BlockFi - Earn 10% Annual Rate On Crypto

What is BlockFi and how can you earn market-leading interest on your crypto assets?

Featured image: BlockFi logo

What BlockFi declares is that you can earn up to 10% annual rate on crypto in a zero interest rate world…

And that’s true! Right now you can get huge interest on crypto-assets with BlockFi.

I guess you keep holding your crypto in a wallet, waiting for the mega bull run that will make your assets exponentially grow.

No matter when this will happen.

In the meantime you can make your money work for you, further increasing your wealth over time…

YOU CAN CREATE A BLOCKFI ACCOUNT NOW AND PUT YOUR CRYPTO TO WORK…

What is BlockFi?

Stationary cryptocurrencies in your wallet don’t give you any cashflow.

Instead of making your crypto gather dust, waiting for them to go up in price, now you can lend your crypto on an established platform like BlockFi.

The BlockFi Interest Account (BIA) is an interest-bearing account, which provides amazing yields to crypto investors who store their crypto at BlockFi.

It would be a shame if you miss the opportunity to earn a (up to) 6% APR on your bitcoins and even higher on other crypto (see below).

This means that if you deposit bitcoin worth $ 100,000.00, assuming the price stays stable in a year, you will earn bitcoin worth $ 6,000.00 sleeping at night.

Actually, your earning will be even higher as the accrued interest is compounded every month.

You basically earn interest on interest.

How compound interest works
How compound interest works
How compound interest works

It is also likely that bitcoin price will rise in a year. In this scenario the final gain may be even much higher than $ 6,000.00 (on a hypothetical worth of $ 100,000.00).

Taking into account any capital gain, you may get three-digit yields.

Here are the cryptocurrencies you can lend on BlockFi and how much you can earn.

Bitcoin:

  • BTC Tier 1 (0 - 0.5 bitcoins): 5% APR
  • BTC Tier 2 (> 0.5 - 20 bitcoins): 2.0% APR
  • BTC Tier 3 (> 20 bitcoins): 0.5% APR

Ether:

  • ETH Tier 1 (0 - 15 ether): 4.5% APR
  • ETH Tier 2 (> 15 - 1000 ether): 2% APR
  • ETH Tier 3 (> 1000 ether): 0.5% APR

Stablecoin:

  • USDT: 9.3% APR
  • BUSD: 8.6% APR*
  • GUSD: 8.6% APR*
  • USDC: 8.6% APR*

Other:

  • PAXG: 8.6% APR
  • LTC: 5.5% APR
  • LINK: 4.5% APR
  • PAXG: 4.0% APR

Keep in mind that BlockFi can change interest rates up or down with adequate advance notice.

*Limited-time promotion: as of April 22nd until July 31st 2021 the interest rate of new stablecoin deposits but USDT increases to 10%. The increased interest will only last during the promotional period (at the end of which it will go back to 8.6%), and will be credited in GUSD (Gemini’s stablecoin). Ordinary interest will be credited each month as usual, while you will receive a lump-sum payment on August 13th for the bonus share.

By default BlockFi pays you interest in the same crypto you lent.

Let’s assume you have lent 10 bitcoins with an interest rate being stable at 6%. After a year you would receive 0.62 bitcoins, taking into account the interest compounding.

Anyway BlockFi also provides the “Interest Payment Flex” feature, which allows you to receive interest in a crypto other than the one you have lent.

For instance, you can lend bitcoin and decide to receive your interest in a non-volatile crypto, such as a stablecoin.

Not bad, right?

Is BlockFi trustworthy?

You are probably wondering if BlockFi is safe. How can they offer such high interest rates?!

BlockFi is a New York based lending platform founded in 2017. Its founders already had decades of experience in the world of banking and fintech.

They have been joined by some giants of the crypto world who financed the project. Among the others, there are Winklevoss Capital, Galaxy Digital, ConsenSys, etc.

In order to pay interest to lenders, BlockFi earns money by lending funds to borrowers at a higher rate than that paid to lenders.

