BlockFi Review: Is It Still Safe & Trustable in 2022?
A few days back, I talked about how to earn interest in Bitcoin, and based on our research, BlockFi came out as a widely used and trusted product. In the crypto-verse, an undisputed rule is “You are your bank”, and services like BlockFi raises a lot of questions, as we are literally lending our Cryptocurrencies like “Bitcoin” to a 3rd party to earn interest.
Without a doubt, using a platform like BlockFi and Cryptocom is riskier than storing crypto in our wallet, and hence it should not be seen as the same thing. These platforms are typically an investment instrument, which offers you a lucrative interest rate on your crypto holding.
If you believe cryptocurrencies offer better financial governance than the current financial system, then you may agree that it has to bring some of the good parts of the traditional financial system.
Borrowing and lending are what fuels the financial market, and platforms like BlockFi, Celsius are bringing this to a retail user like you and me.
- How safe is BlockFi?
- Is BlockFi a scam or a legitimate service?
- Can we trust BlockFi with our crypto assets?
- How are the team/people behind BlockFi?
- What happens https://yourloansllc.com/bad-credit-loans-ne/ if BlockFi shuts down tomorrow or worse get hacked?
- Is BlockFi the best option among its current peer?
- How easy or tough it is to use BlockFi?
- How does BlockFi make money?
What is Blockfi: BlockFi is a crypto lending and borrowing platform and was started in . The company is one of the pioneers in crypto banks. Earn interest in Cryptocurrencies BlockFi offerings: Main features
However, it definitely makes sense as services like crypto banks like BlockFi, Crypto are going to be there. They are definitely going to fuel the next wave of crypto adoption by creating more use cases for cryptocurrency assets.
Just like how you keep money in your bank account to earn interest, the BlockFi interest account lets you earn interest in many supported cryptocurrencies
However, for you, it is of utmost importance to learn thoroughly about these platforms before you use them. In the traditional sense, you would definitely take a recommendation for picking a bank and will avoid shady banks. Similarly, in the world of “Crypto banking”, you need to follow the same principles.
Now, in this long and detailed review of BlockFi, I’m uncovering everything about BlockFi that you should know. Also, since I’m a user of this platform, I will keep updating this detailed research so that it stays updated. I will timestamp the new updates at the bottom of this article.
1. BlockFi interest account (BIA):
This is ideal for those who have been holding cryptocurrencies like Bitcoin, Ethereum for really long. Rather than letting your crypto ideal, one you can earn up to 8% APY interest.
Note: Interest is paid out at the end of the month. BlockFi has recently updated its Interest rate, and here is the updated interest rate and various tier for Bitcoin lending:
For Bitcoin, BlockFi offers a tiered interest structure. For the first 5 BTC, you earn 6%, and balance above 5, you will earn 3.2% APY. (The interest rate is subjected to change)
This feature lets you pick the coin in which your accrued interest should be paid out. For example, you may be earning a 6-8% interest in Bitcoin, but you want the payout to happen in one of the supported coins such as ETH or PAX. The benefit here is, this will help you to diversify your portfolio. You can enable this feature by navigating to the settings page of your account and visiting the “Interest” tab.