Youhodler Review 2021: The Pros, Cons and How it Compares

Did you know that it's possible to earn interest on your cryptocurrency investment? Check out this Youhodler review to see how it works.

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Our take

3.8
Bitcompare score

Who doesn't want free money? Why not take advantage of the opportunity to earn free crypto while you sleep at night?

The cryptocurrency platform known as YouHodler, allows us to obtain loans using our cryptocurrency. We can use our crypto as collateral. Doing this allows us to earn interest on our crypto holdings!

Did you know that it's possible to earn interest on your cryptocurrency investment? Check out this YouHodler review to see how it works.

YouHodler Crypto Review

The commonly held view is that cryptocurrencies are up against fiat money. Even still, rookie investors are often hesitant to leave theirs untouched for long periods of time because the space is ultra-volatile.

To have real success, we have to get comfortable with the idea of holding onto our assets during inescapable fluctuations in the market. But, this isn't easy to do because many investors want to have access to their assets at all times. The fluctuations in crypto performance make it hard to 'HODL'.

Enter YouHodler -- the perfect solution.

On this platform, we as investors can hold onto our cryptocurrencies while also having the option to leverage them for loans. YouHodler is ideal for this, and its success in the community of digital currency has proven this to be true. This success allowed them to expand and become a crypto-fiat service with many facets.

Let's look closer at YouHodler and learn how crypto investors can benefit from it.

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USD Margin Lending

  • Return rates optimized daily
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  • No minimum
  • No lock-up period, withdraw anytime

What Is YouHodler?

This company out of Switzerland is a crypto-backed loan service provider. It holds the belief that you can HODL during unelevated markets and sell anytime, not just during a spike.

It lets us borrow fiat money at the drop of a hat, based on the current value of the crypto assets. We can also convert crypto to other crypto or fiat. Take part in using Stablecoins as well.

The best feature would probably be the withdrawal option; Take out fiat and transfer it to a personal credit card or account. We can also hold our crypto in a savings account with YouHodler.

Think of it as a crypto bank. Its efficiency and speed of transactions make it easy to work with your assets and bitcoin investments.

How to Use YouHodler

The experience is well-rounded, as we can find anything we need when it comes to crypto owning and making a crypto investment. Make the most of your digital assets using YouHodler's versatility.

What Is a YouHodler Wallet?

When you have a YouHodler Wallet, you are using a simple and efficient tool. It allows us to hold for investment purposes, convert to fiat, or transfer your crypto. Another great feature is its wallet designs for Bitcoins and more than 14 other cryptocurrencies popular today.

How to Use the YouHodler Wallet

Within the wallet is where we manage our account and obtain earnings if we're using other features of YouHodler. Other institutions associated YouHodler make it a secure, safe space.

There is a "crypto-to-fiat" wallet that exists in a single window. This is where you can obtain loans, manage investments, or even open a savings account.

How to Obtain a Loan in Youhodler

The fact that YouHodler has the ability to offer loans is probably one of its best features all around. It's similar to hedging and provides a flexible and easy way to enter the cryptocurrency trading markets.

We obtain fiat with our crypto-backed credit line. We can get access to fiat whenever we need it, all without even touching our crypto portfolio. This takes out much of the risk around investment decisions. 

What Are Instant Crypto Loans?

The loan-to-value ratio is top rate -- up to 90%, which is very competitive in the space, making them a leader here. They accept 19 different types of coins as collateral.

We can get instant cash loans as well as crypto loans in the following currencies:

  • USD
  • EURO
  • GBP
  • CHF
  • BTC 
  • USDT

Interest rates here aren't too bad, either -- 12% APR. We get an even lower rate -- down to 2.5% -- when we take out short-term loans.

How to Request a Loan

Let's take a look at the loan process at YouHodler. They give us a few options on how to back them. We're able to apply for a loan in Bitcoin or fiat. Like we mentioned above, several different altcoins can be pledged as collateral.

How to Apply Online

First, we make a request by pledging crypto assets. We then get an agreed loan amount in fiat, instantly. These fiats will be in USD, EURO, GPB, CHF, Bitcoin, or Stablecoins. Then, once we pay back our loan, we get our collateral back right away, even if its value has increased.

This is such a seamless process, we couldn't imagine it being any easier. We didn't have to wait around for credit checks or any other loan eligibility considerations. As long as we had a verified account and enough collateral, our initial process was done.

Loan Amounts and Terms

We have choices of different loan packages and all have terms. Here are the three options for durations:

There are three options for loan durations: 30 days – 90% LTV, 60 days – 70% LTV, or 180 days – 50% LTV.

Luckily, our interest rate isn't defined by how much we put up as collateral, but by what type of plan we pick.

All users get the same interest rate and we predict that interest rates will drop as the community grows. We can take advantage of YouHodler's affiliate program as well. This encourages people to invite others, which will aid acceleration.

