BlockFi vs Celsius: Which Is Best Crypto Lending Platform In 2022

BlockFi vs Celsius: Which Is Best For Crypto Loans

BlockFi vs Celsius: Which Is Best Crypto Lending Platform In 2022

Table of Contents

Crypto exchanges have been at their highs for quite some time. Traders are willing to invest in these coins with different motives—the article analyzes crypto lending space, interest accounts, and earning interest with Blockfi vs Celsius.

The first is currently in the crypto finance space, where crypto investors have the option to borrow, lend or purchase. Also, it is possible to make side-by-side comparisons between Celsius and blocks.

Both have features that support you in investing. Readers can get a detailed Celsius network vs. Blockfi review to decide the best. So, let’s start with Blockfi vs Celsius network comparisons.

What Are Crypto Lending Platforms?

The crypto lending platform lends cryptos to potential borrowers at set interest rates. The amount of borrowing returns is used to pay users who have deposited funds in the lock.

The rate of interest is chargeable annually. Many centralised and decentralised exchanges use it to generate passive income. Also, it involves some commission for the lender helping traders out.

Although some companies charge commissions to make more cash out of it, Crypto lending is a centralised institution with complete control of your crypto assets.

What is BlockFi?

Blockfi is the crypto lending platform available online. The platform began lending its services in 2017. The company mainly operates the crypto lending business but also carries out other crypto-related activities.

It serves private and institutional clients globally. The Blockfi operation system has the same functions as our banking systems.

BIAs – This program aims to increase revenue for the users. During the month, a user earns an average of 1.3% of the value of a bitcoin account.

What is Celsius?

Celsius is another crypto-lending platform that offers easy methods of trading. Similarly, it gives lenders more freedom of borrowing with fewer collateral costs. Traders can easily deposit and withdraw funds for free. 

The platform allows users to borrow dollars at a rate of 1% and earn up to 10% interest on crypto deposits.

We observe that both Blockfi / Celsius interest rates are considerably higher than our central bank’s offer. While they both share similar crypto lending features, they also have great differences. 

Difference Between Blockfi vs Celsius Network

Category

Blockfi

Celsius

Founded 2017 2017
Minimum deposit  $1 $1
Deposits  Crypto or USD Crypto only 
Withdrawals  One free withdrawal per month Unlimited free withdrawals 
Withdrawal fees 0.00075 BTC, 0.02 ETH and 10 USD for stablecoins Zero
Insurance $200 M Gemini insurance $30 M Fireblocks insurance 
Safety  2FA, biometrics and whitelisted address HODL mode, 2FA, whitelisting and biometrics (app only)
Interest rates (Depositors) BTC 0.1% to 3%, ETH 0.25% to 3% and LTC 0.1% to 3.5% BTC from 1% to 6.5%, ETH from 3.52% to 6%, LTC 1.75%
Coins  37+ cryptocurrencies and stablecoins 49+ cryptocurrencies and stablecoins 
Tokens None CEL token 


Is BlockFi vs Celsius Network Safer?

For both the crypto lending platforms safety of their clients is the priority. They outsource the custody of users’ crypto assets to third parties. The Celsius network provides security by BitGo.

In contrast, Blockfi offers security on the Gemini exchange platform. BitGo and Gemini are popular and reliable crypto platforms when it comes to security.

Celsius platform is a secure place to have an account to lend cryptos. Traders can lock their funds and data with a third party. On the other hand, Blockfi also has strong security. However, Blockfi was once hacked in 2020 but with no loss of client funds due to safety.

Gemini provides an insurance package that covers a hot wallet to store the data intact. In comparison, Celsius uses firewall coverage with a $30 million reach.

Blockfi vs Celsius: Features

Blockfi vs Celsius has many features for clients to make an easy investment. So we’ll be analysing them one by one for better understanding.

Quick Analysis:

Information

Celsius Network

Blockfi

Headquarters London, England  Jersey City, NJ, USA
Security High Medium
Beginner friendly Yes Yes
Highest interest rate  12% 8.6%
Lowest interest rate  0.7% 4.5%
Services Borrowing, Lending, Payments and Staking Interest accounts, Loans and Trading
Mobile app Yes Yes
Accepts fiat for crypto Yes Yes

Interest Rates

Blockfi vs Celsius interest rate is traders’ gain for lending their assets. Blockfi allows users to earn interest through Ethereum, Bitcoin, Stablecoins, and Uniswap. For example, Stablecoin allows users to earn up to a 7.5% annual interest rate. 

However, with other cryptos, traders can earn interest rates between 1% to 5%.

Celsius also offers a range of cryptos to earn interest. But the interest rates may vary in Blockfi vs Celsius. In Celsius, interest rates are a bit different. For Stablecoin, traders can have an interest rate of around 8.9%.

Other traditional coins offer interest rates ranging from 2% to 11%. The rate of interest depends on the asset trader lends. 

