The first big cryptocurrency installation was Bitcoin; it was released in 2009 by a pseudonymous programmer named Satoshi Nakamoto. It had many flaws, but it did introduce the concept of digital currency: a new way for people to store and transfer value.
Even though BlockFi is one of the more popular Blockchain-based payment solutions, the company is not without its controversy. An article from the New York Post discusses some of the criticisms that have been levied against BlockFi including the fact that the service is not even available in all states and it is only available to users who have a credit or debit card. In addition, BlockFi has a unique business model with its partnerships with credit card companies.
It’s always the last place you look. It’s always the last place you consider. It’s always the last place you look and consider at the same time. And it’s always the last place you consider before you do something: whether or not you should use BlockFi to start buying bitcoin.If you’re interested in the relatively passive income that can be generated by cryptocurrency interest accounts, BlockFi vs Linus is a great comparison.
Linus is a newcomer, and BlockFi is one of the most visible players in the interest space. Each business has a unique set of advantages and disadvantages that attract different types of customers.
BlockFi is a traditional provider of interest rate accounts for cryptocurrencies. You deposit BTC, ETH, USDC or other digital assets and receive interest in kind.
However, at Linus, users can only deposit in fiat (USD) and earn in fiat;gives its users access to opportunities to earn in cryptocurrencies without buying or owning cryptocurrencies.
It’s worth noting that cryptocurrency interest accounts are not like savings accounts; they carry unique risks, such as not being FDIC-insured. In this article, we’ll look at the pros and cons of both companies and give you all the information you need to decide which is best for you – BlockFi or Linus.
BlockFi vs Linus : Important information
|Reviews||Review of BlockFi||Linus-Review (to be added soon!)|
|Type of place||Cryptocurrency interest account + underlying exchange||High-interest savings account based on blockchain|
|Friendly to newcomers||Yes||Yes|
|Mobile application||Yes||In development.|
|Purchase/investment procedure||ACH, bank transfers, crypto-currency deposits.||Transfer to a bank account or debit card|
|Method of sale/cancellation||External cryptocurrency wallet, bank account||Transfer to a bank account|
|Available cryptocurrencies||Bitcoin, Ethereum, Litecoin, Link + Stablecoins||No|
|Establishment of the company||2017||2019|
|Location||Jersey City, New Jersey, United States||Brooklyn, New York, USA|
|Public trust||Superb||In evolution.|
|Customer service||I agree.||I agree.|
|Website||Visit BlokFi||Visit Linus|
Company biographies: How do BlockFi and Linus relate to each other?
BlockFi was founded in 2017 by Zach Prince and Flory Marquez. The company has received investments from leading companies such as SoFi, Winklevoss Capital, Pomp Investments and ConsenSys Ventures.
BlockFi currently has approximately 225,000 users and $15 billion in assets under management. The company was valued at $3 billion at the conclusion of its latest funding round in March 2021.
Linus is still a relatively young company. It has completed the public beta test and is currently preparing for a full launch. Linus was founded in 2019 by Matt Nemer and Matt Hamilton. Nemer previously worked at BTC Inc. and Hamilton at IBM.
The company currently has no investors. The company is still in the pre-boot phase and has not yet revealed how many people have participated in the public beta.
Feature #1: Interest rates for cryptocurrencies BlockFi vs Linus APY ?
We should start this section by stating that Linus is not interested in cryptocurrencies. The goal is to provide users who do not want to buy and hold crypto currencies with access to crypto interest options. Instead, Linus offers its users a tiered interest rate structure on their US dollars. Below are the annual rates for BlockFi’s cryptocurrencies and Linus’ progressive annual rates.
BlockFi uses a tiered interest rate system for bitcoins, where the average annual interest you earn depends on the number of bitcoins you own in the company.
