Which cryptocurrency platform is superior, BlockFi or Celsius?

Due to the efficiency with which blockchain technology facilitates value exchange, users can earn significantly greater interest rates on their digital assets. Depending on the asset you offer, you may be able to earn annual returns of more than 10%, paid in cryptocurrency. If you intend to invest in cryptocurrencies over the long term, an interest-bearing account is a need.

Both BlockFi and Celsius offer high-interest bitcoin savings accounts. They accomplish this by lending cryptocurrencies to institutional and individual traders seeking to leverage their positions. Due to the fact that these platforms require collateral in order to acquire a loan, investors may rest assured that the loan will be repaid in some fashion.

What Are Crypto Lending Platforms and How Do They Work?

Centralised and decentralised lending platforms are the two primary types of lending platforms in the bitcoin business, each having its own set of advantages and disadvantages. Celsius and BlockFi are both centralised platforms, which means that they function as a mediator between lenders and borrowers.

Centralised platforms are optimal for people unfamiliar with the decentralised finance (DeFi) business, as they require less training to use. You transfer your bitcoin to one of these services and immediately begin collecting interest.

Celsius vs. BlockFi Offerings

Both BlockFi and Celsius enable anyone to borrow cryptocurrency and earn interest on their holdings via high-yield savings accounts. As previously stated, you use cryptocurrency as collateral to ensure that the loan can be repaid in the event of a default.

If you're looking for a cryptocurrency credit card, BlockFi is for you. The BlockFi credit card was officially announced, and it rewards cardholders with cash-back bitcoin incentives on all purchases.

Additionally, both of these sites allow you to trade bitcoin, making it simple to enter and exit trades without transferring your cryptocurrency between exchanges.

Comparing Interest Rates

Users can earn income on stablecoins (cryptocurrency fixed to the US dollar), Bitcoin, Ethereum, PAXG (gold-backed token), Uniswap, BAT, and Litecoin. Stablecoins pay an annual interest rate of 7.5 percent, whereas other cryptocurrencies pay between 1% and about 5%.

Celsius offers a comparable range of cryptocurrencies on which to earn interest, with stablecoins paying an annual rate of 8.9 percent at the time of press. Celsius now supports a broader range of cryptocurrencies for interest-bearing accounts, including BTC, ETH, SNX, CEL, LINK, UNI, and AAVE. You can expect to earn between 2% and 11% each year, depending on the asset you give.

Celsius offers greater interest rates on cryptocurrency savings accounts in general. While these are floating interest rates, they are generally consistent month over month.

Celsius vs. BlockFi

Celsius and BlockFi both provide industry-leading security to guard against unwanted users. Celsius and BlockFi, like the majority of cryptocurrency platforms, allow you to protect your account with two-factor verification, which is highly recommended. Google Authenticator is used for two-factor authentication, forcing you to sign in using your phone.

Additionally, many lending platforms offer additional security protections that are comparable but not identical. BlockFi includes a "allowlisting" feature that enables you to specify which cryptocurrency wallets or exchanges are permitted to accept your coin. This way, even if your account is compromised, the cryptocurrency can only be transferred to accounts you own.

Celsius has a feature comparable to this known as HODL mode. This temporarily prevents the ability to withdraw funds from the platform. If you want to generate interest over the long term and do not intend to withdraw your initial investment, HODL mode is an excellent strategy to protect your assets.

Contrast Customer Service

As is the case with many rapidly expanding businesses, these platforms may be slow to respond to customer support inquiries. If you need to contact customer care, the quickest way to do so is typically through the platform's Reddit or Twitter sites. Celsius may be found on Twitter at @CelsiusNetwork, or you can send them a direct message through the app. If you want to speak with someone over the phone, you can reach customer service at 201-824-2888. Additionally, you can reach out to assistance by email at [email protected].

BlockFi provides an excellent customer support page that addresses frequent issues that users encounter on the network. If the frequently asked questions page does not resolve your issue, you can contact customer service via phone or email using the same customer service website.

So, Which Is Better, BlockFi or Celsius?

Depending on your objectives, either platform may be a better fit. Celsius offers more favourable interest rates on a general basis, although these rates are subject to fluctuate based on market conditions. Because BlockFi is a larger corporation, newbie investors may find their user interface more intuitive. Both sites make it simple to acquire additional cryptocurrency, so you're better off using one of them than than storing your assets on a cryptocurrency exchange.

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