YouHolder Review – Borrow Crypto Instantly
YouHodler advertises instant crypto-backed loans. I decided to give them a try, and share my thoughts in this review.
Table of contents:
Borrowing USD or EUR with YouHodler
I wanted to borrow €100 over just 30 days. My only option then was to use a 90% LTV.
I don’t understand why LTV is linked directly with how long you want to borrow the money for.
If you want to borrow for 60 days, you’ll need to use 70% LTV and if you want to borrow for the longest duration offered by YouHodler of 180 days, you’ll need to use 50% LTV.
Depositing Crypto Collateral
When depositing crypto to use as collateral for your loan, you have a wide range of options, including Bitcoin, Ethereum, Binance Coin, Ripple, Stellar, and several others.
I choose to use Ethereum as collateral because I don’t mind holding onto my Ethereum for the duration of this loan. Who knows, maybe it will appreciate.
If you are using Bitcoin as collateral, the only two borrowing options are USD and EUR. However, if you use Ethereum as collateral you can also opt to borrow Bitcoin and if you use Binance Coin as collateral, you can borrow either USDT or BTC.
I would expect these options to change over time, so make sure to check a few collateral options if you are looking to borrow a specific currency or cryptocurrency.
The Verification Process
I needed to upload ID proof to get the loan. That was no problem, but then on the next step, the requirement was a bit more cumbersome. I needed to upload a selfie with me holding the document. That photo was required to have a white neutral background.
Luckily some of the walls in my apartment are white, otherwise, this step would have required me to go out of my apartment and find a suitable location. That would have been quite a lot of effort just to borrow €100.
Anyways, once verification is complete, I expect that I can borrow money more easily next time. Maybe even instantly, as they advertise 😉
Waiting for the Money
Once all my documents were submitted and my personal info shared with YouHodler, I got a message to be patient as the reviewal process could take some time.
After about 30 minutes my review process was done and I could now apply for a loan.
I don’t know what happened to my previous application, and I had apparently deposited too little collateral anyways to borrow €100.
So here we go again, another fee to transfer money from MetaMask. It’s a bit annoying as this means I’ve already paid over 2% of my loan amount in fees. I would suggest being a bit more careful to deposit enough collateral in your first transfer. This mistake was totally my fault and has nothing to do with YouHodler.
If you overshoot, you can earn good interest rates on the money that is leftover and you keep in your YouHodler wallet. Read more in the section below.
After my verification process and additional collateral was received by YouHodler, I applied to borrow €100 again.
This time the loan was, in fact, paid out instantly!
Some details of my loan:
- Borrowed: 99.99 EUR
- Loan-to-value (LTV): 90.00%
- Interest: 2.10%
- Term: 30 days
Earning Interest with YouHodler
YouHodler interest rates are amazing. I recently reviewed the much more famous Celcius Network, which also offers borrowing and ways to earn interest on deposits.
Even though YouHodler is the much less popular choice according to Alexa website traffic statistics, they do offer way higher stablecoin interest rates.
Celcius Network offers 8.88% APY on stablecoins while YouHodler offers up to 12.7% APY for stablecoins (USDT), at the time of writing this.
YouHodler also offers higher interest rates on Bitcoin and Ethereum as well.
The biggest selling-points for YouHodler is the high interest rates they offer for wallet deposits. You can earn up to and above 12% APY for stablecoins.
I didn’t quite like their additional verification step where I had to take a photo of myself with my ID with a white background. A great thing though, was that it only took about 30 minutes to get my account verified.
After verification, I was able to borrow instantly which is exactly what they advertise.
Overall I want to give YouHodler a 4.5/5 score.