BlockFi vs CoinUnited Comparison
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An editor at Coincrop
08 Oct 2022 | 22 min read
f you're like most people, you probably think of cryptocurrencies as a speculative investment - something to buy and sell in the hopes of making a quick profit. What you may not realise is that you can earn interest on your cryptocurrency holdings.
Like a bank savings account, you can keep your digital currency in a wallet and earn interest on it over time. Of course, there's more to it than that.
We'll cover all you need to know about generating interest on your crypto assets in this article, including how it operates and what you should be aware of before starting.
So, whether you want to earn a little extra money on your digital currency holdings or you're just curious about how this process works, keep reading to find out everything you need to know.
BlockFi vs CoinUnited Summary
How Does Crypto Saving Work?
Cryptocurrency saving is a new way of saving money. It's a way to save money that is not connected to the traditional banking system. With cryptocurrency saving, you can save your money in a digital wallet. This wallet is like a bank account, but it is not connected to any traditional bank. Instead, it is connected to the cryptocurrency network.
You can save money in a variety of different cryptocurrencies by using cryptocurrency. Bitcoin, Ethereum, Litecoin, and a number of other cryptocurrencies are among these. Each cryptocurrency has distinct advantages and qualities of its own.
Your money is safe and secure, which is one of the major advantages of bitcoin savings. Your money is not at risk of theft or loss because it is not kept in a conventional bank. Your money is also shielded from stock market swings. For those looking for a secure and reliable way to store their money, bitcoin savings are an excellent choice.
Another significant advantage of cryptocurrency savings is the ability to earn interest on your money. The cryptocurrency network pays out this interest, which can be quite high depending on the currency in which you choose to save.
By investing in a variety of different cryptocurrencies, you can reduce your overall risk. By diversifying your investments, you can increase profits while reducing losses.
You can find about more about high-yield crypto alternatives to low interest rates here.
In the sections below we examine both companies as part of comparing BlockFi vs CoinUnited.
What Is BlockFi
BlockFi is a financial services company that offers crypto-backed loans and interest-bearing accounts. BlockFi was founded in 2017 by Zac Prince and Flori Marlow. BlockFi is headquartered in New York City, with offices in Denver, Colorado and San Francisco, California. BlockFi is backed by investors such as Galaxy Digital, Peter Thiel's Valar Ventures, Sofi CEO Anthony Noto, and Akuna Capital.
BlockFi offers crypto-backed loans and interest-bearing accounts. BlockFi allows you to use your crypto as collateral for a loan, or to earn interest on your holdings. BlockFi also offers a credit card that rewards you with cryptocurrency cashback.
BlockFi has offices in New York City, Denver, Colorado, and San Francisco, California.
When comparing BlockFi vs CoinUnited, we should look at the background of each company.
BlockFI has been growing rapidly since it was founded in 2017. In March of 2019, the company announced that it had raised $52.5 million in Series B funding led by Galaxy Digital Ventures LLC., with participation from other leading venture capitalists including Valar Ventures LLC., Akuna Captal LP., Sofi CEO Anthony Noto, ConsenSys Ventures LLC., and Brian Kelly Capital LLC.
BlockFI offers three products: a) Crypto-Backed Loans b) Interest Bearing Accounts c) Credit Card Rewards Program.
BlockFi offers interest-bearing accounts that allow you to use your crypto as collateral for a loan, or to earn interest on your holdings. BlockFi also offers a credit card that rewards you with cryptocurrency cashback. Their team is experienced and BlockFi is backed by major investors.
BlockFi has been gaining popularity lately as a go-to spot for anyone interested in earning interest on their cryptocurrency holdings or taking out a loan using crypto as collateral. BlockFi also offers a credit card that allows you to earn cash back in the form of cryptocurrency.
So, let's take a closer look at what BlockFi has to offer and see if they're worth your time.
One of BlockFi's most popular products is their interest-bearing account. This account allows you to deposit cryptocurrency and earn interest on it. The interest rate depends on the currency you deposit, but BlockFi currently offers rates up to 8.6% APY for BTC and ETH deposits.