The company’s current rates are as follows:
- 5% annual interest rate for 0 to 0.5 BTC
- 2% annual interest rate for 0.5-20 BTC
- 0.5% annual interest rate for 20+ BTC
BlockFi uses the same layered approach for the Ethereum APYs it offers. The company’s users currently enjoy the following interest rates on ETH:
- 4.5% annual return for 0-15 ETH
- 2% annual interest for 15 to 1,000 ETH
- 0.5% annual interest rate for 1.000 ETH and more
BlockFi’s best bets are reserved for stable games. The company offers an annualized return of 8.6% on PAX, BUSD, GUSD and USDC. He’s throwing 9.3% APY at USDT.
BlockFi also offers interest on various altcoins. For example, users can earn an annual return of 5.5% on the LTC and 4.5% on the LINK.
Linus API structure
- 4.0% annual return from $1.00 to $2,499.99.
- 4.25% annual return between $2,500 and $9,999.99
- 4.50% annual interest for $10,000 or more
How do BlockFi and Linus make money?
BlockFi makes money the same way most traditional banks do: It offers users lower interest rates on their cryptocurrency than it gets for issuing loans.
For example, BlockFi offers up to 8.6% annual interest on dollar-stable currencies. But users who want to get a loan in U.S. dollars from the company have to accept an interest rate of 9.75 percent.
The user’s balance is guaranteed by the market value of the cryptocurrencies they have deposited in their BlockFi account. Therefore, users must maintain a loan-to-value (LTV) ratio of at least 50% to maintain their outstanding loans.
For example, a user who takes out a $10,000 loan from BlockFi must have $20,000 in cryptocurrencies in their account to receive the loan. If the total value of the user’s cryptocurrency falls below this threshold and they don’t contribute more money, BlockFi will liquidate their inventory to pay off the loan.
Cryptocurrencies are an exceptionally volatile asset class; as a general rule, you need to maintain an LTV well above 50% to have a safety net. However, if you wait too long, you may have to liquidate your assets during a short-term market decline.
Linus makes his money in much the same way. The users of the company receive a fixed interest rate on the funds deposited in their accounts (see above). Any surplus APY that Linus can generate by providing cryptocurrency cash goes into his pockets.
Linus takes dollar funds from its users, converts them to USDC, and then places these stablecoins in liquidity pools on the Ethereum network. Holders of cryptocurrencies can borrow from these pools by using their cryptocurrency as collateral and paying an interest rate.
Providing liquidity in Ethereum smart contracts comes with unique risks, such as. B. non-permanent loss.
Linus does not provide details of its liquidity practices or risk mitigation strategies to its users, but has not disclosed its risk management practices.
BlockFi and Linus earn their percentages about the same, but BlockFi pays higher percentages and is more established, so he wins in this category.
feature #2: Deposits and withdrawals
The crypto-currencies you deposit into your BlockFi account earn interest daily and are paid out monthly. In addition, users receive one free withdrawal of cryptocurrency and one free withdrawal of stablecoin every month. Additional recordings are subject to a charge.
The money you deposit in your Linus account always earns interest, and your account dashboard is updated every six hours. Users can withdraw their money and accrued interest at no cost at any time.
Linus offers the best consumer experience in this regard.
feature #3: Safety
BlockFi offers excellent security features to its users. The company holds 95% of its funds in cold storage portfolios managed by its parent company, Gemini Trust Company. Gemini is SOC certified by Deloitte.
BlockFi also offers several security features to protect users from hacker attacks. For example, it supports two-factor authentication and allows users to whitelist specific cryptocurrency addresses. These whitelisted addresses become the only addresses from which users can remove their tokens, unless they go through a lengthy verification process to add a new address.
Overall, Linus is still developing, which is also reflected in the company’s safety rules. Like BlockFi, the company supports two-factor authentication.
Linus claims that users’ funds are protected by a lien on digital assets and third-party insurance that supposedly protects against hacking, theft and loss of funds. Unfortunately, he doesn’t give any details on how he manages this.
