Are you a crypto user? Maybe you’re interested in investing in digital currencies. If so, you’ve probably heard of BlockFi, one of the most prominent cryptocurrency exchanges today.
The BlockFi website provides crypto markets with institutional-grade financial solutions. Market makers, hedge funds, and other financial firms are among these organizations.
In this BlockFi review, we’ll look at how this innovative FinTech start-up is continuing to redefine and transform the digital asset lending industry.
Who Is BlockFi?
BlockFi is a cryptocurrency platform that functions similarly to a bank. You may earn interest, spend your cryptocurrency, and buy and sell cryptocurrencies with no hidden fees or minimum amounts by putting bitcoin into BlockFi.
A number of people are now using BlockFi as a bitcoin bank. It can be used in the same way that Bank of America or a Credit Union can be used for fiat currency.
BlockFi’s initial focus was on its BlockFi Interest Account (BIA). Crypto consumers may use a BIA to deposit money into the platform and then receive interest on their investments. People are compensated for borrowing money from BlockFi, and the system has consistently made profits for its users.
What Services Do They Provide?
BlockFi allows you to earn interest on bitcoin while also allowing you to borrow money in US dollars. BlockFi also enables you to exchange bitcoins. They now only trade a small number of cryptocurrencies, including BTC, ETH, LTC, USDC, and GUSD.
Products and Services from BlockFi:
BlockFi was initially marketed as a bitcoin savings account platform. For many years, you couldn’t store your bitcoin in a savings account or receive interest on your bitcoin holdings. You just kept bitcoin in your wallet, spent it as needed, and then left it there.
BlockFi’s BlockFi Interest Account (BIA) mechanism changed that. Users can borrow bitcoin or earn interest on their bitcoin assets through BIA.
BlockFi has constituted itself as one of the premier crypto asset management systems accessible today due to these and other goods and services.
Features and Benefits of BlockFi
BlockFi highlights the following features and benefits:
Quickly Manage Your Account: You can easily manage your account after depositing crypto or stablecoins into BlockFi. BlockFi provides you with complete transparency and control over your account and its assets.
Mobile App: Manage your cryptocurrency holdings with a mobile app on any smartphone or tablet. BlockFi provides a nice mobile app that allows you to access your account from any smartphone or tablet.
Payment Flexibility: BlockFi wants to empower customers by choosing the cryptocurrency in which interest payments are made. Interest can be paid in bitcoin or a stable coin, for example.
Maximum Security: Understandably, BlockFi places a premium on security. Two-factor authentication and other security features are available on the platform to keep your account safe as you earn interest. When you store money using BlockFi, it is held by Gemini’s custodial system.
Hidden Fees: There are no hidden fees or minimum balance requirements with BlockFi, and all terms and conditions are clearly stated, and you are not required to keep a minimum balance on the platform.
Money Transfer: You can use your crypto wallet or a bank account to finance your BlockFi account through the mobile app.
Fees for BlockFi
BlockFi makes a big fuss about its policy of “no hidden fees.” True, there are no hidden costs with the company. It makes all fees clear upfront.
Trading cryptocurrencies or stablecoins within your BlockFi account appears to be free of charge. Once your funds have been credited into your account, you can exchange them amongst coins without incurring any trading fees.
BlockFi, on the other hand, charges fees for the majority of withdrawals. The following is a breakdown of the company’s fees:
- BTC: 0.0025 BTC every withdrawal, with a maximum of 100 BTC per 7-day period.
- ETH: 0.0015 ETH for each withdrawal, with a maximum of 5,000 ETH per 7-day period.
- LTC: 0.0025 LTC per withdrawal, with a maximum of 10,000 LTC per 7-day period.
- Stablecoins: $0.25 USD per withdrawal, with a maximum of $1,000,000 per 7-day period.
- PAXG: 0.0025 PAXG per withdrawal, with a maximum of 500 PAXG per 7-day period.
BlockFi allows you to make one free crypto withdrawal and one free, stable coin withdrawal per calendar month. You’ll have to pay the withdrawal fees listed above for each subsequent withdrawal per month.
Interest Account using BlockFi (BIA)
Interest is paid on deposits in traditional bank accounts. For example, keeping money in your savings account earns you a modest return. Bitcoin, does not have a centralized savings account or interest system.
The BlockFi Interest Account (BIA) changes that by allowing you to earn interest after depositing bitcoin, GUSD, Ether (ETH), or USDC into your account. You create an account, fund it with USD, cryptocurrency, or stablecoins, and start earning interest.
Pros & Cons
Why should you use BlockFi?
BlockFi’s focus on customers is enticing, but they appear to have a financial offering for everybody involved in the business. Users don’t have to spend much time signing up, and they have a variety of items to select from to get the most out of their cryptocurrency experience. Furthermore, the organization is open about its compliance with current market rules, guaranteeing that users can trust the platform they trade.
BlockFi’s Approach to Liquidity
Assets utilized as collateral in BlockFi have a much higher liquidity profile than a house or even equities. Trading takes place throughout the world, 24 hours a day, seven days a week.
With real over-the-counter institution-to-institution volume, it occurs on both odd and derivative exchanges. BlockFi maintains a connection to all available liquidity venues.
Let’s imagine you deposit Bitcoin, which is then converted to USDC and lent out. Is your asset’s currency affected as a result of this? No, the escrow held on your behalf is still retained in the token you placed it in.
BlockFi will never convert a Bitcoin-denominated liability on a balance sheet into another asset in the hopes of achieving the same return as BTC. The support and liabilities are equal to the amount put in the account.
Is it Safe to Use BlockFi?
The BlockFi website uses two-factor authentication, and the site has never had a security breach. BlockFi does not keep all of your assets. On behalf of BlockFi, Gemini Custody stores all digital assets. They employ insured industry-leading cold storage systems. BlockFi and Gemini Custody provide extremely high levels of security for your digital assets.
The Bottom Line
BlockFi is a cryptocurrency asset management platform with bank-like features. You put cryptocurrency into BlockFi and then use it in more ways than you ever imagined.
After depositing assets into BlockFi, you can use them as collateral for a loan, swap them for different cryptocurrencies and stable coins, or earn 6% to 8.6% annual returns.
Who Is BlockFi?
BlockFi is a cryptocurrency platform that functions similarly to a bank.