What is 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 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
BlockFi
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
YouHodler
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
No comments
Post a Comment