Jean Galea

Health, Wealth & Happiness

BlockFi Vs Ledn – Which Crypto Lending Platform is Best?

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Join BlockFi | Join Ledn

In the past, one of the main issues with holding cryptocurrencies was that other than a price increase, there was no additional value from yields. If you buy stocks with dividends, you make gains throughout the year. But, with digital assets, if the price goes down, any value gained is lost. You could hold onto cryptocurrencies for years and fail to make significant increases.

At the moment, you likely store your cryptocurrencies in a secure wallet with established online exchanges such as Coinbase, Kraken, or Binance. You might also be practicing self-custody with hardware wallets or mobile wallets. The main problem with just holding your cryptos is that they don’t provide any fixed returns.

But that’s all changing.

Now, it’s possible to earn from your cryptocurrency holdings and, compared to traditional savings accounts with fiat currency, the interest rate for crypto savings accounts are generous and compounded.

And no matter what the price of your crypto asset, you earn interest regardless.

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Fundrise Review 2021 – Real Estate Investment in the USA

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Fundrise

Invest on Fundrise

Over the years, real estate has been doing generally better than stocks. However, most people don’t invest in real estate because of the hefty amounts of money involved.

Fundrise, on the other hand, offers an excellent opportunity for the average, non-accredited investor to invest in commercial real estate with an amount as low as $500.

Nonetheless, the question remains; is Fundrise worthy and reliable? With that said, read on to learn more about this real estate investment platform and determine if it’s the right choice for you.

What Is Fundrise?

Fundrise is a real estate crowdfunding company based in Washington, DC, and was founded in 2002. It is an investment company that allows small and unaccredited investors to invest in commercial real estate using only their smartphones or computers.

The platform invests through crowdfunding, where they pool investor’s funds together to buy properties. Unlike most companies that focus on institutional investors, Fundrise caters to non-accredited investors and is open to US residents.

Pro’s

  • Low minimum investment
  • Doesn’t require accreditation and is open to all investors
  • Investments are passive
  • Relatively low fees
  • User-friendly platform
  • 90-day guarantee
  • IRA is available
  • Access to more significant and diverse investments

Con’s                        

  • Doesn’t permit investors to invest in property deals or individual Fundrise REITs
  • Investments are complex and need due diligence
  • Distributions taxed like ordinary income

Who Can Invest in Fundrise?

Fundrise is suited for all investors, including those that are non-accredited. In addition, both the Starter account level and Basic plan offer lower minimum investments than commercial real estate investments.

Aside from this, it also offers automatic investments that start at $100 monthly, making it great for average but not very wealthy investors.

Finally, it is also worth considering for investors who are after something long-term or those seeking diversification beyond bonds and stocks.

How Does Fundrise Work?

To start investing with Fundrise, you first need to sign up for an account. Here is how to sign up on the Fundrise Platform:

  • To create an account, click on the “Invest Now” option and provide the necessary information, such as your full name, email address, preferred password.
  • Next, choose your preferred type of account, whether an individual account or joint/trust/entity account.
  • You will be then be asked to fill in your other details like your date of birth, phone number, and home address.
  • Next, you will be asked to choose your funding option. Fundrise provides online payment options through debit/credit cards, EFT, or wire transfers.

After signing up and picking an account, Fundrise will invest your money in its allocated products like the eREITS and eFunds, depending on your investment needs.

The eREITS or real estate investment funds focus on investing in income-producing real estate through holding mortgages or buying and managing buildings.

The other product is eFunds, which generally involves purchasing land, developing housing, and then selling to home buyers using investor’s pooled money. Unlike REITs, eFunds focuses more on growth rather than on income.

For both products, payouts can be made in two ways: quarterly dividend distributions and appreciation in the asset value at the end of its investment term.

Key features of Fundrise

  1. Low Investment Minimums

One feature that makes Fundrise stand out is its low investment minimum of only $500. This makes it an excellent choice for those on a tight budget who still want to get into private real estate investments.

  1. Easy-To-Use Platform

The Fundrise investment platform is also straightforward and easy to use. Since this platform is designed for individual non-credited investors, signing up is easy and only takes around 10 minutes.

To create an account, you just need to provide the necessary details, the type of account you want to create, and your preferred payment method.

  1. Customer Support

Fundrise also offers excellent customer service to cater to the needs of investors and real estate developers. When you scroll through their webpage, you will come across valuable guides and CRSs to help you reach them.

However, the company insists more on email support than phone or live chat, which can be frustrating when you need immediate help.

  1. Redemption Program

Fundrise also provides investors with a redemption program that lets them sell their shares back to Fundrise. However, this entails a fee that’s paid into the eFund or eREIT.

Nonetheless, the said fee for redeeming shares is usually calculated as a reduction from the price value of your shares.

Here is a summary of the fees, depending on how long the shares are held:

  • 0% fee if the shares are held within 90 days
  • 3% if held between 90 days and three years
  • 2% if held between 3 years and four years
  • 1% if held between 4 years and five years

Shares held for five years or more do not entail payment of a share-price reduction fee. Also, the redemption program is exempted during times of extreme economic uncertainties.

  1. Interval Fund

This is another product offered by Fundrise that provides greater diversification and liquidity than eREITS and eFunds. In addition, because it is very liquid, it gives investors access to their money quarterly without suffering from penalties.

Other than the benefit of being more liquid, this fund is also significantly larger than the other Fundrise funds and accommodates more assets. That means that it provides more diversification for investors.

Flexible-Funrise-minimums

What Is Fundrise’s Minimum Investment?

