In the crypto industry in 2020, you can’t navigate any corner of the internet without running into DeFi or FinTech platforms offering high-yield savings accounts. YouHodler and Celsius Network are two of the most popular options out there, both offering higher than usual interest rates on savings accounts. However, once you strip each contender away from their high-yielding numbers, what is left? Let’s find out who is the true king of crypto lending platforms with a YouHodler vs Celsius Network in-depth analysis.
YouHodler vs Celsius Network: Cryptocurrency savings accounts
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| YouHodler savings account rates |
Considering these two platforms are best known for their high-yield, cryptocurrency savings accounts, let’s start the comparison here. At the moment, YouHodler currently has fourteen unique assets that users can earn interest on. Interest rates are compounding and range from
3% - 12%. In addition, interest payouts are deposited weekly, there is no minimum requirement to start earning interests and the funds are never locked up.
More interesting perhaps is YouHodler’s new updated savings accounts. With their recent
2.0 “Affinity” update, YouHodler now lets users earn interest on their crypto assets directly in their wallet without having to withdraw to a separate savings accounts. This allows clients to use savings funds as collateral for loans and also to use in the platform’s unique “Multi HODL” feature.
Speaking of Multi HODL, YouHodler states that users can actually earn interest above the maximum limit of $100,000 using Multi HODL. For example, if a user has $100,000 in their savings account and opens a Multi HODL worth $50,000, then the user will earn interest on the entire $150,000 during the length of the open Multi HODL position. When it is closed, they will go back to earning interest just on the $100,000. This is truly a unique feature not found on Celsius Network or anywhere else for that matter.
Celsius Network savings account
Now moving on to Celsius. The screenshot above is just a quick glimpse of the many savings account options available. In total, Celsius has twenty-seven different currencies to earn interest in including both fiat and crypto varieties. Interest rates range from 2% - 11.90%. Here is where it gets tricky though.
Even though Celsius claims users can earn 12%, the highest they can actually get is 11.90% and that’s only if the user chooses to receive interest payments in Celsius’ native token (CEL). If not, then the highest the user can earn is 8.9%. Aside from this small misleading fact, Celsius actually has some favorable conditions such as no minimum deposit, fee-free withdrawals. However, it is unclear from the information Celsius provided if users can use funds from their savings account as collateral for a
crypto-backed loan.
Earning interest on gold
Before moving on to the next segment, let’s compare a sub-category of savings accounts: earning interest on Gold. Celsius has a separate section that allows users to earn compounding interest on the precious metal Gold. They offer a 3% interest rate on that. Meanwhile, YouHodler lets users earn interest on “digital gold”
Pax Gold (PAXG). Owners of PAXG are owners of real gold stored in real vaults, just in a digital format. It’s exactly the same as owning real gold but the main difference is you can earn 8.2% interest in PAXG using YouHodler savings accounts.
YouHodler vs Celsius: crypto loan comparison
Both YouHodler and Celsius started out as humble lending platforms that have since evolved into two, multi-faceted financial powerhouses. That being said, their lending products are still very active but offer two completely different experiences. Let’s start with YouHodler.
Source: YouHodler.com
The first quality one will immediately notice on YouHodler’s loan page is the high loan to value ratio (LTV) on loans (90%). 90% is unheard of in the lending space and it means users can get almost the full value of their collateral for a loan. In addition, YouHodler has two other loan plans. For convenience, here are all three outlined for you:
Loan plan #1:
90% LTV
30-day duration
1.70 % loan fee (paid once)
- 5% price down limit (margin call)
Loan plan #2:
70% LTV
60-day duration
2.90% loan fee (paid once)
- 25% price down limit (margin call)
Loan plan #3:
50% LTV
180 - day duration
7.50% loan fee (paid once)
- 40% price down limit (margin call)
In addition to the aforementioned facts, YouHodler has 14 + crypto collateral options, instant cash from the platform’s own fiat funds, flexible repayment and loan to value ratios for those that want a custom option.
Source: Celsius.Network
Now, Celsius has 27 unique collateral options available. Those numbers beats YouHodler but unfortunately, that’s where the accolades end for Celsius in the loan department. The LTV one will find on Celsius is just 50%, which requires a minimum of $1,000 worth of collateral (compared to $100 for YouHodler). That essentially negates everyone in crypto who needs a loan but does not have $1,000 to spare.
Loan terms range from 6 months to 3 years and Celsius charges a monthly fee of 1% to keep the loan open (0.7% for those that pay interest with the CEL token.). Like YouHodler, and virtually all other crypto lending platforms, Celsius does not require credit checks and features instant approval on all loans that fit the conditions provided.
