❓ What Is Crypto Lending? ❓
This relatively new trend is all about supplying crypto or stablecoins and earning interest in return! That’s all there is to it. There are two core reasons why you might consider this: ► Crypto lending interest rates can be in the double digits! ► You retain exposure to the crypto markets. Sure, you could hide your entire crypto portfolio away in a hardware wallet, or you might want to put some of that crypto stack to work and earn crypto interest.
💰 How Is Interest Paid? 💰
Celsius and BlockFi essentially take your deposits and lend those funds out to institutions or businesses. So, it is a form of securities lending. Those businesses and institutions then pay the lending platform interest, which is then used to pay out interest to people like you and me.
🤷 Who Are BlockFi & Celsius? 🤷
BlockFi, are a privately held New York based lending platform which was founded back in 2017. Unlike others, these chaps didn’t raise funding using token sales, but instead opted to down the path of VC funding. Those backers include some very big names like the Winklevoss twins. Recently, BlockFi completed a series D funding round, raising $350 million at a $3 billion valuation. So, they are highly unlikely to go broke anytime soon. BlockFi also holds a load of different licenses too. So, if you care about that, then this is a massive plus. Celsius was founded in 2017 as well, by co-founder Alex Mashinsky. He’s got a pretty crazy entrepreneurial record founding Transit Wireless and exiting for $1.2 billion in valuation. But it turns out that was no fluke, he also co-founded Arbinet for $750 million in valuation.
💸 How Much Can You Earn? 💸
Celsius allows you to earn interest on 12 different stablecoins, three gold tokens and 27 cryptos. Whereas, BlockFi offers support for half the number of stablecoins, one gold token and size different cryptos. Celsius offers interest rates up to 17.78%, whilst BlockFi offers up to 8.5%.
💳 Withdrawals & Fees 💳
Interest is paid weekly on Celsius and monthly on BlockFi. You can also withdraw your funds anytime on both platforms. When it comes to withdrawal fees, BlockFi gives you one free withdrawal a month and charges for additional withdrawals. All withdrawals on Celsius are free.
🎧 Customer Support 🎧
Search the internet and you’ll find many people complaining about Celsius’ support. They appear to have upped their game this year. However, BlockFi have certainly focused on this area and provides excellent support.
🔒 Security 🔒
Both platforms have not had security breaches where users have lost money on the perspective platforms. However, there have been a few breaches in the past. Watch my vid for more details on that!
✅ Additional Features ✅
Both platforms offer mobile and desktop support and let you take out a crypto loan. However, only BlockFi lets you opt for interest to be paid in stablecoins – something important to make reporting those taxes easier. BlockFi also offers an in-built crypto exchange and a crypto credit card too. That card gives you up to 3.5% crypto cashback.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.