Moreover, BlockFi does not lend money to any applicant.

First of all they prefers large, well-capitalized, institutional investors or individuals able to stake large amounts of collateral to guarantee the repayment of the loan.

Before getting the money, the borrower undergoes a thorough risk assessment and credit analysis process.

BlockFi loans are over-collateralized.

A borrower requesting a loan must collateralize an amount greater than the worth of the crypto he wishes to borrow.

BlockFi usually provide for a 50% Loan To Value Ratio (LTV). In that case the borrower will need to stake an amount being at least twice the worth of the crypto he is going to borrow.

Let’s assume bitcoin price is $ 10,000.00 and the borrower is willing to take a $ 100,000.00 loan. He will need to stake at least 20 bitcoin. That’s why:

20 (bitcoins) * 10,000.00 (bitcoin price) = $ 200,000.00 (minimum collateral to get a $ 100,000.00 loan if LTV is 50%).

Are you also wondering if your funds are safe against hacker threats?

The funds you deposit on BlockFi are kept by Gemini.

Gemini is regulated by the New York State of Financial Services. In other terms, It’s a licensed custodian that also received SOC2 compliance from Deloitte for their custody solution.

Gemini keeps 95% of its assets in cold storage and 5% in hot wallets that are insured by Aon.

Anyway, do your own research and do not invest all your money in the same platform.

How to open a BlockFi Interest Account (BIA) and start earning interest?

CLICK HERE TO SIGN UP TO BLOCKFI

BlockFi.com home page
BlockFi.com home page
BlockFi.com home page

This is the BlockFi home page. Click on “GET STARTED”.

BlockFi registration form
BlockFi registration form
BlockFi registration form

Enter in the order:

  • Your first name
  • Your last name
  • Your e-mail
  • A strong password
  • The referral code (as already entered).

Accept the Terms & Conditions, the Privacy Policy and the SMS Policy, then click on “Submit” and follow the further instructions for KYC verification.

As soon as your account is ready and you log in, you will see the following screen.

BlockFi Interest Account main page
BlockFi Interest Account main page
BlockFi Interest Account main page

To deposit crypto and start earning interest, click on “Deposit” in the upper left corner.

List of crypto available for lending
List of crypto available for lending
List of crypto available for lending

Select the crypto you wish to deposit and send it to the address that will be shown.

As soon as the deposit is successful, you will automatically start earning interest.

Accrued interest will be paid once a month and will be automatically compounded, such that the following month you will accrue interest both on the initial capital and on the interest you earned throughout the previous months.

There are no time obligations for deposits on BlockFi. You can withdraw at any time the funds you have deposited along with the interest already paid.

BlockFi Bitcoin Credit Card

What about spending money and get rewarded in BTC?

That’s true now thanks to the BlockFi Bitcoin Rewards Credit Card You can apply for it by signing up to BlockFi.

What is it?

BlockFi Bitcoin Rewards Credit Card
BlockFi Bitcoin Rewards Credit Card
BlockFi Bitcoin Rewards Credit Card

This is the the first credit card that lets you earn bitcoin back with every purchase. Upon approval, you’ll get a credit limit in USD and receive instant 1.5% cash back in bitcoin on every transaction.

You can spend your credit limit each month, and if you pay your statement balance on time you won’t be charged any interest on the balance.

The cash back you earn will accrue and then automatically be converted to bitcoin and placed into your BlockFi account on a regular monthly cycle.

That’s not all. There are additional bonuses:

  • $250 in bitcoin as a signup bonus if you spend $3,000 within your first three months;
  • 3.5% bitcoin rewards on all purchases in months 4-6 of card ownership, up to $100 in bitcoin;
  • 2% extra APY on your average daily stablecoin balance, paid in bitcoin, up to $200;
  • 0.25% back in bitcoin on all eligible trades, up to a maximum of $500 in bitcoin each month.

The card has an annual fee of $200. It is optional and you can decide whether to apply for it or not.

This post includes an affiliate link.

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