For those of you that often read my articles you'll know I've always been a hodler. However, rather than just simply having my crypto sit idle I prefer, where possible, to try and grow that holding by using interest earning services. There are two main reasons I use these; firstly, I consider them much lower risk than trading. In my mind trading is a skill that it takes time to master and I don't have this time to commit. Secondly, I believe that crypto will be a large part of the future global economy and therefore growing my position in the economy makes financial sense to me. To that end you may remember the recent article I wrote about centralized interest earning platforms and their comparable rates/benefits/risks:
CeFi: Key Facts (Updated 2021) - Are you getting the best rates?
In the article I took a look at 6 of the most well known centralized crypto-finance platforms on the market currently and considered them against one another from a passive earning perspective. Shortly after posting this on social media one of the platforms (the one we will look at today) reached out to me and asked if I'd consider writing a separate article about their platform.
It then dawned on me then that even though I've been using this platform for close to a year now I've not really shared it around that much. Indeed, I first heard about YouHodler though PUBLISH0X but have since then not seen too many articles about their products. Today I hope to give you a flavour of the what they have to offer and close that gap a little.
Platform Link: https://www.youhodler.com/
Remember as well folks, none of this article should be considered as financial advice. So with that said let's get cracking with the review.
Saving/Earning
I'll start of first with the main reason that I use this platform and what got me onboard in the first place, the savings and interest earning functionality. The key things with this platform to be aware of (before you jump in):
- Interest earnings are paid weekly (in-kind)
- Interest is compounding
- The maximum total saving (across portfolio) is equivalent $100,000
- Rates presented below are in APR (which means these don't already include the compound effect)
- Minimum balances require ~$50 of the asset
- Withdrawals are subject to additional fees (although reasonable) for some and then miner fees for others:
- https://help.youhodler.com/en/articles/4111076-what-are-youhodler-fees-commissions-and-limits
- The minimal withdrawal amount of cryptos is around $10-50 (depending)
- Funds are secured and insured using industry best practices:
- https://help.youhodler.com/en/articles/2790668-is-youhodler-safe-reputation-insurance-and-security
So with the details out of the way (and it is important to consider them) let's look at the rates to see just why I like this platform.
Look at that, some very very impressive stablecoin rates but the one that stands out to me the most is right there in the middle a staggering 7% APR for UNI tokens. Being a UNI token holder myself (one of those lucky folks to get a few in the airdrop last year) my eyes almost popped out of my head when I saw this rate. Until recently I was using Celsius, however, they dropped their earning rate significantly so that moving to YouHodler (even if there is a withdrawal fee of 1 UNI) it became a bit of a no brainer.
So how does the saving work? Well, here is a handy short video to explain, but under that I'll show you directly in the account dashboard.
Here is how it works:
- 1.) After signing up there is a simple wallet section to the account
- 2.) Individual rates are displayed next to the tokens/coins, just under the balances
- 3.) From the downward arrow you can select to deposit funds.
- 4.) As soon as the funds are in your account and meet the min. threshold you start earning....simple!
- 5.) In the top right corner we see the daily interest earning balance increase and on payout day your main balance increase and this resets. It couldn't be simpler than that.
Turbocharger
In addition to the savings section of the platform the next thing that really stands out is the 'Multi-Hodl' or 'Turbocharger' functionality. Before going too much into this I will say that this is an advanced function and comes with risk. Basically it is a quick and easy way to use your crypto balance to collateralize short-term loans to buy more if you think that the price will go either up or down. It is a good way to quickly boost your balance if you are sure that the market is about to move in one direction or the other, think leveraged trading.
Now being a man of science and because those good folks at YouHodler providing me with 2.5 LINK to try it out I had a go at this functionality some months back. It is a bit of a double edged sword and I made a good call followed by a bad call, at which point I cashed out. So don't follow my lead, make sure you know what you are doing first.
This is how it goes:
- 1.) In the app or on the web-version click the Multi-Hodls functionality or an asset
- 2.) Choose the direction they think it will travel
- 3.) Set your loss and profit targets by adjusting the multiplier slider (you can also set them manually). Read T&C and click start
- 4.) When the profit or loss are triggered check how you did in the history section
- 5.) Pray you made the right technical analysis!!
- Note.) During the multi-hodl process your funds are locked but you will continue to earn interest on them.
Loans
The final section offered by the platform that is definitely worthy of note is the loans section. This is a great way to access the fiat value of your holdings without selling up shop. Even though I haven't yet taken out a loan I must admit this would be the likely avenue I would take before cashing in my crypto. Be sure however you consider any repayment risks as well as fees before taking out loans.
Final Thoughts
As you can see the platform as a whole makes for a great one-stop-shop. The passive rates are very competitive, plus the reassurance of their security policies helps when considering the 'not your keys, not you crypto' dilemma. The multi-hodl function is also a useful way (if you're willing to take the risks) to build on your portfolio quickly, though please be careful with this as it goes both way, the crypto-markets are fickle! In terms of a comparison with other platforms I won't lie the fees hold me back a little here so I would say that YouHodlers is best suited to mid-larger size holdings, where interest can quickly offset withdrawal fees. But let's face it they aren't trying to rob you blind like CDC.
All in all it is a solid platform with excellent products.
Hope you enjoyed the article and find the summary YouHodler useful, good luck y'all!
