YouHodler vs Nexo: A Comprehensive Review
Last Updated: May 25, 2022
Following the explosion of NFTs and DeFi, interest has shifted towards more CeDeFi (centralized FinTech platforms) for the masses. YouHodler and Nexo are two top choices offering different benefits in the CeDeFi space. With so many similar features, it may be confusing which one to choose. So we took the time to deep dive into both platforms to give a full comprehensive review of YouHodler vs Nexo.
What is YouHodler?
YouHodler is a FinTech platform that gives crypto-backed loans in fiat currencies (USD, EUR, CHF, GBP), crypto (BTC), and stablecoins (USDT and more). Some of the cryptocurrencies accepted as collateral include BTC, ETH, BNB, SOL, XRP, ADA, LUNA, DOGE, and UNI. With over 50 cryptocurrencies supported, crypto-backed borrowing has never been so easy.
For security, the platform uses Ledger Vault's advanced custody and security, which are used to guard all customers’ digital assets.
YouHodler is an EU and Swiss-based company. The organization is an active member of the Blockchain Association of Financial Commission. This offers customers a degree of protection as any disputes will be regulated by the independent association.
The YouHodler team brings experience in Commercial Finance and FX/CFD trading, Blockchain, Distributed Ledger Technology, and other technology platforms. The team’s diverse expertise allows them to combine the traditional wisdom of the finance industry with an innovative start-up mindset.
What is Nexo?
Nexo also offers crypto-backed lending and saving account services. Nexo users can unlock the benefits of holding various cryptocurrencies with the platform. The company has been operating for over three years, since 2018. However, the Nexo team’s experience extends far beyond that. Nexo’s core team has worked on related FinTech products for the past 13 years.
Nexo’s mission is to create innovative, convenient, and sustainable solutions to solve inefficiencies in the lending markets. Their strategy is to harness digital and blockchain technologies to disrupt the traditional financial system.
YouHodler vs Nexo: Core features
YouHodler core features:
- Crypto-backed loans: Get up to a 90% loan-to-value ratio with your crypto coins. YouHodler supports over 50 coins that can act as collateral for your USD, EUR, CHF, or GBP loans. Receive bank wires and withdraw funds from your cards instantly with zero credit checks.
- Savings Accounts: Earn interest by passively “hodling” your crypto assets. Get up to 12.03% on stablecoins (USDT, USDC, TUSD, DAI, BUSD, HUSD) and up to 6.8% on popular cryptocurrencies (BTC, ETH, APE, and more). Some fast-growing crypto coins may even earn you up to 15.01% interest a year. Benefit from compounding interest and weekly payouts with YouHodler.
- Universal currency exchange: Convert easily between crypto assets, fiat, and stablecoins at competitive rates. With YouHodler, you can purchase crypto coins easily with fiat via credit card, Visa, or MasterCard. Exchanges between the assets are also possible with no hassle.
- Multi HODL: Capitalize on market volatility with the Multi HODL product. Diversify your portfolio and multiply your crypto with leverage up to x50. The tool allows you to set your risk appetite and maximum loss allowed. There are no hidden fees or charges. The Multi HODL tool is an innovative way to gain more from the different crypto assets you hold and is meant to be an add-on to your more conservative Savings Accounts.
- Turbocharge loans: This feature works on a “cascade of loans” principle. Borrow more crypto using your current holdings as collateral and supercharge your earnings if the value increases. For crypto enthusiasts who firmly believe in the price growth of your assets.
Nexo core features:
- Crypto-backed loans: Borrow up to $2 million with instant approval and no credit checks. Convert multiple crypto assets to fiat or stablecoins easily. Nexo supports over 40 fiat currencies.
- Savings Accounts: Earn up to 8% APR on cryptocurrency assets and 12% on stablecoins and fiat. Similar to YouHodler, users benefit from compounding interest and get daily payouts. However, note that the higher interest rates mentioned here are only accessible to customers who buy the NEXO tokens.
- Nexo card: The Nexo card is a crypto credit card that lets you spend the value of your crypto without selling it at 40 million merchants worldwide. You can even earn up to 2% crypto cashback while spending.
- Exchange: Buy and exchange crypto assets easily. Nexo supports market pairs for all supported currencies, including NEXO Token pairs NEXO/BTC, NEXO/ETH, and NEXO/USDT.
- NEXO token - The NEXO token is their native cryptocurrency. Holding the NEXO token entitles you to perks from their loyalty program, including 50% higher yields, up to 0.5% crypto cashback on purchases on swaps, borrowing rates starting from 0% APR, and up to 5 free crypto withdrawals.
YouHodler vs Nexo: Pros and Cons
- Low minimum loan amount of $100.
- Highest LTV on the market for crypto-backed loans (90%).
- Unlimited loan terms.
- Receive loans in a variety of assets, including fiat currencies, BTC, and stablecoins.
