YouHodler and BlockFi are two of the best cryptocurrency platforms for earning interest on your crypto assets, getting crypto loans, and buying and selling cryptocurrencies.
YouHodler is a Switzerland-based FinTech company that allows users to buy cryptos and leverage its various applications. It offers a wide range of products and services, from savings accounts with high-interest rates to crypto loans.
BlockFi, on the other hand, is a US-based crypto platform that offers crypto-backed loans at low-interest rates and attractive interest on crypto deposits.
Both the platforms allow you to buy and sell cryptos with a single click. So, which platform is better and why? Let’s find out.
YouHodler vs. BlockFi: Crypto Backed Loans, Supporting Assets, & LTVs
YouHodler supports more than 40 crypto assets, including stablecoins like Tether and USDC coin and cryptocurrencies like BTC, BCH, and ETH.
YouHodler offers up to 90% loan to value ratio (LTV), one of the highest in the crypto space. The LTV reduces with time. For instance, you can get 90% LTV for 15 and 30 days. It declines to 70% for 61 days and 50% for 180 days of the loan period.
On YouHodler, you can get loans in various fiat currencies, including USD, EUR, CHF, and GBP. You can withdraw loan amounts instantly to personal banks and credit cards. The price down limit on YouHodler is 5%, and you can add more collateral to increase the limit.
BlockFi allows you to take loans for an unlimited time. The minimum loan amount is $100. The interest rate is 3% for 30-day loans, 5% for 60-day loans, and 9% for loan terms greater than 120 days.
BlockFi supports fewer crypto assets than YouHodler. It supports six cryptocurrencies, including BTC, ETH, and LTC, and four stablecoins, including USDT, USDC, and GUSD.
Coming to loans, BlockFi allows you to borrow money on your cryptocurrency assets at interest rates of as low as 4.5%. The maximum loan duration is 12 months, and the minimum loan amount is $10,000.
YouHodler and BlockFi don’t allow you to stake native tokens.
Verdict: YouHodler is the winner, as it supports more crypto assets and offers a higher LTV and competitive interest rates.
BlockFi vs. YouHodler: Earn Interest Rate Accounts, Lock-in Terms & Payouts
YouHodler lets you earn up to 12.3% interest per year, one of the highest in the market. The interest rate depends on the cryptocurrency you save in your YouHodler storage wallet.
For instance, the interest rate is the highest for stablecoins (USDT – 12.3%, USDC – 12%, PAX – 12%, and TUSD – 12%) and low for cryptocurrencies (REP – 2.5%, BAT – 3%, HT – 3%, and BSV – 4.5%). The interest rate is 4.8% for BTC and 5.5% for ETH.
YouHodler pays out interest every week. If you withdraw your funds before the end of the week, you won’t receive the interest earned during the uncompleted week. You can deposit funds for an unlimited time period and earn a passive income for a lifetime.
BlockFi offers an interest rate of 4-7.5%, depending on the underlying asset. The interest rate is 7.5% for stablecoins like USDC and USDT and 4% for cryptocurrencies like BTC and ETH. BlockFi also has a seven-day lock-in period and pays out interest at the end of each week.
Verdict: YouHodler is the winner, as it offers up to a 12.3% interest rate, compared to 7.5% offered by BlockFi.
YouHodler vs. BlockFi: Products, and Features Comparison
YouHodler and BlockFi have similar products and features, with some differences. Let’s discuss the core features, products, and services of each platform.
YouHodler offers a comprehensive range of products that allow you to play around with your crypto assets and do more with them. Here’s a breakdown of YouHodler’s products.
Cryptocurrency Backed Loans: Use 20 top digital assets as collateral options and get loans with up to 90% LTV. YouHodler offers loans in EUR, USD, CHF, and GBP.
Crypto Earn Interest Account: Earn up to 12.30% interest on cryptocurrencies and stablecoins with flexible 1-month, 3-month, and 12-month lock-in periods.
