The digital age has dramatically enhanced the reach of the global marketplace, and the need for online lending platforms connecting borrowers with investors has skyrocketed.
Public interest in cryptocurrencies has grown exponentially as the awareness about the enticing gains from alt and stablecoin transactions increases. This has necessitated the employment of modern lending platforms that can provide reliable lending and borrowing services.
YouHodler and BlockFi are two of the earliest and best cryptocurrency lending platforms for getting crypto-backed loans and buying and selling cryptocurrencies.
In this article, we will compare the different features and services of YouHodler vs BlockFi to help you choose the best fit.
What is YouHodler?YouHodler is a FinTech company based in Switzerland since 2018. It allows users to buy and sell cryptocurrencies and get highly competitive rates on their crypto assets.
YouHodler is considered one of the most legitimate platforms in Europe as it has gathered a loyal following and continues to grow consistently every day. It offers a variety of products and services, such as savings accounts with high-interest rates and well-structured crypto loans.
Features and Services
Major distinguishing features of YouHodler include:
YouHodler offers one of the highest loan-to-value ratios (LTV), i.e., up to 90%. The LTV reduces with time. As stated on its website, you can get 90% LTV for 10 and 30 days. It declines to 70% for 61 days, 60% for 91 days, and 50% for 180 and 360 days of the loan period. It allows a one-time payment at the end of the loan term. The interest on loans also decreases as the LTV ratio reduces with time.
On YouHodler, you can receive loans in fiat currencies or stablecoins. You can instantly withdraw the loan to credit cards and personal bank accounts. The minimum loan amount is $100.
Here is a list showing the price down limit on YouHodler for different loan durations:
- 5% for 30 days
- 25% for 61 days
- 40% for 180 days
If the market takes a turn for the worse, the Extended PDL feature of YouHodler allows you to add more collateral to increase the price down limit and reduce the level of risk for your loan.
YouHodler supports over 50 popular crypto assets as collateral, including stablecoins like USDT and USDC and other top cryptocurrencies like BTC and ETH. Newer currencies are added every month. It accommodates popular fiat currencies, such as USD, EUR, CHF, and GBP.
The platform has saving accounts with high-interest rates, which is one of the things that make it popular. The platform lets you earn up to 11.28% interest annually on stablecoins.
YouHodler wallet holders automatically receive payments with compound interest weekly. The interest rate depends on the digital asset in your YouHodler wallet, which is highest for stablecoins and a bit low for other cryptocurrencies. The interest rate for BTC is 4.7%.
YouHodler offers a full range of crypto conversion tools with which you can buy and exchange cryptocurrency on the platform. You can trade over 50 cryptocurrencies and capitalize on their volatility.
You can buy cryptocurrencies with fiat currency via credit card and SEPA bank accounts. One notable feature, Multi HODL, allows up to 30x margin for trading. This is significantly higher than the 10x margin that some major platforms provide on spot trading.
In addition, the lock trading feature allows you to take long and short positions simultaneously to increase your win probability. Many exchanges forbid users from doing that, but YouHodler supports it.
For loans, YouHodler has no origination fee, also called borrowing fee. However, it charges:
- 1% (from overdraft amount) close now fee
- 1% (from borrowed amount exclusive of interest fee) reopen fee
- 1.5% (from added collateral) extended PDL
- 1.5% (from increased amount) increase LTV
Moreover, there are no deposit fees for cryptocurrencies and stablecoins, while a small amount is charged for some fiat currencies in the category of card and bank wire fees.
The mode of payment determines withdrawal fees. For Turbocharge, a feature that allows users to have a chain of loans, YouHodler charges a close now fee of 1%. Then there is a different fee for wire transfers of each fiat currency withdrawal done through banks.
The fee YouHodler charges for cryptocurrencies is specific to each crypto asset. Apart from these fees, a blockchain fee can also be applied if the blockchain capacity and workload requirements increase.
YouHodler is available in all countries except the US, Bangladesh, China, Russia, Pakistan, Iraq, Crimea, Cuba, Iran, Sudan, Syria, Afghanistan, Palestinian territories, North Korea, Egypt, Nepal, Bolivia, Algeria, and Belarus. The above countries are not supported mainly for political reasons such as being under sanctions, embargoes, and instability.
