Earn up to 8.6% APY with Super High-Yield Interest Accounts from BlockFi
What is BlockFi?
BlockFi is the digital equivalent of a high-yield savings account that leaves your assets liquid while collecting compounding interest monthly and the rates are extraordinary. Whether you are holding dollars, bitcoin, or both, you will be hard-pressed to find higher paid interest rates on banking those assets anywhere else. If you do know somewhere, leave a comment, we'd like to know!
Registering and using the platform is a very straightforward process, one of the easiest in the crypto realm. They do KYC, but as a U.S. based financial institution, it should come as no surprise. In fact, due to the FATF ruling earlier this year, all exchanges and money-transmitting companies worldwide will be required to follow KYC/AML law.
Interest is earned monthly, you can withdraw whenever you wish, and their custody service is through Gemini, a highly reputable NY based trust company with a digital asset insurance policy. Not to mention BlockFi is backed by Coinbase, Morgan Creek, Fidelity, and other major financial players.
You could earn 8.6% APY on their dollar-pegged stablecoin, the Gemini Dollar, or GUSD. But most people who are able to use crypto would rather earn BTC due to the potential for value increase, so we will focus on that in this article. It is worth noting, however, that many of us (should) have cash savings in an account somewhere that probably isn't earning even 1% annually.
The table above gives you an idea of the monthly interest payments on a BTC interest account.
For many crypto investors, they have a certain percentage of their portfolio dedicated to BTC. This is usually not traded, and instead kept in a cold storage wallet as a long-term investment. This is, of course, the safest method of keeping BTC. However, you earn no additional BTC as it sits there.
Trading platforms and other investments carry a degree of risk (losing BTC/$) and require study/work.
Many banks offer high-yield savings accounts, sometimes in the neighborhood of 2% APY. They offer CDs which lock your funds for years to earn 3%-4%.
BlockFi allows you to keep your funds liquid while earning significantly higher interest than your other low-risk alternatives. There are no early withdrawal fees, you get one free withdrawal per month, and they are processed within days.
How do they measure up against similar products in the fin-tech lending space?
Conclusion
You probably have more questions, and that's normal :) BlockFi has an extensive FAQ, responsive support, and plenty of info on their website. It's a pretty simple business model that has become an established leader at what it does. This author is personally taking it for a test-drive and would be happy to report back next month when that first interest payment arrives :)
So if BlockFi interests you, and you would like to support this blog, please use code: 99534618 when registering. It would mean the world to us!
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