When choosing a crypto lending platform, whether you want to borrow or invest your assets, it is always better to go for reputable companies like CoinLoan and BlockFi. The two are among the industry leaders with thousands of loyal users.
Although both companies will give attractive yields on deposits and relatively lower interest rates, they differ in several aspects. It is essential to understand these differences when deciding between them to ensure you make an informed decision.
This article compares the two crypto lenders side by side by highlighting what each has to offer and what gives it an edge over the many other options out there.
CoinLoan vs. BlockFi: Supporting Crypto Assets & LTV
Besides lending and borrowing, these platforms also support crypto swaps. Therefore, they both provide a wide variety of cryptocurrencies for traders.
BlockFi supports over 10 different assets that traders can invest in to earn interest yield or use as collateral when borrowing from the platform. These assets include 6 popular cryptocurrencies: BTC, ETH, LINK, LTC, PAX, and PAXG, and 4 stable coins: USDC, GUSD, USDT, and BUSD.
Investors who want to borrow funds against their assets on the BlockFi platform will get an LTV ratio of at least 50%, which is still higher than many other companies out there will give you.
CoinLoan supports around 17 different cryptocurrencies that include the main ones like BTC, XRP, ETH, and LTC. Also, the company supports USDT and allows traders to trade, borrow or earn using fiat currencies like EUR.
Also, it is worth noting that the actual number of currencies accessible to traders depends on whether they intend to trade, borrow or use them to earn. But regardless of how you want to use the coins, you should have access to at least 18 options.
When it comes to the LTV, CoinLoan will allow you to borrow 20%, 35%, 50%, or 70% of your digital asset value. But, it is essential to keep in mind that the LTV you choose will affect the interest rate you end up paying.
CoinLoan vs. BlockFi: Interest Rates, Lock-in Terms & Payouts
The interest rates you pay when borrowing from either CoinLoan or BlockFi will depend on factors like the loan period and the LTV ratio you choose.
When borrowing from CoinLoan, the interest rate ranges between 4.95% and 11.95 depending on the LTV. For example, if you borrow at 20% LTV, the interest rate is 4.95%, while loans at 35% have a 7.95% interest rate, and the 70% LTV loans attract 11.95%.
Additionally, CoinLoan gives you more flexible loan lock-in terms that range from 1 to 36 months to ensure you choose what works best for you.
When you deposit your digital assets with the CoinLoan platform to earn interest yield, you can expect to get between 7.2% and 12.3% depending on the currencies you deposit. The payout is daily, and there are zero fees when depositing or withdrawing from the interest account.
BlockFi interest rates mainly depend on the LTV ratio you choose. If you take the loan at 50% LTV, you will pay an interest rate of 9.75%, while 35% LTV loans have a 7.9% rate, and for 20% LTV loans, you only pay 4.5%.
Additionally, all loans have a 2% origination fee. The loan period is flexible at BlockFi, but most loans will originate for a 12-month term.
For the interest yield accounts on BlockFi, the company uses a tier system to pay investor yield according to the number or value of the assets. Some assets like BTC have 3 tiers while others, such as LTC, have two levels. The interest yield for these accounts ranges between 0.25% and 7.5% APY.
Products & Features Comparison
The products and features you get on the CoinLoan and BlockFi platforms are the same and mostly differ in terms like the terms.
CoinLoan provides three main products, which are crypto trade, borrowing, and earning. The borrow product allows the traders to take loans by using the currencies as collateral, eliminating the need to sell them when they need cash urgently. There are different kinds of loans on the platform, which include crypto-to-crypto, crypto-to-fiat, and fiat-to-crypto.
Besides lending, traders also enjoy the CoinLoan earn product to get up to 12.3% APY interest yields. Investors can use up to 18 different crypto and fiat assets to get the interest yields, and they can also swap them to get a profit.
BlockFi, offers interest accounts, trading accounts, and also crypto-backed loan accounts. For their interest account, traders can deposit over 10 different crypto and fiat tokens and earn an interest yield of up to 7.5%.
The trading account is more like what you get with traditional cryptocurrency exchanges, as you can earn profit or interest by swapping different coins or trading them for fiat. When it comes to loan accounts, the company allows you to borrow up to 50% of the value of your crypto assets.
The fees charged by the crypto lending platform are another element that traders cannot afford to overlook when deciding between these two top companies.
Since you will typically use the two to borrow or lend out your digital assets, the interest rates are perhaps the most crucial fee you need to consider. All the BlockFi loans also include a 2% origination fee.
Besides the loan fees, traders also need to consider other charges such as the deposit and withdrawal fees.
When using BlockFi, withdrawal fees depend on the asset you are withdrawing. The fee for withdrawing BTC is 0.00075 BTC, while Ethereum charges you 0.02 ETC and LINK charges 0.95 LINK. BlockFi will not charge traders any deposit fees, but some methods like wire transfers can attract a small fee from the bank.
CoinLoan, on the other hand, does not charge any fees for both fiat and crypto-asset deposits. Additionally, the company will not charge any fees when withdrawing, whether you are using fiat or crypto.
Other CoinLoan fees you should know include the 7% liquidation fee charged on the loan collateral and the 1% borrowing fee.
