The growth of cryptocurrencies has introduced the lending aspect with digital currencies acting as collateral. YouHodler is one of the services that are offering cryptocurrency-backed loans that give borrowers access to fiat. This blockchain backed service enables users to get instant loans at affordable interest rates. In our YouHodler review, we’ll try to focus on everything that makes the platform unique and stand out from the crowd.
YouHodler is accessible to a wide range of crypto holders, traders, investors, miners, and blockchain companies who can borrow funds instantly. For example, if you plan to buy bitcoins, one think you can to is a cryptobacked loan – which means, you an put the BTC as a collateral and get a crypto loan of half of your amount. If for example you put 1 BTC as a collateral now to get a crypto loan, you’ll get a $7804 ( 50% of the current BTC value) and you’ll need to pay $8390 to get those BTC back after one year. Taking a loan with Youhodler this way will give you some extra cash to invest and make profit while still owning your BTC.
But that’s not all what YouHodler has to offer.
Getting Started with YouHodler – The benefits of having a Youhodler account
To start using YouHodler, users need to create accounts with the platform. Creating an account requires users to undergo the necessary verification process by submitting selfies, personal information among other details. After an account has been confirmed, one can start the process of using crypto lending services. Users will then transfer their crypto assets to their YouHodler wallets. Please note that you’d need to pass a KYC verification to use YouHodler, to prevent frauds and respect the EU laws. After creating an Youhodler account, here are the main things you can benefit from :
- Get a crypto loan – This amazing opportunity offered by YouHodler can easily help you increase your profit, if you’re a good trader.
- Earn interest on Crypto – YouHodler have probably the best rates in the crypto world, with a lot of supported countries. You can start earning on your crypto with as little as $100 or similar. This is basically a saving account for a crypto investor.
- Multi Hodl – This is an innovative way to increase your earnings annually, offered by YouHodler in exclusivity. More about this will be dissed in our YouHodler review below.
- Turbocharge – Which is an impressive way to take a crypto loan – but actually – its a chain of loans. Here you can multiply your crypto, set up the take profit price and basically earn crypto if you’re smart enough.
- Buy Crypto – As any respected cryptocurrency company, having an YouHodler account will offer you the possibility to buy bitcoins or invest in Bitcoin. Having your first digital asset is the first step in becoming a crypto investor.
Get a Crypto Loan with Youhodler – How Does YouHodler Crypto Loans Work
An issue in the current crypto world is the fact that whenever you need more funds, you’re supposed to sell a certain cryptocurrency to get those. But you might sell right before a price increase. In order to keep your funds – you can get a loan to buy the crypto asset you want. There are multiple loan platforms, but Youhodler is a special one.
Using the crypto loans option provided by YouHodler, a swissbased company, you can put your crypto as a collateral and get a loan in USD EUR GBP CHF Tether (USDT) or Bitcoin (BTC). The borrowed fiat can afterwards be used as you wish, including crypto trading,putting those in multi hodl or just buying bitcoin and waiting for a bull run.
The loans on YouHodler have some nice features. The Cryptocurrency loan features are the ones below:
- Increase loan to value
- Manage loan duration
- Set take profit price
- Extern price down limit
- Close without repay
- Borrow bitcoin
One thing you need to do is to take care of your ltv ratio. There are multiple types of cryptocurrency loan that you can pick such as :
– Crypto Loan for 30 days – LTV 90%
– Crypto Loan for 60 days – LTV 60%
– Crypto Loan for 180 days – LTV 50%
One thing that makes YouHodler different is that the interested rates are the same for all of YouHodler users. They also declared that as the company grows, the interest rates might be lowered. The loan amount depends on your LTV ratio, but as the LTV ratio is higher, the higher are your odds of getting liquidated. An LTV ratio of 50% is decent and pretty much safe. You can take it, buy more crypto and close your loan. The loan fee is 8.5% for a 50% LTV ratio on a bitcoin loan.
And what can you do with the collateral? You can buy more crypto and sell the collateral at a later stage, you can use it with a trading bot, you can use it for margin trading, take a turbo loan – everything you need. Just make sure you check the crypto price of your collateral regularly so you won’t have any unpleasant surprises.
Closing the loan
There are multiple ways to do this with YouHodler. You can either repay the loan – which is the ideal case where you’ve made a profit, paid the loan fee and get your crypto back plus the profit made from investing the loan amount. Or, there are also three options below:
Close without repaying – By chosing this, YouHodler will use a part of your collateral to pay the loan fee and you will receive what’s left of the collateral in your YouHodler wallets.