Exchange: Trade in over 40 cryptocurrencies and capitalize on the volatility of crypto assets. Buy cryptocurrencies with fiat currency via credit card and SEPA bank accounts.
Multi HODL: Experience the new era of trading with YouHodler’s Multi HODL. It allows you to trade with up to 30x leverage and multiply your profits. Multi HODL also combines CFD trading with crypto trading.
Turbocharge: Turbocharge uses the “cascade of loans” principles and allows you to clone your collateral to get a chain of loans and benefit from price growth.
Bitcoin Wallet: YouHodler offers its proprietary Bitcoin wallet that allows you to buy and save cryptocurrencies.
BlockFi offers fewer products for individual investors but compensates for it by providing expert services for institutions. Let’s look at the products and features of BlockFi.
Interest Account: Earn compounding interest up to 7.5% per year on your digital assets with flexible lock-in terms ranging from 7 days to 30 years.
Crypto-Backed Instant Loans: Use your digital currency as collateral to get loans for as low as a 4.5% interest rate. BlockFi allows you to take loans of $10,000-$10 million.
Trading Account: Trade in six cryptocurrencies and four stablecoins to help users profit from the volatility of the crypto market.
Institutional Backing Services: Use the OTC trading desk for spot trading, margin trading, credit card capabilities, and dedicated 24/7 support.
Corporate Treasury Solutions: Institutions can store large crypto user funds in BlockFi’s corporate treasury solutions and earn interest on them.
Verdict: It’s a tie. YouHodler offers products geared towards individual crypto users, whereas BlockFi provides robust crypto-backed lending solutions for institutions.
Most crypto platforms charge a loan origination fee, also known as a borrowing fee. However, some platforms may decide not to disclose it. Apart from the loan origination fee, providers can charge a withdrawal fee depending on your withdrawal method and the asset you withdraw.
BlockFi charges an origination fee of 2% for all loans, regardless of the LTV and interest rate. It also charges a withdrawal fee depending on the crypto asset. For instance, the withdrawal fee for Bitcoin is 0.00075 BTC.
YouHodler is a different fee structure from BlockFi. For loans, YouHodler charges:
- 1% Close Now Fee
- 1% (+ interest fee) Reopen Fee
- 1.5% Extended PDL
- 1.5% Increase LTV
The withdrawal fee depends on the mode of payment. For Turbocharge, YouHodler charges a close now fee of 1%. There is a 5% fee for bank wire transfers. The fee for cryptocurrencies is specific to each cryptocurrency asset.
Apart from these fees, a blockchain fee will be applicable based on the blockchain capacity and workload.
Verdict: It’s a tie, as both the platforms have different fee structures and their respective pros and cons.
Safety & Security Features
Security is a critical aspect to consider when choosing a platform for buying and depositing cryptocurrencies. Both YouHodler and BlockFi implement cutting-edge security measures to provide a safe and risk-free experience to all users. Let’s compare the security measures of the two platforms.
YouHodler takes all the security measures required to provide a safe experience to its users. These include:
Multi-Factor Authentication: YouHodler encourages users to activate two-factor authentication for enhanced security.
Cold Wallet Storage System: YouHodler stores most of the users’ funds in multi-signature cold storage wallets to prevent hackers from accessing them.
Ledger Vault Protection: YouHodler partners with Ledger Vault to provide $150 million in pooled insurance against losses occurring due to crime and malicious activities.
Top-Notch Security: Finally, YouHodler implements industry-grade security features like SSL encryption and IP whitelisting to make your experience more secure.
BlockFi, like YouHodler, takes all the necessary steps to enhance the security of the platform. It is regulated by the US SEC and operates under federal and state regulations. Some security features of BlockFi include:
- It keeps third-party reserves with Coinbase, BitGo, and Gemini.
- It purchases SEC-regulated equities and CFTC-regulated futures.
- It has a mandatory KYC policy.