Interest rates are an essential part of lending crypto. Therefore, traders have to analyse them before deciding on the trading platform.

Comparing Savings and Interest Accounts

Blockfi and Celsius are both lending and borrowing platforms that offer interest accounts to trade cryptos. Blockfi uses a decreasing rate schedule in their interest rates for the crypto deposits.

Blockfi provides traders with interest-bearing crypto saving accounts. They deposit funds in the account to lend. On the lending amount, traders get interested. So, if the deposit is less the interest is less.

The best interest rates traders can have is with stablecoins.

The crypto lending platform supports 20 plus cryptocurrencies.

In contrast, the Celsius crypto interest account has similar rates to Blockfi. In addition, there is a certain Stablecoin with interest rates of 17%. 

The users of Celsius can earn high interest with the Celsius tokens interest payments.

Traders can increase the interest rate by 2% annually. As a result, the traders of Celsius have a more comprehensive selection of assets to deposit and earn interest with 32 crypto coins.

Most popular cryptocurrencies are available on both platforms. However, Blockfi users with less than $20,000 of stablecoins in the account have higher interest rates.

Celsius claims to provide high-interest rates for investors with a large amount above 1 BTC and 30 ETH.

Payouts and Withdrawals

Blockfi vs Celsius has many significant differences. One among them is the payouts and withdrawals. They have different charges and methods to execute the processes. At the same time, Celsius offers zero crypto withdrawal fees for the users.

It also provides no origination fees or withdrawal fees. Traders can withdraw funds as many times as they want. Also, it does not have a minimum withdrawal to adhere to.

But with Blockfi, it is different. Traders can only make one free crypto withdrawal per month. The withdrawal of funds is regardless of the Bitcoin amount the trader plans to withdraw. The lending crypto platform has limitations for traders.

The withdrawal fees depend on the asset traders are paying or withdrawing. The withdrawal fees for Blockfi depend on the coins.

In terms of paying out and withdrawal Celsius pays are better than Blockfi. It has zero deposit and withdrawal fees. However, Blockfi has a certain charge. 

Notable Features of Blockfi vs Celsius

There are many notable features of both lending platforms. Blockfi vs Celsius gives a detailed review of how they are different, and what their features are. 

Besides interest accounts, security, and withdrawals, traders can have social media like Twitter and Reddit. The FAQ’s traders can use to get their answers are a small yet vital part of the trading platforms.

Blockfi provides support teams for traders. Moreover, it is a user-friendly platform.

Celsius responds fast to social media queries. In addition, traders can learn with the educational facility of Celsius, which is less accessible with Blockfi. Also, it offers easy-to-use trading platforms. 

Blockfi vs Celsius: Crypto Backed Loan

Crypto-backed loans are the main difference between the two trading platforms. Blockfi only allows traders to borrow USD. 

It keeps the cryptos as collateral for borrowing. The minimum loan traders can have is $10,000 for twelve months.

Celsius allows traders to borrow cryptos along with fiat currency. Traders can have a minimum loan of $500 for six months.

However, the similarity is that traders have to deposit double cryptos. The cryptos deposit is according to the amount traders want to borrow.

In contrast to the value ratio, the loan value is lower; it has low-interest rates. The annual rate varies for Blockfi between 4.5% to 9.75%. In addition, it adds 2% origination fees.

In Celsius, the rate varies from 0.75% to 8.75%. However, it does not have any origination fees. In addition, if the trader decides to deposit Celsius tokens, they get better interest rates.

Considering the points, traders can use Celsius to have crypto-backed loans.

Blockfi vs Celsius: Fees

Blockfi and Celsius do not require the traders to pay any deposit fees. Therefore, traders can pay a minimum deposit as per their requirement and can invest as much as they want. Also, traders need not worry about the volume of the transactions.

However, Blockfi has certain charges for the crypto exchange withdrawal fees. Traders have to pay the following fees:

  • BTC: 0.00075 BTC
  • LTC: 0.001 LTC
  • BAT: 60 BAT
  • UNI: 2.5 UNI
  • PAXG: 0.035 PAXG
  • LINK: 2 LINK
  • ETH: 0.015 ETH
  • Stablecoins: $50

Traders can enjoy the benefit of trading fees with Celsius. It does not involve any fees.

Blockfi vs Celsius: Supported Countries & Fiat Currency

Bitcoin is regulated and widely available worldwide. Blockfi traders can invest in Bitcoin and have more than 23 coins to trade.

Celsius, on the other hand, accepts fiat currencies for purchasing cryptocurrency. Accepted countries include the USA, Europe, UK, Australia, Singapore, and Africa. 

The only prohibition is on countries on the United Nations sanctions lists.

Blockfi currently only accepts USD fiat deposits, whereas Celsius works with a third-party gateway for 19 currencies. They both offer crypto deposits, although countries that don’t offer fiat deposits can never deposit US currency to BlockFi.

