As their website opening screen says - The old way of doing things doesn't cut it anymore! We all know that BTC has taken a huge jump in value and every day more and more people are joining in on the crypto revolution. Are you tired of earning tiny interest rates from traditional fiat banks while the same banks charge astronomical interest rates on their credit cards? I certainly am. I've been trading BTC for several years now and I've recently decided to put some of my investments in BlockFi and I wanted to share with you my actual experience so far.
I was drawn to the possibility of earning interest on my crypto, whether it was currently in BTC or Stablecoin while waiting for my trades to be enacted. We started our account with a $25K transfer from Kraken, my usual trading platform. I added another $10k from Coinbase and I've made two trades so far. Now my account is worth a little over $43K and I've earned over $100 in interest.
Here is the detail that you get in each transaction, which makes it very easy to keep track of gains and losses:
So how safe is this platform? That's always the $64 question. No one wants to get "error 404" one morning and find all your assets disappeared in the wild blue yonder with no recourse for recovery. If that sounds like the voice of experience, sadly it is. We all know that BTC is a risk and therefore, any place you put it can result in losing it. Even if you keep it on your Trezor wallet, where no one can get to it, there's no guarantee that the price won't plummet and it will end up worthless.
So do your own due diligence and research the platform to make your own decision. Here's what their website says:
BlockFi is US-Based and Regulated
BlockFi remains one of the few retail-focused interest-earning platforms that is also domiciled in the United States, regulated under US law, and that’s also institutionally backed and doesn’t have a utility token. That’s important–we play by the rules, to the benefit of our company and our clients.
With more than $100 million in equity funding, including a recent Series C funding round led by Morgan Creek that raised $50 million, and more than $2 billion in assets under management, BlockFi has a rock-solid foundation.
Now with the news that this is a US-based company "playing by the rules" you know you will be subjected to the KYC rules and have to set up your account with identification and YOU WILL RECEIVE A 1099 FOR TAXES at the end of the year.
So what kind of interest are we talking about? Here are the rates:
Another perk is that they are working on a credit card offering that will pay rewards in BTC. Right now you can get on the waiting list when you open an account.
While the interest-earning was what drew me to try this platform, they do have a couple of other advantages. You can borrow against your crypto. If a need arises for some of the funds you have invested, instead of having to liquidate your crypto holdings you can borrow against them at a much lower rate than fiat credit cards.
You can also trade within the platform instantly. It's not like Kraken, where you put in an order at a predetermined price and wait for it to be filled. The trades with BlockFi are instant at the current prices and very simple to execute. Here's a screenshot of the trading screen:
There is also a Refer a Friend Program. You send a friend your link and both you and your friend will receive $10 in BTC when the friend funds the account. I've referred two friends and we have both received these funds.
In closing, this article is not intended to be financial advice! I am simply showing you my experience so far and wanted to share the information for your consideration. If you are interesting in opening your own account would like to receive the referral bonus here is my link:
Happy crypto investing!
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I have a blockfi account and only joined last month but so far it feels pretty secure and has backing from Winklevoss and other venture capital firms which is good. The interest rate is one of the better ones out there for sure but like you, wary of having too much in there just in case!
@chekohler got me into blockfi so might have some other comments too
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I'm glad it's working out for you too. With these high prices it doesn't take much of a swing to make some money on each trade. And I like holding in stablecoin in between and drawing the interest.
I'm not too hot on the trading side of it as you are. I keep my eyes out on the market prices and now any drop in price, I'm looking to make the most of.
We need to be careful in the UK with regards to creating too many taxable events by moving in between different cryptos. It can be a bit of a nightmare if we go over the Cap Gains threshold, especially on sites with KYC but I'm fine with hodling and accumulating interest at the moment!
Peeps here sure do love their BLockFI it was @katrin-lux that got me into it when their website was still super clunky and you couldn’t login via the main site
haha u mentioned me thats nice its been a while since i have been here great to see you here again ;)
Lol well it a good time to show up we about to MOOOOOOOON!!!!
That's some dedication, I remember seeing that site when you first told me about it and I was like, this is like 2005 lol! Now they've polished it up a bit, I'm in. 6% on BTC, can't go wrong with that, 600% more than most interest rates in the UK!
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That is some faith you’ve got in BlockFI I do use the service but only with around 5% of my portfolio! Most of my BTC is in cold storage
I also tried to spread my risk between crypto.com, BlockFi and Celsius because at the margins you also get different rates for different assets
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