Celsius Gemini Earn: Which is the Better Interest Account? – CoinCen…

Celsius and Gemini Earn are two prominent cryptocurrency interest account products; in today’s review we compare Celsius vs. Gemini Earn and how do users offer rewards for their crypto.

Celsius is a leading crypto lending and wallet service. Founded in 2017 by Alex Mashinsky, Nuke Goldstein and S. Daniel Leon, Celsius has more than 340,000 users worldwide, with interest up to 17.78% APY, compounded daily and paid every Monday. At the time of writing, Celsius is over $5.3 billion in crypto deposits on his platform.

Gemini is a cryptocurrency exchange and custodian available in the US and over 50 countries worldwide. It allows users to buy, sell and store cryptocurrencies. Founded by Tyler and Cameron Winklevoss in 2015. Gemini has over 13.6 million users and has recently surpassed $30 billion in crypto under management.

Earning twins is Gemini’s Interest Account, released in February 2022. It allows Gemini users to transfer their crypto to an “Earn” account to earn up to 7.4% APY.

So let’s dive into Celsius vs. Gemini Earn – which is the better interest account and why?

Celsius Gemini Earning: Important Information

Item

Celsius

twin

Place

London

New York

Suitable for beginners

Yes

Yes

Mobile phone application

Yes

Yes

Available cryptocurrencies

BTC, ETH, GUSD, PAXG, others

BTC, ETH, GUSD, DAI, others

Business launch

2017

2015

Community Trust

Good

Awesome

Security

Good

Awesome

Customer service

Good

Awesome

cost

Low

Low

site

Get $50 when depositing $400 or more over 30 days.

View site

Feature #1: Interest Rates

One of the most important criteria in our ranking is how much you can earn on a platform like Celsius or Gemini – after all, that’s what a crypto interest account is for, provided your money is safe.

Celsius offers different APY rates for US users, international users and users who choose to receive their interest in its own token, CEL. To illustrate, here are Celsius’s offerings on Bitcoin and Ether.

US users:

BTC: 6.20% APY on the first two BTC, then 3.51% APY

ETH: 5.05% APY

International users:

BTC: 3.51% APY

ETH: 5.05% APY

International users paid in CEL: (not available for US users)

BTC: 4.40% APY

ETH: 6.35% APY

Celsius offers interest on stablecoins like PAX, GUSD and USDC to 8.88%. This APY can go up to 11.21% if paid in CEL, which is only available to international users.

There are more than 40 coins on which you can earn interest in Celsiusincluding MATIC (up to 13.30% APY) and SNX (up to 17.78% APY)

Gemini Earn, on the other hand, offers a flat rate of 2.05 APY for BTC and ETH and up to 7.40% APY for stablecoins such as DAI and GUSD, Gemini’s stablecoin. Gemini Earn supports the 40+ coins available on the Gemini exchange. Here’s a look at their structure.

APY rates

With a higher APY across the board, Celsius is the more attractive interest account.

You may be wondering how Celsius and Gemini can offer interest at these rates.

How do Celsius and Gemini make money?

Like most centralized banks, Celsius and Gemini make money by lending customer assets to corporate and private borrowers. The big difference here is that your sources are digital, so there are some nuances to keep in mind.

Celsius lends to corporate institutions and exchanges and secures these loans by requiring at least 50% LTV (loan-to-value) collateral. In other words, to get a loan, creditors must have crypto assets that hold at least 2x the value of the amount they intend to borrow with Celsius as collateral. This collateral can be up to 150% LTV.

It is important to consider the risk associated with this. Crypto loans and deposits cannot be FDIC insured. In addition, you can allow Celsius to make loans without collateral.

Celsius ToS

“Grant Celsius the right to…lend any amount of such digital assets…without holding and/or controlling Celsius a comparable amount of digital assets”. †

Here is what Celsius says about its methods of obtaining loans

Like Celsius, Gemini provides loans to corporate borrowers to pay users their interest. Unlike Celsius, Gemini does not charge collateral for loans and instead opts to conduct an in-depth risk assessment of each of its corporate creditors, informing users to whom it lends their money.

They are very clear about the risks of this in their terms and conditions.

ToS

According to founder Alex Machinsky, Celsius plans to offer self-insurance on loaned assets soon, though it has not announced a release date for this.