Managing the Loan Duration – You can increase your loan period. This way, you can repay the loan at a later stage. A small fee will be charged, but the terms of your old loan should apply as well.
Walk Away – If you’ve made a loan with a 90% LTV ratio, you can while away while keeping 85% of your asset value. You can keep the credit amount and Youhodler will close the account on your behalf.
How to manage the cryptocurrency volatility when you’re using cryptocurrency as collateral for a YouHodler loans
There are 2 cases that might happen on YouHodler crypto loans:
A) The cryptocurency you’ve used to take a loan with will increase in price – The best to explain this crypto investing technique is by an example.
You’ve got a Youhodler loan for 1 BTC – which has a current value of $15,000. At a 50% LTV ratio, you will get $7,500 for that BTC in credit. You use those funds to purchase more BTC. Assuming BTC goes to $20,000. Instead of $22,500 – your assets are now worth $30,000. Your used credit, the $7,500 is now worth $10,000. Your BTC is now worth $20,000. You can use the $5000 profit from the 1 BTC you’ve used to take a bitcoin loan and the profit from the credit one and repay the loan.
After you repay the loan, you will have your 1 BTC back ( which is now worth $20,000) and a profit of $1862 – almost 10% of your current amount and 16% of your initial one you’ve used to take a bitcoin loan. Again, this is an ideal case .
B) The cryptocurrency you’ve used to take a loan will decrease in price – This is not the good case at all. As if your collateral will go down, your loan will be affected. No, the loan amount you own will not be reduced – but you can set up a PDL ( Price Down Limit) – and you offer YouHodler the opportunity to sell a part of your collateral to pay the fees. The earnings obtained will be used to close your loan. You can always increase the loan duration however.
These crypto backed loans are surely an interesting investing strategy – as you might use the borrowed fiat to buy more crypto, make a profit and closing your loan afterwards. Of course, it has some risks, that’s why its very important to read more about LTV ratio.
If you’re looking for something safer, YouHodler savings accounts might be what you’re looking for. The YouHodler loans are anyway worth checking, as it has the lowest loan fee on the market and the minimum loans amount is $100, which is again – the lowest in the market.
Now, after we’ve talked about using cryptocurrency as collateral on Youhodler, we also need to cover two major benefits of YouHodler: Turbocharge and Multihodl .
What is TurboCharge Loans
Turbocharge loans are one thing that make YouHodler shine above the loan platforms. The Turbocharge loans are something unique, that allows a user to make a loan in the chain or better explained: a chain of loans. This basically means that by using TurboCharge loans – you can get as up as 10 loans – using the same initial collateral.
Here’s an example on how things work: You set up a 1 BTC collateral at a $10,000 price, always at a 50% LTV ratio. This means that now you have a credit of $5000 – which you can use to get a loan of $2500. Which you can use to get a loan of $1250 and so on.
TurboCharge does this automatically. This is another way of taking a cryptobacked loan, with a great benefit – you can use your initial collateral to get more credit. Speaking from a credit checking perspective, you can get as much as 6.5x of your collateral if you use the 90% loantovalue ratio (LTV ratio) – but that’s a bit risky for a beginner.
What is MultiHodl
MultiHodl is a feature created by YouHodler – which can be used by beginners as well as trading experts. They apply here a Barbell Strategy – which means 80% of your funds will go into a saving account- such as an USDT USDC deposit where you will get a 12% a year interest, which are a great feature of YouHodler savings accounts. The other 20% is used to make speculative bets on crypto. Here you can set the ‘take profit’ and ‘stop loss’ orders in order to not lose more than you can afford to or not miss a pump just because you sleep.
Is YouHodler safe?
Of course, from our Youhodler review we couldn’t miss the security part and answering to the question: Is YouHodler safe? YouHodler is among the safest cryptocurrency lending platform. However, its still a lending platform and there might be some risks – same as with other crypto companies. The good part is that YouHodler took a lot of measures to make sure the users funds are safe, such as:
– The client crypto assets are kept in cold storage – The company uses different hardware wallets, such as a Ledger Nano, in order to secure the crypto assets. Any USDT USDC BTC and other well known cryptocurrencies will be stored there. Moreover, in their company’s page its explained that the funds are kept safe using the Ledger Vaults – an advanced custody and security option from the well known company – Ledger.
– YouHodler is a Swissbased company – with two offices in Switzerland and Cyprus.
