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With the continued rise of crypto finance, cryptocurrency platforms offer more than just crypto trading. More services from the repertoire of traditional banks, such as loans, are coming into the crypto sphere. One of these platforms is YouHodler, a long-standing player in the cryptocurrency lending market which is aiming to become a one-stop solution for crypto-enthusiasts. But is it really as good and secure as advertised? Let’s find out.
What is YouHodler?
YouHodler is a cryptocurrency platform offering a range of financial services related to the cryptocurrency market. The company is based and regulated in Switzerland, the EU, and Argentina. The company’s mission is to bridge the gap between traditional finance and cryptocurrencies.
Buying and exchanging cryptocurrencies
Let’s start with the traditional functionality for crypto platforms, buying and exchanging cryptocurrencies. YouHodler supports a wide selection of cryptocurrencies, including popular options like Bitcoin, Ethereum, and various altcoins. Users can purchase cryptocurrencies using fiat currencies like USD, EUR, GBP, and CHF through several payment methods such as bank wire, bank cards, ApplePay, AdvCash, and Changelly. Note that in order to use the bank wire option, you will need to confirm your address.
For those who wish to convert assets in their portfolio, there’s an exchange feature that allows users to swap between supported cryptocurrencies or between crypto and fiat. The exchange interface is straightforward, allowing you to quickly swap between different pairs.
Borrowing
Along with Yield, YouHodler offers a borrowing service that allows users to take out loans in cryptocurrency. Users can use their existing crypto assets as collateral to secure a loan. The amount of the loan is based on the value of the collateral, typically following a loan-to-value (LTV) ratio. YouHodler offers LTV ratios of up to 90%, meaning users can borrow up to 90% of the value of their deposited assets. For example, if a user deposits Bitcoin (BTC) worth $10,000, they can borrow up to $9,000 depending on the LTV ratio they choose.
What currency you get the loan in depends on the collateral. Using crypto as collateral, you can borrow in stablecoins (USDT) or fiat (USD, EUR, GBP, CHF). If you use fiat or stablecoins as collateral, however, you can get a loan in BTC, ETH, ADA, and DOT.
As for the loan terms, the loan can be opened for a maximum term of 364 days. Loan fees vary depending on the loan amount, loan borrowed currency, and the LTV ratio chosen.
Trading
YouHodler’s MultiHODL feature is designed for users who want to multiply their cryptocurrency. This feature allows users to take advantage of market movements, with the potential for higher returns. However, it also carries a higher level of risk compared to standard holding or lending strategies.
MultiHODL is based on a combination of crypto lending and trading. Users can select a portion of their existing crypto or fiat funds and use them as collateral to open a position. The platform allows users to choose their preferred multiplier. The higher the multiplier, the higher the potential profit or loss.
Loyalty program
One of YouHodler’s core features of its loyalty program is the Growth Account, where users can deposit their cryptocurrencies to earn yield. By depositing supported cryptocurrencies or stablecoins users can earn a return on their holdings. The platform offers competitive rates based on the type of currency deposited.
Once the cryptocurrency is deposited, YouHodler pays out every week, directly to the user’s account. This makes the process relatively passive. It’s worth noting that users are not required to lock up their assets for fixed periods, which is common on other platforms. This allows users to withdraw their funds at any time, giving them access to liquidity without sacrificing their earnings.
Cloud miner
YouHodler’s Cloud Miner is a unique feature that allows users to accumulate rewards in Bitcoin over time. This feature is somewhat similar to a Bitcoin faucet, where users can claim small fractions of Bitcoin by regularly engaging with the platform.
Users start the Cloud Miner and periodically receive some amounts of Bitcoin in a gamified process, which they can collect at set intervals. The process is straightforward and requires no technical knowledge.
To use the Cloud Miner, a special “fuel” called “Sparks” is used. Sparks can be received for using the platform’s services.
Commissions and fees
YouHodler applies various commissions and fees depending on the specific services used, such as crypto trading, loans, or withdrawals. Detailed information about all fees can be found on the corresponding page of the platform’s website.
Security, risks, and considerations
YouHodler takes the security of the platform seriously. They partner with Ledger Vault, a widely recognized security infrastructure provider, participating in a combined individual crime insurance program that insures crypto assets up to $150 million. Additionally, YouHodler utilizes a mix of hot and cold wallet storage which securely protects users’ funds. Of course, the now-standard 2-factor authentication takes place, but YouHodler goes even further by allowing users to move to 3-factor authentication.
However, as with any cryptocurrency platform, using YouHodler comes with certain risks. Market volatility can lead to substantial fluctuations in the value of cryptocurrencies, which can impact both investments and loans. Additionally, while YouHodler implements strong security measures, no platform is entirely immune to cyberattacks or technical failures.
As for potential problems with regulators, the platform has tried to keep its users as safe as possible by obtaining official registration in the EU, Switzerland, and Argentina.
Conclusion
YouHodler offers a well-rounded cryptocurrency platform that caters to both new and experienced users. With its core services, it provides a range of options for managing crypto assets. While it may not have some of the advanced features found on other platforms, YouHodler’s ease of use makes it a solid choice for those looking for a straightforward way to engage with cryptocurrencies.