Exit Strategies

Of course, we must pay back the loan. But YouHodler has 3 other options as well:

  1. Close Loan Without Repaying 

We are allowed to close a loan even if we can't pay it back completely. The outstanding loan is instantly paid using the collateral you've pledged. Then we receive the cryptocurrency that's remaining.

  1. Extend Loan Duration and PDL 

When the term of our loan is near maturity, we're given the option to simply reopen our account to continue holding the cryptocurrency with identical terms. We can even extend our 'Price Down Limit'. This can be done by adding collateral.

  1. Walk Away 

We have the option of walking away with 85% total value without the need to repay and without consequences. This is because they have a great LTV of 90%.

We can freely exchange crypto for instant cash. Through this particular feature, YouHodler has been very successful in creating fairness and transparency. 

Cryptocurrency Price Changes

We, as loanees, must consider the many variable prices. And as investors, we know quite well that the values of cryptocurrencies can change rapidly, even in the double-digits.

What if the Cryptocurrency Price Goes Down?

In this case, we see that YouHodler has prepared its system with certain conditions that will guarantee a loan amount won't change. We see that with each loan plan there is a "Price Down Limit" as we mentioned above. YouHodler can close the loan if the price of your collateral goes below the PDL.

We are emailed if our collateral drops more than 2/3 of the PDL. This doesn't incur any extra fees for us.

What if the Cryptocurrency Price Goes Up?

The feature called "Take Profit" applies to cases where our crypto-collateral goes up in value. We can set a particular Take Profit point, and when it gets to that level YouHodler will sell that collateral to repay the loan. The remaining profit is then deposited into our wallet.

When we request a loan, we can "Set Close Price".

How Do We Earn Interest on a Crypto Savings Account?

We have yet another great way to use our crypto assets like other fiat money. This flexibility is seen in the way they let us deposit crypto and then earn interest on it. We can do this by transferring the coins to a savings account where we have the ability to use 22 different cryptocurrencies.

Let's say we don't have the correct type of crypto. In this case, we will need to convert them into fiat. Annually, we can earn returns less than or equal to 12% interest. This way we'll get weekly interest payments deposited right into our YouHodler account. 

YouHodler's system checks our balance a few times a day (on average 4-6 times a day) and counts the earnings based on that. If we deduct our funds before the 7-day settlement period ends, everything earned inside that time will still be paid at the end of the 7-day period.

For example, if we keep our funds on the balance for 2.5 days and then withdraw funds, at the end of the 7th day we will get the profit earned for the 2.5 days during which we stored funds on the balance.

If we deposit more crypto inside the week, the earned interest from the additional funds is paid the same week.

YouHodler counts the total balance of wallets every 4 hours. After a week they take an average amount that we keep in our wallet for the week and then calculate an interest payout for each cryptocurrency.

Open a YouHodler Savings Account

We can earn interest on our crypto holdings by taking these steps:

  1. Open the "Wallets" page in YouHodler.
  2. Click "Add Funds" on the wallet.
  3. Follow instructions to deposit funds.
  4. Grow savings at less than or equal to 12% per annum.

We are able to withdraw crypto assets anytime. We don't have to wait for a set term to complete.

What Is Turbocharger?

Using Turbocharge, we are able to make a "chain of loans" invest assets. The number of loans is set and we see the amount of collateral, which is predefined.

Our YouHodler automatically uses that collateral for a new loan as soon as we click on the "Turbocharge" button. This process will loop until the set number of cycles is completed. This number is set by the user.

There's no additional fee for our loans once our first one is processed. Not only that, but each loan's interest rate is reduced. We need a minimum of 100USD or 0.01 BTC for the first loan.

What Is Multi HODL?

This is a new addition to their product selection. "Multi HODL" brings together the Turbocharger concept with an investment strategy, allowing us to get the most out of our assets.

By using this tool we can use our wallet balance or YouHodler savings account to multiply our crypto funds. They claim that the profit potential of this tool is up to 290%.

We are allowed to use up to 17 types of cryptocurrencies, adjusting for risk. We set our PDL for these investments, limiting our risk because we won't lose more than we set.

When we choose to use Multi HODL, they automatically take out a certain percentage of source funds and reinvest them. They then use it as collateral for that "chain of loan" we talked about earlier. This is how it works:

  1. YouHodler uses the share of our assets to open an initial loan.
  2. They then borrow funds and use them as collateral for the second one.
  3. This repeats 2-30 times, depending on the profit and loss level we, as users, set.

Then we have a couple more choices on how our collateral is to be further invested.

  • "Up" uses our crypto as collateral with borrowed USD. We choose this when we expect the value of our crypto to increase, yielding profit.
  • "Down" will take that USD as collateral in order to borrow our crypto assets. Here we're hoping for a decrease in crypto value to profit.

We're able to keep 80% of our assets safe when using Multi HODL. This will happen while we use the extra 20% in riskier actions. Youhodler suggests such a strategy, but the decision is really up to us.