Characteristic #4: Actions and incentives
BlockFi and Linus offer bonuses – BlockFi offers a tiered bonus for new users and Linus offers a referral bonus.
- 15 per deposit between $100 and $1,499.
- 20 per deposit between $1,500 and $19,999.
- 40 for a down payment of $20,000 to $39,999.
- 75 per deposit from $40,000 to $74,999.
- 100 for deposits between $75,000 and $99,999.
- 250 per deposit for a total of over $100,000.
Register through this link to receive a BlockFi bonus.
From April to June 2021, all Linus users can receive a $20 bonus for their referrals. To receive this bonus, a referred player must make a deposit of at least $100 through a link such as this – Sign Up for Linus.
feature #5: Ease of use
BlockFi and Linus are both very easy to use. Each service allows you to fund your account with cash from another bank account or with a debit card.
When you fund your BlockFi account in fiat, it automatically converts to DICC and begins earning an interest rate of 8.6% per year.
BlockFi has a mobile app, while Linus does not. So, it could be the best solution for those who like to manage their finances on the go.
But with Linus, you don’t have to worry about converting fiat into cryptocurrencies or buying cryptocurrencies. Therefore, it is probably an easier choice for those who are new to cryptocurrencies.
Linus wins at ease – does half the work, but also half the price.
BlockFi plans to launch a cryptocurrency credit card with interest charges soon. This allows users to earn 1.5% bitcoin interest on each purchase.
Linus is still very empty, as it hasn’t been officially released to the public yet. Nevertheless, the service itself can be considered exceptional, as Linus is one of the few companies that offers users access to cryptocurrency-based profit opportunities without owning cryptocurrencies themselves.
Court of public opinion: BlockFi vs Linus Reddit
Most Redditors discussing crypto currency accounts tend towards BlockFi, and discussion of Linus is minimal.
Those who criticize the company for its arrogance, experienced traders criticize Linus’ 4.5% annual interest rate and claim they can get more annual interest by offering their own liquidity on Ethereum while taking about the same risk.
However, these themes are likely created by experienced cryptocurrency enthusiasts who are passionate aboutFi products. Linus was not designed for this clientele. Instead, it’s designed for people who want to get a higher annual return on their indirect fiat funds by accessing DeFi and cryptocurrency earning products without having to figure out how to do it all themselves.
You can get answers to frequently asked questions about BlockFi by visiting the company’s FAQ page. BlockFi also has an AI-powered chatbot and phone support Monday through Friday from 9:30 a.m. to 5 p.m. Eastern time.
Linus also has an online FAQ page. The company’s website also has an online discussion area, and email support is available at [email protected].
Can we trust BlockFi and Linus?
BlockFi is backed by some of the biggest names in the crypto-currency industry. In addition, the company has received security certifications from Deloitte and the New York City Department of Financial Services.
Linus also seems reliable, but we’d like more details on how it protects its users’ funds from hacking, theft, and loss of funds with liability insurance.
Linus is a newer company and has yet to build its reputation, which is understandable since the full version of the service is not yet on the market.
Linus ended the public beta program with no complaints of scams or loss of user fees. So initial results are optimistic, but cautious users should give the company time to establish itself before they entrust their money to it.
BlockFi vs Linus : What is the best interest rate account for cryptocurrencies?
BlockFi is the best crypto currency interest account if you want to earn interest on popular coins like BTC, ETH and LTC, as Linus does not offer such services.
The only real point of comparison between BlockFi and Linus is for people who want a higher interest rate on their dollars. Linus offers a simpler experience for this, but BlockFi still beats it – it automatically converts USD to CISD, resulting in an 8.6% return.
Linus offers only 4.5% annual interest on a dollar-for-dollar basis.
BlockFi has a mobile app and Linus does not.
However, Linus may still be the best option for users who do not want to own cryptocurrencies and only want to deposit US dollars and receive withdrawals in US dollars.
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