Security is a cornerstone of blockchain technology and a legitimate concern for crypto holders. YouHodler is one of the safest and most regulated platforms. It uses mandatory KYC verification and runs routine security audits to fix potential weaknesses to create a safe environment for cryptocurrency lending and borrowing. Furthermore, YouHodler is not an anonymous platform since it operates under all EU regulations.
Since cryptocurrencies are not subjected to FDIC insurance, crypto deposits on YouHodler aren’t insured by the US government. However, YouHodler has partnered with private insurance providers to make their services insured.
The platform is supported by Ledger Vault with $150 million as crime-pooled insurance for risks, such as employee theft, market manipulation, etc.
Pros of YouHolder
- Earn up to 11.28% interest on your cryptocurrency holdings
- No “premium membership” is needed to access high-interest rates
- Get crypto-backed loans at lower interest rates
- It’s a regulated platform
- A strict security policy with mandatory KYC
- Excellent customer service
- Top-notch trading tools like Turbocharge and Multi HOD
- Available globally in almost all countries with few exceptions
- Integrated with multiple blockchain platforms like Bancor, BNB Chain, Aave, and CoinMarketCap
- Offers crypto wallets that feature loans, conversion, and savings
- No hidden charges
Cons of YouHodler
- Not available in the USA and China
- No platform credit card yet
- Loan fees are slightly higher than other platforms (but there is an upside to it as the platform provides higher interest rates on savings accounts)
For more information about YouHodler, check out our comprehensive YouHodler Review: Earn Yield, Get Loans and Exchange Crypto
What is BlockFi?BlockFi is a crypto platform in the US founded in 2017 that offers crypto-backed loans at low-interest rates and competitive interest rates on crypto deposits. It also serves as a wealth management app for your crypto assets.
It started as a credit service for clients holding digital assets, but now it has expanded to become an independent international lender. It also has institutional backing from multiple investors, including SoFi, Galaxy Digital, Valar Ventures, Akuna Capital, and Coinbase Ventures.
BlockFi makes its income via interest accounts and loan systems. They take a cut from the difference between the interest given to the lender and the interest on loans. It has over 1 million clients and assets worth over $10 billion.
It also offers exclusive benefits to high-net-worth users. As of February 14, 2022, the BlockFi Interest Account (BIA) has stopped providing services to new clients who are US nationals or persons in the US. And existing US clients can no longer transfer their unique assets to their BIAs.
Features and Services
Major distinguishing features of BlockFi include:
Like YouHodler, BlockFi offers crypto-backed loans, interest accounts, and cryptocurrency exchange.
BlockFi’s crypto-backed loans offer a maximum 50% loan-to-value (LTV) ratio with a 9.5% interest rate for up to 12 months.
If the value of your collateral drops during market volatility, a margin call can happen, which will increase the LTV of your loan, thus causing a potential default. If a margin call occurs, you must add more collateral to your account to maintain a healthy LTV ratio. The first margin call occurs at a 70% LTV and the second at 80%.
BlockFi keeps you informed if your LTV gets near 70% so you can take action proactively. You have 72 hours to act at that stage by paying down the loan balance or posting additional collateral. If the margin is not cured within 72 hours or your loan hits an LTV of 80% or above (whichever comes first), BlockFi can liquidate a portion of your collateral to bring down your LTV to a healthy level.
BlockFi supports fewer crypto assets than YouHodler. It supports 15 cryptocurrencies, including BTC, ETH, LTC, DOGE, DAI, LINK, and BCH, and four stablecoins, including USDT, USDC, and GUSD, the native currency of its custodian, Gemini.
BlockFi doesn't allow you to stake native tokens.
BlockFi was the first lending platform to create a Bitcoin rewards credit card. This Visa card earns a significant 1.5% back in Bitcoin on each purchase. The rewards are added to your BlockFi interest account so that you earn more interest.
BlockFi offers an interest rate of 4.5-9.75%, depending on the underlying asset. The interest rate is 9.25% for stablecoins like USDC and USDT and 4.5% for cryptocurrencies like BTC and ETH. BlockFi also comprises a seven-day lock-in period and pays out interest to users at the end of each week.
You can borrow crypto with any of these rates:
- 3% for 30-day loans
- 5% for 60-day loans, and
- 9% for loan terms longer than 120 days
BlockFi has a crypto exchange for customers interested in trading. Crypto trading pairs exist between Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), USD Coin (USDC), and other combinations. It has partnered with Gemini, which is the first licensed Ether exchange and a registered custodian.
