Castore  DeRose

Castore DeRose

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What is YouHodler | How to Usse YouHodler | Crypto Loans

In this post, you'll learn What is YouHodler | How to Usse YouHodler.

1. What is YouHodler

YouHodler is an online exchange designed to support the trading of cryptocurrencies and more. Described as a hybrid CeDeFi platform, YouHodler offers innovative DeFi products, breaking away from more traditional exchange frameworks.

Founded in 2018, with headquarters in Switzerland and Cyprus, YouHodler supports the trading of the largest cryptos by market cap. YouHodler also supports the following cryptos:

Tether, USDC, Pax Dollar, TrueUSD, DAI, HUSD, EURS, Uniswap, Compound, Maker, SushiSwap, yearn.finance, Synthetix, OmiseGo, Paxos Gold, Stellar, 0x, Bancor, Dash, Tron, EOS, Polygon, Aave, Huobi Token, Tezos,  Basic Attention Token, and Augur. The platform does add new coins to their portfolio on an ongoing basis, however, to increase their crypto market coverage.

While supporting the trading of cryptos, YouHodler has a number of other key product offerings. These include crypto loans, interest, multi HODL, and Turbocharge.

As a multi-product platform, YouHodler is secure and regulated. Regulations include

  • Pawnbroker authorization #LEAE-PGG-EV-2020-0001 (Switzerland)
  • SRO Polyreg
  • Affiliated with the Financial Services Ombudsman FINSOM.
  • Cyprus License (Cypress) – application in progress.

YouHodler is a global platform that supports all countries with the exception of the following:

Afghanistan, Bangladesh, China, Cuba, Germany, Iran, Iraq, North Korea, Pakistan, Sudan, South Sudan, Syria, United States of America, US Minor Outlying Islands, US Virgin Islands.

YouHodler Platform Attributes

Key attributes of the YouHodler platform include:

  • Supports crypto and fiat deposits and withdrawals.
  • Crypto loans: 90% loan-to-value.
  • Get up to 12.3% interest for stablecoins and up to 8% for other crypto.
  • Multi HODL: Boost savings and keep daily interest.
  • Turbocharge: Crypto collateral cloning to boost earnings
  • Very responsive customer support team
  • Global community, with clients from over 100 countries.
  • YouHodler Crypto Wallet App allows users to store, exchange, and spend 7 stable coins and 30 cryptos.
  • As a regulated exchange, YouHodler has a high emphasis on security.

Top perks

  • Earn interest on your crypto

If you are holding cryptocurrency for the long term, it makes sense to look for ways to earn interest on your assets. YouHodler plays around 5% interest on alt coins and around 12% on stablecoins, depending on the currency. Interest compounds weekly, and is paid in the same currency -- you can't deposit Bitcoin and earn interest in dollars. You can withdraw your funds any time.

These rates compare well with other crypto lenders on the market, but it is important to shop around and weigh up your options. For example, you can earn money on some cryptocurrencies by staking them (tying them up to basically make the network more stable), or providing liquidity (committing your coins on a trading platform to make trading more fluid). Each option has its pros and cons.

  • Borrow against your crypto

If you have cryptocurrency and need cash, YouHodler lets you use your crypto as collateral. It offers high loan-to-value ratios (LTVs). LTV is the percentage of collateral available to borrow. (For example, if someone had $1,000 worth of cryptocurrency and the LTV was 90%, they'd be able to borrow $900.)

Since this is a secured loan, there's no need for a credit check, and it's usually approved instantly. However, think carefully before you take out any loan -- you save on interest if you wait until you can pay the costs up front.

  • Advanced trading tools

YouHodler lets customers buy crypto on leverage and use other advanced trading tools. For example, you can bet on the price of a cryptocurrency going up or down (going "long" or "short"). You can also turbocharge your investments by using borrowed money, which we cover in more detail below.

  • Strict know your customer (KYC) and anti money laundering (AML) processes

This can be a pro or a con, depending on your point of view. If you want to trade cryptocurrency anonymously, YouHodler is not for you. On the other hand, if you want reassurance that you're investing with a company that wants to avoid laundered money, this is an area YouHodler takes seriously.

