BlockFi is one of the most popular crypto loan platforms. The company offers a wide variety of products to cater to both lenders and borrowers.
Also, it is a solid platform with credible and reliable backing that processes loans fast and is safe to use, given at least 95% of the assets are in cold storage as mentioned in our in-depth BlockFi review.
Despite being an industry leader, the company still has some significant shortcomings, meaning it might be the ideal option for some investors and traders. However, if it does not seem the right fit for you, you can still use the many other BlockFi alternatives out there.
Here we look at 8 BlockFi Alternatives that will work well for traders looking for fast crypto loans and higher interest rates products for savings.
Top Alternatives To BlockFi In 2021
YouHoldler is one of the best options for crypto traders looking for a platform that provides a high LTV. The 90% LTV ratio is one of the highest in the market, and it means you can get more money than what a majority of others will give you.
- Borrowing on YouHolder
Besides the 90% LTV, this BlockFi alternative allows traders to borrow as little as $100 to ensure you only take what you need. You can use more than 20 cryptocurrencies as collateral to borrow fiat currencies like USD and EUR or Stablecoins.
The interest rates charged on these loans mainly depend on the duration, but they are still quite competitive. For example, if you want a 30-day loan, the loan fee is 3%, and you get 90% LTV.
- Lending on Youholder
YouHolder also allows traders to earn some interest on their idle crypto assets. You can deposit cold assets like BTC, LINK, and USDT in a savings account and decent yields.
The actual APY you get depends on the specific assets you deposit, but the yields range between 2.5% and 12.3% APY. For example, you get 4.8% APY when you deposit BTC, while USDT earns 12.3 APY. You can find the detailed breakdown in our YouHodler review.
Gemini is a fiat exchange where you can deposit fiat currencies and exchange them into other cryptocurrencies.
But now it also offers a simple way to help crypto traders build their portfolios without taking many risks trading in the highly volatile markets.
With this BlockFi alternative, the trades can earn up to 7.4% APY on their crypto investments. The actual interest depends on the specific crypto assets you deposit as the company accommodates more than 20, but the lowest rate you can get is 1.35%.
So now you can earn higher interest than traditional banking options based on their collateral value by lending their digital assets to Gemini for a designated loan period.
While the interest yields might not be as high as what you get from BlockFi, the company offers many other advantages. Key among them is the fact there are no deposit or withdrawal fees.
What’s more, when you deposit crypto assets, you never have to worry about security, as the company uses some of the most advanced security protocols.
Better still, you never have to wait for ages to get your assets as you can redeem them anytime you want without losing any interest earned so far.
Gemini does not have any minimum deposits requirements. Also, they provide an easy-to-use calculator that investors can use to tell precisely how much they will get before making the crypto investments.
The Celsius Network is one of the largest crypto lending platforms with a community assets value of over $15.6 billion and close to a million users.
This means that Celsius.Network is a solid platform that will be great for traders looking for crypto-backed loans.
- Borrowing on the Celsius
Celsius offers loans at up to 50% LTV ratio. The interest rate you pay depends on the percentage of the asset value you take as a loan.
For example, if you want a 1-year loan at a 50% LTV ratio, you will pay an interest rate of 8.95%, while a 25% LTV loan attracts a 1% interest rate.
- Lending on the Celsius
Besides taking a crypto-backed loan, you can earn interest for your idle assets on the Celsius Network by depositing them in an interest-yielding account.
The lender interest yields can be as high as 17% APY, and you get the earnings sent straight to your wallet every week.
Celsius Network makes using their crypto market more flexible as the traders can use the web-based platform or download a mobile app for your Android or iOS device.
Note: By holding some CEL token, which is the native token for Celsius, you can expect better deals while borrowing or lending.
Binance is a global leader for digital assets trading, but many traders might not know it is also among the best platforms for crypto-backed loans.
- Borrowing on Binance
Binance offers loans on verified crypto collateral. Their lending platform allows traders to get an initial LTV of up to 65% for up to 180-day loans, meaning their loan limit is higher than many BlockFi alternatives like Gemini. These loans have a daily interest rate of 0.05%, which is calculated on the hour.
Early repayment is also allowed on this crypto lending platform as the company does not charge any interest penalty if you pay early.
- Lending on Binance
Binance offers crypto-fiat financial services. With Binance earning interest on your digital assets only requires setting up your flexible savings accounts and depositing the digital assets or fiat currency.
The yields depend on the specific assets you have. For example, the USDT has an annual yield of at least 2.11% APY.
Traders looking for a higher-earning can also go for a locked savings account. This account does not allow you to withdraw the assets before the 7 to 90-day term elapses.
However, traders can get an interest rate of up to 6.79% for the USDT, and the company always offers timely repayments.
Crypto.com is another good alternative to BlockFi as it allows traders to earn up to 14% interest yield on crypto coins and grow their portfolios fast.