Fundrise stands out from other crowdfunding platforms because it provides several account levels with varying investment minimums. This means that investors have different real estate deals to invest in instead of just an individual option.

Also, Fundrise, when compared to most private real estate investments, boasts of low and flexible investment minimums that allow investors to place the right investment amount to meet their goals.

Here is a summary of the different account levels and their minimum investments.

  • Starter Plan

The minimum investment for the starter account level is $500. This is a good choice for investors that want to test Fundrise’s investment options before fully committing.

  • Basic Plan

You will need to invest a minimum of $1,000 for the Basic Plan. However, with this plan, investors get all the essential options available, such as investor goals, IRA investment, dividend reinvestment, and auto-invest.

  • Core Plan

The Core Plan requires a minimum investment of $5,000. Investors that choose this plan get the ability to customize their core plans. In addition, it also allows investors to choose what they want to focus on, whether to increase their long-term growth, get consistent cash flow, or focus on a balanced approach.

  • Advanced Level

For this plan, investors need to pay a minimum of $10,000. However, when you choose this option, you will get the ability to add more offerings to your investment portfolio.

  • Premium

This plan has a minimum investment of $100,000. It offers access to private funds that provide better opportunities for significant returns.

What Are the Investment Styles Offered by Fundrise?

When you invest $1,000, you will be upgraded to the Core portfolio, where you can choose from three plans. They include the following:

  1. Supplemental Income

This plan focuses on revenue, and the approach is to invest in cash flow. You will then get returns through dividends.

  1. Long-Term Growth

As the name suggests, this program is growth-oriented. It involves investing in real estate that is undervalued and then improving it before selling.

As a result, most of the returns from this strategy are from asset appreciation, while a small portion is from cash flow or dividend payments.

  1. Balanced Investing

This is a diversified portfolio that combines both income and growth. Investors can invest in cash flow-generating property to earn dividends and purchase undervalued property to earn from asset appreciation in this plan.

Fees

Fundrise charges a 0.85% asset management annual fee to cater to the ongoing expenses involved with running the portfolios. In addition, investors also need to pay an advisory fee of 0.15%, which adds up to a total of 0.1% in fees.

The advisory fee goes towards compensating for the money and time, and the company has invested in creating its platform. Moreover, this fee supports services like fund administration, customer support, asset rebalancing, composite tax management, and more.

However, you should note that this fee can be waived based on the current circumstances. Additionally, something else to note is that the 1% fee lowers your dividend and not your account’s balance. Lastly, Fundrise can also charge other fees.

What Is the Procedure for Redeeming Fundrise Shares?

To redeem your Fundrise shares, you will be required to send a redemption request through the platform’s account settings.

After submitting your request, you may need to wait for about 60 days before you can start getting liquidity monthly. Additionally, this will entail a penalty fee of about 3% for every redemption value.

What Are the Risks?

Unlike other platforms, investments in Fundrise are passive, which means that investors need to give up control over their investments. Also, Fundrise investments, especially those that have higher returns, come with some risks.

Just like investing in the stock market, there is a possibility of losing money in your investments. However, the risks are considerably lower when you invest in the starter account level.

Additionally, something else to note is that their dividends are non-qualified. This means that they are taxed like ordinary income, requiring investors to pay for the extra tax.

Another downside of this platform is that it is a long-term investment. Therefore, after investing your money, you may only access it after five years without incurring penalty fees.

Final Verdict: Is It a Good Idea to Invest with Fundrise?

Generally, Fundrise is a good option if you are looking to diversify your investments. It is also the preferred investment platform for those with low savings. However, if you have a tight budget but still want a long-term commitment or a liquid investment, investing in REITs would be worth considering.

Ultimately, Fundrise is a private Real Estate Investment Trust that is easy to use, has low minimums, low risks, and a reasonable rate of return.

Additionally, it is entirely passive and provides an opportunity for anyone to get into real estate investing. Nonetheless, you should note that it will tie your money down for a long time.

Invest on Fundrise

Moneyfarm Review 2021 – A Top Investment Platform for UK Investors

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Open a Moneyfarm account

In the current financial landscape, identifying the right investments for your risk profile can be a complicated process. After all, there are dozens of asset classes and thousands of financial instruments at your disposal. In addition, obtaining professional advice can be somewhat expensive.

Moneyfarm was designed to help you discover a smart and simple way to invest.

In this review, I am going to talk about Moneyfarm from top to bottom. On top of covering how the platform works, I’ll also explore what its charges are and how you can use the provider to benefit from its diversified investment products.

Moneyfarm – An Overview

MoneyFarm is a digital wealth manager that is now based in London. The platform was first founded in 2011 in Italy in order to offer savings management services post the 2008 financial crisis. After its initial successful years, the company opened its UK branch – receiving authorization from the Financial Conduct Authority (FCA) along the way.

Today, the company has emerged as a pan-European digital investment manager with over £1 billion worth of assets going through the platform. Moneyfarm aims to offer you active management tools for your investment funds. Meaning, the platform will build you a diversified portfolio based on your unique financial goals and change it according to your evolving needs.

moneyfarm returns

In addition, the Moneyfarm team will make adjustments to your portfolio based on the current shape of the wider financial markets. In order to achieve this, the platform requires you to complete a survey when you join the platform. The data collected will be used to gauge your risk appetite and then develop a portfolio that matches your profile.

You can then choose to invest a lump sum amount or set up monthly contributions. Once you have activated your profile, the in-house team at MoneyFarm will professionally manage your portfolio and rebalance it as and when required.

