YouHodler vs. BlockFi: A Comprehensive Review
Everyone loves a good “David vs. Goliath” story. In one corner, we have BlockFi. The crypto lending titan of North America. In the other corner, we have the underdog of Europe, YouHodler. Both platforms offer amazing features to help their clients get the most out of their cryptocurrency investments but they are far from identical. Today’s mission is to step back and analyze each platform separately to see which may be more interesting for you.
YouHodler Pros and Cons
Let’s start off with YouHodler. YouHodler, a Europe-based company that’s been around since 2018 may not have the same name recognition as BlockFi or Crypto.com, but it’s garnered an extremely loyal following and continues to grow consistently every month.
YouHoder is a platform best for beginners, intermediate crypto enthusiasts, and advanced crypto traders who want to combine the best features from traditional finance with the innovative nature of crypto finance.
- Europe-based and regulated
- Universal and instant currency conversion between all fiat and crypto options
- No minimum deposits to start earning interest
- No need to stake a native token to unlock special features
- Competitive fees
- Unique crypto multiplication tools to take advantage of price swings
- Loan to value ratio of 90% (industry best)
- Top-level security and insurance provided
- Transparent team
- 24/7 customer support
- Talented developer team that’s constantly adding new features.
- No hidden fees
- iOS and Android app
- All in one wallet that features loans, savings, Multi HODL, conversion, and Turbo Loans.
- Not available in the U.S.A. and China
- No platform credit card yet
- Loan fees are higher than others (but this also helps the platform provide higher interest rates on savings accounts).
YouHodler features to highlights
Savings accounts and Multi HODL
According to clients, YouHodler savings accounts and Multi HODL are the two most popular features. This is for several reasons, most notably the 12%+ found on stablecoin savings accounts. Unlike other platforms, anyone can access these high rates without having to become a “premium member.” All interest on YouHodler wallets is compounding with interest payments coming every week, automatically.
While savings accounts allow users to HODL safely and earn a little passive income, Multi HODL helps clients really activate their crypto and multiply up to x50 depending on risk level. Multi HODL-- shown in the screenshot above-- is a crypto multiplication tool that helps users long or short the market with a fun and user-friendly design.
YouHodler likes to advertise the “barbell strategy.” An investing method that involves leaving the majority of funds in a safe, stable location (e.g. YouHodler savings accounts) and then reserving a smaller portion for riskier but potentially highly profitable tools like Multi HODL.
An extremely unique feature that is not found anywhere else is Lock Trading. The Lock Trading strategy allows clients to open multiple, simultaneous positions--long or short-- at the same time. Typically, exchanges don’t allow this as it offers traders too many beneficial opportunities but with Multi HODL, traders can Lock Trade however they wish.
Check out this article to learn more about Lock Trading on YouHodler
BlockFi Pros and Cons
Like YouHodler, BlockFi also offers crypto interest accounts, crypto-backed loans, and cryptocurrency exchange. However, it does not have any advanced lending or multiplication tools. Let’s take a look at the pros and cons.
- Trades are executed quickly
- Based and regulated in the U.S.A.
- No minimum deposits needed
- No Hidden fees
- Rewards credit card
- Interest rates on savings account fluctuate frequently
- Lending interest rates fluctuate frequently
- No insurance against bank failure
- Limited free withdrawals for the interest accounts
- Some legal controversy with USA authorities
- High fees on loans
BlockFi Features to highlight
What makes BlockFi stand out from the others is its unique rewards credit card. BlockFi was the very first company to create a Bitcoin rewards credit card. This Visa card earns 1.5% back in Bitcoin for every purchase. Conveniently, the rewards are added right back to your BlockFi interest account so it continues to earn interest. It’s a pretty cool way to accumulate crypto and maximize savings.
Another interesting feature that BlockFi has is an automatic trading engine. For those traders who are too busy to watch the market all the time, they can set up an automatic buy or sell orders on the platform. This could be a good way to dollar cost average (DCA) with daily, weekly, or monthly purchases.
YouHodler vs BlockFi: Savings account interest rates
Please note the above percentages all feature compounding interest. Also, readers should note BlockFi frequently changes its interest rates so these may be inaccurate by the time of publishing.
In total, YouHodler has 35+ cryptocurrencies on the platform clients can earn interest on. The above are just some popular examples. In total, BlockFi has just 13 cryptocurrencies on the platform clients can earn interest on.
YouHodler vs BlockFi: crypto-backed loan rates
YouHodler vs. BlockFi: Security
As always when it comes to valuable goods, security is a legitimate concern for crypto holders. With DeFi hacks on the rise, people are shifting back to the safety of centralized crypto platforms. But just how safe are they?
BlockFi, once known as one of the most trusted and regulated platforms, is under contact attack lately in the U.S.A. Currently, four states--Alabama, Texas, New Jersey, and Vermont--are opening up probes into BlockFi in regards to the legality of its interest account product. While BlockFi seems to think this will blow over, it certainly does not help large-scale investors feel safe. After all, not many would keep their funds in a bank if they knew it might close down soon.
YouHodler on the other hand has no such probes in place. The company runs routine security audits to identify and fix potential weaknesses. The platform is also backed by Ledger Vault for crime-pooled insurance of $150 million and always exploring more options to expand that. Furthemore, YouHodler operates under all E.U. regulations, making it a very safe choice compared to the anonymous DeFi platforms.
BlockFi too operates within U.S. Federal and state regulations but as discussed, that may be under threat. If you’re interested in using BlockFi, that story will be an interesting one to keep an eye on.
YouHodler vs. BlockFi: Which one is best for you?
If you’re a beginner or intermediate crypto holder, trader, or investor and are afraid of using any platforms outside of the U.S.A, then BlockFi may be the one for you. However, for beginner, intermediate, and advanced crypto holders and traders outside of the U.S.A, then YouHodler is the superior platform.
YouHodler has higher interest rates on saving accounts, lower fees and interest rates on loans, more cryptocurrency options, and completely unique multiplication features like Multi HODL and Turbocharge. Add the universal cryptocurrency exchange feature to this and then bonus aspects like team credibility, transparency and security, then you get an extremely well-rounded platform.
It’s really a tale of two similar platforms in different parts of the world. Which one you choose depends on your country of citizenship. However, if you’re interested, visit both sites today now to experience it for yourself.