Feature #2: Payouts and Withdrawals

Celsius pays out on Mondays. Members can withdraw money at any time at no cost.

On the other hand, Gemini offsets the interest on a daily basis so that users can see their earnings grow faster. There is no charge for withdrawals on Gemini and users can withdraw at any time.

Feature #3: Security

The custodians of Celsius are fire blocks and PrimeTrust† They insure funds they hold, but this insurance doesn’t cover your assets when they are ‘spent’ or lent to generate returns. Celsius’s in-app security includes 2FA and “HODL mode”A feature that limits recordings.

On April 15, 2022, Celsius announced a security hack that had gained access to a third-party email distribution system and the contact details of some of its customers. They then carried out a phishing attack via email and text message on some Celsius users.

On the other hand, Gemini is known for its security practices. The Gemini Trust Company, Gemini’s custodian, holds more than $30 billion worth of crypto. It secures users’ assets in offline cold storage and insured hot wallets as long as these assets remain in his possession. Gemini Trust also protects the funds of other platforms, including the popular crypto interest platform, BlockFi† Again, assets are not insured by Gemini once they are deployed.

Gemini is a New York Trust company under the New York Department of Financial Services (NYDFS). It has completed SOC 1 Type 2 and SOC 2 Type 2 exams and achieved ISO 27001 certification. At the time of writing, Gemini has never been hacked.

Feature #4: Promos and Bonuses

Both Gemini and Celsius offer bonuses to new users. Celsius offers new users $50 in BTC as a sign-up bonus. After that, you will earn $40 on every referral you make. In addition, Celsius’s loyalty program rewards users who own its native token, CEL. Based on the percentage of CEL they retain (compared to other assets), Celsius rewards users with more rewards for their crypto and loan interest cuts.

Celsius Loyalty Points

On the other hand, Gemini’s Sign Up Bonus gives new users $10 in BTC if they buy or sell $100 worth of assets within their first 30 days, then $10 for each referral that does the same.

Feature #5: Standout Features

The Gemini platform enables buying, selling and saving with interest income.

Celsius offers its crypto interest account, crypto loans, and CelPay, which allow users to send cryptocurrencies. Both services are beginner-friendly and accessible through web or mobile apps.

Other Gemini products include Gemini Pay, which allows users to make purchases in popular stores using their crypto assets, and Active Trader, a more comprehensive exchange platform for experienced traders.

Celsius’s HODL mode is very useful for account security. It allows users to prevent outgoing activity on their account, which is useful if you know you won’t be recording anything for a while. As another nod to keeping your crypto safe, Celsius plans to launch a self-insurance plan that will cover all of the user’s money. This assurance would be a significant advancement for the crypto industry as no other platform has such assurance these days.

The Court of Public Opinion: Celsius vs. Gemini Reddit

Redditors generally have positive opinions about both Celsius and Gemini.

Both platforms have loyal communities and the most common concerns are a lack of insurance and loan collateral policies.

Neither platform has overly negative feedback.

Can you trust Celsius and Gemini?

Celsius has over 340,000 users and over 100,000 BTC in assets. Although his lending practices have been interrogatedCelsius has not given its users any reason not to trust it. The Celsius website contains a special Help Center that should answer any questions you may have. It covers common questions about deposits, withdrawals, and security, among other things.

If you can’t find what you’re looking for in the Help Center, send a help request and a Celsius representative will contact you by email. Alternatively, you can contact Celsius’ Telegram Groupwhich has over 17.3k active users.

Gemini has earned its trusted status with industry-leading security practices, certifications and longevity. It has approximately 13.6 million users and maintains an extensive knowledge base with FAQs, definitions, videos and more. You can contact Gemini support here.

Celsius Gemini: Which is the Better Crypto Interest Account?

We’ve looked at the main features, and Celsius and both have their pros and cons. We like Celsius for its interest rate offering – up to 17% APY is pretty hard to beat.

Gemini Earn is a newer service with decent APY, and it’s an attractive option as it comes with the Gemini brand.

However, Celsius offers higher APYs for all major digital assets and then some, giving users more bang for their buck. Celsius has a $50 signup bonus for new users, which is better than Gemini’s $10 signup bonus

All things considered, Celsius is the better cryptocurrency interest account right now. However, Gemini’s great community, security, and customer support practices give it an important foundation to build a better product in the future.

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