A lot has been said about cryptocurrency lending over the past year. Throughout those conversations, the focus has typically been on a few of the dominant platforms in the space like Genesis Capital, BlockFi, and Nexo. There is, however, a crypto loan startup that is well worth your attention.
YouHodler has been around since 2018, and as a young FinTech company, it has made massive strides toward creating a name for itself. The cryptocurrency loans and interest savings accounts offered by YouHodler aren’t necessarily new, but their low loan rates, minimal fees, and informal take on lending certainly are. YouHodler is a breath of fresh air in an industry that often feels stuffed with seriousness, banker wannabes, and costs that simply don’t improve upon those offered by traditional lenders.
About YouHodler
Not everyone is ready to jump into a new platform with thousands of dollars’ worth of their crypto savings. We not only support that skepticism but encourage it.
Who is behind YouHodler, and where does it come from? These are legitimate inquiries that should be properly explored.
YouHodlerʼs founder and CEO is Ilya Volkov, a Russian entrepreneur with about 15 years of experience in the FinTech industry. In interviews, Volkov has been quick to point out that ‘Hodlerʼ is a reference to not only the crypto HODL meme but also Ferdinand Hodler, a famed 19th-century Swiss painter. This reference puts Volkovʼs sense of humor on display, but in articles on the company’s blog, there’s a different focus. There, YouHodler emphasizes a safe, secure, and competitively priced crypto loan experience.
Why YouHodler Wants You to HODL
Thereʼs nothing like a crypto meme to both confuse newcomers and make old-timers feel right at home. HODL is an infamous misspelling that actually means HOLD – as in hold onto your BTC.
Understanding the HODL meme takes you right to the center of the YouHodler mission. Instead of selling your crypto in times of need, wouldn’t it be better if you could just keep HODLing? Clearly, the YouHodler team thinks so.
When you need cash but have crypto, the likely outcome is that your holdings will make their way to an exchange where theyʼll be sold. Selling your crypto means your positions are closed, and if the market zooms up before youʼve had a chance to reenter your positions, then you are simply out of luck.
Now, if you have no intention of rejoining the crypto space as an investor, then no worries. But, if you do view cryptocurrency as a long-term investment, then YouHodler is an excellent medium for keeping your positions open while getting the cash you need.
YouHodler’s Crypto-Backed Loans
YouHodler lets users collateralize their loans with an impressive variety of digital assets. YouHodler currently supports 50+ collateral options with loan terms of up to 364 days, or one year. A cool feature in this regard is that you don’t have to deposit just one supported asset, you can use bits from the entire breadth of your holdings. That’s handy if you have a diverse crypto portfolio.
The sheer variety of usable collateral is one differentiating factor for the platform, but there is another. YouHodler offers the industry’s highest maximum LTV ratio (90%).
We’ve previously written about the importance of understanding LTV (loan to value) ratios as they play a significant role in how crypto loan terms are decided. A 90% maximum LTV means you don’t have to put down much collateral to get the cash loan you need. Most other platforms offer 50% to 70% maximum LTV, which translates into depositing twice the loan amount as collateral. Not everyone has that kind of crypto lying around, so YouHodlerʼs 90% LTV is a welcome reprieve.
LTV
50% - 90%
APR
varies
FEES
1% - 5%
- Low minimum loan amount ($100)
- Unlimited loan terms
- Receive loans in USD, EUR, CHF, GBP, +more
- Maximum loan duration is 364 days
LTV
50% - 90%
APR
varies
FEES
1% - 5%
- Low minimum loan amount ($100)
- Unlimited loan terms
- Receive loans in USD, EUR, CHF, GBP, +more
- Maximum loan duration is 364 days
There is one downside, though. A higher LTV ratio means the loan is less stable. Small fluctuations in the value of your collateralized asset are enough to push you over into margin call territory, so be wary.
YouHodler Loan Details
The process of getting a YouHodler loan is simple. Deposit your crypto, qualify for a crypto loan that you receive instantly, then pay it back on time. Those steps are broadly the same as other crypto loan platforms. The real differences are in the details.
Here’s how YouHodler works in a nutshell:
- Deposit cryptocurrency into your YouHodler wallet.
- Apply for a loan using your deposited crypto as collateral.
- Get approved and cash out instantly.
- Repay your loan in full by the end of the term.
- Keep HODLing.