Safety & Security Features
Being a top-tier crypto lending platform, CoinLoan and BlockFi have some highly secure systems to ensure that all your funds and digital assets are safe. While most of their security features are quite the same, each still has some distinct protocols that help keep the platform more secure.
BlockFi uses a top-tier security system to make their platform one of the securest out there, and you can be sure you will never lose your assets when using the company. They take compliance very seriously, and only verified traders can do business on their system.
Additionally, BlockFi keeps at least 95% of the trader assets in an offline cold wallet to ensure that the owners never lose them even if the company was hacked. The remaining assets in the hot wallet are insured, which means you will never lose anything at BlockFi. Other security features like advanced encryption protocol and 2FA make the company even more secure.
CoinLoan is always setting standards for security, and they now have one of the securest platforms in the industry. Like BlockFi, they keep most investor assets in cold storage to ensure hackers never reach them.
Other CoinLoan security features include 2FA, biometric authentication, security alerts, and constant vulnerability scans. What’s more, the company has CCSS compliance to give investors even more confidence that their assets are safe.
As much as crypto lending platforms have invested heavily in securing their companies, there are still vulnerable to hackers and other market uncertainties. Therefore, any company you choose needs measures to protect traders against these risks, such as an insurance scheme.
CoinLoan stores the investor funds and assets at BitGo, which acts as their custodian. BitGo has a $100 million insurance for these assets taken from Lloyd’s. The company keeps different wallets for all its clients and uses other highly advanced security features such as multi-signature wallets with secure keys.
Hence, you can be sure any digital assets you deposit with CoinLoan are adequately insured for maximum protection against all potential risks.
BlockFi uses Gemini as the custodian for storing most of the trader assets. Gemini is not FDIC or SIPC insured since it does not meet the required criteria. However, it keeps the digital assets in an offline cold wallet, making it out of reach for potential hackers, and they also have a private insurance scheme.
While BlockFi might not have an insurance scheme for their products, the fact that they are backed by some of the leading investors in the industry should give you some confidence you are dealing with a dependable company. They have the backing of companies like Morgan Creek, Tiger Global, and BainCapital Ventures.
Minimum Deposits & Withdrawal Limits
Deposit and withdrawal limits can sometimes be very frustrating for traders as sometimes you might need to withdraw or add more funds than what the platform allows for. However, CoinLoan and BlockFi, try to make both as user-friendly as possible.
With BlockFi, there is no minimum deposit required, and so you can deposit any amount you want in fiat or cryptocurrency. Withdrawals, on the other hand, are subject to some specific limits set by the company. For example, when withdrawing fiat currency, the maximum limit is $5,000.
For crypto withdrawals, the maximum is 100 BTC every 7-days for bitcoin, and you can withdraw a maximum of 5,000 ETH or 65,000 LINK within the same period. The company provides a complete list of withdrawal limits for all supported cryptocurrencies.
CoinLoan allows you to deposit or withdraw all your digital assets to fiat currency with just one click, which is highly convenient. But what many users love most when it comes to deposits and withdrawals is that there is no limit for the maximum amount you can deposit in fiat or crypto.
However, the company has a $10 minimum deposit amount. You can withdraw or transfer as little as 0.001 BTC, but there is no maximum withdrawal limit, meaning you can transfer or withdraw as much as you want.
Account Sign-Up Process & KYC
Signing up on CoinLoan or BlockFi is a straightforward process that should only take a few minutes. However, before you start the process, it is vital to note that both platforms require mandatory KYC verification.
How to Create an Account on CoinLoan
- Go to https://coinloan.io/ and click on the blue “Sign Up” button
- Enter your email address and create a password
- Agree to terms and policy and click “Sign Up.”
- Do KYC verification by following a few steps.
- Make a deposit or link to a bank account to earn, borrow or start trading
How to Create an Account on BlockFi
- Go to https://blockfi.com/ and click “Get Started” at the top right corner
- Enter first and last name, create a password and enter a referral code if you have one
- Check the box to certify you are 18 and agree to the SMS policy
- Click on “Submit” to finish the basic information step
- Follow the prompts to do KYC verification
- Link to your bank account or add crypto to start trading, earning, or borrowing
Both CoinLoan and BlockFi have a global presence, and you can use their service in almost any country in the world. However, some of their products might not be available in some jurisdictions due to high compliance risk and stringent or lacking regulations.
BlockFi allows cryptocurrency investors to get loans in 47 USA states. Still, their interest account is accessible to traders from all parts of the world except for countries under US, EU, or UK sanctions.
CoinLoan is available in more than 160 countries worldwide, including the EU, the US, and the UK. However, like BlockFi, some products like crypto loans are only available in countries like the USA.
Any cryptocurrency trader or investor looking for a reliable crypto lending platform needs to give CoinLoan and BlockFi a try. But, while both are fantastic companies, BlockFi seems to have an edge in most aspects.
BlockFi will give you crypto loans at relatively lower interest rates, has relatively lower fees, and has a highly secure platform to guarantee safety for all your digital assets.
Things like quick and easy sign-up and KYC verification make BlockFi an even more fantastic crypto lending platform.
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