Another exciting feature that BlockFi offers is an automatic trading engine. Busy traders who can’t watch the market all the time can set up an automatic buy or sell orders on the platform. It provides an efficient way to dollar cost average (DCA) with daily, weekly, or monthly purchases.
BlockFi charges an origination fee of 2% for all loans, regardless of the LTV and interest rate.It also charges a withdrawal fee that is determined by the digital asset. For instance, the withdrawal fee for Bitcoin (after one free withdrawal) is 0.00075 BTC for a withdrawal limit of 100 BTC per 7-day period.
It stopped free withdrawals for some coins such as ETH and LINK from December 01, 2021, while it still offers one free withdrawal per month for coins like BTC, GUSD, and LTC.
Note: According to a statement by BlockFi, it will end its once-in-a-month free withdrawals for coins like BTC from July 2022.
BlockFi is available in all countries except those sanctioned by the US, UK, and EU. The sanctioned countries include North Korea, Iran, Syria, Venezuela,Turkey, Cuba, and certain African countries.
BlockFi’s crypto-backed loans are also available in 47 states in the US.
It has mandatory KYC requirements and deploys essential security measures to enhance the platform’s safety. However, BlockFi has faced cyber attacks multiple times, but its multi-factor authentication has prevented any loss of user funds. BlockFi has also implemented IP whitelisting, cold wallet storage, and SSL encryption to enhance the platform’s security further.
BlockFi has kept third-party reserves with Coinbase, BitGo, and Gemini, making it extremely difficult for hackers to access user funds. It has also purchased SEC-regulated equities and CFTC-regulated futures.
BlockFi is not insured by the FDIC. However, the platform uses Gemini, a renowned custodian, to store investors’ funds. The good thing about this is that Gemini is insured, meaning any theft against the stored assets would be compensated. Therefore, you don’t have to worry about losing your money when investing with BlockFi.
Pros of BlockFi
- Trade execution is quick
- No hidden fees
- Rewards via a credit card system
- Credibility due to extensive regulation by the SEC
- Mandatory KYC requirements
- No commission fee or monthly fee
- Reasonable minimum deposit requirements
- Available worldwide apart from a few sanctioned countries
- Sign up bonus
Cons of BlockFi
- Limited free withdrawals from interest accounts
- No custodial or joint investment accounts
- No capitalization on volatility like YouHodler’s MultiHODL feature
- Frequent fluctuations of interest rates on a savings account as well as lending interest rates
- High fees on loans
- Long withdrawal processing time
For more information about BlockFi, check out our comprehensive BlockFi Review: Pros and Cons. Is BlockFi safe?
Compare with leading alternative crypto lending platforms
|Platform||Interest Rates (APY)|
|Nexo||Up to 7% on BTC|
Up to 12% on Stablecoins
... 34 more coins
|Go to site →|
|Midas.Investments||Up to 9.42% on BTC|
Up to 14.5% on Stablecoins
... 15 more coins
|Go to site →|
|CoinLoan||Up to 5.2% on BTC|
Up to 10.3% on Stablecoins
... 23 more coins
|Go to site →|
|YouHodler||Up to 3.05% on BTC|
Up to 8.33% on Stablecoins
... 55 more coins
|Go to site →|
YouHodler vs BlockFi: Which one is Better?
Lending is a great method for generating passive income from your crypto holdings. YouHodler and BlockFi are two platforms frequently used for cryptocurrency-backed loans.
BlockFi is a preferred choice for beginners or intermediate crypto holders, investors, or traders who are reluctant to use any platform based outside the USA. A major drawback to YouHodler is that it isn’t available to USA users.
However, YouHodler is the superior platform for beginners, intermediates, and even advanced crypto holders and traders outside the USA. YouHodler has higher interest rates on saving accounts, lower interest rates on loans, and lower fees than BlockFi. It has unique features like Multi HODL and Turbocharge.
The universal cryptocurrency exchange, availability of a wide range of cryptocurrencies, and its credibility, transparency, and security make YouHodler an extremely well-rounded platform and a better choice over BlockFi.
As you can see, these two platforms have unique features and products. Therefore, it is up to you to choose the one that best suits your needs. They are both excellent platforms, so you won’t be disappointed whatever your choice is.