  • Good customer service

YouHodler scores 4.4 out of 5 on TrustPilot. Reviewers praise their quick customer service and high interest rates. One warning note: Some customers gave YouHodler poor reviews, mainly for its withdrawal options. Before you move large amounts of money to any cryptocurrency exchange, make sure you are confident about how to take it out again.

The Pros and Cons

Pros

  • CeDeFi: Integration of Chainlink Price Feeds to enhance the reliability of key functions including the issuance of loans and liquidation of uncollateralized loans.
  • Compliant & Transparent: YouHodler is a regulated and has a transparent fee structure.
  • Crypto and fiat deposits & withdrawals: Users may deposit and withdraw both crypto and fiat currencies.
  • Customer Support: Users may contact a responsive customer support team by Chat.
  • Multiple Product Offering: Users can earn interest as well as take out crypto collateralized loans to boost earnings.
  • Secure & Regulated: Holds multiple licenses, with a high emphasis on security.
  • Supported Cryptos: Top 20 cryptos and more.
  • Verification: Easy onboarding and user friendliness.

Other positives include

  • Affiliate Program: Attractive rewards with pay outs in fiat, crypto, or stablecoins.
  • NFTs: YouHodler also gives users access to NFTs.

Cons

  • Limited number of supported cryptos. The largest cryptos by market and most popular are available, however. This will become less of an issue over time as the platform increases its crypto coverage.
  • No demo account. The platform is easy to navigate, however, and there is a responsive customer support team and comprehensive help section to assist users.

How YouHodler works

YouHodler has a mobile app and web interface. You can exchange cryptocurrencies on the site, earn interest, and borrow money.

To get started, deposit a minimum of $100 into a custodial wallet and complete its know your customer (KYC) procedures. To deposit fiat (traditional) money, users must provide a photo ID and proof of address.

As a saver or trader

YouHodler lets non-U.S. customers earn passive income on their crypto holdings. Savers can earn some of the highest rates in the industry on both crypto and stablecoins. Interest compounds weekly. The idea is that YouHodler rewards you for HODLing (crypto slang for Holding On for Dear Life).

At the same time, YouHodler recommends placing 10% to 20% of your investments into its high-risk MultiHODL tool. You use this tool to borrow money and bet on whether the value of specific cryptocurrencies will increase or decrease. And you can leverage your investments by up to 30 times, increasing your potential profit -- and your risk levels.

YouHodler suggests several ways to mitigate the risk involved, but clients should be aware that these are trading tools aimed at professional investors.

As a borrower

Borrowers can put down crypto as collateral to get loans in dollars, euros, pounds, Swiss francs, Bitcoin, or stablecoins. The money can be deposited to a bank account, withdrawn to a credit card, or used on the exchange to buy crypto. Bear in mind that there may be a withdrawal fee (covered below).

YouHodler offers three standard loans, each with a different term and loan-to-value ratio (LTV). It also sets a "price down limit," which is how far the value of the crypto collateral can fall before YouHodler will sell the collateral and close the loan. As you can see in the table below, there isn't a lot of leeway on a 30-day loan with a 90% LTV. However, YouHodler gives borrowers the chance to add more collateral if needed.

Here's how the three loan types work out on a $5,000 loan that uses Bitcoin as collateral:

LOAN DURATION30 DAYS61 DAYS180 DAYS
LTV ratio90%70%50%
Price down limit5%25%40%
Crypto collateral value$5,555.56$7,142.85$10,000
Total fees and interest$105$160$400
APR25.55%19.14%16.22%

Data source: YouHodler. APR calculated by author.

Some additional features to watch out for:

  • Borrowers can set a close price -- the point at which they want to take profit -- from the outset. If the value of their crypto collateral reaches this price, YouHodler automatically sells the collateral, repays the loan, and deposits the remaining funds in the user's account.
  • Loans can be repaid using a credit card, crypto or fiat money stored on the platform, or by bank transfer. Borrowers can also repay a loan by selling the crypto collateral.
  • Borrowers can extend a loan term by paying the existing interest charges and a 1% service fee.
  • The "Close Now" function lets borrowers pay the loan back early using their collateral. This also comes with a 1% fee.

