July 30, 2021
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.
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.
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 has unique, helpful tools and strategies not seen with competitors (e.g. The Barbell Strategy)
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.
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.
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.
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.
Editor-in-Chief of the YouHodler blog. Connect with him about writing techniques, cryptocurrency, and music.
.svg){kind=small}
YouHodler is regulated in the EU (Italy) and Switzerland, and does not have a regulated UK entity. YouHodler is NOT regulated by the FCA, and protections offered under UK law do not apply.
YouHodler promotions are not targeted at UK investors, and bonuses or loyalty programs like the rewards programme or sign-up offers will not be available to residents of the UK. You can learn more about the services offered to UK customers here.
Do not invest with YouHodler unless you’re prepared to lose all your money or tokens invested. Crypto Currency is considered as a speculative and high‑risk investment and you are unlikely to be protected if something goes wrong. Take 2min to learn more about risks.
YouHodler is regulated in the EU (Italy) and Switzerland, and does not have a regulated UK entity. YouHodler is NOT regulated by the FCA, and protections offered under UK law do not apply.
YouHodler promotions are not targeted at UK investors, and bonuses or loyalty programs like the rewards programme or sign-up offers will not be available to residents of the UK. You can learn more about the services offered to UK customers here.
Do not invest with YouHodler unless you’re prepared to lose all your money or tokens invested. Crypto Currency is considered as a speculative and high‑risk investment and you are unlikely to be protected if something goes wrong. Take 2min to learn more about risks.