What can be improved
Not available in the US
YouHodler is not available to residents of the United States. This may be because the US has strict rules regarding leveraged trading options. If you use YouHodler’s services from the United States, China, or other embargoed countries, your account may be frozen, and you may lose any returns you have made on your investments.
Clients need to prove their physical address to withdraw funds from the exchange, so using the platform from a restricted country would not be a great idea. There are many excellent cryptocurrency exchanges worth checking out that are licensed to operate in the United States and pay good interest rates on cryptocurrencies.
The minimum amount you can deposit is $5. But to earn interest on your money, you must make at least $100 or more, depending on the cryptocurrency. And that’s the minimum for each coin – it’s not enough to have a $100 total. For example, if you own Bitcoin (BTC), Ripple (XRP), and Ethereum (ETH), you will need to deposit at least $100 each to earn interest on them.
While $100 isn’t necessarily huge, some interest-paying cryptocurrency exchanges don’t have any account minimums. And if you have many different coins, then this minimum begins to increase. Account caps also apply.
lack of transparency
Whether you are a borrower or a saver, transparency is important. If you are receiving high interest rates, it is important to ask where the money is coming from. In the case of YouHodler, the information is hard to find. The interest that customers receive is likely to come from the interest that customers pay on loans. But this is not clearly mentioned on the website, and some decentralized finance (DeFi) lenders offer high-risk loans in order to finance the high returns.
In addition, all lenders in the United States are required to disclose the Personal Loan APR – which is the total annual cost of lending, including interest and fees. This helps borrowers compare apples to apples and make informed decisions about where to borrow. YouHodler gives the total cost of the loan, but not the annual percentage.
High annual interest rate on loans
We calculated YouHodler’s APR based on the total loan costs. It is high compared to many major personal loans that do not require collateral. In fact, it is comparable to the APR on many good credit cards. If you need to borrow money, shop to find the best terms for your situation.
While borrowers can extend the terms of their loan with YouHodler, the longest initial loan term available is six months. Unencrypted lenders may offer longer loan tenures that give you more flexibility in repayment.