There is a fundamental difference between Celsius and BlockFi: Celsius is an interest-bearing savings account, while BlockFi is a lending platform. The two are not mutually exclusive, however, and many Celsius users are also BlockFi customers. Celsius gives you a way to earn interest on your crypto holdings, while BlockFi offers a way to turn those crypto holdings into cash when you want to use them. So, which is the better option?
When it comes to ranking the best crypto currency interest accounts, BlockFi vs Celsius Network is usually the most popular direct comparison.
BlockFi and Celsius are the top crypto-currency interest accounts. Both are leading the way in decentralization* The big banks, arguably the most notorious gophers in the crypto-currency industry.
In the following guide, we’ll look at how BlockFi and Celsius compare, their different features, and ultimately which is the best crypto-currency interest account.
The red corner indicates degrees Celsius. The New York-based company is considered a pioneer in cryptocurrency lending and borrowing. The company has raised $93.8 million in venture capital, private equity and ICO funding for its proprietary CEL token. Celsius says it has nothing to do with BlockFi.
In the blue corner is BlockFi. The New Jersey-based company has received $508.7 million in venture capital from more than 30 investors.
* Both companies are centralized companies using decentralized assets, so they are CeFi Centralized Finance and not DeFi Decentralized Finance. BlockFi and Celsius take control of your crypto-currency storage. Interest accounts in cryptocurrencies should not be considered savings accounts, as they carry a unique set of risks – neither the principal nor the interest is guaranteed.
What does BlockFi have to do with Celsius? What is the best platform for you, dear reader? Where is your crypto-currency safest?
You can read a full breakdown of each platform in our review of BlockFi, our review of Celsius, our interviews (2018 and 2020) with Celsius CEO Alex Mashinsky, and an overview of the crypto-currency interest account industry.
Feature #1: Interest rates – BlockFi vs Celsius APY
Let’s start with the meat, the potatoes come later: How much money can BlockFi or Celsius bring you ?
BlockFi offers 5% on your 0.5 bitcoin, 2% from 0.5 to 20 BTC, then 0.5% on any amount above that.
Celsius offers 6.2% for the first 2 BTC, then 3.51%.
BlockFi offers 4.5% on your 15 Ethereum, 2% from 15 to 1,000 ETH, then 0.5% on any amount above that.
Celsius offers 5.5% for any amount in Ethereum.
BlockFi offers a fixed rate of 8.6% on popular stablecoins like USDC and CISD and 9.3% on USDT.
Celsius offers fixed 10% on all stable parts.
How do BlockFi and Celsius make money?
None of the platforms have yet made a fully transparent account of their lending strategies public, as they want to avoid the ever-present threat of competitors exploiting their strategies.
BlockFi tends to be quite conservative in its risk management and credit assessment of institutional borrowers such as Fidelity Digital Assets, a subsidiary of Fidelity Investments with over $8.7 trillion in assets under management .
In a 2019 blog post, CEO Alex Maszynski warned BlockFi customers that it might use venture capital money to support its interest rates; if venture capital money dries up, so will potential interest rates. Those words of caution have taken on much more weight in 2019, as BlockFi has raised only a fraction of its $508 million in total funding to date.
Celsius lends to cryptocurrency exchanges and hedge funds that want to borrow money, and distributes 80% of the profits directly to its own CEL token holders.
However, Celsius is different in that it appears to be about to make the jump to DeFi, which is an inherently riskier (and more profitable) strategy than simply acquiring a bank with loans.
Some DeFi projects can generate profits of 30% to 100%+ per year, but there have been several cases where DeFi projects have gone off the rails, either due to development errors, money theft or hacking.
The concept of the CeFi platform, similar to the way Celsius launches in DeFi, is interesting and perhaps too challenging for the limitations of the comparison hardware. In short, DeFi is risky and relatively more complex than borrowing on a centralized platform. If Celsius can earn higher interest (80% of which is shared with ELC holders) by minimizing losses (and fully converting losses into stable pennies or satoshi), it will be very well positioned to offer higher interest.
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So which is more important, how is the hot dog of cryptocurrency interest produced or how does it taste? We’ll leave it to you to decide which is more important, but our two satoshi: Consider all the risks involved in moving money and do your own research.
Ultimately, BlockFi is inherently less risky than Celsius, although it takes a more conservative approach to lending and seeking returns. However, BTC and ETH contributors to BlockFi may feel some frustration with the frequent rate caps and caps – the company has lowered both rates twice in 2021 due to changing market dynamics.
