If you are looking to earn interest in your cryptocurrency, then BlockFi and Gemini are two of the popular solutions. Both the platforms offer you lucrative interest rates, support of a wide range of cryptocurrencies and so on. But what if you have to settle down with a single platform?
To help you with the question, I am going to share a BlockFi vs Gemini comparison with you. I will try to answer all the questions that you might be having. So let’s get into the topic right away:
BlockFi Overview
BlockFi is one of the popular platforms which offers you crypto loans and allows you to earn interest on your crypto holdings. It also offers you a cryptocurrency exchange. BlockFi doesn’t have any transaction fees on trades. Plus, you don’t have to worry about any hidden fees or minimum balances.
In addition to that, you can borrow funds against your crypto assets for as low as 4.5% APR. However, the APR depends on what crypto you are keeping as collateral. However, BlockFi only offers you a minimum $10,000 loan. Below that, you cannot really take a loan from BlockFi.
Gemini Overview
Unlike BlockFi, Gemini is a full fledged cryptocurrency exchange. It is one of the largest exchanges in the USA to buy, hold and sell crypto. Plus, it allows you to earn interest based on your crypto holdings.
However, Gemini does not really promote its lending program as much as it does promote its earning program. If you are looking for extra returns on your invesment then consider the Gemini Trading Bot. It offers the ability to automate trading strategies on the Gemini exchange.
There is no information about how much APR it charges and what is the minimum amount of funds you can borrow. Maybe this is because Gemini offers loans to certain institutional investors or companies. And they don’t really allow users like you and I to borrow funds from their platform.
But if you wish to lend your crypto out, you can earn up to 8.05% APY. Bluechip cricket might give you some good odds as well.
BlockFi vs Gemini: Features
Both BlockFi and Gemini platforms can be used by beginners. Both platforms have Straightforward user interface mobile apps.
When using BlockFi, you will get to enjoy the following features:
- With BlockFi, you will earn interest on your cryptocurrency and take out USD loans against it.
- You can trade cryptocurrencies on BlockFi. However, it supports a limited number of coins for trading as of now.
- BlockFi launched a Bitcoin Rewards Visa Credit card that lets you earn rewards in Bitcoin with every spend.
For Gemini, the features are:
- There is a Gemini Earn program where you can earn interest on your net balance of certain crypto coins. For certain types of crypto, there are different interest rates.
- With Gemini, you will get public API keys that can be used for connecting to other services and tools. So in case you wish to automate your trades, this would be helpful.
- Gemini also offers you its Gemini Pay service. The company has partnered up with more than 30,000 retailers. As a result, you can purchase goods using your Gemini account and the funds stored in it.
BlockFi vs Gemini: Supported Currencies
Both platforms support a wide range of cryptocurrencies. However, BlockFi doesn’t support fiat currencies. But you can always deposit crypto and trade them.
On both platforms, you can deposit funds and use them to get crypto backed loan. Some of the supported coins are:
- Ethereum (ETH)
- Aave (AAVE)
- Litecoin (LTC)
- Dai (DAI)
- Bitcoin Cash (BCH)
- Chainlink (LINK)
- Uniswap (UNI)
Apart from these, there are a number of other coins which are also supported by the exchange. However, when it comes to keeping your assets as collateral, BlockFi only supports 4 coins which include Bitcoin, Ether, LItecoin and PAXG.
However, depending on what coin you choose to keep as collateral, the collateral amount will vary. On the other hand, on Gemini Earn, there is no such information about what coins it accepts as collateral or the APR it will charge.
BlockFi vs Gemini: Security
Both of the platforms are highly secure and follow all the safety measures and US regulations. Hence, both of the platforms are favorites to the investors.
Along with that, you will get to see security features like two factor authentication or 2FA. Plus, they keep most of their customer funds in cold storage, or they keep them offline out of the hacker’s reach. As a result, your funds will not get stolen.
Moreover, Gemini also provides security options for institutional traders. Like defined user access role permission for trading crypto or accessing the account.
Talking about BlockFi, the company has built a best in class compliance program to safeguard your assets. Also, BlockFi is backed by industry-leading investors, including Valar Ventures, Morgan Creek Capital Management, Coinbase Ventures, and so on. So you can trust the platform to have a sense that your funds are in safe hands.
BlockFi vs Gemini: Fees
When it comes to fees, BlockFi doesn’t have any hidden charges, or it requires any minimum balances. You can instantly get a loan from the platform without waiting or paying high processing fees.
On the other hand, Gemini doesn’t really have any information related to the fees it is charging for a crypto-related loan. So we cannot really say much about it.
BlockFi vs Gemini: Promos and Bonuses
BlockFi offers new users between $15 to $250 when they sign up on the platform using a partner link. The partner payout structure depends on how much the user deposits funds. For instance, if the user deposits $100 to $1,499, then the user will get a $15 BTC payout. The higher amount of money one deposits, the higher payout the user receives.
On the other hand, Gemini doesn’t have a payout structure. Instead, they offer new users $10 for signing up on their platform.
So, in this case, BlockFi seems to have an edge. As this allows users to earn a bit extra by simply depositing funds, whereas Gemini’s $10 bonus is not too lucrative.
Should you borrow against crypto?
Both BlockFi and Gemini are great options to get a crypto backed loan. But they are not as safe as taking a loan from a bank. Before you use any of the platforms, there are a few risks that you should be aware of.
Since the crypto market is extremely volatile, so in case the value of your pledged crypto declines below a threshold set by the lender. Then you will have a limited period of time to pledge additional crypto.
Also, in crypto loans, the ratio of the loan amount to the value of your collateral is called Loan to Value or LTV. For instance, if a crypto lender’s maximum LTV is 70%, then you will have a certain amount of time to increase your crypto to meet the LTV.
Also, crypto loans are not fully insured like the loans from banks. So in case if you lose your funds in a security breach, there is no guarantee that you will get your funds back.
Final Words:
So that was all for BlockFi vs Gemini. Now go ahead and check out both the platform’s offerings and see what their features and fees are. Also, for any additional questions, do feel free to drop a comment below.
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect those of Geek Vibes Nation. This article is for educational purposes only.
“A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.” – Jeff Bezos.