YouHodler.com Review 2021 – Opportunities and Risks of Youhodler Loans
- Stablecoin loans and Bitcoin loans
- Minimum loan of just $100
- Loan-to-Value ratio up to 95%
- 12 supported cryptocurrencies
- Earn up to 7.2% on BTC and 4.2% on BNB
- Earn up to 12% on stablecoins
- Some functions potentially very risky
- Not available in the USA (and some others)
- High interest rates on long term loans
Flexible Credit Line and Savings Services
YouHodler is a Switzerland company which specialize in offering crypto-backed credit line, accessible currency exchange platform, and one of the highest yielding stablecoin savings service on the market. Founded in February 2018 by Ilya Volkov, the company’s mission is to minimize passive holding, enabling investors to earn interest on their assets or borrow money.
The company team consists of many FinTech veterans, blockchain architects, and financial experts. With decades of combined experience, YouHodler managed to deliver world-class products while always exploring new opportunities. The company is headquartered in Switzerland, but also has offices located in Cyprus. What is more, the company is a member of the Blockchain Association – an independent self-regulatory organization that helps resolve any financial disputes. The company is also part of Crypto Valley – an organization focused on further growth of the industry. All things considered, YouHodler is undoubtedly a service that can be trusted and worth checking.
Services Offered By YouHodler
The company focuses on being all-rounded, offering everything that a crypto investor would possibly need. At its core, YouHodler focuses on providing crypto-backed loans with selective plans that aim to capture the different needs of its customers. Equality important is the YouHodler interest-earning platform that allows you to earn as much as 12% a year. Registered users can also use the platform to freely exchange crypto or buy it instantly by using credit cards.
Earn Interest on Your Crypto
YouHodler solves one of the core problems associated with crypto – while you hold it, your money is tied, unable to be reinvested. The company enables you to bypass this issue by offering its customers an ability to earn up to 12% per annum on stablecoins and up to 4.8% on bitcoin. Earning is super simple: register an account, pick a stablecoin, and deposit funds – no strings attached. After the system recognizes your deposit, you will start earning interest at the beginning of the next settlement period that resets daily. Just make sure you are not withdrawing funds before the end of the current month if you want to keep what you earned.
YouHodler supports four stable coins: USDT, USDC, PAX, and TUSD. Please keep in mind that the interest rate of new accounts is topped at 9.3% a year. If you want to earn more, you need to request it via an online chat platform. If you wish, you can always earn interest on cryptocurrency – the company supports bitcoin, with the interest rate of 4.8% per year.
On the other hand, that’s where all ends. The FinTech service doesn’t support fiat currencies or any other big projects like Ethereum or Litecoin. If you want to earn interest on those, you will have to convert them to the stablecoins or Bitcoin.
Exchange and Store Your Fiat And Crypto With Ease
YouHodler is also a professional cryptocurrency and fiat wallet, designed to store and exchange your funds safely. The platform supports both US Dollars, Euro, as well as three different stablecoins: USDT, USDC, TUSD, and PAX. Besides that, you can quickly deposit up to eleven supported cryptocurrencies: BTC, ETH, XRP, LTC, BCH, BSV, DASH, EOS, BAT, and REP. All it takes in 10 network confirmations and your funds will become available to trade or be exchanged.
One of the most important services offered by YouHodler is a cryptocurrency-backed loan, available in any supported by the platform coins. Depending on the chosen token, you will be able to pick one of the available plans:
Extreme plan. Loan-to-value ratio at 95%, 30 days to pay back, 5% interest, -5% price down limit.
Bull Run plan. Loan-to-value ratio at 80%, 30 days to pay back, 7% interest, -10% price down limit.
Two Seasons HODL plan. Loan-to-value ratio at 70%, 180 days to pay back, 16% interest, -20% price down limit.
Anti-Crisis plan. Loan-to-value ratio at 60%, 50 days to pay back, 7% interest, -35% price down limit.