Celsius supports more than 40 cryptocurrencies. Therefore, traders can invest in them to make suitable trading.

Blockfi vs Celsius: Security

Security is an essential factor that most traders want to address. Both the platforms offer top-notch services to the traders. Blockfi implements the guidelines of KYC. Traders must verify to sign up and upload their pictures with ID and other basic personal information.

Also, traders can have two-factor authentication to protect their accounts. Traders can even use the cold storage facility to secure their funds.

Celsius has been in the financial business for five years. It is never in the news for scams or hacking. 

Traders can have their funds stored in cold storage. In addition, they can have SSL encryption for data security, offering insurance without fees.

The security of user funds and data is high for Blockfi and Celsius traders.

Read more on Shrimpy Review

Blockfi vs Celsius: Customer Support

The customer support team is vital for easy trading. Blockfi supports contact numbers for active clients to connect with the team. Also, the users can have bot services by generating tickets to solve the issue.

At Celsius, customer support is in the form of their website contact form. Traders can fill it in and solve their queries. Other than this, there is no other facility for the clients.

Blockfi is much better at having the best customer support than Celsius.

Blockfi Credit Card vs. Celsius Credit Card

Blockfi provides crypto cards to pay bills and purchase goods and services. The Blockfi card is a standard credit card offer that makes up to 1.5% on each purchase. 

Users can decide what cryptos to use to receive rewards. Besides the Visa Signature card, the Visa Signature card does not charge any foreign transaction fees, no annual charges, or other benefits.

Celsius offers customers an easy credit card with cryptos. The credit card is  redeemable after completing an amount. Earn daily rewards for your crypto assets. The card will appear soon, but it is not there yet on the market.

Blockfi vs Celsius: Liquidity

Talking about liquidity, you can withdraw cryptocurrency anytime at traditional markets.

BlockFi reserves a 7-day processing period. So you could withdraw at any time in Celsius but remember that if you change your Whitelist withdrawal address in Celsius, this can only last 24hrs. This means that users cannot withdraw money from a community account.

How do BlockFi and Celsius make money?

Blockfi vs Celsius gives insight into the platforms and their operations. But how do traders make money from it? 

Blockfi or Celsius use no public disclosure breakdown. The breakdown i of the company’s lending strategies; this logic is to avoid the threat of competitors stealing their strategy.

BlockFi tends to be relatively conservative on institutional borrowers, risk management and credit assessments. 

Celsius follows a business model. It has certain expectations. The platform makes money from crypto-backed loans and lends assets to exchanges and DEFI protocols. In addition, Celsius also lends crypto to institutions and invests in mining facilities.

Besides, it uses the Rehypothecation strategy as the income source. It allows deploying of collateral of the Celsius borrowers.

BlockFi vs Celsius: Web and App Layout

Celsius and BlockFi offer mobile and web platforms for Android phones and tablets.

The two teams make a reasonable effort to build a user-friendly interface that is easy to understand and clean. In addition, Celsius invests considerable effort into its layout, which is very beautiful.

So both mobiles, as well as web platforms can be easily navigated with ease.

Conclusion 

Financial markets have a lot of crypto lending platforms, but not all are legitimate. 

Blockfi and Celsius are two trustworthy platforms. Traders can rely on Blockfi for cryptos, borrowing, savings accounts, and customer support.

At the same time, Celsius is suitable for traders requiring low trading fees and free withdrawals. In addition, traders can have several coins to trade with both and learn about the crypto lending platforms online.

Celsius network vs Blockfi gives a detailed review of the two lending exchanges. 

FAQ’s

Is Celsius the best crypto?

Celsius offers the lowest interest rates on cryptocurrency and credit cards. CelsiusNet is the largest cryptocurrency platform. The borrowers also get high earnings utilising borrowings from BTC to support technological and decentralised financial services projects.

Can I trust Blockfi with my money?

It provides a method for buying and selling cryptocurrencies but does not protect the securities. Instead, assets at Blockfi can be sourced from trusted guardians such as Gemini.

Is Blockfi high risk?

Blockfi is renowned for its high level of protection but offers crypto loans in periods of low volatility.

Which is better, Celsius or Blockfi?

Celsius is suitable for traders needing low trading fees and several features and coins. Blockfi, on the other hand, is suitable for traders requiring customer support and various coins to lend or borrow online.

Both have their services, and traders can choose the one that supports their trading goals.

What are BlockFi interest rates?

Blockfi charges 2% loan origination fees on crypto-backed loans. The interest rate starts from 4.50% to 9.75%. 

Is BlockFi centralized or decentralized?

Blockfi is a centralized exchange. Therefore, it involves a rigorous process of account setup. 

Blockfi vs Celsius, which is safer?

Blockfi and Celsius are both safe lending platforms. Traders can open an account with the suitable one.

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