They also offer GUSD stablecoin deposits at a 4% APY interest rate. BlockFi recently added support for Litecoin (LTC) deposits as well, though the interest rate is currently lower at 5.25% APY.
To get started with a BlockFi interest-bearing account, simply deposit cryptocurrency into your account. BlockFi will then lend out your deposited crypto to other users who are taking out loans. In return for lending out your crypto, BlockFi pays you interest.
It's important to note that your deposited cryptocurrency is always backed 1:1 by USD, so you don't have to worry about the value of your crypto fluctuating while it's deposited with BlockFi.
Another popular BlockFi product is their crypto-backed loans. With BlockFi's crypto-backed loans, you can borrow USD by putting up cryptocurrency as collateral. BlockFi currently offers loan-to-value (LTV) ratios of 50% for BTC and ETH, meaning you can borrow up to 50% of the value of your deposited crypto.
BlockFi also offers GUSD stablecoin loans at a 70% LTV ratio. So, if you have $10,000 worth of BTC deposited with BlockFi, you could borrow up to $5,000 against it.
The interest rate on BlockFi loans depends on the LTV ratio and the length of the loan. For example, BlockFi currently offers BTC loans with a 6-month term at a 4.5% interest rate for 50% LTV loans and 5.9% interest rate for 70% LTV loans. The interest rates on ETH and GUSD loans are slightly higher.
BlockFi also charges a one-time origination fee of 2% on all loans.
In addition to their interest-bearing accounts and crypto-backed loans, BlockFi also offers a rewards credit card that allows you to earn cryptocurrency cash back on your purchases. The BlockFi Rewards Visa® Credit Card gives you 1.5% cash back in the form of BTC, ETH, or LTC on every purchase you make. BlockFi also doesn't charge any annual fees on their credit card.
To get started with the BlockFi credit card, simply apply for the card and once you're approved, you'll need to deposit crypto into your BlockFi account to serve as your credit line. BlockFi will then convert your crypto into USD at the current market rate and give you a credit limit based on that amount.
So, if you have $5,000 worth of BTC deposited with BlockFi, you'll have a $5,000 credit limit on your BlockFi Rewards Visa® Credit Card.
Is BlockFi Safe?
BlockFi is a regulated financial institution, with industry-leading security measures in place to protect your account and data. BlockFi is also a member of the Crypto Finance Association, which sets standards for the cryptocurrency industry.
BlockFi has implemented multiple layers of security, including 2-factor authentication, cold storage for crypto assets, and email and SMS alerts for account activity. BlockFi takes security seriously, so you can rest assured that your assets are safe.
BlockFi invests your cryptocurrency assets in a number of ways. BlockFi uses a proprietary algorithm that takes into account a number of factors, including market conditions and your individual risk tolerance. BlockFi also employs a team of experienced traders who actively manage your investments.
Using BlockFi, you can earn interest on your crypto holdings, or use your crypto as collateral for a loan. BlockFi also offers a credit card that rewards you with cryptocurrency cashback. BlockFi is a regulated financial institution, with industry-leading security measures in place to protect your account and data. BlockFi is also a member of the Crypto Finance Association, which sets standards for the cryptocurrency industry.
What Is CoinUnited
CoinUnited is a new startup that is looking to change the way people use and think about cryptocurrency. Unlike other services, which simply provide a platform for buying and selling coins, CoinUnited offers a full suite of tools and resources to help users learn about and use cryptocurrency. This includes a newsfeed, an education center, and an exchange where users can buy and sell coins.
CoinUnited also offers a unique rewards program that gives users bonuses for participating in the community. These bonuses can be used to purchase goods and services from partner businesses.
When comparing BlockFi vs CoinUnited, lets look at the background of the second company.
CoinUnited is a digital currency exchange that allows users to trade Bitcoin and other cryptocurrencies. The platform is designed to be simple and easy to use, with a focus on security and safety. CoinUnited is based in Hong Kong and is one of the leading exchanges in Asia.