HODLer’s Favorite plan. Loan-to-value ratio at 55%, 120 days to pay back, 13% interest, -40% price down limit.
Rules are simple. You pick a cryptocurrency that you want to back your loan with and loan currency. After that system will automatically calculate how much you will owe, and what will be your deadline, after which YouHodler will use the collateral to cover your loan. Your collateral will also be used if the price hits the price down limit, listed above.
What makes YouHodler different from the competition, it’s the ability to set a close price, after which the system will automatically use the collateral to pay the loan and deposit what is left back to your wallet. “Set Close Price” is used to capitalize on potential gains due to the rising price of the collateralized token. Basically, it works the same as “Take Profit” used in trading.
Turbocharge Your Crypto
“Turbocharge Crypto” is such a unique service, it deserves its own category. This service allows you to receive a chain of loans. When you press the “Turbocharge button”, the platform will use borrowed to you fiat to buy more cryptocurrency without any fee, and then use it as collateral for another loans in the chain.
Please keep in mind that the more loans you chain, the higher the risk will be. In theory, by using just 1 BTC, you will be able to chain up to 10, 30-day loans, at 95% LTV. Result? Your one bitcoin will be leveraged to 8.02 BTC, with a total repayment of $65,772 (Calculated with bitcoin valued at $8230). Please keep in mind that “turbocharged” crypto will not be available at your wallet. It’s more like a margin-based open position with a margin call.
How to Get a Loan
YouHodler is a registered company under the laws of the Republic of Cyprus and therefore need to all KYC/AML procedures. Although you will be granted access to the platform by just verifying your email, to receive a loan, you will have to perform a full KYC procedure. You can do it by interacting with a red prompt visible every time you log in. YouHodler will request to provide:
Identity Document. Your first step will be to pick a type of document you want to verify and upload the front, as well as back;
Selfie with Document. YouHodler will request a selfie, that has to be made on neutral color background, without any headwear or eyewear.
Personal Information. On your last step, you will be requested to provide a country of residence, along with your name, surname, date of birth, and phone number.
Unfortunately, due to regulations, YouHodler is not able to provide any services to the customers based in the USA, Bangladesh, China, Iraq, and Pakistan. Additionally, to successfully verify an account, you need to be 18 years or older.
YouHodler Effect on Credit Score
The company doesn’t perform any credit score checks as well as your credit score will be meaningless when applying for a loan. Borrowed money is fully collateralized by cryptocurrency, and based on the loan-to-value ratio. Because of that, even if you will not be able to pay the loan, your credit score will not be affected in any way.
YouHodler accepts as collateral all supported cryptocurrency listed in the “Crypto-backed Loans” section. Keep in mind that while applying, some plans might be unavailable for some of the accepted tokens. A registered, fully KYC’ed customer will be able to receive loan immediately after request, and funds will be available to be withdrawn within seconds.
The company incorporates a fully flexible approach, allowing for loans as small as $100, and you will be able to request new ones regularly. What is more, verified customers can request individual plans and conditions. If you want to search to borrow millions, it’s worth asking.
A loan-to-value ratio is one of the most essential loan indicators that specify how much money you will be able to borrow, given the collateral. In the case of YouHodler, you will be able to pick an LTV ratio starting as low as 55%, going up to 95% for the riskier loans. That means if you deposit 1 BTC priced ad $8250, you will be able to borrow up to $7830. Keep in mind that you can also request an individual plan if you are not satisfied with what you see.
Every requested loan comes with predefined terms. Depending on the chosen plan, you will have to pay back the loan within 30, 50, 120, or 150 days. By using the service, you are in control of how you want to pay what you owe. The company gives you a fixed date listed to the exact minute. If you are late, part of your collateral will be liquidated and automatically used to pay the loan.
The company understands that sometimes, customers do not have an opportunity to pay on time. For those clients, YouHodler offers an extension plan, which will allow for another 14 days in the payback period. You can request the extension any time, by paying a 1% fee, calculated based on loan overdraft amount.
