BlockFi Review: Pros, Cons & More

[ad_1]

BlockFi is a cryptocurrency exchange and wallet that serves individuals and businesses around the world. It offers an interest-bearing account, portfolio-backed loans, and fee-free transactions.

As with most of the best cryptocurrency exchanges, you can fund your account with USD, cryptocurrency, or stablecoins.

BlockFi Interest Account

This interest-bearing account contains coins that you deposited or bought on the stock exchange. It works much like a traditional savings or investment account. One big difference is that the money you put in a bank account would be protected up to $ 250,000 against bank failures with FDIC insurance. Likewise, any cash in a brokerage account would be protected by SPIC insurance. But if you put your savings in a BlockFi interest account, you don’t have these protections.

You are limited to one crypto withdrawal and one stablecoin withdrawal per month. After that, you will pay a fee for each withdrawal. You can make direct transfers to any bank account connected to Plaid, a company that allows apps to securely transfer data to and from your bank.

You can also create a corporate or corporate account. It works the same as an individual BlockFi Interest Account but is in the name of the entity. This requires additional documentation and a longer verification process. Once you’ve applied, a member of BlockFi’s compliance team will contact you to help you with the rest of the registration process.

He pays these interest rates:

  • Bitcoin (up to 2.5 BTC): 6%
  • Bitcoin (over 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%

Interest starts accruing the day after your deposit and is compounded monthly.

BlockFi pays interest by lending assets to institutional and commercial borrowers with high collateral. It stores reserves – so it can fund your withdrawals – with a New York trust company, Gemini, and other third parties.

The BlockFi Interest Account is available to customers in most countries and all US states except New York.

BlockFi Trading

Use the funds in your BlockFi Interest Account to buy cryptocurrency on the BlockFi exchange at no cost. You will have daily trading limits depending on the size and activity of your account.

To complete a transaction, simply log into your BlockFi account, enter the buy or sell amount and the currencies, then authorize the transaction. You can perform a single transaction or automate the transaction to recur daily, weekly, or monthly.

When you buy crypto on the stock exchange, it lands in your interest account and starts earning interest immediately.

Cryptocurrency-backed loans

Use a BlockFi loan like a personal loan to finance large purchases, refinance debt, or make a down payment on a house.

You should use crypto assets to secure the loan with a loan to value ratio (LTV) of at least 50% (meaning your collateral is worth at least half of what you owe). You can borrow in USD, GUSD or USDC; and set up guarantees in Bitcoin, Ethereum or Litecoin.

You will pay a 2% origination fee to receive your loan and interest between 4.5% and 9.75%, depending on your LTV.

[ad_2]

About Ryan Headley

Check Also

BBC journalist’s film exploring Flint contamination of water to premiere on Saturday

[ad_1] From a Navajo reservation in Arizona to Flint, Michigan, “Thirst for justice” is a …

Leave a Reply

Your email address will not be published.