If you’re already a serious investor in the cryptocurrency market, you’re probably already aware of cryptocurrency eWallets that let you earn interest on your bitcoins, borrow cash, and trade your funds. Even if you’ve just started out your journey in the crypto sphere after learning how good of an investment bitcoin is, you should still become acquainted with the BlockFi wallet.
In this BlockFi review, I want to take a closer look at how this ingenious platform works and try to help you determine if BlockFi is truly safe for you. I’ll also show you how BlockFi trading actually works and will do my best to help you reach your own conclusion.
What is BlockFi?
BlockFi is a modern digital assets financial corporation based in New Jersey, USA. Their main product is an eWallet service that enables crypto users to earn up to 8.6% annual return a year for their cryptocurrencies stored. The company is regulated by Federal authorities in the United States and is backed by world-class companies, such as Arrington XRP Capital, Galaxy Digital, Coinbase, Recruit Strategic Partners, and Morgan Creek Digital.
Needless to say, this company is created by two highly influential managers who have held key positions at tech companies and large financial institutions. For instance, Zac Prince is a wildly popular figure in the financial niches, being able to impress his leaders when running companies like Zibby or Orchard Platforms. On the other hand, Flori Marquez, the VP of operations of BlockFi, has a ton of experience managing alternate landing products and managing operations from the point of origination through litigation.
The Products Offered by BlockFi
At the moment, this company offers three main types of products:
1. The Interest Account
This is a standard feature that allows you to put your own crypto to work. You can maximize your cryptocurrency balance by simply depositing new crypto currency in your interest account. Inside BlockFi, you can get up to 6% interest on BTC and 8.6% on stable coins. The great news is that opening up this account is free of charge and requires no additional subscription.
You can quickly use the calculator tool available on the BlockFi website to get an idea of how much you’ll be able to earn within a certain period of time. Know that the BlockFi interest account is safe, so any data you provide them with will be stored in secure, hack-proof locations.
Here is an example of how you can take your bitcoin amount to a whole new level. If you deposit $100k worth in bitcoin, you’ll be able to earn up to $8.6k each year. Of course, as the value of bitcoin increases in time, you can earn even more. Even if bitcoin or other cryptocurrency maintain their current levels, you could still earn a passive income of 8.6%, which is way more than you could earn at banks with your traditional money.
The interest is paid out at the beginning of each new month, and it’s added to your initial amount. This means you’ll be able to earn compound interest each and every month. You can also choose to receive your interest in another cryptocurrency than your original one. This feature is called Interest payment flex and allows you to diversify your portfolio and grow your balance of other crypto currencies, other than your original one.
2. The Trading Account
Now that we’ve looked at the BlockFi interest account review and showed you the benefits of a BlockFi interest payout, it’s time to look at another component of this tool. The trading feature allows you to trade one of your assets in order to expand your reach and take your crypto currency to the next level.
The best part of this feature is that it doesn’t stop your interest from being accrued. Basically, the BlockFi savings account continues to work alongside your trading account. You can trade bitcoins, Ethereum, Litecoin, USDC, and GUSD.
In terms of trading benefits, expect to be able to trade without any hidden fees, benefit of excellent flexibility, and enjoy a streamlined trading experience. Trading on BlockFi is super easy.
3. The Crypto-Backed Loans
The third component of the BlockFi system could prove to be a lifesaver for many crypto investors. This tool allows you to actually borrow up to 50% of your actual crypto value from them. For example, if you have $10k worth of Ethereum, you can borrow an extra $5k. The loan is available at a rate of 4.5% interest.
Basically, if you borrow crypto at a 4.5% BlockFi interest rate, but you also use your interest account for up to 8.5% BlockFi interest rates, this means you’ll be on the positive side of the coin. Of course, the actual interest rate might be bigger than 4.5%, being determined by the amount of collateral you are willing to invest.
At the moment, the only accepted crypto currencies for loans are Litecoin, Ethereum and Bitcoin. You can pay back your loan without any prepayment fees or paying extra taxes.
Bonus Feature
The team behind this modern cryptocurrency platform has just revealed that they are working to create the world’s first credit card that offers a cashback program. That’s right. The Bitcoin rewards credit card will enable you to earn back up to 1.5% on all your bitcoin purchases.
This totally unique system will be available starting in 2021 in a few regions in the United States, and then it will expand all throughout the globe.
How BlockFi Works
On the BlockFi platform, you can do any of the three main services available: earn interest, borrow cash, and trade crypto. To do all that, you need to open up a BlockFi account. Once you do that, you can quickly log into your own BlockFi account and perform any operation you want.
The great news is that this modern tool also offers an Android app and iOS app. The BlockFi app can be used to manage your crypto balance while on the go and gain access to precious financial tools.
Once inside your account, you’ll be able to earn BlockFi btc interest, trade crypto currencies, and gain access to loans. Soon enough, you’ll be able to enjoy the bitcoin rewards crypto cards. If you’re eager to make a deposit, know that there is no minimum amount. This makes BlockFi ideal for beginners who don’t have a huge amount of crypto currency assets and are just testing out the waters.