When you deposit crypto to the YouHodler loan platform, youʼre using it as collateral. Collateral refers to the assets you’re leveraging for a cash loan. If you canʼt repay your loan or your collateralized assets drop in value, your collateral is sold to protect against loan default.
YouHodler works like a pawnshop. There is a temporary sale of cryptocurrency, where YOU are the seller and YouHodler is the buyer. Following a predefined period of time, you repurchase the cryptocurrency from YouHodler. – YouHodler Website
The entire schematic is elegant in its simplicity, and also has other advantages like no credit checks. YouHodler isnʼt interested in seeing your prior bank statements or pay stubs from a current employer. It’s only interested in whether you have the collateral to put up for a loan. That also opens up blockchain-based financial opportunities to people excluded by traditional lending.
Turbo Loans
YouHodlerʼs turbo loans work a lot like leveraged trades on popular exchanges such as Bitmex, but with a twist. Say you have 1 BTC but want to end up with 4 BTC. While that seems like a tough ask, YouHodler makes it pretty simple with their chain of loans feature. Click Get Turbo next to your loan, and the platform will use the cash from your first loan to buy crypto for your second loan. Turbocharge your loan again, and the crypto you initially deposited plus the crypto bought on your second loan are collateralized for the third.
Increase LTV
We often highlight the effects on your LTV ratio if your collateral’s value goes down, but what if it goes up? Imagine that you’ve taken out a YouHodler loan at a 70% LTV ratio. If your collateral value goes up, your LTV ratio percentage goes down. YouHodler lets you pull out additional cash to get back to your initial LTV ratio if that happens.
Close Loan Now
YouHodler gives users the option to close their loans immediately. If you choose this option, the remainder of your balance is paid from the collateral deposited.
Reopen Loan (Extend Loan Repayment Term)
Reopening your loan is just as easy as closing it. If you choose to reopen your crypto loan, you’ll only pay the accumulated interest and a 1% fee. According to the platform, “The rest of the borrowed funds stay with the client. Hence, this feature lets traders keep their position open for an affordable price.”
Loan Terms
YouHodler offers a maximum 364-day loan repayment period. You can choose between a 90%, 70%, and 50% LTV, each with a daily fee of about 0.05%.
YouHodler Crypto Savings Accounts
The YouHodler crypto savings account lets you earn interest on Bitcoin (BTC), Pax Gold (PAXG), USD Coin (USDC), True USD (TUSD) and more. Again, the platform maximizes earnings while minimizing fees. The sheer variety of stablecoin options paired with BTC and BNB interest options makes YouHodlerʼs savings account unique. Additionally, there is no lockup period, so you can withdraw your savings any time without paying withdrawal fees.
APY
Up to 9.96%
Interest Payout
Interest Payout: Weekly
Assets Accepted
USDT, LTC, USDC, BTC, 50+
- Free withdrawals
- $150M pooled crime insurance by Ledger Vault
- $100 Account minimum required
- Not yet available in the U.S.
APY
Up to 9.96%
Interest Payout
Interest Payout: Weekly
Assets Accepted
USDT, LTC, USDC, BTC, 50+
- Free withdrawals
- $150M pooled crime insurance by Ledger Vault
- $100 Account minimum required
- Not yet available in the U.S.
But you should always read the fine print—yes, you can withdraw any time, but your rewards are only tallied after every month.
YouHodler Savings Account Details
The steps are even easier than taking out a loan:
- Deposit assets into your crypto interest account. YouHodler pays interest on BTC, PAXG, USDC, TUSD, USDT, HUSD, PAX, BNB, HT, XRP, XLM and ETH deposits.
- Track your daily earnings and earn interest paid out weekly.
- Step 2 could be the end of it, but you can also use your free earnings to diversify your portfolio and minimize or maximize your risk and profits.
The Bottom Line on YouHodler
There’s a lot to like about YouHodler. The company is a Crypto Valley Member with deep roots in Switzerland’s premier blockchain incubation hub. It is also a part of the Blockchain Association and holds licenses for operation in Europe. Its compliance with international financial regulations also means it doesn’t accept clients from either the USA or China, which is a major downside for a great many potential users out there.
But in 2019, two security experts revealed that YouHodler had been exposing client data, including credit card numbers and addresses, for an entire month. The team pulled the database in question offline immediately and remedied the problem. While a security gaffe on that level can easily harm users, such events do come with the territory. YouHodler has a unique set of offerings and focus on customer service with an Excellent rating on Trustpilot. We’re optimistic about the platform’s future.
