Crypto lending platforms have enabled many people to multiply their investments by enabling access to more funds through crypto loans.
Many are interested in using crypto loans but are confused about which platform to use. Two great examples of such platforms are YouHodler and Hodlnaut. This article will consider some facts about these two platforms, comparing them based on security, onboarding, insurance, and other features.
YouHodler - An Overview
YouHodler is a cryptocurrency lending platform that offers fiat and crypto loans using crypto as collateral and allows cryptocurrency hodlers to generate interest on their deposited funds. This means you can deposit your crypto assets on the platform, use them as collateral, and get loans in the form of crypto or fiat currency such as USD, EUR, GBP, etc.
It has been a privately held European cryptocurrency lending platform based in Switzerland since 2018. It was founded by Ilya Volkov, who has 15 years of experience in finance.
In fulfilling its obligation to secure investor funds and enhance confidence and safety on its platform, YouHodler has partnered with organizations such as Elliptic, Fireblocks, and others to gain access to their proprietary software.
An Overview of Hodlnaut
Juntao Zhu and Simon Lee founded Hodlnaut in April 2019. The platform provides various financial services for many investors who want to earn interest in their crypto assets.
The platform allows investors to earn interest as high as 12% on their cryptocurrency deposits. They then pool these funds together and lend to an organization that meets their requirements.
Hodlnaut has partnered with Crowe Singapore, Nexus Mutual, Fireblocks, and OKCoin to perform independent verification of its assets, protect customers' investments, and provide security for its digital assets.
YouHodler vs Hodlnaut - Basic Features
YouHodler
Savings and Interest account
YouHodler users can earn interest as high as 13.09% on their deposited crypto. They can deposit up to 50 different cryptocurrencies.
YouHodler Exchange
The YouHodler platform allows users to exchange crypto for crypto and fiat to crypto; and crypto to fiat.
Crypto-backed collateral
YouHodler allows its users to deposit crypto and use it as collateral to get fiat loans. Users can get loans starting from $100.
Multi HODL
This feature allows a user to earn interest on a portion of their deposited funds and, at the same time, get a chance to earn higher interest on some other trading activities with higher risk.
Turbocharge
This allows a user to multiply their deposited funds. A user uses their borrowed funds as collateral to get another loan multiple times.
Other features
- Cryptocurrency trading tools.
- Deposits are covered by insurance.
- Users can increase LTV without adding funds or closing accounts.
- Users can add more cryptocurrencies during market capitulation to extend price-down limits.
- A user can reopen their loan to prolong the loan term without full repayment.
- YouHodler allows users to profit by automatically selling a part of the collateral at their preset price.
- Users can access the platform and its features on a mobile application.
Hodlnaut
Hodlnaut interest account
Hodlnaut allows its users to save their funds on the platform and earn interest as high as 12.7%. There are no lower limits to the amount a user can deposit, and there are no lock-in periods on deposits in the interest accounts. Users who deposit in the interest account can receive weekly payouts from their savings.
Token swap
This is a feature in Hodlnaut where users can exchange their tokens for other supported tokens on the platform without incurring any charge.
Fixed-term deposit
Users can deposit their funds with a lock-in period between 28 and 180 days. The minimum deposit is 25BTC.
Other features
- A user of the platform can insure their funds through Nexus Mutual.
- Users can access the Hodlnaut services on a mobile application
Hodlnaut vs YouHodler - Deposit and withdrawal fees
YouHodler Fees
Depositing through bank wire attracts zero fees (there is an exception of USD swift that attracts 25 USD per deposit, and GBP attracts 20 GBP per deposit). Deposits using a bank card attract 1% for advcash wallet payment and 4.5% for the bank card payment.
Withdrawal fees on the YouHodler platform are detailed below:
- 1.5% on USD (SWIFT)
- 4 EUR on EUR (SEPA)
- 55 EUR on EUR (SWIFT)
- 0.15% on GBP and CHF
Hodlnaut Fees
There are no deposit fees on the Hodlnaut platform.
There is a free withdrawal in one calendar month, but subsequently, there is a
- 0.0004 BTC fee on BTC withdrawal
- 10 Dai on DAI withdrawal
- 0.0036 ETH on ETH withdrawal
- 10 USDC on USDC withdrawal
- 10 USDT on USDT withdrawal
- 0.0004 WBTC on WBTC withdrawal
YouHodler vs Hodlnaut: Safety and Security
Users will have to enable the Two Factor Authentication setting to authorize withdrawals.