What About Taxes on YouHodler Investments?

We must be aware of all our tax obligations. We need to understand which part of our earnings are subject to certain taxation. We recommend consulting a professional tax advisor to find out more about how to do this.

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Pros and cons of Youhodler

Pros

  • High interest rates of up to 12% compounding
  • Supports top 15 cryptocurrencies
  • You can pay, store and exchange on the platform
  • Instant credit card and bank withdrawals
  • Minimum loans start at just $100
  • The highest loan to value ratio in the industry (90 percent)
  • Instant loans without any credit checks
  • No need to stake native tokens to get higher interest rates on savings accounts
  • A constantly growing list of collateral options (currently more than 20)
  • Four fiat currency options (USD, EUR, GBP, CHF)
  • Unlimited loan terms
  • Weekly interest payouts
  • The option to receive loans in Bitcoin (BTC)
  • $150 million pooled crime insurance from Ledger Vault
  • Creative tools like Multi HODL that help users profit in both bull and bear markets
  • Web, iOS and Android apps
  • 24/7 customer support with live agents

Cons

  • The platform isn't available in China or the United States
  • Individuals using the platform are also subject to higher fees on loans than you'll find with other options such as BlockFi
  • Lack of an insured custodian for user funds
  • Many Android users also complain that the app comes with plenty of bigs and glitches
  • High interest rates on long term loans
  • Reliance on a small self-established insurance fund

Frequently asked questions about Youhodler

We’ve compiled some answers to questions we often get. Should you have any other questions, feel free to reach out below in the comments.

Where is YouHodler based?

YouHodler are based in Cyprus and have operations in Switzerland. Their Cyprus address is: Arch Makariou III, 172, Melford Tower, 3027 Limassol, Cyprus

Can YouHodler be trusted?

YouHodler is a real company, paying real interest, however, like all companies on this platform, we do recommend to always do your own research and only invest what you’re comfortable with. It’s also worth researching things like their LTV to determine how much loan risk they are exposed to when deciding which company to deposit your funds with or when taking a loan.

What products does YouHodler offer?

When you create an account with YouHodler, you gain access to two core products and two supplemental products. The core products are crypto savings accounts and crypto loans.

The supplemental products include Multi-Hodl and Turbocharge. Get more details about the platform's products and what they can do for you.

Who should consider using Youhodler?

The YouHodler platform delivers a well-rounded experience to customers. That means you'll find everything you could want as a crypto investor and owner in one spot. 

If you're looking for one place where you can handle all of your financial services, YouHodler offers solutions with its digital assets.

How does the Youhodler wallet work?

Designed for efficiency and simplicity, the YouHodler wallet lets you transfer your cryptos. You can also convert digital assets to fiat currencies and hold funds for investment. In terms of options, YouHodler offers wallet designs exclusively for Bitcoin and 14 other popular cryptos. 

Your YouHodler Wallet is where you'll manage a variety of features offered by the platform. You can keep track of everything from earnings to account balances here. The platform maintains partnerships with a handful of institutions to facilitate the HODLing of fiat currencies securely and safely. 

Through your YouHodler wallet, you can manage your investments, opening savings accounts, and loan applications and accounts.

Why apply for a loan through Youhodler?

What's one of the things that customers find most unique about YouHodler? Its ability to provide customers with loans. Consider these loans as a means of hedge financing. These loans also provide you with flexibility when it comes to accessing crypto trading markets. 

A crypto-backed loan through YouHodler also gives you access to fiat currency while still HODLing your crypto assets. It reduces the risk accompanying investment choices and provides you with more overall flexibility as an investor.

YouHodler Review Discussing Pros and Cons

As average investors, YouHodler has us covered. Consider these pros and cons so you're prepared before you commit.

Pros

YouHodler offers great tools and allows us to decide how much risk we want to take with our assets. They open up new opportunities for new and experienced traders alike.

These include things like flexible options when it comes to investment and an earning potential max of 12% on savings. We also have the choice of funds (fiat, BTC, or Stablecoins). Not only this, but the minimum loan amount is $100.

They offer a high "loan-to-value" ratio max of 90% and features like Multi HODL and TurboCharge. Customer service is there for us -- they offer 24/7 help through email or live chat.

Cons

On the other side of the coin, we see a few cons to be aware of. For example, YouHodler is not a financial institution. Watch out for slightly high-interest rates on some loan terms. 

Another con is that citizens of the USA can't use it.

We Bet Our Crypto on It

As investors, we see crypto loans as strategic tools for leveraging and hedging assets. These services are ubiquitous. But we consider YouHodler to be good for investors with a large amount of idle crypto in their private wallets. Why not earn interest on it while you sleep?

It's not great for long-term loans due to somewhat high-interest rates but seems to be an effective short-term solution when it comes to cash flow. We hope this YouHodler review sheds some light on your choices in the crypto arena.

Our YouHodler score

3.8
Bitcompare score
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