How Moneyfarm Works

MoneyFarm has a total of seven pre-designed portfolios that are actively managed by its investment experts. These are defined based on the risks involved – from level one to seven.

Each portfolio is made up of Exchange Traded Funds (ETFs) from market-leading providers. You can see the performance of each ETF in great detail directly on the website, including the investment strategies used by MoneyFarm to make financial decisions.

Notably, the one thing common across all the different portfolios is that each one is heavily diversified. This is to save you from excess volatility and thus – ensure that you are not overexposed to a single marketplace.

In order to get started with MoneyFarm, you will have to complete the following steps:

Step 1: Build your Investor Profile

After creating your account by providing your email address and password, you will be required to complete a short survey. This includes some simple questions such as the range of your income, your risk tolerance, and your attitude towards investing.

Note that you will always have the option to change your priorities at any point in time – even after you have already invested. The team at Moneyfarm will then make the required adjustments in your portfolio to meet your current needs.

Step 2: Invest in your Matching Portfolio

Once you complete the questionnaire, Moneyfarm will point out which type of portfolio will be most suited to your investing style. As I mentioned before, MoneyFarm has seven globally diversified portfolios – each containing a handpicked mix of ETFs.

The platform will then recommend a portfolio that is perfectly matched to you. You will also be given two additional options so that you can decide if you want to adjust your priorities. At this stage, you can select a portfolio and make the investment.

Moneyfarm allows you to fund your account using bank transfer and Direct Debit. Crucially, if you already have other investments, Moneyfarm can actually help you consolidate them on the platform. This service allows you to transfer any ISAs and pension funds you might have already invested in with other providers.

This will make it easier for you to keep track of your investments while lowering your overall costs. Moreover, this service is provided for free on Moneyfarm.

Step 3: Benefit from Active Management

Once you have funded your portfolio, your money will automatically be put to work as per the ETF investment choices outlined to you. Depending on continuous market analysis and performance tracking, the team at MoneyFarm will actively manage the entire process for you.

In addition, you will also have access to a dedicated Moneyfarm investment consultant who will be at your disposal if you have any questions at all.

Moneyfarm Investment Products

At the moment, MoneyFarm offers three financial products that will comprise your portfolio. You can choose to invest in one or diversify based on your investment approach.

Stocks and Shares ISA

For those unaware, the term ISA is used to describe an Individual Savings Account – a tax-free account in the UK that allows you to invest and save money. There are different types of ISAs available in the financial market, and the right one for your portfolio will depend on your specific needs and current circumstances.

moneyfarm plans

As you can imagine, Stocks and Shares ISAs allow you to invest in a variety of traditional assets like shares, trusts, and bonds. It can be one of the best ways for you to grow your money over the long term in a tax-efficient manner.

That said, when you invest in ISAs – the only condition is that you can put up only up to £20,000 per year. This can also vary depending on UK government regulations.

Moneyfarm Pensions

Investing in Moneyfarm Pensions is another way to secure your future while claiming tax relief. Depending on your tax status, you can instantly claim up to a 25% boost. You can plan the Pension portfolio based on when you are aiming to retire.

The Moneyfarm team will manage your portfolio to maximize the returns for the target date while reducing the risk as retirement approaches. From the age of 55, you will have the option to withdraw up to 25% of your pension on a tax-free basis.

Moneyfarm also offers the flexibility of investing in a pension fund by yourself or setting up employer contributions. You can also transfer pensions from other accounts, including from SIPPs and workplace schemes – as long as you haven’t started collecting the income from them.

General Investment Accounts

If you want to look past ISAs and pension funds, then that is where the true power of Moneyfarm lies. As I mentioned earlier, the platform will allow you to choose from one of its pre-defined portfolios based on your risk appetite. You can choose to make a single investment or set up direct debits from your bank account.

Moneyfarm Minimum Investments

With Moneyfarm, you will need to make a minimum investment of £5,000. Alternatively, you can also choose to invest £1,500 first and pay the rest through direct debits each month.

Now, if you are wondering why they need that level of money – it is primarily because the platform is trying to build you a fully diversified portfolio with active management.

How Moneyfarm Manages Portfolios?

As an investor, one of your prime concerns might be what the investment strategy of Moneyfarm is. In order to answer your concerns, Moneyfarm is completely transparent regarding the guidance it offers. According to the website, each Moneyfarm portfolio is made of liquid investments spread across global equities, corporate bonds, and commodities.

Every financial decision the team makes is based on research and data gathered from quantitative techniques and qualitative judgment. In addition, the team also takes into account the volatility of each asset and how any political or economic developments might affect its market. To facilitate transparency – the platform clearly presents a breakdown of each of its portfolios, based on the percentage of your funds allocated to which financial instrument.

moneyfarm portfolios

You can also review the returns available from each option. This will include the annual returns, an all-time average, and its competitors’ equivalent. You can also analyze the performance of portfolios based on any specific period of time. Moreover, Moneyfarm also gives you access to its previous years’ earnings reports so that you can compare them to other financial platforms and make your own decision.

At this point, it is crucial to remember that Moneyfarm is actually making you a recommendation. Now, compared to the other financial advisor platforms, this makes Moneyfarm unique. As the platform is regulated by the FCA, it has to strictly follow regulatory guidelines before suggesting any investment plans to you.

Moneyfarm Pricing

In terms of the costs associated with Moneyfarm – the platform charges only charges a single monthly fee. This will depend on the amount you are investing. In order to give you a better understanding, this fee is based on two different charges.