Turbocharge and borrowing to buy crypto

YouHodler actively encourages users to borrow using their crypto as collateral and buy more crypto. It's tempting. But borrowing to buy any risky investment is not a great idea, because if it loses value, you could lose your money.

Let's say you put down 0.2 BTC on the 30-day loan at 90% LTV. You get 0.18 BTC, giving you 0.38 BTC in total. The price of Bitcoin falls by 5%, triggering the price down limit. Your original Bitcoin gets sold to cover your debt, and you're left with 0.18 BTC. You just lost 10% of your original Bitcoin.

YouHodler's Turbocharge function creates a chain of loans. It automatically uses the traditional currency you borrow to buy more crypto, and uses that crypto as collateral against another loan. You can turbocharge your loan between three and 10 times. You don't receive any of this cash, because each additional loan is used to multiply the crypto you own. If the value goes up, you win. If it goes down, you could lose your original collateral and any fees, and you're left with any remaining funds from your final loan.

What's most worrying about YouHodler is that it presents risky investment strategies without a lot of information about the dangers involved, or education to help users manage those risks. The company name suggests this is a safe place to hold your crypto, but the Turbocharge and MultiHODL functions encourage you to take risks with it.

Fees overview

The exchange fees on YouHodler are in line with other cryptocurrency exchanges. However, pay attention to the costs to deposit and withdraw your money. Work out how much interest you need to earn to cover, say, a $70 withdrawal fee before you deposit your cash.

Please be aware that the information on YouHodler's website is not always consistent. We've used the rates from its wallet which don't always match the figures on its fees page.

Please be aware that the information on YouHodler's website is not always consistent. These numbers come from the transaction pages of a Youhodler.com wallet.

Deposit

TRANSACTIONFEES
SWIFT bank wire$25 or 25 Euro
Credit card4.5%
AdvCash account1%
Crypto and stablecoinsNo cost

Data source: Deposit option on YouHodler.com wallet, July 2021.

Please be aware that the information on YouHodler's website is not always consistent. These numbers come from the transaction pages of a Youhodler.com wallet.

Withdrawal

TRANSACTIONMINIMUMFEES
SWIFT bank wire in USD$701.5% or $70 whichever is greater
SWIFT bank wire in EUR500 Euros55 Euros
SEPA bank wire in EUR50 Euros5 Euros
GBP bank wire500 Pounds55 Pounds
Credit card
(Currently unavailable)
$5 or 5 EUR when available3.5% when available *
CryptoVaries by cryptoVaries by crypto

* Can change by country. Data source: Withdraw option on YouHodler.com wallet, July 2021.

Exchange fees

Fees to convert fiat to crypto or trade cryptocurrency vary depending on the transaction. For example, there's a $1 fee to convert $100 to Bitcoin (1%). There's a 0.000040 BTC fee to convert 0.02 BTC into Ethereum (0.2%).

Rates are comparable with other exchanges. However, the trade may take between five and 30 minutes to process, and the rate may change during that time.

If you use the MultiHodl feature, you pay an origination fee, hourly fees, and a 10% profit share if you make money.

2. Registration

To open an account, go to the YouHodler homepage and click on the ” Get Started” icon as shown below:

Complete the requested information. This includes Country of Residence, email, and password.

Agree to receiving YouHodler platform updates and acknowledge that you have read and agree to the privacy notice, Ts and Cs, Data Processing Addendum, AML/KYC Policy, Terms of Conversion Services, and Complaints Process and then click “Sign Up”.

Verification

In order to unlock Multi HODL, Turbocharge, loans, savings, and conversions, you will need to verify your email and your phone number.

In order to complete the basic verification process, go to your profile page by clicking the “Profile” icon located on the left-hand side of your YouHodler page.