- One of the highest interest rates in the savings market (12%).
- 24/7 support with real agents.
- A large and ever-growing list of collateral options and savings account options.
- User-friendly interface on the web, Android, and iOS applications.
- Regular Webinars with the team.
- No need to stake a native token to receive higher interest rates.
- Innovative portfolio multiplication tools like Multi HODL for higher earnings.
- Experience full transparency with zero hidden fees. Benefit from the $150 million pooled crime insurance from Ledger Vault.
- Members of the Crypto Valley Association and the Blockchain Association of the Financial Commission.
- Regular giveaways and online contests like the Tesla giveaway and “Crypto Journey” world trip.
- Compounding interest paid out weekly in the same coin you HODL.
- Interesting loan management features like Increase LTV, Close Now, Take Profit and Adjust PDL help users with loan flexibility.
YouHodler has unique, helpful tools and strategies not seen with competitors (e.g. The Barbell Strategy)
- Low minimum loan amount of $10, updated from $1000 previously.
- No minimum repayments on loans and no hidden fees.
- 13 years of online lending experience.
- Similar protection with $150 million pooled crime insurance from Ledger Vault.
- The ability to earn interest on fiat options as well (EUR, GBP, USD).
- Compound interest is paid out daily.
- Nexo has a credit card that allows you to spend without selling your crypto.
- No crypto credit card yet.
- Not available in the U.S.A and China.
- Higher fees for loans (but in turn, this also helps with higher interest rates on savings accounts).
- No option for self-custody savings accounts.
- Low loan to value ratio (50%).
- Need to stake NEXO token to access higher earnings, lower interest rates for borrowing, and other benefits.
- Frequently changing rates on savings accounts.
- Limited transparency and interaction with the team.
- Can only unlock higher interest rates if you choose to earn in NEXO token.
- Various controversies include potential associations with the Zeus Capital fraud and alleged market manipulation with the LINK short in 2020.
- Trading NEXO Tokens on the Nexo Exchange requires Advanced Verification and is currently not available for US citizens and US residents.
YouHodler vs Nexo: Safety and Security
Is YouHodler Safe?
YouHodler offers 3FA and YouHodler follows all the industry best practices for IT security checks, data protection, access rights, and data encryption. Fiat funds are stored at reputable bank accounts in Europe and Switzerland.
YouHodler uses Ledger Vaults’ industry-leading information technology infrastructure to securely control its crypto assets with a multi-authorization self-custody management solution and $150 million pooled crime insurance. All credit card operations comply with PCI Security Standards, and crypto operations are per Cryptocurrency Security Standard (CCSS). Lastly, external security audits are also run regularly.
Is Nexo Trustworthy?
Nexo’s app offers 2FA and third-party custody from BitGo, a leader in digital asset financial services. BitGo is backed by large corporations such as Goldman Sachs. The platform is also SOC 2 Type 2 certified. Nexo also recently started using Ledger Vault’s pooled crime insurance.
YouHodler vs Nexo: The Final Verdict
If you want larger loans with less collateral, then YouHodler is a great choice for you. The high 90% loan to value ratio is unmatched in the industry and places YouHodler at a competitive edge. Meanwhile, Nexo has a low loan-to-value ratio of 50%. YouHodler also offers an attractive 12% annual interest rate on savings accounts, which is on par or more than Nexo. Unlike Nexo, YouHodler tends to be more consistent with its interest rates, which may be reassuring to some investors. To date, the 12% interest rate on stablecoin savings accounts has never changed.
On the other hand, Nexo provides more collateral options to choose from. If you do not hold the most popular crypto assets and prefer to trade lesser-known cryptocurrencies, Nexo may be the platform for you. However, if you are like most people who hold coins like BTC, ETH, SOL, LUNA, ADA, DOGE, and more, you can simply opt for YouHodler.
Nexo also has a credit card that lets you spend easily based on your crypto holdings. On the other hand, YouHodler has unique features like Multi HODL and Turbocharge which help you diversify your risk profile and potentially earn more money from your investments.
YouHodler: The platform for active HODLers
Based on these unique features, YouHodler is the better choice for investors who want to make the most of their crypto assets. Multi HODL is an innovative and useful feature for active HODLers who want to profit from both the ups and downs of the market. Nexo benefits crypto holders who want to use their crypto assets for daily expenditures and get rewards along the way.
In terms of security, both FinTech platforms are fairly safe to use. Both YouHodler and Nexo use Ledger Vault and promise to operate under industry best practices in terms of platform security. However, all users should remain cautious when keeping their crypto on exchanges where you don’t hold the keys. Ensure that these platforms are enhanced with security measures for long-term storage.
Overall, YouHodler is the more user-friendly and feature-friendly option for crypto HODLers and traders. With YouHodler, you can make your crypto assets work for you and access high loan amounts without the need to buy any native token. You can also access unique features that “supercharge” your interest earnings.