I know that Binance Earn sounds like a decent way to earn passive income however the truth is that there are platforms that offer even better interest rates. so should we take a look at some of those. my second crypto lending platform has got to be Block Fi but who on earth are they? well this privately held new york-based lending platform was founded in 2017.
the venture raised 18.3 million dollars in financing during its series a funding round back in 2019 and that attracted a bunch of notable names. these included the likes of valar ventures which is backed by billionaire investor peter thiel, mike novogratz’s galaxy digital ventures, winklevoss capital, consensus ventures and acuna capital. now that’s basically a who’s who of some of the richest people in crypto. also in case you wondered, yes, winklevoss capital is indeed operated by the same winklevoss twins who had that beef with Mark Zuckerberg.
okay so it’s got some really impressive backers behind, it but what are those interest rates like? well they are actually pretty competitive – you can deposit any amount of link and get 5.5 apy. there’s no minimum threshold on ltc and you can pick up a cool 6.5 percent apy. you can get 8.6 on usdc, gusd, pax and busd. a cracking 9.3 on usdt and 5 on paxg! things get a little more complicated when it comes to earning interest on bitcoin and ethereum. here the amount of interest you receive depends on the amount of crypto you supply. deposit zero to one btc and your bag six percent apy however that interest rate actually decreases when you supply more btc and scales down to just 0.5 percent.
so if you want to maximize that rate of interest you won’t want to deposit more than one btc. the same is true with ethereum, however you can get up to 100 eth at the top rate of interest of 5.25 percent now. that is a significantly higher rate than Binance own! so it’s no wonder that blockfi is so damn popular, but how are those interest rates generated?
well blockfi re-hypothecates those deposits to generate those returns. it’s actually pretty similar to what a bank does when they take deposits and lend them out to borrowers however in this case the borrowers are generally crypto businesses that need that bitcoin to fund their operations.
so now you know how blockfi works. but are there any special deals out there? well I have actually been able to get one here for you good people. sign up with the code our project and you can get a tiered bonus of up to 250 dollars to get that you need to have a whopping 20k or more on block fi however there are six bonus tiers and these start from just 25 which will pay out 15 in free bitcoin.
that’s on top of your interest of course if you want to grab that deal then make sure to check out the link in the description below. so that’s block five however? it’s only a lending platform a one-trick pony with only that functionality what happens. if you wanted a more thorough exchange and lending option well that comes in with my third pick.