  • Click on the email “Verify” icon. Enter the verification code that is sent to your email address.
  • Click on the phone “Verify” icon.
  • Enter your phone number and click “Continue”.
  • You will then receive a verification code via SMS. Enter the 6-digit code to complete your phone verification.

Upon completion of the basic verification, users will then need to complete the account verification process to have access to the multi-product offerings.

In order to complete the account verification process, simply go to your profit page:

Step 1: Sign Contract

  • Click the Verify icon under the Account Verification section.
  • You will then need to sign a contract. Click the “Start” icon.
  • Indicate whether you are a U.S person by clicking “Yes” or “No”.
  • Enter the personal information requested, which includes first and last name, DoB, and Nationality. Then click “Continue”.
  • Enter your home address and then click “Continue”.
  • Indicate whether you are the sole beneficial owner of the assets on your future account by clicking “Yes” or “No”.
  • Review the information within the Declaration of Identity of Beneficial Owner form and then click “I accept and sign”.

Step 2: Confirm Identity

Click on the “Start” icon to complete your identity confirmation.

  • Select the issuing country and document type.
  • Then upload or capture the front and back side of the document as prompted.
  • Once uploaded, click “Continue”.
  • You will then need to take a selfie holding the identity document. You may either upload or capture.
  • Then click “Send Application”.

Step 3: Confirm Address

Click on the “Start” icon to complete your address verification.

  • Select the document type and upload your document and press “continue”.

Please note that the document should be issued within the last 3 months and must contain the date of issue.

Upon completion and verification of Step 3, users will have access to YouHodler’s full product suite, including fiat operations.

Post Registration Deposit

Upon completion of the verification process, you will now need to make a deposit to begin trading and making full use of YouHodler’s product offerings.

Users may either:

  • Deposit YouHodler supported cryptos by completing a simple wallet-to-wallet transfer.
  • Purchase crypto by credit/debit card.
  • Deposit fiat currencies by way of a bank transfer.

In order to make a crypto deposit, go to the “Wallets” page.

  • Select the crypto that you wish to deposit and click on the “Deposit” icon.
  • Alternatively, if the wallet is not shown, you may add a supported crypto wallet by clicking the “Add wallets” icon.
  • Either scan the QR code or copy and paste the YouHodler wallet address to your external wallet.
  • Enter the amount of crypto that you wish to transfer to your YouHodler wallet and complete the transfer.

Once your funds have reached your YouHodler wallet, YouHodler will notify you by SMS and email and you can then begin enjoying YouHodler’s full product suite.

Users may also deposit fiat money by way of bank transfers and purchase supported cryptos by credit/debit card. Please see fiat currency deposit section below for details.

Supported Cryptocurrencies

YouHodler gives investors and traders access to the most popular cryptos in the market place and also some lesser known cryptos.

Supported cryptos include but are not limited to:

Tether, USDC, Pax Dollar, TrueUSD, DAI, Binance USD, HUSD, Bitcoin, EURS, Ethereum, Chainlink, Uniswap, Compound, Maker, SushiSwap, yearn.finance, Synthetix, OmiseGo, Paxos Gold, Dogecoin, Litecoin, Ripple, Stellar, 0x, Bancor, Binance Coin, Cardano, Dash, Tron, EOS, Polygon, Bitcoin Cash, Aave, Polkadot, Huobi Token, Tezos,  Basic Attention Token, and Augur.

In order to exchange a crypto for another crypto or fiat currency, go to the Wallets page.

  • Select the crypto that you wish to exchange.
  • Click on the “Exchange” icon.
  • Enter the amount that you wish to exchange and select the target currency from the drop-down menu.
  • Acknowledge that you have read and agree to How Conversion Works and Terms of Conversion Services.
  • Then click the Convert icon.

3. The Details

YouHodler supports the buying and selling of supported cryptos with crypto and fiat currencies via the exchange platform.

In addition to providing traders with an exchange platform, YouHodler also offers users loans, interest, and ways to increase crypto market driven yields.

Exchange

  • Via the YouHodler wallets page, users may exchange already held assets for crypto or fiat.
  • Via the wallets page, users may also boost earnings by way of the Multi HODL feature. Here, users may choose pairings and direction to boost income.
  • In addition to the option to boost income via the Multi HODL feature, YouHodler also offers users Loans and interest income. There is also a Turbocharge feature to enhance crypto earnings.

