When it comes to earning interest from crypto holding, Celsius, BlockFi, Nexo are some of the popular names. We have earlier reviewed Blockfi, and today’s article is for users who are using Bitfinex exchange and looking to earn interest in crypto holding.
Bitfinex exchange which has been around for a long time announced its integration with the Celsius network. Now, you can access features of Celsius from the Bitfinex exchange, and earn interest on crypto holding. The lending account is nothing new with crypto exchanges, but this is uncommon to see an exchange integrating with a centralized lending platform like Celsius.
Also check out: Bitfinex review
The world’s most popular exchange Binance also offers the option to earn interest on crypto holding. However, with the Celsius partnership, Bitfinex could offer way higher interest rates on popular cryptos like Bitcoin, Ethereum, and many others. For example, at the time of writing this news, Bitfinex is offering to earn interest of 4.41% APR on Bitcoin, whereas Binance is offering only 0.25% APR on Bitcoin.
Watch this video to learn about Binance lending/saving account feature:
What I’m really excited about is, as these platforms like Celsius and others get into partnership with other platforms, it would fix the trust bug, and it will also help in wider adoption. For Bitfinex, this is not the first time they partnered with a 3rd party service. Earlier, they have partnered with Bitrefill to offer shopping features to their platform.
According to official announcement post:
Bitfinex users who open a wallet with Celsius can withdraw their crypto from Celsius at any time, with no lock-in periods and no fees. Rewards are accrued daily, compounded and paid at weekly intervals. This provides a major advantage over most income-generating products which often come with withdrawal restrictions, fees and/or penalties.
How to use Celsius on Bitfinex to earn interest on Crypto holding:
If you already have an account on Bitfinex, simply login to your account. If you don’t have an account yet, click here to create a Bitfinex account.
Now, click on more and select Lending products
Read the notice, and accept it to move ahead.
Now, select the supported crypto which you want to lend to earn interest on it. The same page would show the expected interest rate on the same. You can also head to the Celsius website to see the current interest rate on all supported cryptocurrencies.
4.41% Annual APR on Bitcoin
Click on deposit, read the pop-up message and accept to deposit funds to Celsius network.
That will deposit the funds, and you will start earning the interest on it. From the same page, you can withdraw your funds at any time.
Join Bitfinex
As I said earlier, this is an interesting integration, and something that would pave way for more exchanges to integrate with 3rd party crypto lending services. However, IMO lending crypto to earn interest is not 100% safe due to counterparty risk, so you should be careful when lending. At the same time, the only way crypto would become a full fledge financial system with the growth of such services.
What’s your thought on Bitfinex and Celsius network partnership? Do you use Bitfinex exchange or Celsisus network service? Let me know in the comment section below.