One is the management fee, which covers the cost of actively managing your assets. And the second is based on the market rates of your chosen investment. For instance, when you invest in ETFs, you will be required to pay a fund fee as well as a market spread.

According to Moneyfarm, its fee structure is broadly classified into four categories:

  • Up to £10,000 – 0.75%
  • From £10,000 to £50,000 – 0.60%
  • From £50,000 to £100,000 – 0.50%
  • Above £100,000 – 0.35%

As you can see, the higher your investment amount, the lower the fees. If you need a more accurate list of charges, Moneyfarm also has a fee simulator. This will offer you the exact fees involved with your specific investment amount.

Moneyfarm Customer Service

Perhaps the most important aspect that sets Moneyfarm apart from its competitors is its customer service. Although almost all financial platforms allow you to access support, not many offer you the chance to speak to an expert who can actually offer you financial guidance.

Now, as I mentioned earlier, Moneyfarm has dedicated financial consultants that can offer you more information on your investments and how you can maximize your returns. You can fix an appointment with an advisor by selecting a convenient date and time through the platform.

moneyfarm customer support

Alternatively, you can also connect with the service team through live chat or email. This feature can be crucial if you are a beginner in the financial space that is seeking help to make an investment decision. This demonstrates that Moneyfarm is entirely different from the typical robo-advisers you will commonly find these days.

In addition, the platform also has an extensive set of guides and ebooks that can help you with investment choices, no matter your experience. Moneyfarm also has a mobile app through which you can assess all its features and contact customer support with ease.

Moneyfarm Security

Needless to say, when considering this financial platform, it is crucial to analyze the security and safety features offered. And as it goes, Moneyfarm has advertised prominently on its website that it is regulated by the FCA, and you are also covered by up to £85,000 via the UK’s FSCS.

In fact, Moneyfarm makes it clear that all your personal capital is deposited and protected by Saxo Bank, a Danish investment bank with operations in 180 countries around the world. This implies that your funds are safe in a separate client money account, with a reference unique to you.

Put otherwise, if the worst happened and Moneyfarm goes out of the business, then you can rest assured that your deposits are secure under this scheme.

Moneyfarm – The Verdict?

Moneyfarm is best suited for those who do not have sufficient time to research the markets regularly and make informed investment decisions. This platform allows you to invest your money without the hassle of having to pick assets or monitor things by yourself.

As Moneyfarm offers active management, you can be sure that during a market downturn, your portfolio will be automatically adjusted in order to minimize potential losses. Moreover, the advantage of direct access to an expert financial consultant is not a feature that is commonly available across financial platforms today.

For the charges you pay, what Moneyfarm offers is potentially worth considering. All in all, if you want to allocate money knowing that it will be in the hands of an experienced financial advisor, then there is no reason why Moneyfarm cannot be your go-to investment platform.

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Nebeus Review 2021 – A Crypto-backed Loans Platform

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Earn rewards for renting

What is Nebeus?

Nebeus is a London & Barcelona-based fintech start-up company founded in 2014 by Sergey Romanovskiy. Their primary focus is to provide crypto asset-collateralized loans by integrating margin calls, health monitors, and volatility alerts. This unique platform aims to help bridge the gap between fiat and crypto with a wallet that allows you to earn, borrow, exchange, send or receive cash and crypto.

Some of the other features of Nebeus include:

  • Make deposits and cash withdrawals at physical locations.
  • International cash transfers to over 150 countries worldwide.
  • Mobile phone top-ups on more than 500 mobile phone operators around the world.

They have also recently entered into a partnership with Railsbank and will soon provide users with their own Nebeus Mastercard to make purchases in everyday life.

Where is Nebeus Based?

At first glance, their website states, “The platform is developed and managed by Rintral Trading SL, Carrer de la Ciutat de Granada, 150, 08018, Barcelona, Spain.” and are registered in the Commercial Registry of Spain.

Although founded in 2014, they do not have a large social media following or many reviews from the public to date. However, they did a recent crowdfunding event on the “Seedrs” platform where 248 investors joined the campaign. Their funding was also match approved by the British Government’s “Future Fund,” resulting in a total of €995K raised. Allowing Nebeus to win the global award for “Digital Lending Innovation” in the Finance Monthly Fintech Awards 2021.

The Nebeus website offers English, Spanish and German translations. The English translation is not perfect and they have a few spelling errors here and there (which were promptly corrected when I pointed them out), but their blog posts are clear, educational, and easy to understand.

I felt as though the overall website user experience was a bit misleading. Many of the links I clicked on redirected me to the sign-up page to open an account instead of providing me with more information about the option stated on the link as I would have expected.

About Nebeus

Their “about us” page could use some improvement. Although it mentions their past and future, it does not include any information about the employees or company registration. I was not able to find a clear link to this page on the homepage, but it came up when I searched through Google.

Nebeus comply with all UK and EU regulations, and they are planning to obtain an EMI license in 2021 to improve the services they can offer.

By 2020 Nebeus had more than 60,000 users already. They currently provide options for you to make cash transfers to more than 150 countries and offer mobile top-up with more than 500 mobile phone operators supported around the world. They have made it possible for you to transfer and deposit money at more than 230,000 retail locations & post offices.

On Nebeus, you can add funds using any Visa or Mastercard, and your funds are instantly credited to your account. Soon you will also be able to use your Nebeus Mastercard to make payments.

Opening a Nebeus Account

Opening a Nebeus account is quick and can be done by providing your Name, Surname, Email, Password, and Country. They support a large variety of countries that other platforms often exclude.

Currently, you can use your account without completing the verification process. The only option that is not available without verifying your identity is to transfer Fiat from your Nebeus account.

