ount for an account with KYC done, and for larger amounts, they could follow the existing manual verification process to maintain the high standard of security.
3. Interest rate risk:
BlockFi interest rate fluctuates with time, and this is dependent upon many conditions. For example, if another competitor offers a more favorable rate and trust, the borrower might use the other platform. However, so far their rate is competitive and has not been a problem. However, based on market supply and demand, the interest rate, and borrow rate fluctuate every month or so.
If you understand the counterparty risk you are exposing yourself with lending, then BlockFi or similar platform is for you to earn extra from your ideal crypto holding.
BlockFi alternatives and competition:
While this industry is new, and if you are planning to use a service like BlockFi to earn interest, it’s important to know about BlockFi alternatives and the features they offer.
Now, I will limit the alternatives to only those competitors who offer an easy-to-use interface just like BlockFi. However, BlockFi has one edge that it does not require you to stake any platform based token, whereas, the top 2 listed solution below, requires you to stake their platform based tokens to enjoy a better rate.
Cryptocom is possibly the best alternative to BlockFi, as they have a rock-solid ecosystem of crypto products, include a newly open crypto exchange. They also offer a Bitcoin debit card, which is the icing on the cake. One more advantage with the Cryptocom platform is, it supports a wide variety of cryptocurrencies. In terms of borrowing, BlockFi offers way better rates than Cryptocom. We may do a comparison in the time to come, but for now, let’s move to the second option.
2. Celcius Network:
The Celsius Network is a peer-to-peer lending company that facilitates the borrowing and lending of cryptocurrencies. It offers interest rates as competitive as BlockFi and offers instant withdrawal. The trust factor is not as high as BlockFi, but this is another platform you should know about.
3. Binance Lending:
Binance is the world’s largest cryptocurrency exchange, and they added a feature called Binance Lending. This platform is ideal for those who are into crypto trading, as you can park your crypto assets when you are not trading, and earn interest on it.
The interest rate is not as lucrative as BlockFi, but from the ease of use perspective, and lending not being your main goal, this is online pawn store in Washington a good option. Here is a video that explains how Binance lending works.
In the arena of crypto-based loan and crypto interest account, BlockFi is definitely in the top 3 charts. The platform is consistently innovating and adding new features, which makes it more usable with time. The platform is also well funded by well-known venture capitalists, which increases the overall trust.
Overall, if you understand the counterparty risk, the BlockFi platform is for you. My limited time experience with BlockFi has been smooth, and I hope to see this platform growing. One area where they could do really well is by improving the withdrawal feature, thus offering more power to end-user.
- What are the features you like about BlockFi?
- What new features do you want them to add?
Harsh Agrawal is the Crypto exchange and bots expert for CoinSutra. He founded CoinSutra in 2016, and one of the industry’s most regarded professional blogger in the fin-tech space.
An award-winning blogger with a track record of 10+ years. He has a background in both finance and technology and holds professional qualifications in Information technology.