BlockFi vs Celsius Network: Which Platform is The Winner?

BlockFi vs Celsius Network – in a bid to capitalize on cryptocurrencies, the virtual currency industry continues to welcome more platforms targeting different corners of the crypto ecosystem. Many of the top cryptocurrency platforms allow you to earn interest on deposits and access crypto-backed loans. Two significant platforms competing in this space are BlockFi and Celsius Network.

From a distance, the two seem to offer similar products and services. But if you look closer, they have some important differences. This article compares the two platforms’ main features and offerings.

BlockFi at a Glance

BlockFi is a leading cryptocurrency lending outlet. It allows users to apply for USD-based loans by providing cryptocurrency as collateral. Apart from loans, it also offers virtual currency interest accounts in which account holders earn interest by simply holding cryptos in their wallets.

BlockFi also offers a cryptocurrency exchange. This allows users to take advantage of virtual currencies’ price movements.

BlockFi adheres to regulations in all US states in which it operates and is backed by leading investment firms such as Coinbase Ventures and Morgan Creek Digital.

Outstanding BlockFi Referral Programs

Refer-A-Friend

BlockFi incentivizes users to recommend the network to their friends. If you want to sign-up and get $40 in BTC, but you don’t have a referral code yet, enter this BlockFi referral code: 1413a51f or use this BlockFi referral link.  This referral bonus is $30 higher than the usual BlockFi referral bonus because the code is linked to a BlockFi Rewards Credit Card. Read more about the BlockFi referral program in this BlockFi platform referral article.

If you need more information about BlockFi’s referral programs, you may click here to discover BlockFi’s three types of referral and bonus offerings. And if you already have a BlockFi account and you’re interested in taking part in the Refer-a-Friend program, you must invite friends using your unique code to help track your referrals.

You can easily access your unique code on the BlockFi app. To earn referral rewards, the friends you invite must deposit 100 USD. After meeting this requirement, you’ll both receive $10 disbursed in Bitcoin.

It gets even better after your first five successful referrals. After that, you’ll earn $20 per referral, while your friends continue to earn $10.

Partner or Affiliate

For those looking for more options to earn from BlockFi referrals, the platform’s partner program offers great incentives. As a partner, you get access to the network’s promotional materials to help you spread the word about BlockFi and succeed at making more referrals. You can use these materials in articles, social media posts, and website advertisements, among other places. You’ll earn a referral commission for each person who signs up through your affiliate link. Currently, BlockFi will reward you with 0.5 percent on any deposits your referrals make for one month.

Learn more about the BlockFi referral program and other offerings here. 

Core BlockFi Functionalities

BlockFi Interest Account (BIA)

This account offers its users savings opportunities via interest on deposits. The interest rate can reach as high as 8.6 percent per year. While interest accrues on a daily basis, BlockFi disburses it to users on a monthly schedule.

Fortunately, BlockFi scraps minimum account balances and hidden charges to accommodate new users. In January 2021 alone, the platform’s users cumulatively earned 28,000,000 USD in interest. This amount was comprised of more than 400 BTCs, 4500 ETHs, and $5 million in various stablecoins.

Trading outlet

BlockFi’s trading offering is similar to trading on a dedicated cryptocurrency exchange such as Coinbase or Kraken. It allows users to buy and sell their digital assets. When traded coins land in a user’s account, they immediately start earning interest.

Unlike crypto trading platforms like Binance, BlockFi doesn’t incorporate a base asset.  While this may seem like a weakness, BlockFi views it as a way to decongest the platform and to provide a simple yet powerful product.

Bitcoin Rewards Credit Card

Backed by Visa, the Bitcoin Rewards Credit Card simplifies paying for goods and services across the world. Additionally, it carries a host of other benefits. For instance, it refunds 1.5 percent of every transaction into your account.

The card comes with a yearly fee of 200 USD. However, it pays $250 as a bonus for early adopters. This bonus is an incentive when Bitcoin Reward Credit Card holders spend a minimum of $3,000 within their first 90 days.

Crypto-backed Loans

Instead of converting your crypto into fiat, BlockFi allows users to access USD-based loans while providing their virtual holdings as collateral. The interest rate on these loans can be as low as 4.5 percent. Also, the loan-to-value ratio can be as high as 50 percent.

BlockFi Security

The platform provides two-factor authentication and uses “allowlisting” features to direct withdrawals to specific addresses. This helps eradicate malicious withdrawals and unauthorized access. Instead of natively securing users’ funds, the platform uses the Gemini cryptocurrency exchange to provide custody services.

