With over a 150m in funding from notable community figures, Blockfi is the goto place for growing your crypto currency. It is a super popular way to generate compounding interest for your bitcoin or other cryptocurrency. So in short, already, it is definitely worth it.
Founded in late 2017 Blockfi is the US based centralized cryptocurrency finance company that supplies a variety of financial services to both private and institutional clients. Blockfi interest accounts or BIA for short enables to earn upto 8.6 % interest annually in cryptocurrency deposited to their accounts. Zac Pince and Flori Marquez are the founder / co-founder of this company who have wealth of experience in investing and finance.
The way this works is Blockfi lends the user deposits to institutions or corporate bar owners which pay interest at higher rate to Blockfi which in turn is paid to their users. It also allows users crypto as collateral and let them borrow upto 50% of the deposit. Through this users can get access to cash instantly without having to trade their crypto.
They also provide no fee crypto trading services however people have said that the exchange rates are lower. The interest rates change according to the market.
Services of Blockfi:
- Interest-bearing crypto savings accounts
- Cryptocurrency trading
- Crypto-backed USD loans.
What are the competitors?
- Crypto banks – Celcius network, Crypto.com, Nexo, Cred etc
- DeFi space (Decentralized finance) – Compound finance, Avey etc
- Fintech companies – WealthFront (1.82% interest)
- Banks – Bank of America
Difference between Blockfi and its competitors:
- Blockfi gives compound interest while others may not
- Withdraw frequency varies for different companies
- Hold up period also varies
- Some offer kyc and others don’t
Cryptos Blockfi Accept:
- Bitcoin (BTC)
- Ether (ETH)
- Litecoin (LTC)
- Tether (USDT)
- USD Coin (USDC)
- Gemini Dollar (GUSD)
- Paxos Standard (PAX)
- Paxos Gold (PAXG)
Advantages of Blockfi:
- It is available worldwide, outside of sanctioned or watch listed countries.
- Passive income and interest compounding
- Rates beat others
- It is supported by Gemini
- Advanced security measures like analytics, AI, account lock etc
- Blockfi has reputable investors
- Blockfi is a US based company
- Great referral program (10$ per user depositing over $100 and $20 for more than 5 user referral)
- Blockfi provides the option of two factor authentication
- One free withdrawal a month
- Wire or ACH deposits
- Static deposit address (whitelisting an address which you don’t have to change often)
Disadvantages of Blockfi:
- API is high but changes according to market
- Don’t have great analytics or tracking, they only show spot value and don’t show over time how it changes
- Trading is not recommended because of higher cut
- Mandatory kyc and tax
- Lengthy withdrawal of funds of about two days
- Centralized company meaning they have control of funds
- Security breach in May 2020 and some data was compromised
- Not FDIC insured
Blockfi platforms support:
Along with the service on the web, BlockFi has smartphone support with apps both for Android and iOS. The app provides all of their main services with a nice and good user experience, which is easy to follow. Users can do various things on the app from monitoring and managing their account balances, to signing up for loans etc.
Blockfi interest rates for various cryptocurrency:
The BlockFi interest rates are very competitive, and it makes sense to invest your crypto in one or the other rather than just keeping them on an interest-free exchange or wallet.
- Bitcoin: Users can earn up to 6% in annual interest on deposits under 5 BTC, and 3.2% on any BTC amount above that 5 BTC threshold.
- Ethereum: Users can earn up to 5.25% in annual interest on deposits under 500 ETH, and then 0.5% on amounts over that 500 ETH threshold.
- Litecoin: Users can earn up to 5% in annual interest on all deposits.
- Gemini Dollars: Users can earn 8.6% interest on their GUSD deposits.
- USDC Dollars: Users can earn 8.6% interest on their USDC deposits.
- PAX: Users can earn 8.6% interest on their PAX deposits.
- PAXG: Users can earn 4% interest on their PAXG deposits.
- USDT: Users can earn 7% interest on their USDT deposits.