Crypto lending has become very popular over the past few years. Individual investors can earn money on their crypto assets and earn interest by investing in crypto-backed loans. Last year, we witnessed an all-time high of $41k for Bitcoin and that number is topped by Bitcoin’s new ATM at $63k earlier this month. It is quite evident that cryptocurrency is booming, and will continue to attract more investors. A common concern amongst users is the volatility of cryptocurrencies. That’s why holding cryptocurrencies with crypto lending is a smart move because it will help them earn interest and make the most out of their crypto.
With crypto lending growing at a fast pace, there are a lot of lender options in the market. BlockFi is one such established platform that is backed by some of the top cryptocurrency institutions like Valar Ventures, Kenetic Capital, Morgan Creek Capital, Avon Ventures, and Hash key to name a few. Admittedly, BlockFi has one of the longest track records of crypto lending, you can read our comprehensive BlockFi review. They also have BlockFi credit card which rewards you bitcoin as cashback on every purchase. However, they also have some downsides to their service.
For instance, borrowers get to avail an Annual Percentage Rate (APR) of 4.5% only on a 20% LTV ratio. APR is essentially the cost you pay each year to borrow money. Users get two free withdrawals each month and the interest rates drop significantly once you pass a certain threshold on the asset value.
Moreover, BlockFi has also lowered its Annual Percentage Yield (APY) recently from 3% APY to 2% APY for bitcoin savings accounts that hold one to 20 BTC. It also introduced a new tier for accounts that hold 20 BTC and above, with 0.5% APY. Here APY refers to the total amount of interest you earn on a deposit account over one year.
Furthermore, BlockFi is not available everywhere and its conditions can be better which is why we have listed down the top 5 BlockFi alternatives for you: Nexo, Celsius Network, Hodlnaut, YouHodler, and CoinLoan. The table below will give you an overview of the five BlockFi alternatives. Let’s take a deeper look at what these platforms have to offer.
|Interest Rates (APY)||6% APY on BTC & 10% APY on stablecoins||4.4% APY on BTC & 10-14% APY on stablecoins||6.2% APY on BTC & 8.3% APY on stablecoins||4.8% APY on BTC & up to 12.7% APY on stablecoins||7.2% APY on BTC & up to 12.3% APY on stablecoins||6% APY on BTC and 5-9.3% APY on stablecoins|
|Assets Supported||USDT, USDC, PAX, TUSD, DAI, HUSD, BTC, ETH, XRP, BCH, LTC, BNB, EOS, LINK, XLM, TRX, PAXG||ETH, BTC, MATIC, SNX, TAUD, TUSD, DAI, USDC, THKD, PAX, GUSD, TGBP, TCAD, USDT, BUSD, DOT, AAVE, BNT, XAUT, WDGLD, DASH, PAXG, COMP, BCH, UMA, LINK, EOS, LTC, BAT, ZRX, XLM, ETC, KNC, XRP, UNI, ZEC, MANA, BSV, OMG||BTC,ETH, USDC, USDT,DAI||USDT, USDC, PAX, TUSD, DAI, HUSD, EURS, BTC, ETH, LINK, UNI, COMP, MKR, LTC, XRP, XLM, BNB, PAXG, DASH, EOS, BCH, BSV, HT, BAT, REP||EUR, GBP, USDT, USDC, PAX, BTC, TUSD, BUSD, ETH, BCH, LTC, XMR, XRP, XLM, LINK, DAI, WBTC, PAXG||BTC, LINK, ETH, LTC, USDC, GUSD, PAX, PAXG, USDT, BUSD|
|Min. Amount||No Minimum||No Minimum||No Minimum||US$100||US$100||No Minimum|
|Mobile app||iOS, Android||iOS, Android||iOS app coming soon||iOS, Android||iOS, Android||iOS, Android|
Table of contents
BlockFi’s Tier- Wise New APY Rates
Top 5 BlockFi Alternatives
Nexo was one of the first few companies to have ventured into P2P lending and is a reliable crypto borrowing and lending platform. Nexo certainly has some key features that make it a good alternative to BlockFi. Nevertheless, Nexo has several years of FinTech experience just like BlockFi. Apart from cash, Nexo also enables you to borrow stablecoins and cryptocurrencies.
Nexo offers 5% APY on crypto investments and 10% APY on stablecoins and cash. However, it should be noted that the 10% APY rate is available only to investors who hold at least 10% of their account’s value in NEXO tokens. So if you choose to earn in Nexo tokens, you can avail a higher rate of 8% APY on crypto and 12% APY on stablecoins. Although Nexo doesn’t offer round-the-clock support on call, it does have a good customer support system with a messaging feature as well as a live chat option. Let’s take a look at the pros and cons of Nexo.
- Full flexibility — no lock-in periods, withdrawal available at any time.
- Earn 30% extra interest when earning with Nexo tokens.
- Offers 40+ fiat currencies over 200 jurisdictions.
- Nexo mandates hodling NEXO tokens to get the best savings and loan rates.
- In some instances, the lender interest rates are higher than borrower rates.
- The $375 million insurance of Nexo is cumulative for all clients and only applies to assets that are kept in the cold Ledger Vault wallets.
