If you believe cryptocurrency is the new big thing, or either you were caught up in the first Bitcoin craze. If you’re able to make progress as a cryptocurrency investor, BlockFi could be your subsequent move. The BlockFi Interest Account (BIA) is among the most attractive cryptocurrency interest accounts just in the markets, offering a 4.5 percent APY on BTC as well as up to 9.5 percent on stablecoins. The company’s latest Series D raised nearly $3 billion in funding, attracting interest from both cryptocurrency as well as non-crypto consumers.
BlockFi is a global cryptocurrency exchange that also provides interest-bearing accounts as well as low-interest loans. There have been no transaction fees on trades, when there are no hidden costs or minimum balance requirements. Our BlockFi review delves into how BlockFi function and what are its products, as well as if it is worthwhile.
BlockFi offers financial services to consumers as well as organisations in all 50 states of the United States. Interest-earning accounts, low-cost USD loans backed with cryptocurrencies, as well as fee-free trading are among their services.
BlockFi’s objective is to enable its users to earn a return, borrow the money, as well as exchange cryptocurrency through the industry’s most reputable financial service providers. Also there are various ways in which BlockFi outperforms similar services.
Although BlockFi is a privately held company, it has the backing of financial behemoths like Fidelity as well as SoFi. This implies BlockFi has a product lineup that is similar to what you’d get at a major corporate bank. The way BlockFi issues loans, on the other hand, that’s where it varies from regular banks.
Cryptocurrency loans are secured by digital assets, ensuring that the loan is repaid in the event of default. Investors are prepared to put up such collateral in order to fully exploit their cryptocurrency investments or withdraw cash without needing to sell their coin.
By conforming to US law as well as banking laws, the platform appears to be moving above and above to safeguard its clients. It remains independent in order to deliver the best prices, but collaborates with well-known institutions to assure that your cryptocurrency assets perform at their best all of the time.
Its diverse approach ensures the safety of your valuables. BlockFi ensures that you really can continuously retrieve your funds as they’re protected by a substantial amount of collateral.
Founding Members of BlockFi
The executive team of BlockFi has extensive experience in financial services as well as banking. The corporation promises to follow a conservative regulatory stance in order to prepare itself for long-term development and success.
Zac Prince, the company’s founder and CEO, has worked at a number of successful software companies. He headed business development teams at Orchard Platform, before founding BlockFi.
Flori Marquez, co-founder and VP of Operations, with experience handling alternate loan solutions. As Head of Portfolio Management for Bond Street (bought by Goldman Sachs), she facilitated the development and scaling of a $125 million portfolio. She was in charge of all aspects of the business, such as the point of origination, default, as well as litigation.
What is the total amount of money raised by BlockFi?
BlockFi has received $508.7 million in total, valuing the startup at $3 billion. BlockFi’s income has increased by tenfold in the last year, putting it on course to achieve $100 million in the coming year. BlockFi has established a good case for positioning itself to be a dominating institution in the overarching developing FinTech field, with over $1.5 total assets on the marketplace and a 0% loss record throughout its lending portfolio.
BlockFi secured $350 million in Series D fundraising, headed by new investors including Bain Capital Ventures, Pomp Investments, Tiger Global, as well as DST Global partners. BlockFi stated in a press release that it intends to be using the funds to further innovate its product portfolio, accelerate new markets, and possibly fund new acquisition prospects.
Valar Ventures, Winklevoss Capital, Kenetic Capital, CMT Digital, Castle Island Ventures, SCB 10X, HashKey, Avon Ventures, Purple Arch Ventures, Michael Antonov, NBA player Matthew Dellavedova, as well as two university endowments were among the investors in BlockFi’s $50 million Series C round, which was led by Morgan Creek Digital.
BlockFi received $18.3 million in Series A fundraising headed by Peter Thiel-backed Valar Ventures with participation from Winklevoss Capital, Galaxy Digital, ConsenSys Ventures, Akuna Capital, Avon Ventures, Susquehanna, CMT Digital, Morgan Creek, as well as PJC previous to its latest Series C funding.
Top Products and Services Offered by BlockFi
BlockFi Interest Account
The BlockFi Interest Account (BIA) is perhaps the simplest way to make additional income using your cryptocurrencies currently. It enables you to earn interest on your virtual assets. Although the return is variable, it substantially outperforms ordinary savings accounts. One can hope to receive between 3% and 7.5 percent each year depending on the cryptocurrency that is used to finance the account. However, keep in mind that your overall return will be clearly distinguishable. Because interest is calculated in the crypto you use to fund your account, the changes in the price of the crypto you own will have a big impact on your earnings.
Interest rates on a variety of cryptos, such BTC, ETH, LTC, LINK, PAX, and many others, grow to up to 7.5 percent wherever appropriate.
This account is completely free to use, and there is no obligation for a minimum balance. In three easy steps, you may open an account: Fill out the form as well as credit your account with cryptocurrencies or stablecoins. Begin earning monthly compounded interest on your preferred cryptocurrency (Bitcoin, Ether or Stablecoins).