The partnership with Ledger has also granted YouHodler access to Ledger Vault's Crime Insurance Program that insures crypto assets for up to $150 million, including against any collusion that leads to a YouHodler employee theft and private key theft by a third party in the event of a physical breach of hardware security.
YouHodler joined the blockchain association to reassure their customers that there can be quick, efficient, unbiased, and authentic dispute resolution services in case of any disputes.
Is Hodlnaut safe and secure?
Like YouHodler, Hodlnaut also puts some industry-leading security measures in place, requiring users to enable Two-Factor Authentication for withdrawal authorization.
They partner with Fireblocks to protect the private keys of its users with the Fireblock multiparty computational wallet. Hodlnaut initially stores its funds in Fireblock's wallet before moving to a cold wallet.
Hodlnaut does not provide insurance on the crypto assets of its users, but they do allow users to purchase insurance that can protect their assets through their partner, Nexus Mutual.
YouHodler Crypto Loan Terms and Supported Crypto Assets
YouHodler allows you to choose between three loan-to-value ratio options: 50%, 70%, and 90%. These depend on your crypto loan term. For example, for a 30-day loan term, the loan to value ratio is 90%, while for a 180-day loan term, you have a 50% loan to value ratio.
YouHodler supports several cryptocurrencies such as USDC, PaxDollar, TrueUSD, DAI, and many others.
Hodlnaut Crypto Loans Terms and Supported Crypto Assets
Unlike YouHodler, which supports about 20 cryptocurrencies, Hodlnaut supports just 6 cryptocurrencies - BTC, DAI, USDC, USDT, ETH, WBTC.
While individuals can take loans from YouHodler, Hodlnaut only gives loans to organizations. To qualify for a fixed-term loan, a borrower must deposit a minimum of 25 BTC. Although the funds that lenders who opt for a fixed-term loan deposited will have a month lock-in period, they get to earn higher gains than the interest accounts users.
Onboarding on the Hodlnaut platform
It's easy to start using the features available on the Hodlnaut platform. The registration process is not complex.
Anyone who signs up on the platform simply needs to choose if the account is for an individual or a corporate entity. Then they can register with an email, create a password, and verify the email.
Once the above is done, to earn from the interest account, a user simply needs to deposit any of the supported coins, earn compound interest on the assets and receive a weekly payout that can be withdrawn at any time.
To use the Token Swap feature, a registered user simply needs to log into the account, choose the token they like to trade, review the quote, and place an order.
For corporate account users, after registration, they will have to send an email to rm@hodlnaut.com to discuss the terms of the loan.
Anyone who wants to deposit 25 BTC or more will also have to send an email to rm@hodlnaut.com
Onboarding on the YouHodler platform
To access the products of YouHodler, a user has to go through a simple registration process that requires information such as email and country of residence.
After the registration, a user must pass KYC before using the platform. After registration, the user signs a beneficiary ownership confirmation, and then they can click on the verify button to start verification.
Verdict
Generally, we can observe that the YouHodler platform has more products and features to offer than the Hodlnaut platform. Both Hodlnaut and YouHodler allow users to earn interest on their savings, take loans using crypto as collateral, and swap out and exchange one crypto to another.
However, in addition to those mentioned above, users on the YouHodler platform can enjoy other features like the Turbocharge and Multi HODL features, which are not available on the Hodlnaut platform.
Unlike Hodlnaut, YouHodler also has some other features that can be attractive to borrowers. Some of these features are the availability of trading tools, the possibility of extending the price-down limit in the event of market capitulation, and increasing LTV without adding funds.
While the two platforms allow all users to earn interest on their savings, only YouHodler offers loans to all who meet their requirements. Hodlnaut only gives loans to corporate organizations, not individuals.
Users on the Hodlnaut platform will have to pay if they want an insurance cover, while YouHodler provides insurance for all users at no extra cost.
Both platforms have an easy signup procedure and make it easy for potential users to onboard.
The available cryptocurrency options from which users can trade and take up loans also vary for each platform. YouHodler has more options than Hodlnaut, and only YouHodler offers fiat services.
With the facts provided in this article regarding security, products and features, onboarding, and the crypto loan terms of both YouHodler and Hodlnaut, you can now make a better decision when considering which of the two platforms you should choose.