Loans

  • YouHodler offers users with loans to meet regular fiat currency needs. Crypto holders may place already held crypto as collateral in order to obtain fiat money or stablecoins. Upon repayment of the loan, YouHodler returns the held crypto to the borrower.

Turbocharge

  • Based on a cascade of loans principal, crypto holders may use crypto as collateral to get more crypto and benefit in case of further price growth. This is an ideal product of crypto holders foreseeing further price growth.

Charts

  • The YouHodler platform provides users access to charts via the wallets page. Here, users may select line or candlestick charts. Time intervals on offer include 1 minute, 5 minutes, 30 minutes, 1 hour, and 4 hours, as shown below.

History

  • The YouHodler platform has a dedicated “Transaction History” page allowing users to view all transactions across the platform.
  • Here, users also have the option to filter by asset to narrow searches.
  • Additionally, users may view transactions at asset level by viewing each individual wallet.

Balances

  • Via the Wallet’s page, users have access individual wallet balances in either EUR or USD and also in the asset base currency. On the wallets page, users are also provided with a total value in EUR or USD and percentage movement of the total value.

4. Wallets

YouHodler has dedicated wallets page to support crypto and fiat conversions as well as deposit and withdrawals. In addition, verified users also have the option to boost exposures by clicking the “Boost” icon.

Users may readily transfer YouHodler supported cryptos between external and YouHodler wallets.

Users may readily transfer YouHodler supported cryptos between external and YouHodler wallets.

Via the “Wallets” page:

  • Users may deposit and withdraw crypto and fiat currencies.
  • Convert already held fiat or cryptos.
  • View individual wallet balances and total balance.
  • See intraday price movements for an asset and view basic charts.
  • Boost existing cryptos or fiat by clicking the “Boost” icon. This is a multiplier function using a portion of your YouHodler wallet balance. This is a quick access to the Multi HODL function.

Do note that, for each wallet, YouHodler provides individual crypto fiat balances as well as balances in USD Dollars. A total balance is also available in EUR or USD.

 

5. Deposit & Withdrawal Options

YouHodler enables the deposit and withdrawal of crypto and fiat currencies.

For investors looking to deposit or withdraw fiat or purchase crypto by credit/debit card, you will need to complete the account verification process.

5.1. Cryptocurrencies

Users may the deposit and withdrawal of YouHodler supported cryptos.

In order to make crypto deposits and withdrawals, go to the “Wallets” page as shown below:

  • Deposits

Select the crypto wallet listed on the “Wallets” page and click the deposit option. For demonstrative purposes, we have chosen Bitcoin (“BTC”).

Once you have selected the deposit option, copy the wallet address to your external wallet or scan the QR code and complete the transfer.

Once your Bitcoin have reached your YouHodler wallet, you will receive an SMS and an email notification.

(In order to avoid making an error in entering the address details, it is recommended that you scan the QR code to transfer from your external wallet to your YouHodler wallet).

  • Withdrawals

For withdrawals, users are able to withdraw cryptos by transferring out from the YouHodler wallets to external compatible wallets.

In order to withdraw your crypto, select the wallet from which you wish to withdraw your crypto and click the “Withdraw” icon.

  • Copy and paste your external wallet address and confirm that you have double checked the address.
  • Click on the “Get email code” icon to confirm withdrawal with email.
  • Enter the code and then click “Withdraw”.

5.2. Fiat Currencies

  • Deposits

In order to deposit fiat currencies, go to the wallets page and select the fiat currency that you wish to deposit.

You may add additional fiat currency wallets by clicking the “+ Add Wallets” icon.