YouHodler vs Celsius: bonus features
Multi HODL and Turbocharge
Now that we’ve covered the core features that these two platforms share, let’s start exploring deeper territory with some innovative features that are unique to Celsius and YouHodler. For example, YouHodler has the original
Multi HODL tool. At first glance, it looks like some sort of trading tool but after some more research, we discovered it’s powered by YouHodler’s “chain of loans” engine.
Essentially what this means is that depending on which button the users choose (UP or DOWN), YouHodler initiates a chain of loans to help a user either buy more crypto or sell more crypto. This is comparable to opening a long or short position on an exchange but on YouHodler, it’s 100% automated. YouHodler claims users can achieve a potential profit of up to 290% using the maximum multiplier amount (x10). Furthermore, there are no rollover fees for 10 days and users can customize their position with adjustable Take Profit and Margin Call levels. Hence, giving them more control over when they can exit the market profitably.
Lastly, Multi HODL users don’t have to worry about losing interest in their savings accounts. They can take funds from the savings account for Multi HODL and still earn interest on those funds. According to YouHodler “Multi HODL is a great tool to use hand-in-hand with savings accounts. Keep the majority of your funds in safe, stable assets earning passive income and take a smaller portion to use for adventurous and potentially highly profitable activities on Multi HODL.
YouHodler also has another product powered by the chain of loans engine called “Turbocharge.” Simply put, this feature uses an automatic chain of loans (up to 10 loans in a chain) to help users buy more crypto during a bull run. It’s a unique way to obtain a multiplied amount of crypto using a small, initial collateral amount.
CEL Token
One could write an entire review on just CEL token alone with its tokenomics, utilities, price history and more. For the sake of convenience though, we’ll keep it short. According to Celsius, CEL token is “an in-app utility token that gives Celsius members exclusive access to the best financial services for cryptocurrencies. Get better interest rates, priority status, community membership, and more.”
Think of owning a CEL token as a ticket to a VIP club. Token holders get lower rates on loans, higher rates on savings accounts, and other additional features like the ability to skip lines on teh platform, and premium access to the support team, and company events.
One last feature that is unique about Celsius is their merchandise store. Yes, it’s not really a “feature” per se but it’s something many other platforms don’t have and they have some cool looking merchandise for crypto enthusiasts.
YouHodler vs Celsius: affiliate programs
Do you have a knack for creative marketing? If so, affiliate programs are a great way to put that talent to use and get paid by other companies for doing it. Luckily, both platforms have affiliate programs to help you do this. Let’s compare.
YouHodler’s affiliate program uses a special web service let lets you monitor your referrals every move and track your earnings in real-time. The program gives you a few different options to choose from, with a variety of free creatives to help you market YouHodler and get paid for it. YouHodler pays cash or crypto for every person who follows your affiliate link and becomes an active YouHodler client. Depending on the plan you choose, you can get up to $100 per active client. Payouts are monthly and automatic.
Celsius affiliate program also pays you if you bring a qualified user to the platform. Celsius defines a “qualified” user as someone who brings at least $200 to the platform and holds it there for at least 30 days. If the user does that, then the affiliate marketer gets their reward ($50 per qualified user. There is no limit on how many users one can bring to the platform. Payouts are automatic and come four times a year (quarterly).
YouHodler vs Celsius: the final verdict
This was not an easy one to decide. Both platforms are titans of the industry with loyal followings but in the end, it comes down to the numbers and creativity.
YouHodler has higher interest rates on savings accounts and higher loan to value ratios for loans. Celsius does have slightly lower fees on loans but YouHodler makes up for it with their high rates on savings.
Furthermore, there is no additional step one must take to access these high rates on YouHodler. Celsius, however, requires you to buy their CEL to get the high rates as advertised and that is a questionable move. Sure, it’s cool that Celsius has a native token for the platform but if we’re just comparing raw, platform features, YouHodler comes out victorious.
Additionally, they seem to have a highly innovative tech team developing these original features like
Multi HODL and Turbocharge. Celsius and other platforms are not doing that. And from a UX/UI experience, YouHodler’s web, Android and iOS apps are all intuitive, beautiful, clean, and user friendly. Sorry, but another crypto token like CEL or a fancy merchandise store is not enough to sway my opinion when it comes down to the tech.
Well, that wraps up the review for this round. Go ahead and give both platforms a try to draw your own conclusions and let us know what you think.
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Author: Ryan Kalbari
Toronto Newsdesk
