As the crypto ecosystem--for lack of a better word--continues to evolve, so do its users. Gone are the days of simple person-to-person (p2p) lending platforms. While they had their time in the spotlight, today’s lending platforms are diverse, productive machines that can do it all. YouHodler and Crypto.com are some of the best in the industry and there’s constant debate over which one’s better. We’ll settle the score right now. Both are very different and have various use cases for unique scenarios. Enough talk though, let’s get down to business.
Crypto.com was founded in 2016 by a group of Hong Kong cryptocurrency enthusiasts that wanted to encourage the utility of cryptocurrency on a global scale while additionally promoting their crypto token CRO. With perhaps one of the best website names in the industry, Crypto.com quickly grew in popularity and made international headlines with its Visa crypto credit card.
The card was their first major product and is now enjoyed by users all over the world. The card allows users to use their crypto in “the real world” while simultaneously offering crypto cashback rewards for every purchase. However, Crypto.com now does much more than sell credit cards as they’ve evolved into an advanced payment and savings platform.
YouHodler is the younger of the two and also, the smaller. Starting in 2018, YouHodler immediately put a focus on client relations. The main goal of the platform is to help clients keep HODLing crypto while exploring new opportunities to lend, earn, and multiply their portfolios without having to sell. Based in Europe, YouHodler is quickly becoming an international favorite due to its transparent reputation and high-interest rates for a savings account (up to 12.3% APY).
Further enhancing its reputation, YouHodler is an active member of the Crypto Valley Association in Switzerland--one of the world’s leading blockchain ecosystems that help inspire growth, collaboration, and integrity in the growing blockchain economy.
Now that we’ve had a brief introduction to the companies, let’s take a look at some pros and cons. First up, Crypto.com. Here are the highlights and the lowlights that matter most.
To expand on the above, Crypto.com offers the ability to earn crypto, pay with crypto, get crypto credit, and exchange crypto. This is more than competing crypto lending platforms can do like Nexo for example. Like Nexo, Crypto.com also has a native token in CRO. CRO token holders need to buy the token to complete transactions on the platform, much like one needs ETH to pay for gas on the Ethereum network.
In addition, CRO holders also get unique incentives like a 20% return on investment and higher rates for a savings account. While this may seem like a strong advantage, it is also a weak spot for Crypto.com. The CRO token has an aura of exclusivity around and it seems it’s being pushed heavily for users to buy it or risk using an inferior version of the platform.
No one likes paying fees and unfortunately, Crypto.com has some high ones. Whether you want to trade, deposit, withdraw or cancel, there are many fees on the platform. Taker and maker fees range from 0.04% to .10% and if you want to buy or sell crypto there is 2.5% on every trade. Lending rates range from 10% to 12%. If all the fees seem too much and you want to close your account, there will be a $50 cancellation fee there as well. You just can’t escape.
As stated before, Crypto.com does offer a lot of benefits that somehow make the pain of the fees hurt a bit less. However, those benefits only come for those who invest a lot of money into CRO. For example, if you want access to the amazing savings interest rates that Crypto.com advertises, then you must buy at least $10,000 in CRO and lock those tokens for a minimum of three months. Any less than that and you get the same rates as non-CRO token holders. Hence, they give off the vibe that Crypto.com is only in it for the money, and not really for the client.
The big pro to look out for here is the lack of utility tokens. YouHodler positions itself as a platform for the people. Whether you’re a shrimp or a whale in the crypto world, you’ll have the same access as everyone else on YouHodler. The 12.3% interest rate on savings is for everyone. The reasonable exchange and loan fees are for everyone. The promotions and bonuses are for everyone. YouHodler is for everyone.
Aside from that, the platform has something that’s very rare in crypto these days: a team. Amongst the dozens of DeFi protocols with faceless founders, YouHodler goes the opposite way in being as transparent as possible. Their team is active on social media, customer support channels, AMAs, and live events. It feels good knowing you have a physical presence to turn to in case something goes wrong.
Yes, sorry to USA and China customers but at the moment, you cannot access YouHodler. The team has stated they are working on following the proper legal path to eventually open their doors to USA clients but as with most good things, patience is required.
YouHodler and Crypto.com are clearly for different users. Crypto.com seems to be targeting the “luxury” crypto market who favors things like FDIC insurance over high fees and mandatory investments to unlock higher features. With a low minimum investment of $100, YouHodler is for those looking to earn high, the consistent yield on savings accounts and also get affordable loans using crypto as collateral.
In addition, YouHodler has other features that Crypto.com does not have such as Multi HODL and Turbocharge--two features that help clients multiply their crypto using an initial amount of collateral.
Loans, savings accounts, exchange and crypto trading tools on YouHodler are all efficient and affordable. The same can’t be said for Crypto.com. While they do have unique benefits like the crypto debit card, it’s not truly a platform for “every day” crypto users. However, that doesn’t mean you shouldn’t try both out and let us know what you think. Do your own research and see what works best for you!