouHodler’s APRs based on total loan costs. They are much higher than top personal loans that don’t require collateral. These rates are comparable to those of high-quality credit cards. If you need to borrow money, it is a good idea to shop around to find the best terms for your situation.

YouHodler allows borrowers the option to extend their loan terms. However, the maximum initial loan term is only six month. If you borrow from non-crypto lenders, you may be able repay your loan more easily.

Alternatives to

Gemini, a U.S.-licensed cryptocurrency exchange that offers interest, is licensed. It adheres to high standards and pays competitive interest rates. There is no minimum balance requirement and you can withdraw as often as you wish each month. BlockFi, a U.S.-based cryptocurrency platform that allows you borrow crypto collateral, is called BlockFi. It also provides How YouHodler.

YouHodler has a mobile and web interface. You can use the site to trade cryptocurrency, earn interest, and borrow money. To get started, deposit $100 into a custodial bank account. Follow the Know Your Customer (KYC) procedures. To deposit traditional fiat money, users must show a photo ID or proof of their location.

To trade or save

YouHodler lets non-U.S. customers earn passive income from crypto holdings. Savers can earn the industry’s highest rates on crypto and stablecoins. Weekly interest compounding. YouHodler will reward your HODLing (crypto For Holding On for Dear Life span>)

YouHodler recommends that 10% to 20% of your investments be placed in the multi-risk MultiHODL tool. You can borrow money to place bets on certain cryptocurrencies. Your investments can be leveraged up to 30x which increases your profit potential while decreasing your risk.

YouHodler provides several options to lower risk. However, clients should be aware that these tools were designed for professionals investors.

As a borrower

Borrowers can use crypto to secure loans in dollars, euros, pounds or Swiss Francs. You have two options: withdraw the money to your credit card or deposit it in a bank account. You should be aware of withdrawal fees (described below). There may be additional fees. There are three types of standard loans offered by YouHodler. Each loan has a different term, and a different loan-to-value ratio (LTV). YouHodler also offers a “price limit”, which limits the amount of crypto collateral that YouHodler can sell before closing the loan. As you can see, a 30-day loan with a 90% LTV is not flexible. YouHodler allows borrowers the ability to add collateral, if needed.

These are the three types that you can use to get a loan of $5,000 using Bitcoin as collateral.

Other features to be aware:

  • Borrowers can select a price that is closest to their profit margin from the beginning. When the price reaches this level, YouHodler will sell the crypto collateral and repay the loan.
  • Repaying loans can be done with your bank transfer, crypto, fiat or credit card. To repay loans, borrowers may also be able to sell crypto collateral.
  • Borrowers can extend their loan terms by paying current interest charges and a 1.1% fee.
  • Borrowers have the option to use their collateral to repay the loan earlier by using the “Close Now” function. A 1% fee is also charged.

Turbocharge, borrowing for crypto

YouHodler encourages users use crypto as collateral and to buy more crypto. It’s tempting. It is tempting to borrow money for risky investments.

Let’s say you deposit 0.2 BTC to get a 30-day loan at 90% LTV. You get 0.18 BTC. You get 0.38 BTC in total. Bitcoin’s value falls by 5%. This sets the price limit. You can sell your original Bitcoin to pay your debt and you will be left with 0.18 BTC. To pay your debt, you have sold your original Bitcoin. Now you have 0.18 BTC.

Turbocharge by YouHodler makes a variety of loans. It borrows the traditional currency you borrowed to buy more crypto, and then it uses that crypto to obtain another loan. You can turbocharge your loan up to ten times. The crypto you have already is multiplied by each loan, so this cash is not yours. If the value rises, you win. You may lose your original collateral and any fees if the value drops. The funds you have remaining on your final loan will be forfeited.

YouHodler’s greatest problem is its inability provide information about the risks and education to help users manage them. Turbocharge and MultiHODL encourage you to take risks, despite the fact that crypto storage is not a concern.

Fees Overview

YouHodler’s exchange fee is comparable to those of other cryptocurrency exchanges. Be aware of the fees you pay to withdraw or deposit your money. Calculate how much interest you’ll need to withdraw your cash before you deposit it. For example, $70 withdrawal fees. YouHodler’s website might not be current. Rates from the wallet have been used that are not always in line with those listed on the fees page. YouHodler’s website might not always be current. These numbers can be found on the transaction pages of a Youhodler.com Account.

Exchange charges

The fees for trading cryptocurrency and converting fiat currency into crypto differ depending on the transaction. There is a $1 fee (1%) to convert $100 into Bitcoin. There is a 0.02 BTC fee (0.2%) to convert 0.02 BTC into Ethereum. ). These rates are comparable with other exchanges. Trades can take between five and 30 minutes, and the rate may change. MultiHodl charges an hourly fee and an origination charge. You get 10% profit sharing if you make money.

Selection of Cryptocurrency

YouHodler has a good selection of interest-earning cryptocurrency, with 24 cryptocurrencies and 8 stablecoins. Tezos (XTZ), Monero(XMR) and Cardano [ADA] can be used as collateral, but they don’t earn any interest. It is disappointing, as Cardano (XTZ), Monero (XMR), and Cardano (ADA) can be staked on other exchanges to earn rewards.

Non-fungible tokens are digital collectibles that can be traded or used for trading.

These are the currencies in which YouHodler can earn an interest:

  • Bitcoin (BTC).
  • Ethereum (ETH).
  • Compound (COMP).
  • Synthetix (SNX)
  • Litecoin (LTC).
  • Bancor (BNT).
  • Bitcoin Cash (BCH).
  • Augur (REP).
  • Maker (MKR).
  • OmiseGo (OMG)
  • Binance Coin (BNB).
  • Bitcoin SV (BSV).
  • Chainlink (LINK).
  • SushiSwap (SUSHI).
  • Paxos Gold (PAXG).
  • Stellar (XLM)
  • Dash (DASH)
  • Huobi Token (HT)
  • Uniswap
  • Yearn.finance (YFI)
  • Dogecoin (DOGE).
  • 0x (ZRX)
  • EOS (EOS)
  • Basic Attention Token (BAT).

Stablecoins:

  • Tether (USDT).
  • DAI (DAI).
  • STASIS EURO (EURS).
  • USD Coin (USDC).
  • Binance USD (BUSD).
  • Paxos Standard (PAX)
  • HUSD (HUSD).
  • TrueUSD (TUSD).

YouHodler can help keep your cryptocurrency safe

YouHodler provides all security features that you would expect from a user level system. This includes TFA (two factor authentication). To increase security, customers who have more than $10,000 in their accounts can disable all withdrawal options.

YouHodler stores its customers’ assets in a mix of hot and cold wallets. YouHodler has an agreement with Ledger Vault to protect digital assets. YouHodler employees cannot access your private keys because they are encrypted and secure.

Protection by Ledger Vault also includes $150 million of insurance against crime that pools to protect customers from theft and fraud. Customers’ funds will not be covered by the insurance in case an exchange crashes, as it does for many other crypto exchanges. FDIC insurance covers money in savings accounts against bank collapse, but not crypto platforms.

YouHodler stated that it is a member the Blockchain Association, which provides dispute resolution. Clients who feel disappointed by YouHodler may have recourse.

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