They have an easy automated KYC verification process. Once you have created your account, click on the profile icon top right and then click on “get verified,” where Nebeus will guide you to add your phone number and verify it with a pin code. Next, you will be required to go through an identity verification process where you are asked to take a selfie and a picture of your original document. Lastly, you need to provide your proof of address to verify it.

Once your account is verified, Nebeus will notify you via email. The entire verification takes around 24 hours to process and once completed, you will be able to use your account with all of its features.

Deposits

Nebeus offers a great variety of payment channels:

  • Deposit directly from your Visa or MasterCard charged at 2.90% per transaction – this is the standard rate of most other platforms.
  • Deposit cash at a Cash Collection Point near you for a fee of 6.50% to add or send funds – this option is great for those who do not have access to the other methods, and although it is a little higher in terms of fees, it still provides an option that would otherwise not be available.
  • They also accept free SEPA deposits, and to send it is 7 € or 1% fee.
  • Supercharged Wire Transfer for free – another great option that shows they are trying to accommodate as many people as possible.

Exchange

Nebeus makes it easy for you to add fiat and exchange it to crypto such as BTC or ETH within your account. Recently they launched deposits of USDC and USDT too. They also provide the option to exchange crypto for Euros, US Dollars, or British Pounds.

You can buy crypto by sending a wire transfer in Euros or transfer money via your bank account. These funds are then converted into crypto and deposited into your Wallet within one business day.

Nebeus charges a fee of up to 0.35% when you buy or sell cryptocurrency.

In June, they added two stablecoins, namely Tether (USDT) & USD Coin (USDC), and integrated both coins into some of their services, enabling you to:

  • Buy, sell, and exchange stablecoins with crypto and fiat.
  • Get crypto-backed loans in stablecoins.
  • Top-up your mobile phone using stablecoins.
  • Send or receive stablecoins to and from any other digital wallet.
  • Withdraw stablecoins directly to your MasterCard.
  • Send stablecoins to any other Nebeus user for free.

Borrow

As crypto has started to become a much better alternative store of value and investment option, it only makes us wonder about other ways to benefit from the crypto while holding it. This is where crypto-backed loans come in. It is a way to leverage your crypto and use it as collateral. Crypto-backed loans are an excellent option that allows you to use your loan to pay for your daily expenses without touching your crypto. Nebeus’ loans are pre-approved and insured.

Nebeus offers two options for borrowing.

  1. Quick Loans. These are instant, pre-approved loans that are offered directly from their treasury.
  2. Flexible loans. Fully customizable, where you can select your terms and borrow up to 80% of your crypto value.

How to Borrow?

Once you have opened your Nebeus account, you can get a loan in 3 steps:

  1. Transfer your crypto from any other wallet for free
  2. Choose the loan you would like to take out
  3. Get cash while still keeping your crypto

Fees

  • Quick Loans: 50% Loan-To-Value and 0% interest for three months.
  • Flexible Loans: up to 80% Loan-To-Value, interest rate, and borrow up to €250,000 for as long as 36 months.

The fees are pretty similar to the other prominent players in the lending space like YouHodler and BlockFi.

These are two of my other favorite crypto lending platforms to earn interest in your crypto and obtain loans by providing crypto as collateral.

Transfers

You can transfer to over 150 countries from your Nebeus account as long as your account is verified.

  • The minimum amount to send is 5€
  • The maximum amount you can send is 3500€ per transaction
  • The fee for transferring is 2.8%

Nebeus-crypto-renting

You can also use SEPA transfers/withdrawals for a fee of 1%, with a minimum of €7. Deposits with SEPA are free.

Rent

If you are not interested in borrowing, perhaps an option that might be interesting to you is the rent feature that Nebeus offers. Crypto renting is a way to rent your crypto to someone and get rewarded for it.

The two options at Nebeus are:

  • Juniper – Rent a minimum of 0.0025 BTC or 0.03 ETH for more than one month to earn 3.5% per year.
  • Sequoia – Rent a minimum of 0.12 BTC or 3 ETH for more than four months to earn 6.75% per year.

How to Insure Your Crypto?

Nebeus stores your crypto in their Nebeus Vault, a Class III bank-grade secure cold storage that is a disconnected device, making it safer from cyber attacks and insured up to $100M by Lloyds of London.

Insure-with-Nebeus

Nebeus provides two options insured by Lloyds of London in which you can protect your crypto against risk.

  • Single Insurance at 4€/month for one of your cryptocurrencies.
  • Full Insurance at 6,90€/month for your full vault.

Customer Support

There is no chat service available on Nebeus. When clicking on the help link, you are redirected to their knowledge base, and at the very bottom will find the link to submit a ticket. I have submitted a ticket to them; although I received a timely response, it came from a [email protected]…us.zohodesk.eu email address with the subject Re:[## 2662 ##], and this can be easily missed or disregarded as spam. Perhaps something to take note of when requiring support from them.

Status Page

On their website, they have a link to a status page that provides you with a live status of their systems, whether they are operational or not, as well as the downtime. Proving to be quite a thoughtful feature.

Verdict

Overall, I like that Nebeus have taken a simplified approach, and the platform is easy to use for everyday people. Nebeus offers a great one-solution platform that provides a secure wallet to store a combination of fiat and crypto, allowing you to send, withdraw, lend, borrow and earn.

Nebeus aims to create a financial world without boundaries between cash and crypto and be known as a trusted financial service worldwide. Using Nebeus is a great way to help you earn interest on your crypto without needing to sell any of it by implementing some form of lending.