Celsius Network Overview

Celsius is a virtual currency platform focusing on lending, interest accounts, and trading cryptocurrencies. One of the platforms most popular products is its savings account.

One advantage for savings account holders is that they earn interest on deposited virtual currencies. For loans, the amount of collateral you provide determines your loan amount.

Celsius supports crypto-backed loans, eradicating the need to liquidate your digital holdings when you don’t have to, and it provides borrowers with the option of receiving the loan in either fiat or stablecoins.

Unlike conventional financial firms, where a loan can take up to three days to be approved, Celsius can approve loans in mere minutes.

Celsius Referral Program

Invite Your Friends or Become Ambassadors

Celsius users earn a referral bonus whenever they invite friends to join the platform. The network provides unique referral codes to connect existing users with their referrals and to track rewards. Earn a $50 bonus when you sign-up via Celsius Referral. Make sure to use our Celsius Network Referral Link to install the Celsius Network application on your smartphone and enter our Celsius Referral Code: 196028baa6 when you register. Read more about how the Celsius referral program works here. 

To earn incentives, the invited person has to deposit a minimum of $400 into their Celsius account. In return, both parties earn 50 USD delivered to their Bitcoin wallets.

Leading Celsius Network Products

Savings account – Celsius resembles BlockFi in many of its product offerings. For example, it offers savings-styled accounts in which users receive interest on their deposited funds. Interest rates can be as high as 17.78 percent. The platform funds interest paid to depositors from another part of the network: loans.

Loans against crypto – Celsius gives its users an alternative to selling their digital assets for fiat currency. It allows them to remain holders while they secure a loan against their cryptocurrencies.

The interest charged on loans can reach as much as 12 percent and as little as 1 percent. Although the collateral can be in any supported virtual currency, the loans are delivered in stablecoins tied to the US dollar. Currently, the minimum borrowing amount is 500 USD, down from 1,000 USD.

CelPay – CelPay enables Celsius users to pay and be paid in cryptocurrency for free. Payments can be made via secure text or link. Unfortunately, the feature is only available to the network’s users.

CEL – This is Celsius’s native token. CEL holders earn many perks, such as discounted interest rates on loans, community involvement, a higher annual percentage yield (APY) on deposited funds, and priority access to new products.

Corporate users who borrow from the platform pay up to 30 percent less in interest. You can decide to receive CEL-denominated interest on your deposits or buy the base asset on reputable cryptocurrency exchanges such as Bittrex Global, Bitfinex, or FTX, and on decentralized exchanges like Uniswap.

Celsius Network Security

Celsius employs different security features to guard users’ funds and the overall safety of the network. For instance, its 2FA (two-factor authentication) and withdrawal address whitelisting help to secure user accounts. Users have to explicitly activate these two functionalities to stay safe from unauthorized access.

Another security measure the platform takes is storing funds in multi-signature hardware wallets. Using multi-signatures reduces the chances of malicious withdrawals on the platform. Read more about Celsius’ Security here.

BlockFi vs. Celsius Network: Who is the Winner?

There is no clear overall winner since the platforms have distinct differences in their offerings. On referral programs and incentives, BlockFi takes the lead. It provides the regular referral bonus when you invite friends, and you can earn affiliate/partner bonuses if you sign up for their affiliate program. To help you learn better about BlockFi, here’s our BlockFi Review.

Also, BlockFi beats Celsius Network on the initial deposit required to earn a referral bonus. Celsius requires $400, while BlockFi only requires $100. However, Celsius gives a higher referral bonus at $40, while BlockFi pays a referral bonus between $10 and $20. If you think Celsius Network has more to offer, you are right with that. Check this Celsius Network Review to get more ideas about the platform.

On products offered, Celsius takes the lead because of its CelPay functionality which allows for the free transfer of payment between users. Additionally, its CEL token provides added advantages to holders. Celsius also offers loans at a rate as low as 1.0 percent, while BlockFi’s lowest rate is 4.5 percent.

The Bitcoin Rewards Credit Card gives BlockFi users more freedom when paying for goods and services. Unlike with CelPay, the BlockFi card isn’t limited to BlockFi users only.

BlockFi seems to have a better approach to securing users’ funds since it uses Gemini as a custodian.

Conclusion

The choice between these two platforms depends on your needs. For those looking for more ways to earn referral bonuses, BlockFi is likely a better fit. Also, BlockFi provides the only option for those looking to make credit card purchases globally.

However, if you’re interested in the benefits that come with holding and using a native token, Celsius is a better choice for you.