Founded in 2017 BlockFi provides financial products in almost every country in the world, offering both interest-bearing accounts and crypto-backed USD loans. BlockFi offers a tremendous 9.25% APY on stablecoins and 6% APY on Bitcoin thanks to the inherent value of blockchain technology.
The platform differs in that it has strong support from institutional investors such as Galaxy Digital, ConsenSys Ventures, and Akuna Capital.
BlockFi is bridging the gap between cryptocurrencies and traditional finance in a new way that benefits customers by allowing them to lend and borrow cryptocurrencies.
This undoubtedly opens up the possibility of long-term passive income on earning compound interest for both beginners and experienced crypto investors. Unlike crypto trading, there are no risks, allowing you to make healthy profits from your crypto investments.
You can use the tool to manage your cryptocurrency portfolio and profit from it in real time. You can borrow money as well as buy and sell cryptocurrency, and you'll always be able to locate the greatest market circumstances to do so.
BlockFi, in the end, provides flexible access to investing options by requiring no minimum balances or commitments beyond what you believe is appropriate for your crypto portfolio.
Bonus Offer: When you register an account and deposit more than $100 in bitcoin, you will get a bonus paid in BTC. Details can be found here. Get up to $250 in Bitcoin for funding an account and earn up to 8.25% APY on your cryptocurrency. See here for details.
Basic BlockFi Offerings
- BlockFi presently has four primary products on the market:
- The BlockFi Interest Accounts (BIA)
- Loans backed by cryptocurrency
- The first Bitcoin credit card in the world
- Trading
More about each option:
BlockFi Crypto-backed loans
What exactly is a cryptocurrency-backed loan, and how does it work?
Actually, it's simple. You can borrow USD or stablecoins (USDC, GUSD, PAX) by posting crypto (BTC, ETH, LTC, or PAXG) as collateral. It's a great approach to get cash without having to sell your assets and face a tax bill.
The amount of money you can borrow in USD is determined by the amount of collateral you put up as security for the loan and the LTV (Loan to Value Ratio) you select.
The minimum loan amount is $5,000, with a 12-month repayment period. In addition, your loan has a 4.5 percent interest rate. When compared to the APRs offered by some of the more typical loan-granting systems, this is a very low rate.
To qualify for a crypto-backed loan, you must have a loan-to-value (LTV) ratio of 50% or above. To put it another way, you can only take out a loan that is half the size of your current portfolio.
According to the creators, they conducted a number of research and decided that this rate is best for protecting clients from the effects of market volatility.
You will need to place more collateral to lower the ratio again if your cryptocurrency drops in value and increases your loan LTV ratio.
To get your loan, you'll have to pay a 2% origination charge and interest rates ranging from 4.5 percent to 9.75 percent, depending on your LTV.
You don't have to pay a penalty if you pay off your loan early.
A licensed Gemini custodian receives the user deposit and is legally responsible for its protection.
BlockFi Interest Accounts (BIA)
BlockFi clients can make a crypto deposit into an interest-bearing account and earn decent passive income. With a BlockFi Interest Account, you may earn up to 9.25 percent APY in crypto (BIA).
Supported cryptocurrencies: BTC, ETH, LTC, USDC, GUSD, USDT, PAXG, LINK, BUSD, DAI, BAT, UNI, and PAX. Interest will begin to accrue from the next day you deposit and will be added to your account at the beginning of each month, increasing your total annual income.
Interest can be received not only in the currency that was deposited but in any supported cryptocurrency of your choice. This opportunity is convenient to use to diversify assets without buying additional crypto.
BlockFi does not have lock-up periods for your deposits, which means you will be able to withdraw funds at any time.
The service is available to customers worldwide, except in countries where sanctions are imposed on such transactions.
The deposit is sent to an institutional custodian's unique wallet address.
BlockFi Trading
You can also set up a recurring trades feature to automate crypto purchases on a daily, weekly, or monthly basis after you upload your BlockFi wallet.
Investing in crypto assets on a regular basis can help you build wealth and put your crypto to work for you.
The World's First Bitcoin Rewards Credit Card
A Bitcoin Rewards Credit Card is available for US residents on the platform. You can earn an unlimited 1.5 percent back in bitcoins on every transaction with this card, and there is no annual charge.
What is the BlockFi Wallet?
The BlockFi wallet is a default non-interest-bearing account to which new assets, promotional bonuses, and credit card rewards will be sent. The wallet offers a simple and secure way to buy, sell, store and secure cryptocurrencies and borrowed funds on a secure platform.
BlockFi Fund withdrawal
Withdrawals to a bank account are supported if the amount is at least $5,000. To withdraw a smaller amount, you must first transfer it to stablecoins, and then send it to an external crypto wallet.
The first withdrawal once a month is free, after that there is a withdrawal fee of 0.0025 BTC or 0.0015 ETH charged by the Gemini custodian.
USD or stablecoins (USDC, GUSD, PAX, BUSD) are also used as deposit currency. Transferring from a bank account takes some time.
Refer your friends and earn
It's simple to earn a bonus by inviting friends to BlockFi. Simply share your referral code, and you and your friend will each receive $10 in bitcoin for each individual who deposits $100 or more using your code. After you've referred five individuals, you’ll start earning an extra $10 BTC bonus for any additional referrals.
If you are a non-US resident and recommend a non-US resident friend, you will both earn $40 in BTC!
Gain access to increased referral bonuses
You and your referred buddy will each earn an extra $30 in bitcoin if you hold the BlockFi Rewards Credit Card.
Alternatives to BlockFi
The Celsius Network currently has slightly lower Bitcoin (BTC) interest rates than BlockFi. However, this platform allows you to earn interest in many other cryptocurrencies. Celsius users receive additional perks like improved interest rates, priority status, and community membership by using CEL, an in-app utility token.
YouHodler offers greater savings account interest rates, lower loan fees, and interest rates, more cryptocurrency selections, and multiplication features like Multi HODL and Turbocharge. The platform has made crypto HODLing an active strategy. In addition, universal conversion between all crypto, fiat, and stablecoins is offered.
Safety
Because cryptocurrency is not recognized as legal cash, your cryptocurrency deposits will not be covered by any government. This is true for the entire bitcoin industry.
BlockFi uses an automated risk management system that monitors positions 24 hours a day, provides early notice of falling borrowing costs, and manages balances to ensure that withdrawals from interest-bearing accounts are as simple as possible.
The assets of clients are held by the custodian Gemini in a one-of-a-kind wallet that he owns. The company's operations are regulated by the New York State Department of Financial Services and meet SOC 2 security standards. Only cold storage of cash is employed, which is fully protected against outside assaults and has strong access controls.
BlockFi offers legal assurances about the security of funds. First and foremost, this is a loan agreement that is automatically signed during the loan processing procedure. A UCC-1 document is also prepared for US residents, telling the regulator of the company's safekeeping of customer cash. It is required in the event that the blockchain becomes unusable.
Conclusion
BlockFi is a legit and trustworthy cryptocurrency lending platform. Overall, this is an excellent alternative for newbies who wish to buy, keep, and earn income on bitcoin, Ethereum, and other crypto-assets. Quite high-interest rates up to 9.25% on a deposit account allow you to generate tangible compound interest and receive a stable passive income.
Sign up today and earn compound interest on your crypto assets. You can visit this link to sign-up for BlockFi and earn up to $250 in Bitcoin.
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