But, I have serious concerns about learning my crypto to 3rd parties. What happens if the institution that I loan to, for example BlockFi, goes brankrupt? I assume I will lose my crypto. Would it be safer to loan to an exchange and I don't run that risk?
If the 3rd party company is a regulated and well-established company, the chance of being insured is possible. I don't know about BlockFi but seems they are a strong and reputable company.
But everything can change overnight, as to my own decision, I won't try their service but instead, I will choose crypto-exchange with interest features. Same risk but the exchange can stand strong more.