Earn rewards for renting

Ledn Review 2021 – Earn Interest on Your Bitcoin Holdings

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Ledn - a better home for your digital assets

Earn interest on your Bitcoin

Cryptocurrencies are exponentially increasing in popularity. Since the epic rise of Bitcoin in 2017, cryptocurrencies caught the public eye. Serious investors began adding cryptocurrencies to their portfolios and exploring how to capitalise on their crypto investments.

From an insignificant start, crypto growth has been outstanding. There are now over 5,000 listed cryptocurrencies. In 2020, the combined cryptocurrencies had a market capitalisation of 193 billion US dollars. But, by the end of January 2021, the market capitalisation for cryptocurrencies was over 1 trillion US dollars.

Over the past few years, there’s been a growing number of online crypto lending providers where you can make the most of your cryptocurrencies. Ledn is one example of a digital financial platform allowing you to maximise your Bitcoin holdings by expanding how you can use Bitcoin for profits.

If you are holding Bitcoin, you may want to know how to get the most out of it. In the past, the only way to profit from Bitcoin was to sell it at a higher price than you bought it.

With Ledn, you can now earn interest on your Bitcoin and even access a loan against your holdings. You can also create a passive income stream with your Bitcoin. And you can increase your portfolio by buying more crypto assets.

Adam Reeds and Mauricio Di Bartolomeo founded Ledn in August 2018. They set out to build a world-class financial product platform with industry-leading rates to help people save on digital assets.

Their headquarters are in Toronto, Canada. They provide a global service through Bitcoin and digital assets.

In this review, I provide an in-depth analysis of the financial products available with Ledn. I will discuss the process of setting up an account with the Ledn platform so that you can start making passive income from your Bitcoin holdings or borrowing against the Bitcoin you currently own.

Remember that I also interviewed Ledn’s co-founder Mauricio on my podcast Mastermind.fm, so do check out that episode if you want to learn more about Ledn.

Ledn Products

Ledn products

Ledn has three flagship products –

  1. Bitcoin-backed dollar loans
  2. Bitcoin and USDC savings accounts
  3. Bitcoin balance doubling service (B2X)

I want to guide you through each of these carefully as it is very important to understand what each product consists of and where it can be most useful. We need to keep in mind that these are relatively new products in the finance space, and therefore utmost diligence is required before you use them.

I am personally very bullish on such services, but as with anything crypto, the first investment you should do is in your own education. That will prevent you from making bad decisions.

Without further ado, let’s dive in.

Bitcoin-Backed Dollar Loans

Bitcoin-backed dollar loans

Bitcoin-backed loans facilitate liquidity for investors who are hodling (buy and hold) their assets. It’s an efficient and fast service to use your Bitcoin as collateral and receive dollars without selling your Bitcoin.

Loan terms are twelve months, but you can apply for an extension of the loan when the original loan term ends. The maximum LTV (maximum loan-to-value) ratio is 50%. So if you had $10,000 of Bitcoin as collateral for the loan, you could borrow up to $5,000.

On the Ledn website, you can access a Bitcoin-backed loan calculator. The minimum loan is $500.

You cannot pay off your Bitcoin-backed loan by installments. When you pay the loan, you are required to pay the total amount owing. There are no penalties for early repayment.

There are multiple benefits to Bitcoin backed loans –

  1. Your Bitcoin still belongs to you, and, as there is no sale, there are no taxable transactions. Most Bitcoin investors wish to hold long-term but want to access cash and build up their Bitcoin holdings. Once you pay the loan, your Bitcoin returns to you.
  2. Your Bitcoin is safe. Ledn uses BitGo, the world’s first qualified, purpose-built custodian for storing digital assets. BitGo has one of the most comprehensive industry insurance policies and has recently been acquired by Galaxy Digital in the industry’s first $1bn+ acquisition.
  3. Approval for Bitcoin-backed loans is fast, with funds available within 24 hours of approval from Ledn. There is no mandate for payment and no necessity for monthly installments. You can pay off your loan any time – with dollars or Bitcoin – without penalties.

How to Apply for a Bitcoin Backed Loan

It’s surprisingly simple to apply for a Bitcoin-backed loan. As you’d expect, you have to share your personal information to prove your identity. Ledn request the following four documents –

  1. A copy of a government-issued document such as a driving licence or passport
  2. An image of you holding the above
  3. Proof of address, such as a recent utility bill
  4. Your bank details

Subject to your documents being in order, the approval process is a matter of a few minutes.

What Happens if the Price of Bitcoin Drops?

Like all cryptocurrencies, Bitcoin is volatile. For instance, the Bitcoin price was $64k in May 2021 but promptly dropped to below $30k in less than a week.

Bitcoin is sensitive to media coverage by large investors.

Recently, the price of Bitcoin dropped 10% overnight, following a tweet by Elon Musk (owner of Tesla and a prominent investor of Bitcoin) regarding the energy-intensive resources of Bitcoin mining. He is concerned about the damage to the environment and consequently has removed Bitcoin payment options for vehicles until Bitcoin becomes less energy-dependant.

If a significant price drop like this occurs, Ledn asks you to add more collateral to your wallet or make an appropriate payment on the principal loan. If you fail to fulfill these requirements, Ledn has the right to sell part of your Bitcoin to meet the loan to value ratio levels. It’s similar to a margin call.

Therefore, before you consider a Bitcoin-backed loan, you must assess the risk for this potential scenario and have backup funds available if necessary.

If Bitcoin prices rise, you get to keep the gain in value, and the amount you owe for the loan does not change.

