Is it worth it for the interest rates?
In today’s economy, people are looking to save money in every way possible. Traditional savings accounts are an option, but most savings accounts barely exceed the APY rate of 1.0%.
Cryptocurrency is on the rise and there are companies that allow traders to capitalize on the asset. However, with so many people, it’s hard to know which company to choose.
The Stock Dork reviews these companies from top to bottom and shares our insights with you.
Check out this BlockFi review to see if the platform is right for you.
BlockFi Review: Overview
BlockFi is a cryptocurrency service that allows you to store crypto, earn a high interest rate, and take out USD loans against your cryptocurrency. The company was founded in 2017 and is headquartered in New Jersey.
The crypto service has managed to raise over $ 150 million up to a Series C and has worked to make its crypto technology more accessible to people around the world.
BlockFi allows you to create a trading account to buy and sell cryptocurrencies. The company earns money by lending your crypto and through withdrawals.
What is BlockFi?
BlockFi is a neat take on the savings model that allows you to save money in cryptocurrencies and earn a great interest rate. The platform currently allows you to earn up to 8.6% per year on your money, which is almost eight times higher than the best high yield savings accounts.
The service operates like a standard bank. For example, with a compound interest rate of 6%, if you deposited 1 BTC, a month later you would have 1.06 BTC in your account.
Each account is compounded monthly to maximize profit potential. It is possible to add more crypto at any time to increase the amount that is compounded.
Additionally, users can take out loans against your US dollar cryptocurrency. BlockFi allows you to pledge crypto assets at interest rates as low as 4.5% APR.
How does BlockFi work?
The service is basic. It is basically a very high yield savings account for cryptocurrency. With a BlockFi account, you can turn your money into crypto, deposit it and get a very high interest rate, then convert that crypto back to cash when you need it.
Like a regular bank, BlockFi earns interest on your savings by lending them to other institutions. Additionally, the company lends oversized crypto assets to ensure its loans are secured.
The crypto in your account is subject to the same ups and downs in the market, so there is a risk of losing money if a cryptocurrency you have invested in suddenly dives.
BlockFi also has trading accounts for cryptocurrency, so users can buy and sell currencies with other traders. Trading is instant and you get immediate interest on trades.
Currently, users can use BlockFi to trade BTC, ETH, LTC, PAXG, and USD stable coins.
Is BlockFi legit?
BlockFi has been in business since 2017. They are licensed and regulated by the SEC, and they follow all legal regulations for cryptocurrency trading and loan issuance.
The company also takes great care to protect your personal information. For example, they use 128-bit encryption accounts and offer additional security features like 2-factor authentication.
Unfortunately, BlockFi accounts are not FDIC or SCID insured, which means it is not as secure as investing in a bank. BlockFi custodians keep most of the funds in a cold store, so they are out of sight out of sight.
BlockFi Products and Services
Here is a quick overview of the products and services offered by BlockFi.
BlockFi Interest Rate
The main features of BlockFi are their interest accounts, which are basically savings accounts for cryptocurrency. BlockFi lends your currency and pays you interest, just like a regular bank does with savings accounts.
Interest rates depend on the currency and change daily. At the time of writing, BTC has an APY of 5% and ETH has an APY of 4.5%. The highest rate crypto is the USDC currency with an 8.6% interest rate.
There is a nominal charge for withdrawing from this account.
BlockFi allows you to take out loans with your crypto assets as collateral. You can borrow against your crypto assets with an APR as low as 4.5%. This allows you to efficiently turn your crypto into cash without having to sell it.
The platform allows you to receive your funds on the same business day, and there are no penalties or prepayment charges. BlockFi allows users to borrow up to 50% of the value of their crypto assets.
Margin calls occur at 70% of the loan-to-value ratio (LTV), after which the borrower has three days to post more collateral or repay part of that loan. If LTV reaches 80% or more, BlockFi will liquidate part of the loan.
BlockFi trade is a cryptocurrency market where you can buy and sell assets with other traders. This feature allows instant transactions and offers better prices than competitors.