Celsius is somewhat similar to Nexo as an alternative to BlockFi. It has a similar business model with a crypto interest account and borrowing. Moreover, just like Nexo tokens, Celsius has its own CEL token thus offering better interest rates to hodlers of CEL token. Celsius goes big on the fact that they offer super-low interest rates for borrowers of nearly 1% on loans. However, the LTV rate for them is generally around 25% to 30% (the percentage of your collateral value you can borrow). Celsius Network offers 4.4% APY on BTC, 6.35% APY on ETH and 10-14% APY on stablecoins. Similarly, you need to hodl CEL in order to access the best rates. Just like Nexo, Celsius Network offers very limited flexibility to its investors. The APY for cryptocurrencies like BTC and ETH is not more than 5.5% unless you receive interest in CEL coin. Celsius pays compounding interest every week. Here are the pros and cons of Celsius Network for your reference.
- Rewards of up to 15% APY paid out weekly
- Easy-to-use mobile platform
- Instant, fee-free payments using CelPay
- Need to deposit in CEL Tokens to avail higher interest rates
- Limited to cryptocurrencies and no web app
- Interest rates can fluctuate quite a lot
Started by two entrepreneurs and self-proclaimed Bitcoin maximalists out of Singapore, Hodlnaut is a cryptocurrency interest-earning and lending platform. With Hodlnaut, users can earn good interest against their cryptocurrency by lending them to institutions, who would otherwise struggle to get crypto loans. It offers 6.2% APY for BTC, 6.7% APY for ETH and 8.3% APY for DAI, USDC, and USDT.
You can also trade within the Hodlnaut platform with their newly-launched Token Swap feature. It allows users to seamlessly swap between asset pairs on the platform. Which means users can execute trades instantly between any of the 5 assets offered on the Hodlnaut platform – BTC, ETH, DAI, USDC, and USDT.
Hodlnaut is a great alternative for BlockFi since it offers higher rates of interest. Moreover, users can withdraw their money anytime and there are no minimum deposits or lock-in periods. Hodlnaut is one of the emerging players in the crypto lending space and you can certainly consider it for hodling your crypto.
The loans offered start from $50,000 with a flexible LTV of 25%-100% and the users can choose from open terms or 3+ month fixed terms. Hodlnaut has some noteworthy investors such as Antler, Three Arrows Capital, Singapore Management University, Sparrow, and BitGo. You can also read a thorough our Hodlnaut review to know how the platform works. Take a look at the pros and cons of Hodlnaut to make an informed decision.
- Offers high interest rates
- No minimum deposits or lock-in periods
- Higher interest rates on VIP fixed deposits
- There isn’t an app version
- Supports only a few cryptocurrencies
- Withdrawals are manually processed
YouHodler offers a host of crypto-fiat financial services without the need to trade the coins actively. Investors can consider the crypto-exclusive savings account as well as interest-bearing loans to expand your portfolio. It offers 4.8% APY on BTC, 5.5% APY on ETH and up to 12.7% APY on stablecoins. Customers can use the top 20 coins as collateral for crypto loans with an LTV of 90%. The minimum loan amount is $100. YouHodler also offers loans in EUR, USD, GBP, and CHF.
If you have made some profit on your Bitcoin and wish to take a break, you can also have a YouHodler savings account that pays 12% APY on stablecoins. Thus, you can do a Bitcoin to fiat exchange with a 2% fee on YouHodler platform and then convert fiat to stablecoin to start earning interest. It makes a good alternative to BlockFi given its versatile financial options. We have listed down the pros and cons of YouHodler for your reference.
- Offers LTV of 90% (one of the highest in the industry)
- Fiat currency options (USD, EUR, CHF and GBP)
- Instant loans without any credit checks
- Platform is not available in the United States or China
- High interest rates on loans that are long term
- Lack of an insured custodian for user funds
CoinLoan is an Estonia-based crypto lending platform that offers crypto-backed loans to customers globally. You can think of it as a P2P marketplace for lenders and borrowers. Unlike BlockFi, Coinloan doesn’t have a withdrawal fee. The borrower needs to deposit crypto assets which are used as collaterals and the lender needs to deposit stablecoins or fiat funds. Once the lender and borrower are matched, a smart contract is drawn to ensure timely repayment of the loan so that the borrower does lose their crypto. After full repayment of the loan, the lender gets their principal and interest whereas the borrower gets their assets back. The APR is as low as 4.5%.
CoinLoan allows investors to give loans to borrowers who have a verified crypto collateral. The loan period is from seven days to three years without any penalty for early repayment. It offers 7.2% APY for both BTC and ETH which is more than that of BlockFi, thus making it a good alternative. It offers up to 12.3% APY on stablecoins. Although it should be noted that the APY rates are inclusive of CLT staking reward of 2%. So like Celsius Network and Nexo, CoinLoan gives the best rates to those who hold coin loan tokens. On that note, let’s look at the pros and cons of CoinLoan.
- Has a European virtual currency provider license
- Successfully operating for the last four years
- Provides High-interest rate with CoinLoan token
- Not transparent
- Loan volume tends to be less at times
- Counterparty risk is high
BlockFi alternatives: Which is the Best?
Whether you are an investor or borrower, it is crucial that you understand what a platform has to offer. A platform could be giving better loans in the crypto of your choice but bad interest rates on investment. Therefore, an exhaustive analysis goes a long way in making the most of your crypto assets. That being said, just because you have filled out KYC on one platform doesn’t have to stop you from exploring all your options.
We hope that the BlockFi alternatives listed herein will help you make a good choice. Nexo has years of experience and a sound financial backing whereas CoinLoan has a European financial license. Celsius offers a super low APR of 1% for borrowers and YouHodler makes it easy for users to borrow, swap, and earn from their crypto. Lastly, Hodlnaut helps hodlers make the most out of their BTC with a sizable 6.2% APY.
As a general best practice, you should research carefully before investing with any of the above-mentioned platforms. No platform is perfect but you will find a platform that best meets your specific needs.