– YouHodler are also an active member of BAFC – Blockchain Association of Financial Commission. This way, any dispute resolution is decided by the independent Financial commission process – which you can found on their About Us page. These two aspects means that on the legal side, YouHodler obey the EU laws and does the best practices of keeping your data safe from 3rd parties.
Earn Interest with Youhodler
And we’ve reached to the safest way to make a profit with YouHodler – a crypto savings account. YouHodler are offering probably the best rates in the market when it comes to this one. If you deposit BTC for example, you’ll get a 4.8% back on your investment. Of course, the crypto price might change, but if you deposit 1 BTC, you will get 0.048 BTC as profit after a year. Here’s the list for all the crypto and fiat currency interest rates that YouHodler crypto savings account has to offer:
- USDT – 12%
- USDC – 12%
- PAX – 12%
- TUSD -12%
- DAI -12%
- HUSD – 12%
- EURS – 12%
- BTC – 4.8%
- ETH – 4.5%
- PAXG – 8.2%
- LINK – 6.2%
- HT – 3%
- BNB – 3%
- XRP – 4.5%
- XLM – 4.5%
- LTC – 5.5%
- BCH – 5.5%
- DASH – 5.5%
- EOS – 5%
Moreover, YouHodler has a compound interest option, meaning the earnings might be a little more than the ones displayed. This is without keeping any cryptocurrency for 180 days or blocking the funds for 3 months to get a better rate and you can start with as low as $100 USD equivalent.
Using this feature, you can easily earn interest on crypto without any major risks – and this way – you can earn crypto passively. All you have to do now is to visit YouHodler and see its perks. Sending cryptos to your YouHodler account takes only a few minutes, as crypto deposits reach way faster than a bank wire one.
YouHodler Referral Program
As seen above, YouHodler is working towards increasing the membership of its community through incentivizing the current members. The platform has a referral program that is beneficial to both parties. The program is easy to join as you only require a referral link. You can use ours if you believe our article was informative and it made you understand better how YouHodler works. If you have a Youtube channel or something similar and want to promote YouHodler as well, feel free to join as their affiliate.
YouHodler Customer Support
YouHodler has put in place a number of measures for customer support. The platform has a help section on the website where users can watch tutorials on how to the platform works. Additionally, the website has the FAQ section where some of the common queries have been addressed. The platform also uses popular social media sites like Twitter, Facebook, and LinkedIn to connect with their customers directly. YouHodler also has an email where customers can send their queries.
The most important thing however is the fact that YouHodler have a Telegram channel where users can speak with the admins. NOTE: Admins will never message you first. Stay safe and don’t get scammed. Anyone asking for money from your is a scammer.
Pros of YouHodler
- The procedure for obtaining a loan is fast and easy. One receives loans instantly and the whole procedure usually takes a few minutes.
- Different crypto support for taking a loan of for the crypto savings account
- Credit card and USDT payouts. YouHodler is the only crypto lending platform that offers customers with instant payouts to credit cards and USDT wallets.
- High loan-to-value. The platform risks its management system to provide customers with an 90% loan-to-value ratio, while other platforms have a limit of about 50-60%.
- TurboCharge and MultiHodl
- High rates per year for your stored cryptocurrencies
- Great safety features by a company located in Switzerland
- A team available 24/7 for questions
- Unique feature: MultiHodl, TurboCharge, Loans with LTV ratio of 90%
- Company is working since 2018
- A top notch referral program
- Crypto assets stored in Ledger Vaults – the best non custodial option out there
- Great help center with over 50 articles that will make you understand everything you need
Cons of YouHodler
- They could have more cryptocurrencies on the Earn option
- There are no information of what could happen in case of a hack or a loss of funds
- There’s not really an exchange to do crypto trading or margin trading
- Multiple investing strategy for MultiHodl could be implemented as well
The cryptocurrency market has a number of crypto lending options. However, YouHodler stands out due to unique features ranging from best interest rates and best LTV ratio.
The platform is on the right track considering that it seeks to lower the interests rates further once its community grows. This an indication that the platform is moving in the right direction.
YouHodler is also an easy option if you plan only to invest in bitcoin and put those in a crypto savings account – also called the Earn program. Earn crypto by just passively keeping your coins in one place is something that was not possible a few years ago – and now, its a possibility thanks to YouHodler.
By considering all this, in our YouHodler review, we offer the company a 9.5 out of 10 – as there are still some feature that could be improved, but nothing is perfect in crypto right now.
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