When YouHodler announced the release of a new feature this week, we here at NewsBTC knew there would be one question on everyone’s mind. What is a “Multi HODL” and why should anyone care? Thankfully, the CEO of YouHodler, Ilya Volkov is here right now to clear up any questions and teach us a thing or two about risk management, asset diversification, and crypto multiplication.
NewsBTC (NBTC): Thank you so much for joining us today and congratulations on the new feature.
Ilya Volkov (IV): Yes, thank you for having me as well. We’re really excited to present this new feature for you.
NBTC: Let’s get right to it then! So before we get to the main question on everyone’s mind, can you tell us about the inspiration for this new feature?
IV: Absolutely. So, I am a pretty avid reader of Nicholas Nassim Taleb. He is a well-known essayist, investor, trader, philosopher and statistician who has unique thoughts on probability, finance, and uncertainty. I highly recommend his material. Anyway, one of the key investment strategies Taleb talks about is the Barbell Strategy.
In a nutshell, this strategy consists of making sure you have the majority of your capital (e.g. 80%) in safe, risk-free assets. Then, taking the other 10-20%, you would use this amount for high-risk investments with the potential for high profit. It’s a balancing act to guarantee the majority of your portfolio is safe and healthy but leaving yourself a little wiggle room for adventure.
On YouHodler, we already had one part of this equation in crypto savings accounts so now, Multi HODL is the second piece of the puzzle.
NBTC: Yes, I see you have BTC, BNB and stablecoin savings accounts with interest rates up to 12% per annum correct?
IV: Yes, that is correct. Our savings accounts have been quite successful but we wanted to inspire our users to utilize savings accounts while simultaneously taking some amount to use on the platform and hopefully profit from it. That is where Multi HODL comes in.
NBTC: So what exactly is a Multi HODL? This is definitely a new term for the crypto world.
IV: Multi HODL is the name of our new feature but it’s more than that. It’s a state of mind. When choosing to use Multi HODL, users can take 20% of their assets from a risk-free wallet or savings account and use it to initiate a chain of loans to multiply their crypto.
NBTC: What’s a chain of loans?
IV: Let me give you an example. Let’s say you have 1 BTC that you want to multiply. On YouHodler, you can use this 1 BTC as collateral for a loan. Then, using those funds, you buy more crypto to use as collateral for yet another loan. This is the second loan in the chain. We have an automated feature called “Turbocharge” that does a chain of loans up to ten times, multiplying your crypto in the process.
Later, when the market goes up, the value of your crypto will rise and cover all interest fees on the platform. So in the case of Multi HODL, users can take funds from their savings account or wallet, choose which crypto they want to “Turbocharge” and then start the automatic chain of loans.
NBTC: So how is this different than your Turbocharge feature?
IV: Great question! With Multi HODL, users actually can boost their savings while simultaneously earning daily interest from their savings account. Furthermore, users can set their desired risk level.
With our “Take Profit” feature, users can pick a point at which the position is closed and an acceptable level of risk. Users can never lose more than they set with Multi HODL. In the event of crypto price growth during the event, then the value of your coin will multiply and all profit is deposited directly into your account. In case the price declines, then you get your initial deposit back minus the factual loss.
To put it this way, it’s like taking 20% of your crypto portfolio to make small, incremental bets on the crypto market and you can decide how risky or how safe those bets are. Meanwhile, the other 80% of your portfolio is growing at a guaranteed rate in YouHodler saving accounts.
NBTC: Fascinating! So it’s like a new way to “HODL proactively” if I may say?
IV: Yes, that’s a good way to look at it. The current crypto market is one that’s conditioned to HODL. There is nothing wrong with being a HODLer but there are opportunities to be a more active HODLer than a passive HODLer. YouHodler’s crypto-backed loans, “Turbo Loans” and now, Multi HODL are all ways to help our users make their crypto work for them.
As the Barbell Strategy implies, a healthy investment plan is one with smart, balanced risks. Without risk, it is much harder to profit greatly. This new feature gives the best of both worlds. Users get the safety and guaranteed growth and a new option to play the market and hopefully benefit from it.
NBTC: Thank you so much for your time and again, congratulations on the innovative feature. Is this available for all to use?
IV: Currently, we don’t accept clients from the USA. Bangladesh, China, Iraq or Pakistan. But for all others in the world, Multi HODL is easy to use and available now. Just go to YouHodler.com, sign up and get started.
NBTC: Sounds good! Thank you, Mr. Volkov, and have a great day.
IV: Yes, thank you very much and you too!