Module 7.0.0. Practical Session: How to Hodl in YouHodler
Let’s say you have some Bitcoins that you want to hodl as a long-term asset, and you have been searching for a CeFi Lending Platform that you can use. In the process of your search, you come across YouHodler, and you are wondering if it will be a good platform for your Bitcoin hodling.
This practical session will guide you on how to assess if the Lending Platform is good enough for your hodling.
Section One: SOC Safety Checks
Before you deposit your crypto with YouHodler, examine this Lending Platform to know if it passes the SOC Safety Checks as follows:
(A). Is the lending platform being regulated by a government agency?
Answer: Yes
YouHodler is a company that was registered in Switzerland, Canton of Vaud, Lausanne, on the 29th August 2019. Registration number IDE/UID CHE-336.197.657. On the legal front, YouHodler conforms with the EU’s rules and regulations concerning financial services. YouHodler also maintains an active role in the Blockchain Association of Financial Commission as well as the Crypto Valley Association.
Score: 1
(B). Is the wallet the Lending Platform keeps your asset in safe?
Answer: Yes
YouHodler uses Ledger Vault’s industry leading information technology infrastructure to securely control its crypto assets with a multi-authorization self-custody management solution. Ledger wallets are generally believed to be one of the most secured crypto wallets globally.
Score: 1
(C). Can you use your cold wallet on the platform?
Answer: No
As at the writing of this article, YouHodler does not appear to allow users to link their cold wallet to its services.
Score: 0
(D). Is there a clean record of no crime breach of the platform?
Answer: Yes
As at the writing of this article, there has not been any reported financial crime breach of services of YouHodler.
Score: 1
(E). Are there any periodical financial audits of the Lending Platform’s services?
Answer: Yes
All crypto operations by YouHodler are in accordance with the Cryptocurrency Security Standard (CCSS). All its credit card operations are under the PCI Security Standard and the company runs external security audits on a regular basis.
Score: 1
(F). Does the lending platform have adequate insurance coverage for the deposited funds?
Answer: Yes
YouHodler has a custody management solution and 150 million USD pooled crime insurance. Although this amount is quite small compared with the growing size of the company. Nevertheless, it is good to know that there is some form of insurance coverage on your fund, if you invest with them.
Score: 1
(G). Can you end the contract at any time and withdraw your funds easily from the Lending Platform?
Answer: Yes
You can end your contract and withdraw all or part of your assets easily at any time with minimal charges.
Score: 1
SOC Safety Checks Interpretation for YouHodler:
Thus, the SOC Safety Checks on YouHodler give a Total Score of 6. Meaning that YouHodler is very safe for you to hodl your crypto. See Table 4 (summary): SOC Safety Checks for YouHodler.
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Note!!! You may wonder where you will get all the answers for the SOC Safety Checks of a Lending Platform.
If the platform is legit, its information will be out there on the internet for any hodler to ascertain. Don’t be lazy, always Do Your Own Research (DYOR) before you invest your hard-earned money! It is better to be safe than to regret later!
Section Two: Open a YouHodler Account:
After you have ascertained the safety of YouHodler as a Lending Platform, the next thing to do is to open an account with the platform.
YouHodler offers a range of different crypto wallets where you can hodl your crypto and receive daily interests while waiting for the price of the crypto to increase. The interest rates offered by YouHodler are quite favourable when compared with the other CeFi lending platforms.
If your crypto has a wallet in YouHodler, you can hodl it there and benefit from the services.
To register with YouHodler, take the following steps:
Step 1: Click on: https://app.youhodler.com/sign-up?ref=4XKNQI0U
Step 2: Enter your email address and password.
Step 3: Familiarise yourself with the terms and conditions, and accept them if you are satisfied with them.
Step 4: Click on Sign Up, and your YouHodler account will be created.
Step 5: Now submit all the KYC (Know Your Customer) documentation.
Step 6: Set up two-factor authentication (2FA) in your YouHodler account.
Note: If you don’t know how to set up two-factor authentication, see the lessons in Grade 4 of the Primary School of Cryptocurrencies.
Step 7: Deposit your crypto into your YouHodler account. Remember, use the correct wallet for your crypto. For example, Bitcoin must be deposited in the Bitcoin wallet and not in Ethereum wallet.
For further information on Step 7, see the lessons in Grade 7 of the Primary School of Cryptocurrencies.