Celsius offers higher rates for larger amounts and a wider selection of cryptocurrencies. International users can even get an extra 2% on stable coins by using the Earn in CEL option.
If you completely decouple the notion of fund safety from the notion of betting, Celsius comes out on top versus BlockFi, averaging about 2% more interest for each digital asset.
This is not to say that Celsius is much riskier than BlockFi, but BlockFi clearly defended its lower prices with its safer fund management strategies, while Celsius mentioned its exploratory DeFi strategies.
feature #2: Deposits and withdrawals
BlockFi pays monthly, , and Celsius pays weekly.
BlockFi allows one free withdrawal of cryptocurrencies per month, Celsius has unlimited free withdrawals of cryptocurrencies.
Winner: Celsius pays out money more often and has no withdrawal restrictions.
feature #3: Security – Is BlockFi or Celsius Network more secure?
Celsius uses BitGo wallets with multiple signatures to protect users’ money. BitGo has a $100 million insurance policy that covers all of its customers.
BlockFi uses Gemini and BitGo as its primary custodians. Both Gemini and BitGo have private deposit insurance.
However, it should be noted that neither platform is fully protected by insurance. BlockFi, for example, reported having more than 265,000 retail customers – a $100 million insurance policy covers each account for $380.
In addition, neither BlockFi nor Celsius is covered by FDIC insurance.
Celsius has hinted at introducing private insurance for its users and we will keep you updated as soon as this is announced.
There is also talk of private third-party insurers covering cryptocurrency interests, which account for around 2.6% of profits, but we have yet to try any of these platforms.
Winner: Tomato, tomato (pronounce it differently in your head, please).
Both BlockFi and Celsius use similar precautions, and both face the same threats and risks as any other cryptocurrency company. Since none of its user fund platforms have been hacked, we don’t yet know how the company will transfer its users’ funds in the event of a hack.
If Celsius can offer its users private insurance as part of its platform, it will win.
Characteristic #4: Distinguishing characteristics
Celsius only works for mobile devices, might disappoint our readers who prefer to manage their crypto-currency accounts on desktop computers. BlockFi has a mobile application and a web application.
Celsius CEL native token rewards CEL holders with a proportionate share of 80% of the profits. Foreign users can also benefit from an annual return increase of about 2%, but this option is not available to U.S. users, who must earn in-kind.
BlockFi is gradually expanding its ecosystem beyond cryptocurrency lending and borrowing. The company’s most notable feature is its upcoming BlockFi credit card, which offers users a 1.5% return in bitcoins on all purchases.
Celsius offers competitive pricing on a much wider range ofequipment, including recent pioneers like Synthetix, Polygon, Polkadot, Aave and Compound.
Winner: You. With the ability to use multiple crypto-currency interest accounts, you can take advantage of the best of Blockfi and Celsius.
Court of public opinion: BlockFee vs. Celsius Reddit
Both BlockFi and Celsius have a strong following, and beyond platform maximalism and tribal tendencies, the comparison between the two crypto-currency account platforms is civil.
One of the most popular topics on r/BlockFi on Reddit is Blockfi vs Celsius, which reflects the debate well: Many users turn to Celsius because of higher interest rates, others prefer BlockFis, a more conservative approach to borrowing and investings . A large majority supports using both platforms.
Based on the voting results, it’s best to stick with a diversified allocation: the most stable coins on Celsius (if available in your state) and other cryptocurrencies you plan to hold in BlockFi for the long term.
Which crypto currency interest account is better, BlockFi or Celsius?
Celsius has a significant advantage over BlockFi in terms of interest rates, deposits and withdrawals.
Celsius offers higher rates on its stablecoin interest account, has better values and rates for Bitcoin and Ethereum.
The company aims to democratize finance and provide hundreds of millions of people with stable returns and custody of valuable assets. The company distributes 80% of its profits to CEL token holders and has created an active community of Celsius fans (over 16,000 on Telegram).
However, the scales are starting to tip in BlockFi’s favor, as the company has a venture capital fund and takes a more conservative approach to investing. While both companies have the best interests of their shareholders at heart, BlockFi is accountable to more than 30 well-known and reputable investors. BlockFi is currently in the Series D phase and is likely to head towards an IPO soon. The company must therefore be extremely careful with its various measures for the benefit of users.
Winner: You (still) if you play your cards right.
Final thoughts: BlockFee vs. Celsius? Why not both?
Disclaimer, this is not investment advice and all crypto currency interest accounts are risky, but here’s what you can do to get the most out of both platforms.
