The adoption and popularity of crypto have been on the rise, as evidenced by several reports. Hence it is essential to know the ways you can earn interest on your crypto holding. Celsius Network is one of the best lending and borrowing platforms out there. However, in this article, we’ll talk about the top 5 Celsius alternatives.
Table of contents
- Summary (TL;DR)
- Earn interest while HODLing
- What is Celsius Network?
- Hodlnaut: 1st Celsius Alternative
- Nexo: 2nd Celsius Alternative
- BlockFi: 3rd Celsius Alternative
- Youhodler: 4th Celsius Alternative
- YouHodler: Pros and Cons
- Crypto.com: 5th Celsius Alternative
- Celsius Alternatives: Conclusion
Earn interest while HODLing
Recently investment product issuer 21Shares revealed its partnership with German online brokerage, Comdirect, allowing users to store physically-backed crypto exchange-traded products (ETPs) into their savings and retirement accounts. Moreover, Woori Financial Group is also said to be setting up a custody joint venture with South Korean Bitcoin exchange and blockchain service provider, Coinplug.
Although market volatility remains prevalent, cryptocurrencies seem to be gaining traction for a range of reasons.
Cryptocurrency relies on blockchain technology that allows for a decentralized financial system. This would mean that transactions and payments are likely to be more secure as financial institutions no longer govern them and are run by protocols. Furthermore, as the world adapts to be more digitally advanced, the adoption of digital currencies is timely and is said to be the future of finance.
While investing in cryptocurrency is indeed already a form of investment, there are other ways to not only alleviate the adverse effects of market decline but improve the productivity of crypto assets. One such method is crypto lending, where investors can lend out cryptocurrency and earn interest from it.
Also, read 9 Best Crypto Lending Platforms.
To date, many platforms offer this – and other beneficial – services that help individuals do more with their crypto assets. A platform to note is Celsius.
What is Celsius Network?
Celsius Network was founded in 2017 and utilizes blockchain technology to offer a range of products and services to replace the current traditional financial system. As such, crypto investors can earn interest by depositing their digital assets into the Celsius Wallet or borrow fiat currency using their crypto as collateral at lower interest rates. There are no withdrawal fees, lock-ups, and minimums required. The platform is also known to be working on a credit card that allows individuals to earn weekly rewards on crypto collateral.
However, buying crypto directly on Celsius Network may be expensive. In addition, the website does not offer a dedicated section with guides and resources for beginner investors who wish to learn more about crypto. Thus, individuals may want to consider other alternatives to Celsius.
Hodlnaut: 1st Celsius Alternative
Founded in 2019 by self-proclaimed Bitcoin maximalists Juntao Zhu and Simon Lee. This Singapore-based platform offers financial services to individual investors.
Through the platform, users can earn favorable interest of up to 12.73% APY on six asset classes: Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), Tether (USDT), Dai (DAI), and Wrapped Bitcoin (WBTC). The effective interest rates are shown here:
The platform features a user-friendly interface and a resource section filled with guides and tips for beginners.
On top of earning interest in crypto assets, Hodlnaut has implemented a Token Swap feature, allowing customers to swap tokens easily and quickly. Customers can then trade tokens from the available range of support within the platform without the hassle of switching to another platform. Moreover, once users have gone through the compulsory Know-Your-Customer (KYC) process, they will be eligible to partake in the Hodlnaut Affiliate Program. KYC-ed users can refer their friends and earn a 10% commission on their friend’s interests. Bonus: The referred friend earns $20 as well. To learn more, read Hodlnaut review.
Hodlnaut: Pros and Cons
|High-interest rates||Only six supported currencies|
|No minimum deposit required||Withdrawal fees|
|iOS app is available.|
Nexo: 2nd Celsius Alternative
Nexo is said to be one of the biggest crypto lending platforms globally. It was launched in 2017 and offers a multitude of products ranging from interest accounts where users can earn interest on their crypto or fiat assets deposited, to crypto loans and even the Nexo Card, a debit card that grants users access to the Crypto Credit Line that they can spend without selling their crypto. To learn more, read Nexo Card review.