You could also use BlockFi’s handy interest estimator tool to estimate what you’ll make over time on a specific crypto balance in your BIA. With BlockFi, both your assets as well as data are secure, allowing you to invest with confidence. And here is an illustration of how BlockFi could help you:
It pays the following interest rates:
- Bitcoin (up to 2.5 BTC): 6%
- Bitcoin (more than 2.5 BTC): 3%
- Ethereum: 5.25%
- LINK: 5.5%
- PAX Gold: 5%
- Litecoin: 6.5%
- Paxos Standard: 8.6%
- USDt: 9.3%
- USDC, GUSD, and BUSD: 8.6%
With such a $10,000 stablecoin deposit on BlockFi, you may earn roughly $900 each year with low disruption. If you leave that $10,000 to compound for 5 years without contributing to your principal balance, this would grow to nearly $15,000, earning you an equivalent of $1,000 each year in making money!
BlockFi Trading buy and sell amongst your virtual assets directly from the BlockFi interface. This is an easy-to-use trading platform that generates significant interest on your assets while you trade.
To trade, first choose the currency you’d like to get as well as pay in. You’ll calculate the information you want to buy and then hit swap, exchanging your fiat currency (government-issued money that isn’t backed by an asset like gold) for a crypto.
The following are some of the features:
- There are no charges. There are no hidden fees when you trade. The trade price you can see is the price you have to pay.
- Flexibility: Trade as well as exchange the most well-known cryptocurrencies.
- Trading that is simple and quick. Begin trading as soon as your cryptocurrency trading account is loaded, as well as earn income as you execute trades.
- There are no time limits on how long you must be locked up. You have the option to withdraw your cash at any time, reducing the danger of losing money in the unpredictable cryptocurrency marketplaces.
To fund large expenditures, refinance debt, or make a down payment on even a property, use a BlockFi loan as just a personal loan. You must back your loan with cryptocurrencies with a loan-to-value (LTV) ratio of approximately 50%. You may borrow in USD, GUSD, or USDC, with Bitcoin, Ethereum, or Litecoin as collateral.
To get your loan, you’ll have to spend a 2% origination charge as well as interest rates ranging from 4.5 percent to 9.75 percent, based on your LTV.
Bitcoin Rewards Credit Card
The time has finally come over. Take a look at the first credit card that allows customers to pay Bitcoin rewards. For the very first three months, you can earn 3.5 percent in Bitcoin on all transactions. Following that, you’ll get 1.5 percent back in Bitcoin for your transactions.
Anyone who opens a BlockFi Interest Account and deposits money into it will be added to the Bitcoin Rewards Credit Card waiting list. The card would be available to citizens of the United States in a significant number of states starting in 2021. In addition, BlockFi is presently providing BTC bonuses for using its platform. If you enter $100, then you’ll end up receiving $15 in free Bitcoin!
Fees Structure of BlockFi
For trading on BlockFi’s exchange, there are no transaction fees. If you take money from the account over and over twice a month, you’ll be charged a fee. On crypto-backed loans that borrow through the company, you have to also spend origination fees as well as interest.
Each month, BlockFi offers 1 free crypto withdrawal as well as one free stablecoin withdrawal. Then, depending on the currency, you’ll have to pay fees for each withdrawal.
|1st monthly crypto withdrawal||Free|
|1st monthly stablecoin withdrawal||Free|
|PAX Gold||0.015 PAXG|
Loan Rates and Fees
|LOAN-TO-VALUE||INTEREST RATE||ORIGINATION FEE|
What is the procedure for creating a BlockFi account?
The process of creating a BlockFi account is simple and takes less than two minutes.
- To get started, go over to the BlockFi site. With this offer, users can get a sign-up increase of up to $500 on your first deposit, beginning at $25 when you deposit at least $500.
- Just go to the site slider’s “Earn Interest” button or the menu’s “Get Started” button.
- To set up an account, enter the email address as well as enter the password.
- Enter the code that was emailed to you.
- Click “Deposit” once you’ve checked in to authenticate your identification as well as make your initial deposit.
- Fill up your personal details to be verified.
- Wait for approval after uploading a form of identification including a passport, driver’s licence, or ID card.
BlockFi Review: Is BlockFi a secure network?
BlockFi passed the safety inspection, according to the research as well as interviews. That’s about as secure as its chief custodian, Gemini. Gemini retains 95 percent of its funds in cold storage as well as only 5% in Aon-insured hot wallets. Gemini is indeed a licensed custodian authorized by the NYDFS, as well as its custody solution just earned SOC2 compliance through Deloitte. While BlockFi’s rates of interest seem attractive, it’s understandable for bitcoin enthusiasts to be sceptical– and rightly so; we’re a nervous bunch.
Yes, using BlockFi is completely risk-free. However, not all amounts invested on the site are risk-free. Cryptocurrencies are inherently dangerous investments, therefore cryptocurrency prices are expected to fluctuate dramatically. If you don’t want to take any chances, you can try considering lending stablecoins on BlockFi.
BlockFi combines tried-and-true financial services like interest accounts as well as rapid access to credit to the realm of cryptocurrency assets, if you’re a crypto specialist or getting ready to take the jump. To stay connected to your crypto management wherever you may be, use the BlockFi mobile phone application to earn a return, trade, as well as borrow from your mobile.
BlockFi is supported by credible investors in addition to its state-regulated custodian. Valar Ventures, Morgan Creek Capital Management, Coinbase Ventures, and others are among them. Allowlisting is a feature of BlockFi that you can enable. This safeguard protects your BlockFi account from being stolen.
The systematic low risk and what exactly you’re doing with your cryptocurrencies will determine if BlockFi is worthwhile. BlockFi’s rates of interest are competitive on the market.
Thus, before trading, do your own research. And also please let us know if something is missing in this review.