BlockFi and Celsius have one of the highest signup bonuses in the cryptocurrency account industry.
Celsius in the current promotion will give you $40 for a deposit of $400.
BlockFi signup bonuses depend on deposit amountif you deposit $25 you will receive $15 in BTC and if you deposit $20,000 or more you will receive $250.
This is how we would actWe would start by looking for free money, because it is free.
BlockFi offers a convenient ACH deposit option that instantly converts USD to CISD (Gemini Stablecoin) with no commission. You can make ACH deposits directly from fiat accounts and receive your bonus through this link, up to the $250 limit.
Then, and this may take thirty days as the introductory bonuses require you to hold your deposits for 30 days, you can transfer the minimum $400 to Celsius to receive the $40 bonus. Or you can just deposit BTC, ETH or any other asset. Try to send something with low network commissions (obviously, paying $120 for ETH gas to earn $40 is not the best play).
If you own cryptocurrencies and just want to transfer them to both platforms, you can do that too – you’ll get your bonuses faster. Be sure to double and triple check your shipping address.
Once both accounts are registered, we recommend that you diversify your ownership strategy. BlockFi’s rate drops significantly after 0.5 BTC (from 5% to 2%), while Celsius pays 6.2% at 2 BTC. We would allocate our BTC (and ETH) accordingly.
However, keep in mind that the 6% annual interest rate on BTC may be attractive enough to transfer your BTC to a custody platform, but may be less attractive with a 2% annual interest rate. Playing your crypto-currency interest accounts as best you can and keeping lesser amounts in cold boxes is smart management.
Stablecoin’s interest accounts on both platforms are within 1.4% of each other. If you want to earn interest on your stablecoins, we recommend you to split them between BlockFi and Celsius.
Ultimately, BlockFi and Celsius will continue to vie for leadership in the cryptocurrency interest account industry.
Having lowered its rates and levels twice in one year, BlockFi appears to have abandoned its attempts to compete with Celsius at the APY level, but still has a strong value proposition.
However, both platforms have one thing in common: they are trying to compete with the traditional financial sector and have managed to establish themselves as an alternative form of investment in a relatively new sector.
This source has been very much helpful in doing our research. Read more about celsius network vs blockfi vs nexo and let us know what you think.
Frequently Asked Questions
What is the best crypto interest account?
As interest rates continue to rise, more and more people will search for ways to earn interest on their hard-earned dollars. But, with so many different crypto interest accounts out there, how do you know which is the best? First, it’s important to remember that you shouldn’t invest any more than you are willing to lose. Also, remember that just like any other investment, the higher the risk, the higher the potential return. When looking at crypto interest accounts, one would think there are only two main competitors in the market right now: BlockFi and Celsius . While this is true, the two services offer very different products. BlockFi is a lending company that offers high-interest accounts, while Celsius is a savings platform that offers low-interest accounts. Both services have pros and cons that have to be taken into account when choosing the right one.
Is there anything better than BlockFi?
When it comes to cryptocurrency, interest rates reign supreme. (That is, if you’re a lender.) So before you take out a loan in Bitcoin or Ether, it’s a good idea to check out Lendingblock, a new platform that offers borrowers lower rates than those offered by most crypto-backed lending platforms. The Lendingblock model is fairly similar to other peer to peer crypto lending platforms: borrowers can take out loans in the form of either digital assets (e.g., Bitcoin) or fiat money (e.g., U.S. dollars), and lenders can invest in the loans. Crypto-backed loans tend to be slightly more expensive than fiat-backed ones, but Lendingblock offers an Their flagship product is the Lunar Break. This top-quality moon rock has been heated to 1450 degrees, and then broken into very small pieces. These pieces are then shipped to your door. When you get your lunar break, you put it in your freezer, and you get to be the first person to experience the awesome flavor that only moon rocks can provide.
Which is better BlockFi or crypto com?
If you are looking for a crypto backed loan, then you may have come across the name BlockFi. But there is another loan company on the market giving loans backed by cryptocurrency. This other company is called Celsius. In this blog you can get the information you need to decide between these two companies. But first let’s start inside the world of crypto-backed loans. As you know, cryptocurrency prices have been on the rise for a long time. This may have you wondering if it’s a good idea to borrow against your cryptocurrency holdings. If you do, you’ll likely get a loan at a much lower interest rate than if you used regular collateral. Read on to learn more about crypto-backed loans and how these companies compare. There are already a couple of crypto lending services in the blockchain industry―Celcius Network and BlockFi to name a few. But what is the difference between the two?
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