Contributor, Benzinga
August 11, 2021

Since blockchain technology creates an efficient way to transact value, users are able to earn much higher interest rates on their digital assets. Depending on the asset you provide, you may be able to earn over 10% annual returns, paid in crypto. If you’re investing in cryptocurrency for the long term, then an interest-bearing account is a must-have.

Both BlockFi and Celsius offer cryptocurrency savings accounts that yield high annual interest rates. They do this by lending cryptocurrency out to institutional and retail traders who seek to leverage their positions. Since these platforms require collateral to receive a loan, investors can be sure that the loan will be paid back one way or another.

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts

What Are Crypto Lending Platforms?

The 2 main types of lending platforms within the cryptocurrency industry, centralized and decentralized, come with their own benefits and drawbacks. Both Celsius and BlockFi are centralized, meaning that these platforms act as a middleman between the lender and the borrower.

Centralized platforms are best suited for those not familiar with the decentralized finance (DeFi) industry, as there’s less of a learning curve to use these services. You send your cryptocurrency to one of these platforms and start earning interest right away. 

BlockFi vs. Celsius Offerings

Both BlockFi and Celsius let anyone take out cryptocurrency loans as well as earn interest on their cryptocurrency through high-yield savings accounts. As previously mentioned, you put up cryptocurrency as collateral for a loan, ensuring that the loan can be paid back in case of a default.

If you’re in the market for a cryptocurrency credit card, then BlockFi is the platform for you. The BlockFi credit card was just recently released, and it offers cash-back crypto rewards for every purchase made with the card.

You can also trade cryptocurrency on both of these platforms, making it easy to enter and exit trades without needing to transfer your crypto between exchanges.

Interest Rate Comparison

BlockFi lets users earn interest on stablecoins (cryptocurrency pegged to 1 USD), Bitcoin, Ethereum, PAXG (token pegged to gold), Uniswap, BAT and Litecoin. You can expect to earn 7.5% annual interest on stablecoins, while other cryptocurrencies range from 1% to around 5%.

Celsius offers a similar selection of cryptocurrencies to earn interest on, with stablecoins yielding 8.9% annual interest as of this writing. Celsius has more cryptocurrencies available for interest-bearing accounts, including BTC, ETH, SNX, CEL, LINK, UNI and AAVE to name a few. Depending on the asset you provide, you can expect to earn between 2% to 11% annually.

In general, Celsius offers higher interest rates for cryptocurrency savings accounts. While these rates are floating interest rates, meaning they can change with the market, they’re relatively stable month-over-month. 

Celsius vs. BlockFi Security

Celsius and BlockFi both offer industry-leading security to protect your account from unauthorized users. Like most cryptocurrency platforms, Celsius and BlockFi let you protect your account with 2-factor authentication, which is highly recommended. Google Authenticator is used for 2-factor authentication, requiring you to have access to your phone to sign into your account.

These lending platforms also offer other security features that are similar to each other but not the same. BlockFi has an “allowlisting” feature that lets you choose which cryptocurrency wallets or exchanges you’re able to send your crypto to. This way, even if someone breaches your account the only place the cryptocurrency can be sent is to accounts you own.

Celsius has a similar feature called HODL mode. This temporarily disables the ability for your funds to be sent off the platform. If you’re looking to earn interest over the long term and don’t plan on taking out your initial investment, HODL mode is a great way to keep your funds safe. 

Customer Service Comparison

Like many growing companies, these platforms may be slow to respond to customer service inquiries. If you need to contact customer service, the fastest way to get a response is likely through the platform’s social media pages on Reddit or Twitter. You can find Celsius on Twitter @CelsiusNetwork and send them a direct message on the app. If you want to talk to someone on the phone, you can call 201-824-2888 for customer support. Another option is to contact support via email at

BlockFi has a helpful customer service page that gives solutions to common problems that users face on the platform. If the frequently asked questions page doesn’t solve your problem, then you can contact customer support via phone or email from the same customer service page. 

So, Is BlockFi or Celsius Better?

Depending on what you’re looking for, either platform may be the better choice for you. In general, Celsius offers more competitive interest rates, but these rates are subject to change with market conditions. BlockFi is a larger company, and novice investors may find their user interface easier to use. Both platforms offer an easy way to accumulate more cryptocurrency, so you’ll be better off using either of these platforms instead of holding your funds on a cryptocurrency exchange.

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