However, for withdrawals, the interest might be subject to a minimum fee that is pre-set by Gemini, the agent of BlockFi. Although there is no longer a minimum balance required to earn interest, accounts are still subject to Gemini’s withdrawal minimums: 0.003 BTC and 0.056 ETH. Withdrawals for balances smaller than these amounts may take up to 30 days to process.
Fee Structure and Pricing Inside BlockFi
A huge benefit of becoming part of the BlockFi community is that opening an account and using their features is completely free. Trading is also fee-less. The only component of this system that will cost you money are the loans and the withdrawal.
Let’s take a closer look at the fee structure and withdrawal limits inside BlockFi:
– Stablecoins: $0.25 USD withdrawal fee and limit of $1M per week
– Bitcoin: 0.0025 BTC withdrawal fee and limit of 100 per week
– Litecoin: 0.0025 LTC withdrawal fee and limit of $10K per week
– Ethereum: 0.0015 ETH withdrawal fee and limit of $5K per week
Ease of Use
BlockFi is a modern tool designed with usability in mind. If you’re already well-versed in trading crypto and you are well aware of all the ins and outs of this process, then working with this tool will prove to be easy as pie. Nevertheless, even if you’re a complete beginner, you’ll find it very easy to work your way around the website.
The platform is created to be intuitive and very easy to navigate. The mobile app is also exquisitely created, being able to centralize all of the features and tools of this program in just one place.
Of course, you can easily consult the FAQ section or contact the support team if you need more help navigating your way around.
Security Inside BlockFi
When it comes to cryptocurrencies, security plays a key role in the grand scheme of things. According to security experts, over $1.1 billion worth of crypto currency value was stolen back in 2019. That number is probably even greater in 2020, with the bitcoin skyrocketing and the number of people investing in cryptocurrency exploding. As a sidenote, the best security method for your virtual coins is investing in a physical ledger device such as Nano Ledger X or S. I wrote a post about the Nano Ledger S and X that you can read here.
What’s important to remember about BlockFi security is that this company has invested massively in this area. BlockFi is the first digital company ever to achieve a groundbreaking SOC type 2 security compliance, which takes customer data protection to a whole new level. This platform was built from the start with a security-first approach, where independent evaluators can testify to the unique level of security involved.
All the funds held by customers inside their BlockFi wallets are secured with multi-layer encryption, featuring a “cold-wallet” feature to protect the funds. Also, the system uses a multi-digital signature to completely eliminate single points of failure and protect users from losing their private keys to hackers.
Gemini uses several security protocols to ensure that all your data is safe and your virtual currency cannot be accessed by a third-party. The list includes two-factor authentication login and withdrawals, whitelisting for specific addresses, Webauth &hardware security keys for improved protection, and encryption for passwords, personal data, and any other sensitive information.
Customer Service
If security is top-notch, the customer service from BlockFi is simply outstanding. This company has invested a lot in trainings and modules, putting together a team of experts who can quickly solve any problem related to their platform and can solve any complaints users might have.
As a client of BlockFi, you can bet that you’re on good hands. You can contact the customer support team either via your social media channel of choice or right on the site. You should expect to receive an answer within 24 hours with a reliable solution.
Is BlockFi Legit?
There is no doubt whatsoever that this tool is as legit as they come. BlockFit is regulated at federal level across 48 states in the United States and is a partner of numerous famous companies, such as Gemini or Galaxy Digital. To top it all, the team behind this brand includes several world-renowned financial analytics, directors, managers, and executives with over 200 years of combined experience in the fintech and insurance fields.
Is BlockFi Safe?
This tool leverages countless security tools and protocols that offer bank-like security for all of their services. On the platform, only a small portion of assets are kept, while the vast majority of funds and crypto assets are stored in cold storage wallets, virtual banks, third-parties, and physical servers.
Of course, because BlockFi needs to comply with all anti-money laundering rules and regulations, it has to invest in additional security measures to keep their customers’ money safe and to comply with the KYC process.
The Bottom Line
BlockFi is a one-of-a-kind blockchain-based platform perfect for any cryptocurrency holder who wants to take their investment to the next level and enjoy high-end features. This powerful system comes with BlockFi bitcoin interest rate, BlockFi insurance, and a modern BlockFi android app that allows you to reap the benefits of cryptocurrencies.
With the introduction of USD wire transfers and the upcoming bitcoin rewards credit card, this platform will soon become one of the favorite mediums of cryptocurrency holders. Choose this platform if you’re looking for service for any level of expertise, top-tier protection, simplicity, protection, and utmost safety.
If you want to start your journey with BlockFi, you can get up to a $250 crypto bonus with a deposit of $25 or more in crypto. Click here or the banner below. For any questions you might have, do not hesitate to contact me or leave a comment below.
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