CoinUnited offers a variety of features that make it an attractive option for those looking to trade cryptocurrencies. In addition to being one of the most secure exchanges, CoinUnited also offers a host of other features, including:
- A user-friendly interface: The CoinUnited platform is designed to be user-friendly and easy to use. Even if you're new to cryptocurrency trading, you'll find that the platform is straightforward and easy to navigate.
- A variety of payment methods: CoinUnited supports a variety of payment methods, including bank transfers, credit cards, and PayPal. This makes it easy to fund your account and start trading.
- A wide range of cryptocurrencies: In addition to Bitcoin, CoinUnited also supports a number of other popular cryptocurrencies, including Ethereum, Litecoin, Dash, and more.
- Competitive fees: CoinUnited charges very competitive fees, which are some of the lowest in the industry.
CoinUnited is a great choice for those looking for a secure and user-friendly platform to trade cryptocurrencies. With its low fees and wide range of supported currencies, CoinUnited is an excellent option for both new and experienced traders.
Is CoinUnited Safe?
CoinUnited is a cryptocurrency exchange that is based in Hong Kong. The company was founded in 2017 and it has been operational since then. CoinUnited is one of the few exchanges that are regulated and licensed by the Hong Kong Monetary Authority (HKMA).
CoinUnited is a safe and secure platform for buying, selling, and trading cryptocurrencies. The company uses best-in-class security measures to protect user funds and data. CoinUnited is also compliant with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations.
Overall, CoinUnited is a safe and reliable option for buying, selling, or trading cryptocurrencies. The company is highly regulated and compliant with multiple financial regulations.
BlockFi Vs CoinUnited Interest Rates
The following table shows products offered by both organizations on a flexible term basis. In comparing BlockFi vs CoinUnited, we show the APY rates of each product. Such products do not require any notice period and deposits can be withdrawn at any time.
Data provided by Seedling
What Are the Risks of BlockFi Vs CoinUnited?
It's crucial to comprehend the dangers associated before deciding to earn income on your crypto holdings. Some of the most crucial considerations are listed below:
1. Security: The threat of theft or hacking is one of the most serious risks associated with earning interest on your crypto. Make sure you only use reputable platforms with a proven track record of security.. This is especially important when comparing BlockFi vs CoinUnited.
2. Volatility: Because of the volatility of cryptocurrency values, your income may change significantly over time. Make sure you're comfortable with the potential for losses as well as gains.
3. Taxation: The tax laws surrounding cryptocurrency are still relatively murky, so it's important to consult a tax professional before making any decisions about earning interest on your crypto assets. Your earnings could need to be reported as income, and capital gains taxes might apply as well.
4. Liquidity: In some circumstances, it could be challenging to sell your crypto assets when you need to get your money out. Losses may result if you have to sell your investment for less than you paid for it.
5. Fees: Most platforms that offer interest-bearing accounts charge fees for their services. Make sure you comprehend how these fees operate and how much they will cost overall.. Fees are a significant consideration when comparing BlockFi vs CoinUnited
Regulation: Because the cryptocurrency sector is still in its infancy, it's not always apparent how the various regulatory bodies will handle its various constituent parts. This would imply that it's illegal in some countries to earn interest on your cryptocurrency holdings. Before making any choices in this matter, be sure to consult a legal expert.
BlockFi Vs CoinUnited Facts
In the following table, we illustrate some key facts regarding BlockFi vs CoinUnited
Data provided by Seedling
BlockFi Vs CoinUnited Conclusion
Earning interest on your crypto assets can be a great way to boost the overall yield of your portfolio or store your assets in a more stable manner. There are several methods for earning interest on your crypto assets, and we've outlined the most popular ones in this article.
Before selecting a platform, conduct your own research because not all of them provide the same benefits. Thank you for your time!
Disclaimer: All of the information written on Coincrop is without influence and based on our analysis. No guarantee is offered concerning the accuracy of this information and therefore, any individual following up on it does as such completely at their own risk. Rates are correct at time of publication.