- Borrowing on Crypto.com
Crypto.com allows traders to borrow money against their virtual assets at an LTV of up to 50%. The lending platform charges interest rates as low as 8% when borrowing against BTC, ETH, LTC, EOS, and other Stablecoins.
- Lending on Crypto.com
Crypto.com supports more than 100 cryptocurrencies and at least 20 fiat currencies, meaning there are enough assets you can use to earn interest yields.
Interest yield earned on the account depends on the particular asset you have. For example, if your deposit BTC or ETH, you receive interest up to 8.5% APY, while USDT pays 14% APY.
Nexo.io is one of the best BlockFi alternatives for those looking for a licensed and regulated platform that guarantees maximum security for user assets. Besides multiple security protocols, the exchange has insurance for all the custodial assets.
The company also has reasonable interest rates and highly favorable terms when it comes to lending and borrowing. Cryptocurrency owners can borrow instantly using 21 different cryptocurrencies at 25% to 60% LTV.
- Borrowing on Nexo.io
Their interest-bearing loans attract an interest rate of just 6.9% per annum. Besides the friendly interest rates, the company allows users to borrow as little as $50 to as much as $2 million. There are credit checks and you get automatic loan approvals.
- Lending on Nexo.io
For those looking to open a savings account to make passive income on their idle assets, the platform will allow you to receive interest up to 12% on your cryptocurrencies and fiat funds like USD and EUR. The payouts are daily, and you can add more money or withdraw what you have at any time.
CoinLoan is a reputable crypto borrowing and lending platform that allows traders to grow their assets through P2P lending and borrowing or traditional asset swaps.
- Borrowing on CoinLoan
When you borrow money on the CoinLoan platform using your crypto coins as collateral, you can expect to pay interest rates between 4.5% and 6.95% per annum.
The company allows you to borrow at between 20% and 60% LTV ratio depending on the loan duration.
- Lending on CoinLoan
Lending your digital assets on the CoinLoan platform gives you yields of between 7.2% and 12.3% APY. Depositing cryptocurrencies like BTC, ETH and XRP allow you to earn 7.2% APY, while USDT earns you 12.3% APY.
There is no withdrawal fee for the earnings, and you also never have to pay any platform fee. Since the funds are never locked, you can withdraw them anytime you want.
Any alternative to BlockFi should give you similar or more attractive products like the popular lender, and MyConstant seems to do just that.
One of the main highlights of this P2P lending platform is that it has some reasonable rates for both lending and borrowing on cryptocurrencies.
- Borrowing on MyConstant
If you are looking to borrow funds, you can expect to pay an interest of just 6%, which is still quite competitive enough. You can use over 70 different cryptocurrencies as collateral on this platform.
- Lending on MyConstant
If you decide to lend out your idle assets, you can expect to get 7% APY. What’s more, their crypto lending space has packages for both short and long-term investors, and you start earning interest yield immediately. Investors will also love the free withdrawal in USD and zero investment fees.
- How can you earn interest through crypto lending?
Many platforms that support lending and borrowing allow you to earn some interest yield through P2P lending.
When you deposit your assets with the company, it lends them out to traders at a fee. It is this fee that the company shares with you in the form of interest.
- What do you need to create these interest accounts?
Every company has its specific requirements for setting up interest accounts. However, in most instances, the most crucial one is a cryptocurrency wallet.
Some companies also require KYC verification before you can borrow or lend on their exchange. Credit checks are, however, not crucial, given your cryptos are the collateral.
- Which BlockFi alternative offers the best interest rates?
YouHodler and Celsius Network provide some of the highest interest rates. YouHolder will give lenders up to 12% plus compound interests, while investors on the Celsius Network get up to 17%.
Although there are others out there that claim to offer higher interests rates than these, in many cases, they have high fees and other hidden charges that can reduce your overall earnings significantly.
- Is Nexo better than BlockFi?
It depends on what you are looking for on these platforms. BlockFi is a solid company with a proven track record and backed by Morgan Creek capital.
Nexo offers one of the most secure platforms and has some of the highest LTV ratios of up to 60%. Therefore, both companies have their positive aspects, and it is up to you to pick what suits you.
- So which BlockFi alternative is best for you?
Consider whether you want to borrow or lend your idle assets before deciding which platform to use. Also, giving a few of them a try should make it easy to determine what works best for you.
With the coming of cryptocurrency lending platforms like Celsius Network and BlockFi, you do no longer have to rely on trading cryptos or their derivatives to make money. BlockFi allows you to borrow and lend, but it will not work for everyone despite their one free withdrawal offer.
That said, the overview above provides more than enough recommendations that will work for all kinds of investors and traders looking for a good alternative.
Each platform has its positive and negative attributes, so you must decide which one works best for you.
However, YouHodler seems to have the edge over the others in many aspects, from the high LTV to relatively lower loan fees, but timely repayment is a must in decentralized finance; otherwise, you stand the risk of losing your complete collateral value.
On the other hand, the Celsius Network has some of the best yields for crypto deposits and decent loan APY rates, which you can increase by holding more CEL tokens.
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