  • Click on the deposit icon.
  • Then click on:
    • The “Bank Wire” icon for bank transfers for no fee deposits. Transfers can take up to 3 business days.
    • Advcash (inc. Bank Cards) icon for instant payments. There is a 1% fee for Advcash deposits.
  • For Advcash payments, enter the amount that you wish to deposit and click “Continue”.
  • You will then be redirected to the Advcash.com page to complete your details in order to complete the deposit.
  • Additionally, uses may deposit with any other credit card, there is a 4.5% deposit fee.
  • Withdrawals

In order to withdraw fiat, go to your wallets page and select the fiat wallet from which you wish to make a withdrawal.

  • Click on the Withdrawal icon.
  • Select the withdrawal option
    • Credit card – instant with fee of between 3% to 3.5% or $1 to $5.
    • Bank wire – Approximately 24 hours, with a fee of 1.5%. There is a minimum withdrawal of $70.
  • In the case of bank wire withdrawals, enter the IBAN and account number along with your bank details and complete the transaction.

Please note that bank processing times and fees vary depending upon bank wire method. There are also minimum withdrawals depending upon currency. See below:

  • USD (SWIFT) – up to 5 days, with a fee of 1.5% and a minimum withdrawal of $70.
  • EUR (SEPA) – up to 2 business days, with a fee of €5, and a minimum withdrawal of €50.
  • EUR (SWIFT) – up to 5-days, with a fee of €55, and a minimum withdrawal of €500.
  • GBP/CHF: Up to 3-days, with a fee of 0.15% and minimum withdrawal of £55 / CHF55.

6. Trading Platform

As previously discussed, users may use the exchange feature as well as Turbocharge and Multi HODL to gain exposure to the fiat and crypto markets.

The Exchange

YouHodler gives users access to the crypto markets via the YouHodler exchange.

Here, users may exchange fiat for crypto, crypto for crypto or crypto for fiat.

Simply go to the Wallets page and select the crypto or fiat that you wish to exchange, by clicking the Exchange icon.

  • Enter the amount of crypto or fiat that you wish to convert.
  • Review the fee, amount to convert, and rate and then click “Convert”.

Once you have placed your order, the transaction will appear in your wallet history and also on the Transaction History page.

Turbocharge

Go to the Turbocharge page and then click “+ Create New Turbo”.

  • Select your collateral ticker and enter the amount of collateral and then select your borrowed ticker.
  • Then, select your plan. Either 90%/30 days or 70%/61 days.
  • Choose the number of loans and review the transaction details.
  • If you wish to set a take profit, enter the close price.
  • Agree to the terms and conditions and acknowledge that you understand how Turbocharge works and then click “Turbocharge”.

Multi HODL

YouHodler’s Multi HODL is a tool to multiply your crypto assets using a portion of your YouHodler wallet balance.

Here, the advantage is that users can keep the majority of funds safely in a wallet while earning interest and using some amount to engage in trading activities with high-profit potential.

The platform uses your Multi HODL assets to open the first loan in an automated chain of loans. With the borrowed funds from the first loan, the platform buys more crypto and uses it as collateral for a second loan in the chain. The process repeats itself from 2 to 50x depending upon the user’s Multiplier Level.

To use the Multi HODL feature:

  • Go to the Multi HODL page and select the pairing that you wish to trade. (You may also go to the Wallets page and click the “Boost” icon).
  • Choose the direction that you wish to trade, up or down.
  • Select your source collateral and enter the amount.
  • Then select the Multiplier Level.
  • Agree to the terms and conditions and acknowledge that you know how multi HODL works and have read the Risk Disclosure.
  • Then click Start.
  • There are also the options to take profit and / or stop loss to manage risk.

YouHodler is right for you if:

  • You're a non-U.S. customer who wants to earn interest on your crypto.
  • You are comfortable with higher-risk trading tools.
  • You want to use your crypto as loan collateral.

YouHodler is an exciting option for users looking to earn interest on their coins and earn 12% interest per year. The main benefit of YouHodler is that your coins remain yours according to YouHodler’s terms and conditions. The platform offers competitive rates, which is one of the main reasons you should consider YouHolder when earning interest on your coins.

If you are looking for a reliable platform to earn interest in your cryptocurrency YouHodler is one of the best options on the market.

Read more: Guide to Margin Trading Crypto

Thank you for reading!

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