All interest rates are fixed and depend on the chosen plan. If you decide to go for a high LTV, short term loan, interest will be small, around 7%. On the other hand, if you go for the longest “Two Seasons HODL plan’ lasting 180 days, you need to expect to pay up to 16% interest. Interest is calculated as a percentage of the loan amount and final. You don’t need to make monthly payments, and there are no hidden fees. You pay as much as you want, anytime you feel like it.
The company incorporates several safety measures, ensuring that your cryptocurrency is safe. Fist of all, YouHodler is bound by law to return your collateral, protected under EU laws. Additionally, the venture is part of the Financial Commission/Blockchain Association that will help to dispute any incidents. Last but not least, the bulk of crypto is always stored in multisig cold storage, without access to the network. That ensures at least two parties need to sign a transaction before the blockchain can process it. All things considered, that makes the company highly trustable, and unlikely to go bankrupt.
Cryptocurrency Price Changes
Every crypto-backed loan provider must take into account cryptocurrency prices, that can move up or down significantly within a single day or even an hour. Because of that, YouHodler has specific, automated mechanisms in place that guarantee the issued loan will not be not able to be bigger than the supporting it collateral.
What if the Price of Crypto Goes Down
If the price of crypto goes down, and you have a high LTV loan with YouHodler, it can lead to some issues. By offering up to 95% loan-to-value ratio, any medium size price drop will leave you with no time to react. In the case of YouHodler, an indicator responsible for liquidating your loan is called “price down limit” or PDL, listed on every loan plan. 95% LTV has a PDL of -5%, which means if the price of crypto drops just 5%, you will be liquidated.
On the other hand, if you decide to go for a safe “HODLer’s Favorite” plan, your PDL will be -40%, which means the price will have to drop whole 40% before your crypto would be sold and used to cover the loan. Additionally, you can always extend in further by paying a portion of what you owe or using the “Extend PDL” function, which will require more collateral.
What if the Price of Crypto Goes Up
The crypto loan company found a perfect solution for taking an opportunity of your collateral gaining in value. When you are applying for a loan, there is a button allowing you to set a close price. You can fill it out by setting a higher price on which you want your crypto to be sold and the loan paid. That way, not only you will fully pay back the loan, but also earn money on top.
YouHodler is known for its outstanding customer support and ability to solve any problems quickly. If you got any issues, you can reach the customer support within seconds by using their live chat. What is more, live chat can help you with things like getting a higher interest on your stablecoins, or even modify loan plans. If you wish, you can also contact them at firstname.lastname@example.org.
Advantages and Disadvantages of YouHodler
YouHodler is an all-rounded company with some great features that will be suitable both for new investors, as well as experienced traders:
- Earn up to 12% on your stablecoins by using the best on market YouHodler’s offer;
- You can recieve loan both in stablecoins as well as bitcoin;
- Earn up to 7.2% on bitcoin and 4.2% on BNB;
- Be fully flexible, by paying once at the one of the loan term;
- Minimum loan of just $100, the lowest there is;
- Loan-to-Value ratio up to 95% and 12 supported collateral options.
Keep in mind that YouHodler, as any financial service has some drawbacks:
- YouHodler is not a financial institution;
- Using some of the functions might lead to a quick lose of capital;
- Not available in the USA, Bangladesh, China, Iraq, and Pakistan.
- High interest rates on long term loans.
YouHodler and Taxes
Because the Cryptocurrency FinTech company operates in many jurisdictions, it is your responsibility to understand what parts of the services offered by the company are subject to taxation, as well as it’s your responsibility to pay them. If you are not sure if you should pay tax on your loan or any other services, it’s recommended that you contact a licensed, local tax advisor.
Reviews on YouHodler
Maybe YouHodler is not as popular as other crypto-loan providers, but the company managed to receive a good number of positive reviews. Customers tend to be very positive about the high loan-to-value ratio, which enables them to borrow a more substantial amount of money. A significant role plays the company’s wide range of services, which are attractive to many investors.