Bitcoin and USDC Savings Accounts

Ledn Savings Accounts

Interest with traditional banks for fiat currency is hardly worth considering. But, if you have Bitcoin holdings, Ledn offers high-interest savings accounts, which they can do through their collaboration with Genesis.

Genesis Capital offers high-level service to elite groups of institutions, offering the ability to buy large quantities of digital currencies such as Bitcoin and USDC.

In 2019, Genesis processed over $3.1 billion in digital asset loans and has the best processing standards for lending and reporting. Ledn savings accounts have such high interest because they lend Bitcoin to Genesis.

Interest on Bitcoin and USDC saving accounts is paid monthly by Ledn with compound interest.

The potential interest on a Ledn Bitcoin savings account could be as high as 6.10% APY (annual percentage yield) paid in Bitcoin.

Ledn rates

For USDC savings accounts, the potential interest is 11% APY and paid in USDC.

Note that these rates can change at any point due to market conditions.

Ledn complies with high standards of consumer protection and privacy and, as such, is incorporated under Canadian Federal Laws. Ledn provides a purpose-built, highly-qualified platform for digital assets storage and has undoubtedly one of the most comprehensive insurance policies for the crypto industry.

Note: the Canadian Deposit Insurance Corporation doesn’t cover USDC savings accounts. Nor are USDC savings accounts covered by any other deposit protection policies.

The Benefits of Bitcoin and USDC Savings Accounts

  1. There is no minimum balance requirement, and your investment is not locked in, meaning you can withdraw your funds at any time. The beauty of this is the availability to all investors, not just those with significant capital investment.
  2. Your savings aren’t affected by the traditional money market issues, such as market crashes etc.
  3. You earn compound interest, meaning your savings account grows exponentially. Your compound interest payout is monthly.

Should you wish to send Bitcoin or USDC to another Ledn account, the transaction is free.

For the USDC savings account, there is a $10 USDC fee for withdrawals. There are no fees to use the Bitcoin savings account. When you withdraw, the transaction fee on the Bitcoin blockchain deducts automatically, and this is equivalent to the mining fee. Ledn does not charge any extra fees on withdrawals apart from the mining fee that applies to any BTC transaction.

B2X: Bitcoin Balance Doubling Service

Ledn Bitcoin Backed Loans

If you want to make the most from your Bitcoin, B2X is a Ledn service that allows you to increase your Bitcoin holdings through a Ledn Bitcoin-backed loan purchase and an equal purchase of Bitcoin.

The concept is simple. You apply for a dollar loan and then purchase Bitcoin equal to the value of your current holdings. The result is, you have twice as much Bitcoin and a Bitcoin-backed loan.

Who would Benefit from B2X?

If you believe in the value of Bitcoin increasing over the coming years, B2X doubles your exposure, potentially doubling your Bitcoin gains. If you already have a Ledn Bitcoin savings account, you can use funds from that. The process takes less than a minute.

You can check the B2X calculator on Ledn’s website. There doesn’t appear to be a minimum requirement for transfer, although a Bitcoin-backed loan requires a minimum of $500 of Bitcoin.

What are the Risks of B2X?

As you know, Bitcoin is volatile. If the price rises, your gains increase, doubling your Bitcoin. But, if the price of Bitcoin falls, you’re exposed to double the risk.

Should the latter happen, the procedure is the same as a regular Bitcoin-backed loan. You are required to add funds or pay off some of the principal of the loan. And, Ledn has the right to sell some of your Bitcoin holdings if you fail to take either of the above actions.

B2X is for the investor who is not risk-averse and has the capital to back up a shortfall in the price of Bitcoin if needed.

A few countries have B2X service-related restrictions. These details may be subject to change, but the current (June 2021) list is below.

  • Iran
  • Libya
  • North Korea
  • Syria
  • United States
  • Africa
  • Uruguay

The product is thus not available in those countries at the moment.

How to Register for B2X and Repayment Process

It’s easy to access B2X by simply opening an account with Ledn and verifying your user profile.

You can deposit any amount you wish into your Bitcoin savings account to use for your B2X loan. After making your deposit, go to the B2X products page to make your selections

Repayment of your B2X loan is hassle-free because you can repay the loan at any time you wish without penalties, but Ledn payment requirements are to pay the loan in full with one payment. In addition, interest accrues daily, so the quicker you pay off the B2X loan, the less interest you pay.

Proof-of-Reserves Standards

Ledn Proof of Reserves

Before investing your Bitcoin in platforms like Ledn, the first question you should ask is if your investment will be safe. Ledn is the first to launch the Proof-of-Reserves standards initiated at the beginning of 2021.

Proof-of-Reserves allows Ledn to prove how much Bitcoin they could spend without exposing themselves to the risks of moving funds and without the need to generate a live transaction.

In short, Proof of Reserves means that Ledn is financially viable, with enough Bitcoin to support their platform.

Ledn assures their clients of Proof of Reserves Standards with their statement, “Ledn is the only digital asset lending company to have performed a Proof-of-Reserves attestation by an independent top-25 public accountant, Armanino LLP. As such, Ledn clients can take comfort that their bitcoin and USDC are being properly and accurately accounted for – to the satoshi, and to the cent, at all times.”

To check your Bitcoin assets are in the Proof of Reserves, log in to your Ledn account and look for the report’s details at the bottom of the page, where you will find a hashed ID and a link to Armanino LLP’s TrustExplorer website.

Enter your hashed ID to confirm your balance at the time of the Proof of Reserves attestation.

