Celsius vs. BlockFi - Which is Better for You?
Clesius Network and BlockFi are both trustworthy Crypto Lending & Loan platforms in our opinion, but which one is the better choice overall for you?
We hope to give you the information you need to decide for yourself which is better for you — personally we use both Celsius and BlockFi as they both have advantages that we’ll outline below, and we believe they’re both trustworthy — not to mention they both offer great sign-up bonuses that we’ll go over towards the end of this article.
In general we’d say Celsius is a much better option, as they allow lending of more cryptocurrencies and generally have slightly higher interest rates and lower loan-fees/interest-rates — however BlockFi has some small advantages that we’ll cover below.
Which Offers the Best Yields - Celsius or BlockFi?
As we mentioned above Celsius Network has a much greater selection of cryptocurrencies you can lend out through their platform or stake as collateral for a loan, so for those coins (Dash, EOS, SNX, many others) they obviously would have better rates than BlockFi.
However when it comes to the cryptocurrencies BlockFi currently supports — Bitcoin, Ethereum, Litecoin, Ethereum, and a few Stablecoins (USDC, PAX, GUSD), the rates are quite competitive with one another. You can check Celsius’s current rates and BlockFi’s current rates by clicking on those links, but normally Celsius’s Stable-coin rates are significantly higher (40% or so higher than BlockFi’s) and Bitcoin rates are moderately higher, but when it comes to Ethereum and Litecoin Celsius is just a hair higher in their interest rates (0.05%/year).
Because of the above we’d say if you have small amounts to put into Crypto-Lending then you should opt for just using Celsius — however if you have lots of funds you may want to diversify some of the Litecoin or Ethereum you may be lending out into BlockFi, just to diversify a little bit more.
Which has less fees - Celsius or BlockFi?
Neither Celsius or BlockFi charges much in terms of fees — in fact Celsius doesn’t seem to charge any fees whatsoever. BlockFi has a few, but they aren’t all that much of an issue in our opinion as we’ll cover below.
To put it simply: If you’re going to take out a crypto-backed loan then Celsius is definitely the better option as they do not charge an origination fee like BlockFi does. This means when you take out a Crypto-Backed loan Celsius will not charge you an up-front fee, while BlockFi will charge currently around 2% of the loan amount up-front that either will be paid in the Crypto-collateral you deposit or will be taken out of the loan-amount you receive.
However if you simply want to store smaller amounts of Crypto (<$1000) for short periods of time BlockFi offers 1 free Crypto-Withdrawal per month, so realistically so long as you aren’t taking out Crypto-Loans from BlockFi you aren’t going to have any fees — however Celsius has unlimited Crypto-Withdrawals per month for free, and seemingly no fees whatsoever, so there’s that.
Which Has The Best Signup Bonus Offers - Celsius or BlockFi?
Celsius DEFINITELY wins out in this category — at least for now.
While BlockFi has a great $20 or so in most cases for a simple $500 deposit (learn more here), Celsius offers $50+ just for depositing $200 or more and has $100 -> $200 bonuses if you take out a crypto-backed loan (learn more here).
Overall we’d say it’s smart to use both of these platforms and take advantage of both of both of their sign-up bonuses — especially Celsius’s crypto-backed loan bonuses which are absolutely amazing and make your first year or so of interest more or less evaporate as you get a bonus upfront that generally covers almost all of your first-year interest on the loan (if 25% LTV).
Which is more Trustworthy - Celsius or BlockFi?
We’d say this category is a wash — we always include it as it’s important to know about the security and trustworthiness of a platform before you entrust your cryptocurrency funds with them — but ultimately they’re both extremely trustworthy and secure and we wouldn’t worry about either of them.
Both Celsius and BlockFi have backers such as Coinbase, Voyager, the Litecoin Foundation, and many many Hedge-funds and institutional investors such as Kenetic Capital, Sofi Invest, and Winklevoss Capital (Founders of Gemini).
They’re both well capitalized and well supported with stellar trustworthy teams, audits, and partnerships. The only real risk in our mind in using their platforms is if there’s a collapse in the Cryptocurrency Ecosystem or Global Economy — but such risks are present in any banking, brokerage, or centralized financial institution. We don’t see either of them suffering losses from hacking though, as they use top-tier security procedures like Cold Storage, forced-collateral liquidation, and they both have decent insurance just in case as well.
So to put it simply: They’re both Trustworthy and Secure — maybe don’t put ALL of your cryptocurrency with them, but we keep over 1 BTC worth of crypto with each of them and are on the boat ready to sink with you. We wouldn’t keep that much of our funds with them if we didn’t believe they were truly trustworthy.
What Advantages does Celsius have over BlockFi?
Celsius has no loan origination fees nor withdrawal fees — nor any other fees whatsoever, while BlockFi has a loan origination fee and small withdrawal fees.
Beyond the fees Celsius also has WAY more cryptocurrencies available for deposit/purchase, and they offer interest and loans on tons of those assets at quite good of rates.
Those are the main benefits of Celsius compared to BlockFi — however from just a personal anecdotal level I’ve also had better (very quick and knowledgeable) support and communication with Celsius staff, while BlockFi’s has just been acceptable and nothing spectacular.
If you think Celsius would be the right choice for you, then download the app and enter in code “198971556a” to be eligble for the current promotions Celsius offers new users to their platform.
What Advantages does BlockFi have over Celsius?
While we’d say Celsius has more advantages to BlockFi this doesn’t mean BlockFi doesn’t have advantages — Their cryptocurrency exchange partner has lower fees for buying cryptocurrency, so if you don’t want to buy and then transfer to one of these platforms then BlockFi may be better for you.
BlockFi also has a Desktop platform. This is a HUGE advantage for many people who simply don’t have a good smart-phone and prefer using a desktop/labtop when it comes to managing their finances/investments. Celsius has absolutely no Desktop/Computer interface and is only accessible through a smart-phone device, this may change in the future, but currently this is unfortunately the case.