Youhodler is a cryptocurrency lending platform and exchange that offers competitive interest rates on cryptocurrency deposits. Youhodler could be more forthcoming about the dangers of using their service as well as the costs associated with doing so. Customers can use short-term loans secured by cryptocurrency for sophisticated trading and vice versa. If you’re wondering if Youhodler is right for you, read our Youhodler review.
Turbo Loans, a service offered by YouHodler, is very similar to Multi HODL, except that they are only issued when market prices are rising and not at the user’s option. In the same way, Multi HODL uses a “chain of loans,” turbocharge, and Youhodler crypto wallet. You can also refer to it as a Bitcoin wallet Youhodler.
When a trader uses the app’s “Turbocharge” feature, the platform instantly initiates a loan with cryptocurrency as collateral. The first loan in the chain is used to purchase cryptocurrency that would later serve as collateral for a second loan. Traders can repeat this process anywhere from three to fifteen times.
By taking out a Turbo Loan, investors can use borrowed funds to increase their cryptocurrency holdings, a strategy known as “leverage.” The investor must repay the entire loan before receiving the full amount of cryptocurrency. This strategy can be beneficial during bull markets because the increased value of the cryptocurrency purchased with the loan funds can be used to pay down the principal.
How does Youhodler Lending Work?
Loans are available on YouHodler for users to meet their everyday requirements in fiat currency. When seeking fiat currency or stablecoins, cryptocurrency holders may pledge their existing cryptocurrency holdings as collateral. Whenever the loan is paid back in full, YouHodler gives the borrowed funds back to the borrower in the form of cryptocurrency.
How To Borrow Against Crypto At Youhodler
The Youhodler platform includes both a mobile app and a web interface. You can borrow money, invest, and trade cryptocurrencies on the platform.
Initially, you will need to open a custodial wallet, deposit at least $100 into it, and go through its “Know-Your-Customer” (KYC) processes. Users must provide their photo ID and proof of address to make a fiat (conventional) money deposit.
Saver or Merchant
In our Youhodler Multi Hodl review, with Youhodler, investors outside the US can receive passive income from their cryptocurrency holdings. With both cryptocurrencies and stablecoins, savers can earn competitive returns. The interest is calculated on a weekly basis. The concept behind Youhodler is that you are rewarded for HODLing (crypto slang for Holding On for Dear Life).
Meanwhile, Youhodler suggests allocating 10% to 20% of your portfolio to the risky MultiHODL tool. Borrowing funds allows you to wager on certain cryptocurrencies’ future appreciation or depreciation. To add to the potential profit — and danger — you can multiply your money by a factor of up to 30.
It’s important for customers to understand that the trading tools Youhodler recommends are designed for institutional investors and carry a high degree of risk, even if they’re using Youhodler’s suggestions.
Being a debtor
You can acquire a loan in Dollars, Euros, Pounds, Swiss Franc, Bitcoin, or stablecoins if you have cryptocurrency as collateral. You can put the funds in your bank account, take them out on a credit card, or use them to buy cryptocurrency on the exchange. Consider that there could be a withdrawal fee (covered below).
Youhodler provides three distinct types of regular loans, with varying terms and loan-to-value ratios to suit your needs (LTV). The “price down limit” specifies how low the value of the cryptocurrency collateral can go before Youhodler sells it and closes the loan. Below is a table illustrating the constraints of a 90% LTV 30-day loan. Youhodler borrowing has an option of pledging other assets as security.
How To Use Youhodler Loan Calculator
The Savings Rate Calculator allows users to use the Youhodler interest calculator. You can also use it to calculate your loan rate to know how much will be best to save in order to earn more.
Crypto & Bitcoin Loan Rates
| Coin | Interest Rate |
| BTC | 3% |
| ETH | 4% |
| XRP | 4% |
| LTC | 5.5% |
| DAI | 8% |
| USDT | 8% |
| USDC | 8% |
| EURS | 8% |
Features And Benefits
Get paid in cryptocurrency
It makes sense to look for ways to earn income on your investments if you are holding cryptocurrency for the long term. Youhodler offers a 5% interest rate on alternative coins and a 12% interest rate on stablecoins. You can’t deposit Bitcoin and earn interest in dollars since interest compounds weekly and is paid out in the same currency as the deposit. Your money is always available for withdrawal.
Those terms are competitive with the market average for crypto lending, but you should still look around and see what else is out there. In the case of some cryptocurrencies, you can “stake” them (tie them up) to help the network run more smoothly. In exchange, you receive a financial reward, or you can “provide liquidity.” There are benefits and drawbacks to each possible course of action.
Cryptocurrency-backed borrowing
Youhodler dual asset is a cryptocurrency collateral service that facilitates the exchange of Bitcoin for fiat currency. It has very high loan-to-value ratios (LTVs). The loan-to-value ratio measures how much money can be borrowed in relation to what is being put up as collateral. If the LTV was 90% and the value of the cryptocurrency was $1,000, the borrower would be allowed to take out a loan for $900.
In most cases, immediate approval is possible, and no credit check is required because this is a secured loan. You should give it some serious thought before taking out Youhodler instant loans, as delaying the purchase until you have the money to pay cash would save you money on interest.
Advanced trading tools
Customers of Youhodler are given access to leveraged purchasing of cryptocurrency as well as other cutting-edge trading tools. You could, for instance, wager on whether or not the value of a cryptocurrency would rise or fall (going “long” or “short”). Borrowing money is another way to boost your investments, and we’ll get into that shortly.
Conclusion
YouHodler is a cutting-edge CeDeFi platform that brings financial services like loans and interest to the cryptocurrency industry. Multi HODL and Turbocharge are two tools that help consumers increase their revenue.
The platform also features an easy-to-use exchange for trading between cryptocurrencies and fiat currencies.
YouHodler platform brings the cryptocurrency industry one step closer to a banking alternative as a regulated business supplying the largest and most popular cryptos and as it supports both fiat and crypto.
YouHodler is a top alternative to traditional banking platforms thanks to its global reach and suite of innovative features that debuted in 2018.