Besides these measures, BlockFi implements various security features like two-factor authentication, cold wallet storage, IP whitelisting, and SSL encryption to enhance the platform’s security further.
Verdict: It’s a tie, as both companies offer a best-in-class security experience.
YouHodler vs. BlockFi: Insurance Coverage
Since cryptocurrencies are not subject to FIDC insurance, deposits on YouHodler and BlockFi aren’t insured by the US government. However, both the companies partner with private insurance providers to make their services insured.
YouHodler uses Ledger Vault’s pooled customized crime insurance program to insure crypto assets worth $150 million from various risks, such as employee theft, market manipulation, etc.
Similarly, deposits on BlockFi aren’t eligible for FIDC or SIPC insurance. Still, the company partners with Gemini to take measures to protect users’ funds in case of loss due to criminal or malicious activities.
Verdict: It’s a tie. Both the companies aren’t eligible for FIDC insurance but offer private insurance policies.
Minimum Deposits & Withdrawal Limits
YouHodler and BlockFi have minimum deposit requirements and withdrawal limits. For YouHodler, the minimum deposit amount required to start earning interest is $100 (crypto equivalent). The maximum deposit limit is $100k for all cryptocurrencies.
YouHodler doesn’t impose any minimum withdrawal limits. However, there could be withdrawal limits for specific payment methods. For example, you can withdraw funds worth $4,000 per day via bank card withdrawal.
BlockFi, on the other hand, has a tiered structure based on your transaction history and the crypto amount in your savings account. There are three tiers for BTC and ETH deposits and two tiers for all other deposits.
For instance, users with a BTC deposit of 0-025 BTC are in Tier 1, and the APY for Tier 1 is 4%. Similarly, users with a BTC deposit of over 5 BTC are in Tier 3, and the APY for Tier 3 is 0.25%.
BlockFi has weekly withdrawal limits specific to each cryptocurrency. For BTC withdrawals, the withdrawal limit is 100 BTC per 7-day period. For ETH, the withdrawal limit is 5,000 ETH for a 7-day period.
Verdict: YouHodler is the winner as it has more lenient deposit and withdrawal limits.
Do YouHodler & BlockFi Support Tradings?
There are several ways to earn money from crypto, with one of the most popular ways being trading. In crypto trading, you buy crypto assets for a short term, ranging from a few seconds to a few months, and make a profit from the asset’s profitability.
Trading is one of the best ways to earn money in crypto; however, it also risks. When you deposit funds in a crypto savings account, you get a guaranteed 7.5% return at the end of the year. Though the return is not much, it’s guaranteed. In trading, there is no guaranteed return.
If you take a position of $1,000, you can earn 1% or 2% on every trade, but you also risk losing that amount. Therefore, only experienced crypto individuals should do crypto trading.
If you are a beginner who wants to explore how the crypto space works, a savings account and long-term investment are ideal. However, if you know how crypto trading works, you can try trading.
Both YouHodler and BlockFi allow you to trade cryptos. Let’s compare the trading features of the two platforms.
- YouHodler Trading
The YouHodler platform allows you to take long and short positions. The Multi HODL feature on YouHodler allows you to take positions with up to 30x margin, which is significantly more than the 10x margin most other platforms provide on spot trading.
In addition, YouHodler has a lock trading feature that 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.
On the downside, YouHodler’s interface for trading isn’t robust, and it doesn’t have a charting system like Binance and FTx. You’ll need to use external charting systems like TradingView for better analysis.
- BlockFi Trading
BlockFi also allows users to open a trading account and trade their favorite cryptos. It doesn’t offer any margin to traders. However, BlockFi’s institution services include powerful trading features.
Verdict: YouHodler is the winner, as it offers higher leverage and a better overall trading experience than BlockFi.
Account Sign-Up Process & KYC
YouHodler and BlockFi offer a seamless account opening process.
