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Blockfi is a startup that offers a service allowing people to borrow money against their cryptocurrency holdings. The company promises quick approvals and easy access to funds, but does it deliver? In this Blockfi Review, we’ll take a closer look at Blockfi’s services and see how they compare to other lenders.
Crypto lending can be tricky. Although it’s a relatively new concept, lenders are wary about taking on risk as they do with any loan. This means they’re likely to charge high rates on a loan, but it may still be worth it if you’re able to save or earn more.
BlockFi offers an alternative solution where they lend up to $10 million at rates below prime + 2% with no fees. The good news is that there are no hidden fees and the interest rate isn’t tied directly to Bitcoin price swings, which means it won’t go up if Bitcoin goes down.
BlockFi is a new digital platform that provides easy, secure and affordable access to your crypto investments. It’s a safe place to park and make use of your cryptocurrency holdings and has no hidden fees or prepayment penalties.
Borrowing money is not something you want to do often. While cryptocurrency is a newer financial system, it is becoming increasingly popular. Cryptocurrency loans let you borrow up to $10 million (at any given time).
Who Is BlockFi?
BlockFi is a blockchain-based digital banking platform that allows users to borrow against their bitcoin holdings. It was created with a mission to make bitcoin accessible to everyday people.
Flori Marquez and Zac Prince are the creators of BlockFi. The firm was created in August of 2017, and it is headquartered in Jersey City, NJ.
What Do They Offer?
BlockFi is a platform that enables you to earn interest on your cryptocurrency and borrow against it, in addition to providing USD loans against it. BlockFi also offers trading services for cryptocurrencies. Currently, they only support Bitcoin, Ethereum, Litecoin, USDC, and GUSD as cryptocurrencies for trading.
BlockFi Product and Services
BlockFi is a cryptocurrency financial services company headquartered in New York City. The site provides the following BlockFi products and/or services to its users:
BlockFi interest accounts:
BlockFi initially promoted the BIA as a place where people could “earn interest” on their cryptocurrencies. However, the BlockFi Interest Accounts are actually designed for people to store money in their accounts. They’re similar to a savings account in that they offer a safe place for people to keep cash and invest it. At the moment, BlockFi pays 6% APY on BTC deposits, 8.6% APY on GUSD and USDT deposits, borrow money at 4.5%, and ETH deposits pay out at 4%.
The BlockFi interest account allows customers to borrow and lend stablecoins and digital currencies. They are a popular way to quickly get into crypto since you don’t need a lot of money to start. By leveraging the market, they are also easy to trade.
BlockFi is a cryptocurrency-based financial services company. With BlockFi, traders are restricted to one stationary coin and one electronic currency withdrawal from the BlockFi interest account after which each withdrawal will be charged.
Funds borrowing:
BlockFi offers financial services for both those who choose to sell their cryptoassets and those who choose to keep their cryptoassets. This is an incredibly appealing proposition for anyone looking to get a line of credit against their crypto-assets.
BlockFi now requires traders wanting to borrow U.S. dollars to maintain a 50% LTV ratio. However, because Bitcoin prices vary rapidly, the LTV ratio shouldn’t be less than 50% LTV if traders’ Bitcoin borrowings fall suddenly.
The exchange has been built as a platform where anyone in the cryptocurrency space can borrow money in minutes – instead of days – and can get back their funds if they ever need them. This removes a lot of friction from trading in the digital currency industry.
Furthermore, the system allows borrowers to pay back their cryptocurrency loans as they choose. They may repay a portion of the overall amount at once as per their preference by paying off a part of the outstanding balance at any one time.
Trading Cryptocurrencies at BlockFi:
BlockFi offers competitive cryptocurrency trading (BTC, LTC, ETH, PAXG, etc.) and stablecoins trading (USDC, USDT, GUSD, and PAX) for effective digital assets transactions (BTC, LTC, ETH). Traders who execute a trade (buy or sell) and have cryptocurrencies in their accounts will start earning interest as soon as the transaction is completed.