Nexo supports 18 crypto assets and a slew of fiat currencies such as the USD. It also offers users up to 12% APY for those who choose to earn in Nexo tokens. Here are the effective interest rates for Nexo:
Nexo: Pros and Cons
|No withdrawal and transaction fees||High borrowing rates|
|Interest is paid daily||Insurance only applies to assets that are kept in cold Ledger Vault wallets|
|Comprehensive user interface||Not transparent with where they are operating out of|
BlockFi: 3rd Celsius Alternative
Founded in 2017, BlockFi aims to be the most trusted financial service provider in the cryptocurrency market and offers attractive rates. Their interest account allows users to earn up to 7.5% APY on Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), to name a few.
There is also no minimum deposit required, and users can start earning interest immediately. Moreover, users can buy stablecoins with the fiat currency of their choice and deposit them into the interest account. The effective interest rates are as follows:
Other features on BlockFi include the Interest Payment Flex. This allows users to select the currency of the interest payments and diversify their portfolios without buying additional crypto assets.
In addition, BlockFi has just launched the BlockFi Rewards Credit Card, where users can earn Bitcoin while using the card on their expenditures. However, this service is only available for US residents. To learn more, read BlockFi review.
BlockFi: Pros and Cons
|No minimum deposit required||Limited free withdrawals from interest accounts|
|Extensive range of currencies||No insurance option|
|No trading fee||Limited to one free withdrawal per month|
Youhodler: 4th Celsius Alternative
The Switzerland-based crypto lending platform was founded in 2017 and offered several financial services. It allows users to trade crypto and fiat currencies, invests in interest savings accounts, and take loans with minimal interest rates. To learn more, read YouHodler review.
Users can earn up to 12.3% APY – that would be deposited weekly – on 22 supported currencies such as Bitcoin (BTC), Ethereum (ETH), Uniswap (UNI), and Tether (USDT), to name a few. The effective interest rates are as follows:
Moreover, Youhodler’s mobile application offers a detailed guide on crypto conversion to allow individuals to exchange funds quickly and easily. The resource dashboard has all the information that users need to know, from the basics of crypto exchange to the platform’s advanced tools. Plus, it even has a blog section where users can read up on the latest crypto news and other website-related updates.
YouHodler: Pros and Cons
|High-interest rates||High fees and interest rates on long term loans|
|Fiat currency options||The platform is not available in China and the U.S.|
|Availability of iOS and Android mobile applications||Lack of insured custodian for user funds|
Crypto.com: 5th Celsius Alternative
Headquartered in Hong Kong and founded in 2016, Crypto.com allows individuals to buy, sell, trade, and spend cryptocurrencies. Users can purchase over 100 cryptocurrencies, manage their Crypto.com Visa Card, and make crypto payments quickly.
Additionally, users can lend out their crypto assets to earn up to 12% APY on their crypto assets passively and easily convert fiat currency with minimum fees. However, it is essential to note that less than 60 of the currencies are available in the U.S., and only 22 are available in every state. To learn more, read Crypto.com review.
The effective interest rates are as follows:
The upside: Its DeFi Wallet is non-custodial so that users can have complete control of their private keys.
Also, read A Review of Crypto.com NFT Platform.
Crypto.com: Pros and Cons
|High-interest rates||Only 22 currencies are available outside of the U.S.|
|Offers fiat conversion with minimum fees||No desktop account access|
|Non-custodial DeFi wallet||Lack of transparency on where their funds come from|
Celsius Alternatives: Conclusion
With cryptocurrency gaining momentum in the current financial space, it is worth considering these platforms to boost the productivity of crypto assets. While Celsius Network is a great, user-friendly platform to use, other alternatives such as Hodlnaut, Nexo, BlockFi, Youhodler, and Crypto.com can help investors do more with their cryptocurrencies.