To register for YouHodler, you need to visit the YouHodler website and click on Get Started. Thereafter, you need to complete your personal information verification (KYC). Since YouHodler is a regulated company, it requires all new users to complete the identity verification process.
BlockFi also offers an effortless registration process. You need to visit the BlockFi website and click on Get Started. Since BlockFi is an SEC-regulated form, it has mandatory KYC requirements.
Both YouHodler and BlockFi take 24-48 hours to verify the documents and complete your KYC. After the verification is complete, you can use all the services on both platforms.
Verdict: It’s a tie, as both YouHodler and BlockFi have mandatory KYC requirements.
YouHodler and BlockFi are globally available platforms except for few countries.
YouHodler is based in Limassol, Cyprus, and available in all countries except the US, Bangladesh, China, Iraq, Pakistan, Crimea, Cuba, Iran, North Korea, Sudan, Syria, Afghanistan, and Palestinian Territories. A major drawback of YouHodler is that it isn’t available in the US.
BlockFi is based in the US. It is available in all countries except those sanctioned by the US, the UK, and the EU. These countries include Iran, North Korea, Syria, Cuba, Venezuela, Turkey, and certain African countries. BlockFi’s crypto-backed loans are available in 47 US states.
Verdict: BlockFi is the winner, as it is available in the US. However, if you live outside the US, then no platform is better for you.
YouHodler Pros & Cons
YouHodler is an amazing cryptocurrency lender for those who want to do more with their cryptocurrency assets without engaging actively in trading. However, there are certain drawbacks you should keep in mind. Let’s discuss the pros and cons of YouHodler.
- Earn up to 12.3% interest on your crypto holdings
- Get cryptocurrency-backed loans at low-interest rates.
- A strict security policy with mandatory KYC
- Amazing customer service
- Top-notch trading tools
- Available globally in almost all countries
- Not available in the US
- Requires a minimum deposit of $100
- Lacks transparency
- Charges slightly higher rate on loans
BlockFi Pros & Cons
BlockFi is also an excellent crypto savings and lending platform that offers a comprehensive range of features for individual users and institutions.
- Based in the US and regulated by the SEC
- Mandatory KYC requirements for enhanced security with cold wallets/hot wallets combination
- Fewer fees and no commission fee or monthly fee
- Reasonable minimum deposit requirements and lower fees
- Available worldwide, including the US, apart from a few sanctioned countries
- Top-notch services for institutions
- No custodial or joint accounts
- Volatile rates and APYs
- Limited free withdrawals from interest accounts
Does BlockFi pay interest in Bitcoin or USD?
BlockFi pays interest in USD, and you can withdraw the interest amount every month by linking your bank/wire, stablecoin, or crypto wallet. You can also transfer the funds in your BlockFi wallet and use it for other purposes on BlockFi.
Is YouHodler Safe?
Yes, YouHodler is a regulated crypto company and completely safe. It uses industry-leading security measures, such as mandatory KYC verification and pooled insurance to create a safe cryptocurrency lending and borrowing environment for all its users.
Is BlockFi Safe?
Yes, BlockFi is a safe crypto platform. Regulated by the US SEC, BlockFi adheres to all the federal regulations to provide a safe experience to all its users. It has mandatory KYC requirements and deploys essential security measures to enhance the platform’s safety.
Both YouHodler and BlockFi are amazing crypto lending platforms that allow you to open crypto interest accounts and earn compound interest. Both the platforms have their pros and cons.
YouHodler offers higher compounding interest on some assets, whereas the interest on BlockFi is limited to 7.5%. On the other hand, YouHodler requires you to deposit a minimum of $100 in your savings accounts to earn interest, whereas BlockFi has lenient deposit terms.
A major drawback to YouHodler is that it isn’t available for US users. If you are based in the US, BlockFi is an ideal pick for you. If you live outside the US, both YouHodler and BlockFi are great options.
Overall, both platforms are great, and you can choose one as per your preference.
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