BlockFi offers a range of services that are focused on speed and cost. Its services offer fast interest accrual that is affordable.
Institutional services:
Blockfi is a service that allows crypto investors to trade, invest, profit, and more. The company’s innovative platform is designed to connect those who hold cryptocurrencies to those who need them.
BlockFi, therefore, enables institutions to access similar goods and traditional financial services as they do in the conventional finance industry. That means it can be used by institutions, like margin lending, short selling, and reporting, which help to drive the market. The result is that BlockFi is the only one of its kind for institutions and has the ability to provide its services in the cryptocurrency market, investment funds, and market makers.
Some of these organizations use BlockFi to borrow money while others utilize it to store or invest their assets at high rates of return.
BlockFi Bitcoin Rewards card:
BlockFi is developing a first-ever bitcoin rewards credit card that will allow users to earn 1.5% back in bitcoin as well as earn bitcoin on every purchase they make. The “Bitcoin Rewards Credit Card” will be linked to the user’s BlockFi account, allowing them to use their BlockFi account balance at Bitcoin reward card outlets.
After completing the registration process, traders may fund their BlockFi accounts and join the BlockFi waiting list by signing up for a ‘BlockFi Interest Account.
BlockFi Bitcoin Trust:
BlockFi, a firm that has already achieved significant success in the cryptocurrency market, is aiming towards another milestone achievement in the future. According to current rules, it is ready to launch a Bitcoin ETF called the “BlockFi Bitcoin Trust.” This filing will be made with the SEC in January 2021.
The BlockFi Bitcoin Trust is a real-life financial investment vehicle that provides exposure to the price movements of Bitcoin. As such, it’s worth learning about the details of this new cryptocurrency investment vehicle before you decide to invest in it.
In order to protect investors and prevent excessive volatility, there is a limit on how much an investor can spend in an index fund (ETF). This is known as the management fee. The higher the value of the stock market, the higher the fee.
BlockFi Mobile App:
BlockFi has an outstanding app (similar to the desktop platform) that works on both iOS and Android devices. With a simple interface, this mobile app makes it easier for tech-savvy users to manage their BlockFi accounts from anywhere and everywhere.
Using cryptocurrencies is very easy to set up. Just by clicking a button, users can view their account balance, conduct Bitcoin transactions, borrow money, start investing, and even earn interest.
Is BlockFi Safe?
BlockFi is one of the few cryptocurrency exchanges based in the United States that follows both federal and state laws. The platform is secure in every way because they use these various additional security measures to safeguard the clients’ money, making them BlockFi insured.
BlockFi is a regulated custodian that specializes in digital assets. It is a state-regulated trustee, it is also supported by firms such as Valar Ventures, Coinbase Ventures, and Morgan Creek Capital Management, making it more trustworthy and reliable.
BlockFi Security
To keep the platform safe from hackers, the BlockFi team utilizes the following security measures. It keeps all of its reserves with third-party custodians like Gemini, Coinbase, and BitGo to ensure maximum protection. All of BlockFi’s investments are overseen by the US government; as a result, it exclusively buys SEC-regulated equities and CFTC-regulated futures using a risk management and credit analysis process.
BlockFi provides a unique option that is not available with other similar products. You can prevent withdrawals or limit them to certain addresses. Withdrawals are stopped and the borrower is asked to give some sort of proof that the user is who they say they are.
Customer Support
The BlockFi customer care team is available 24 hours a day, 7 days a week. It responds promptly and fully to inquiries submitted by traders (online consumer lender) via email or phone calls at any time of the day.
Blockfi Alternatives
Conclusion
BlockFi has built a platform that allows users to hold and trade bitcoin. The company provides a service to investors, which includes lending and borrowing of bitcoins. This is done in a way that allows customers to retain full control over their funds.
BlockFi is a good company to lend money to because they don’t charge you a dime in interest! With that being said, you should always do your homework before you decide to borrow from any company. Proceed with caution, and ensure you’re making a smart investment.
