Multi HODL vs. Turbocharge: What’s the Difference?
Multi HODL and Turbocharge. Two of YouHodler’s most popular features. They were both inspired by you, the clients but even so, we are getting some questions about how these features operate and more importantly, how they differ. While they both have the same goal of turning a passive HODLer into an active one, the features go about it in two different ways. Hopefully, by the end of the article, you’ll understand how to use them in any given market situation.
Multi HODL vs. Turbocharge: What purpose do they serve?
Even with the advancements in blockchain technology and the rising popularity of cryptocurrency, we still exist in a market that’s conditioned to HODL. HODLing is not a bad thing per se, however, it’s not the best way to utilize the opportunities to grow your portfolio. Those who sit back and wait for the next bull run are called “passive HODLers” while those who decide to control the fate of their crypto portfolio are called “active HODLers.”
Both Multi HODL and Turbocharge are features designed for the active HODLers. They are tools to help our users make their crypto work for them with more flexibility than ever before. Now, let’s break down the specifics of these features.
What is Turbocharge?
Turbocharge is based on the “cascade of loans” principle. In simple terms, this allows users to get a chain of loans using an initial amount of collateral and ultimately, multiply that collateral x6.5. When users select the Turbocharge service, YouHodler uses the borrowed fiat from the first loan in the chain to purchase additional crypto to use as collateral for more loans in the chain. The process can be repeated up to 10 times.
Turbocharge is for the trading purists who want to multiply their crypto and have a more “hands-on approach” to trading with our features like Take Profit, and Close Now. Turbocharge users generally enjoy taking smart, calculated risks and want to benefit the most from market movements.
At the end of the chain, the user is left with a loan amount to be paid. After repaying the loan, the user gets the multiplied collateral back. This returned collateral is whatever cryptocurrency the user chose to Turbocharge (e.g. BTC, ETH, LTC, XLM, etc.). To repay the loan, the user simply selects the “repay turbo” button and chooses a payment method. If a user wants YouHodler to automatically sell the collateral and use the profits to pay back the loan, they can do so with the “Close Now” option stated earlier. “Close now” is a great tool that allows user to simplify the entire process and avoid using their own funds to close loans (Close Now may be unavailable for some loan plans.)
What is Multi HODL?
Users of Multi HODL, on the other hand, tend to be a bit more conservative. These are people that want to take some amount of risk but for the most part, prefer to keep the majority of their portfolio in a safe, stable savings account or crypto wallet. Multi HODL was inspired by Nassim Taleb’s Barbell Strategy which in essence, helps one limit their risks while also helping to expose them to potentially high gains. With this feature, the user keeps the conservative part of their portfolio in an extremely safe investment (e.g. Youhodler savings account or wallet). Here, they have some sort of guaranteed profit and minimal risk.
The other part of the Multi HODL equation is taking the other, smaller portion of the portfolio to use as small, speculative investments with the potential or a high reward. To start, the user simply selects a cryptocurrency to multiply and then YouHodler initiates an automated chain of loans much like Turbocharge. If the price of your crypto rises, then the coin’s value multiplies and all profit is deposited directly into the user’s account. If the market goes down during a Multi HODL event, then the user gets their initial deposit back minus the factual loss.
The main difference here is that users can set their own profit and risk levels. Using a sliding button, a user decides if they want to max their potential profit up to 1000% using Multi HODL or play it safe with minimal returns. Either way, the user can never lose more than they set and they never have to pay rollover fees, hourly or daily fees like on other platforms.
One more interesting point to mention is that with Turbocharge, you can only multiply crypto that you own. With Multi HODL, you can multiply or earn extra profit from any crypto price change. For example, you don’t need to own LTC to profit from its growth with Multi HODL. You can choose any of the crypto options to Multi HODL even if you don’t currently own it.
With Multi HODL, you don’t need to use your own funds to repay the chain of loans like in Turbocharge. Everything is automated and the chain of loan repayment comes from the total value of the “multiHODLed” crypto at the moment the Multi HODL is closed.
Multi HODL vs. Turbocharge: Which one is for you?
As you can see, both features are designed for different crypto mindsets. Which one are you? Well thankfully, these features are available for all YouHodler users so try Multi HODL and Turbocharge today and see which one fits your personal style. So just to recap once again, here are the four main differences between the two features:
- On Turbocharge, the user sets the collateral amount, number of loans in the chain and take profit price. On Multi HODL the user just selects an initial amount to multiply and selects one of pre-defined risk/profit level.
- On Turbocharge, the user has two options: to repurchase all additional collateral collected from the chain of loans or to use the price increase of this collateral to repay the loan debt. In Multi HODL, there is only an automated option: Pay using the price change of the collateral funds.
- Turbocharge has different loan plans, a customized number of loans in the chain (from 1 to 10) and loan profit management tools such as Set Close Price. These features give users much more flexibility compared to Multi HODL™ where users can only use the sliding mechanism to set potential risk/profit levels. But for Multi HODL is possible to get 20 loans in the chain, which can provide the user with almost x10 leverage. (Compared to x6 maximum for Turbocharge).
- Users can multiply crypto via Turbocharge only if they have that coin in their YouHodler wallet. You cannot multiply BTC ETH for example if you only have USDT. Multi HODL lets you multiply any crypto from the list, even if you don’t physically own that coin. You can start Multi HODL for any crypto with stablecoins from your wallet or savings account balance.