If you had assets on Ledn on 31st January 2021, you were automatically included in the Proof of Reserves attestation.

Ledn plans to conduct independent Proof of Reserves attestations every six months. Ledn clients will receive timely notifications.

Ledn Customer Service

Customer service feedback and support is essential as a measurement of what you might expect as a client of Ledn.

I’m a happy user myself, and all my support interactions were pleasant and timely. To be fair, I haven’t needed much help as I’m used to such products. So let’s take a look at the next best thing to gauge customer service levels – TrustPilot.

Ledn opened a TrustPilot account in October 2020, so it’s early days for feedback, in fact there were only 13 reviews at time of publishing.

Overall, the reviews for Ledn’s service and support is good. They have a TrustPilot score of four-star. Happy customers are delighted with their service and customer response. Notably, if a difficulty occurs, Ledn is quick to solve it, even if it’s a user error.

For instance, Ledn quickly resolved an account holder issue when a client couldn’t access his account. The client reported the efficiency and helpfulness of Ledn support staff.

Ledn’s TrustPilot score could be higher, but, reading the reviews, the customers who posted one-star reviews failed to grasp how Ledn works, such as thinking they were borrowing Bitcoin with a Bitcoin-backed loan.  As a result, they were upset when they received dollars but admitted they hadn’t clarified the details before requesting the loan.

This information is fully transparent to readers on the Ledn website. The negative reviews are unfair as they are due to user ineptitude rather than Ledn’s service.

I would recommend that Ledn’s customer service team keep tabs on their TrustPilot and respond to reviewers, especially those who had a perceived negative experience. This would enable other visitors to understand better what went wrong and be able to judge for themselves whether there is any valid concern with Ledn’s offering or not.

Is Ledn Secure?

Ledn is a security-centric platform, and they take the privacy of their clients seriously. They have two-factor login authentication and for specific actions on the platform when logged in.

The website has AES-256 website encryption. Ledn addresses all the layers that could possibly fall prey to security threats.

Ledn does not want to monetize client data. They offer a high level of client protection, so your data is not stored on Ledn local servers. Instead, your data is stored in private networks with strong security protocols.

What index does Ledn Use for Bitcoin Prices?

Ledn uses the  Coindesk Bitcoin price index to determine loan-to-value ratios for Ledn loans. Therefore, before investing your Bitcoin with Ledn, you can check the current Bitcoin price with Coindesk.

How do I Open a Ledn Account?

Opening an account with Ledn is easy.

To register for a Ledn account, click on join at the top of the page and enter your first and last name, email address and phone number. You then have immediate access to your account.

From that point, once you choose the desired service, you will need to provide proof of identity with the documents detailed on how to apply for a Bitcoin-backed loan earlier in the article. In addition, you may also have to provide your date of birth.

Ledn Alternatives

Ledn is one of the best options for a Bitcoin-specific loan or savings account. They are committed to Bitcoin and do not offer other crypto offerings. While this can be a negative point to some, I appreciate the fact that they are not going after the shiny (but less secure) crypto flavors of the day and focusing on Bitcoin. This allows them to focus all their energies on securing one cryptocurrency, which makes sense to me.

For other cryptocurrencies, my favourite crypto lending platforms are YouHodler and BlockFi.

Similarly to Ledn, you can earn interest on your crypto holdings with a savings account with YouHodler or BlockFi, or use your crypto as collateral for a loan. Thus, if you are HODLing other cryptocurrencies, YouHodler and BlockFi are also excellent platforms for making the most of your crypto holdings and generating a passive income.

BlockFi is a more conservative platform than YouHodler when it comes to cryptos and services offered, and so I believe they are more of a direct competitor with Ledn. I will therefore be doing a head-to-head review of the two services in order to determine which one is best for what.

I believe that all top platforms end up specialising in certain products or services, and therefore it’s important to understand that it’s not a winner-takes-all situation but rather a case of choosing the right platform for your needs. I personally use both BlockFi and Ledn, for example. One straightforward reason for using Ledn over BlockFi that I could mention is that rates on Ledn for Bitcoin deposits are significantly higher than BlockFi’s if you are depositing bigger sums of BTC. So if you only hold Bitcoin and have significant sums, it pays to use Ledn instead of BlockFi.

Of course, you could also play the hedging game and decide to split your holdings between 2 or 3 platforms to protect against the unlikely case of one of these platforms having problems in the future.

Ledn Review – The Verdict?

Ledn is a robust and secure platform where you can maximise your Bitcoin holdings, earn more Bitcoin or secure a loan against your Bitcoin without selling it.

With crypto industry experts predicting that Bitcoin could one day hit $500,000 or more, a platform such as Ledn is a superb way to build your Bitcoin holdings from earning interest or doubling up your Bitcoin with the B2X.

Ledn’s fees are low, but their security is high, and they have insured custody from industry leader BitGo and the backing of Genesis Capital.

Ledn is one of the leading Bitcoin lending services available today. Regardless, when investing your assets with any third-party services, you should always perform due diligence and proceed with caution.

You can access Ledn services via the website or by downloading the Ledn app from the Google Play store or Apple’s App Store.

Whilst I have described every aspect of Ledn in this guide, always check the current details on the Ledn website.

Open a Ledn account

Please note that the above information is not providing advice on tax, investment, or financial services. I offer the above information without consideration for risk tolerance and a specific investor’s financial circumstances.

Trading or investing in Bitcoin may not be suitable for all investors. It does involve risk and the possibility of a loss of capital.

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Jean Galea

Investor | Dad | Global Citizen | Athlete.