The service also allows you to get an immediate accumulation of interest on your transactions. BlockFi trading accounts allow you to set up recurring trades and accept stable coins BTC, ETH, LTC, PAXG, and USD.
Keep in mind that trading fees and interest rates vary depending on market conditions. At the time of writing, BTC is trading with an APY of 5%. It is also possible that market conditions affect your ability to buy and sell assets at any given time.
BlockFi Credit Card
With the BlockFi Credit Card, you get an unlimited 1.5% crypto refund for every purchase you make. You can earn up to $ 750 or more in bitcoin rewards.
Each card has a limit in USD. You get instant crypto return on your purchases, deposited directly into your BlockFi account. You also start to earn interest on these rewards.
BlockFi credit cards can be used anywhere Visa cards are accepted.
The credit card also has notable advantages.
You get a signup bonus of $ 250 in bitcoin for spending $ 3,000 in your first month. You’ll also get a special 3.5% bitcoin cashback reward for four to six months after you own a card.
BlockFi will also give you $ 30 in bitcoin for each customer referral.
BlockFi business accounts
BlockFi also offers institutional services to bridge the gap between trading and market makers in the crypto industry. The company uses its loan inventory to provide institutional support and complies with corporate level regulations.
With a business account with BlockFi, you get customizable loans, borrowings, and funding for any type of business. BlockFi also enjoys the backing of some of the biggest names in the investment industry.
BlockFi Cancellation Policy
If you want to cancel your Blockfi account, you can request a support ticket so the team can help you.
Expect to pay a withdrawal fee to withdraw your crypto from BlockFi’s custodians.
How much does BlockFi cost?
It’s free to create a BlockFi account and there is no monthly fee to have an account. BlockFi also does not have a minimum deposit, so there is no amount required to open an account.
BlockFi primarily earns money by lending your cryptocurrencies and charging fees on withdrawals. You have a limited number of withdrawals per month and a fee for each type of cryptocurrency.
Withdrawal fees change daily but are generally very low compared to other crypto brokers.
BlockFi trading also has a fee for every transaction you make. The fees vary from day to day, but they are normally very low.
Advantages and disadvantages of BlockFi
BlockFi was made up of a lot of cool features. That being said, there are a few things to watch out for. Here are the pros and cons of the service:
- Very high interest rates
- Easy to use
- Low interest loans
- No minimum deposit
- No monthly fees
- Exchange platform
- Based and regulated in the United States
Cons of BlockFi:
- Accounts are not insured
- Prices change daily
- Limited withdrawals
Is BlockFi right for me?
BlockFi is designed for anyone interested in cryptocurrency. With no minimum investment and no monthly fees, even traders with the smallest amount of crypto can get started with BlockFi.
If you already have a decent amount of cryptocurrency assets, BlockFi can help take your income to another level with their extraordinarily high interest rate.
The loan service, trading platform, and other features of the company work well to help traders in the long run.
Traders will need to keep a watchful eye on crypto prices, as huge declines can wreak havoc on investment accounts.
BlockFi User Reviews
BlockFi is currently rated 3.8 out of 5 on over 100 reviews on the popular review site Trustpilot.
The majority of reviewers claim that BlockFi has a reasonable fee and that they appreciate the platform’s responsiveness to changing market conditions. A number of reviewers also praise the simplicity for them to move their assets into BlockFi from other platforms.
The biggest criticism is that the app currently does not support any language other than English. Another common complaint is that withdrawing funds can be a difficult process that takes a long time to wait. Some people also mention that the UI sometimes has some unexpected bugs and crashes.
Final Review: Is BlockFi Worth It?
If you already have crypto assets and don’t mind a bit of risk with your accounts, then BlockFi might be worth checking out.
The service is fairly straightforward to use, and you don’t have to be a cryptocurrency expert to use it.
With a great interest rate, great loan terms, and a unique way to make your savings work harder for you, you might just want to take a closer look at BlockFi.