5 Best BlockFi Alternatives to Consider in 2021

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. BlockFi is one of the best lending platforms in the market. Hence, in this article, we’ll try to cover all the major BlockFi alternatives.

Last year, we witnessed an all-time high of $41k for Bitcoin, and that number is topped by Bitcoin’s new ATM at $64k earlier this month. It is quite evident that cryptocurrency is booming and will continue to attract more investors. However, 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.

Summary (TL;DR)

Best BlockFi Alternatives

What is BlockFi?

With crypto lending growing at a fast pace, there are many 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 Hashkey, to name a few.

Admittedly, BlockFi has one of the longest track records of crypto lending, but they also have some downsides to their service. To learn more, read BlockFi Review.

BlockFi
BlockFi

BlockFi Interest Rates

At BlockFi, borrowers can 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 recently lowered its Annual Percentage Yield (APY) from 3% APY to 2% APY for 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.

Also, read BlockFi Credit Card Review.

Top 5 BlockFi Alternatives 

However, BlockFi is not available everywhere. Its conditions can be better, so we have listed down the top 5 BlockFi alternatives for you: Nexo, Celsius Network, Hodlnaut, YouHodler, and CoinLoan.

First BlockFi Alternatives: Nexo

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 an excellent alternative to BlockFi. Nevertheless, Nexo has several years of FinTech experience. Apart from cash, Nexo also enables you to borrow stablecoins and cryptocurrencies. To learn more, read Nexo Card Review.

First BlockFi Alternatives: Nexo

Interest Rates at Nexo

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 yourself 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 provides you a sound customer support system with a messaging feature and a live chat option.

Interest Rates at Nexo
Interest Rates at Nexo

Nexo Features

  1. Platform – Nexo offers a biginner oriented and quick to master platform.
  2. Nexo Mobile Apllication – The mobile app of Nexo is comprehensive and efficiently mimics the functionality of the desktop platform.
  3. Available products – The available products of the Nexo Exchange are crypto savings account, crypto-backed loans and fiat interest loans.

Nexo: Pros and Cons

Pros Cons 
  • Complete flexibility — no lock-in periods, withdrawal available at any time.
  • Nexo mandates hodling NEXO tokens to get the best savings and loan rates
  • Earn 30% extra interest when earning with Nexo tokens.
  • In some instances, the lender interest rates are higher than borrower rates
  • Offers 40+ fiat currencies over 200 jurisdictions. 
  • 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.
  • Nexo Pros and Cons

    Second BlockFi Alternatives: Celsius Network

    Celsius is somewhat similar to Nexo as an alternative to BlockFi. It has a similar business model with an interest account and crypto b