- BlockFi 2021 Review + $250 for FREE!
Should you use BlockFi? We’re going to review some of the features, fees, safety, and interest rates of BlockFi — plus how to claim up to $250 for free.
Spoiler, simply use our official partner link to get up to $250 for free!
BlockFi is a US-based crypto-asset provider, featuring products like interest accounts, trading accounts, and loans for individuals and businesses that is funded in part by Winklevoss Capital. BlockFi claims to offer the best rates, most flexible structures, and the highest degree of security available in the blockchain lending ecosystem. They operate within regulatory guidelines of both the federal and state level and having a team with decades of experience in consumer lending and financial services.
Drew Vosk of VoskCoin simply mines Bitcoin, Ethereum, Litecoin, and other cryptocurrencies directly into his BlockFi interest account to start earning passive income with his cryptocurrency! Yes, you can mine directly into your BlockFi interest account. This saves money or crypto on transaction fees spent sending coins around, and it simpy gets your money or crypto working for you, making money with your money is the key to achieving financial freedom, and BlockFi empowers YOU to do that!
With a BlockFi Interest Account (BIA), you can earn up to 8.6% APY (annual percentage yield). Interest accrues daily and is paid out monthly. Interest also compounds monthly, this means that interest is paid on the current balance instead of the initial balance. So, if you don’t withdraw your assets, your interest payment will be larger every month. You can transfer USD, cryptocurrencies, or various stablecoins to the BlockFi platform and start earning interest immediately.
There are no minimum balances or hidden fees, and there are no withdrawal restrictions, which means if you ever want to remove part or all of your deposit, there is no waiting period and no hassle.
Example of how much you could earn in 10 years with a BIA if you were to deposit 1 BTC at the time of writing this article
Unfortunately due to legal restrictions in New York, BIAs are not available to residents of the state.
BlockFi Trading Accounts
BlockFi trading accounts offer great opportunities as well. BlockFi trading accounts have zero transaction fees. BlockFi aggregates liquidity from a number of exchanges to provide you with seamless trade execution and pricing. Once you complete a trade, your new asset gets deposited immediately into your BlockFi Interest Account if applicable and begins accruing interest for you. Trades reflect immediately in your account balance to earn you the maximum interest possible.
BlockFi Trading Accounts offer another cool feature — reoccurring trades from stablecoins to cryptocurrencies. You can set up regular trades either daily, weekly, or monthly so that you have a hands-free way to maximize investment opportunities. It’s simple to set up — once your account is funded, select the stablecoin you’d like to trade and the cryptocurrency you’d like to receive, select the frequency and day of the week or month (if applicable), and BlockFi will handle the rest.
Illustration of USDC to BTC swap
Some trading restrictions may apply in your state on trading pairs. BlockFi is working hard to be able to offer its services to all states but takes law and regulation compliance seriously.
Another valuable service BlockFi offers is crypto-backed loans. Say you have some cryptocurrency (BTC, ETH, or LTC) that’s been your rainy day fund or your experiment with investing. Something comes up in your life where you really need USD, but you really don’t want to give up your investment into cryptocurrency. This sort of circumstance is where a crypto-backed loan would be valuable. You can put up your cryptocurrency as collateral for a loan.
Essentially, you can borrow USD against your cryptocurrency without losing it, or incurring a taxable event. The amount of USD you can borrow depends on how much collateral (cryptocurrency) you’d like to put down. Their loans are structured on a 12-month term, with varied interest rates also depending on the amount of collateral you put down.
Approximate rates for BlockFi loan system, as of writing this article; LTV means Loan to Value Ratio
Once the loan is paid off, the asset(s) put down as collateral are deposited into your BlockFi Interest Account, the same day. If a BlockFi Interest Account is not available to you or you would prefer another method, it could take up to 3–5 business days.
You can get up to a $250 payout in BTC if you sign up for BlockFi using our referral link here. The amount you get for signing up with a BlockFi account through our referral code depends on how much you deposit. The higher the deposit amount, the higher the payout.
BlockFi uses Gemini as its primary custodian, meaning most cryptocurrency stored with BlockFi is actually being held by Gemini.
Gemini is a US-Based cryptocurrency exchange, wallet, and custodian, and it uses cold storage for the majority of user cryptocurrency. Gemini boasts FIPS 140–2 Level 3 security for their HSM (hardware security modules). FIPS 140–2 is a government computer security standard used to approve cryptographic (systems of code) modules, and the rating system functions on a scale of 1–4, one being the least secure and four being the most secure. FIPS 140–2 level 3 security means they pass requirements for the security of cold storage and other sensitive information, including tamper-evident features and physical security mechanisms made to detect and respond to unauthorized use. Gemini also uses a multi-signature digital scheme, to eliminate single points of failure. All HSMs are distributed geographically and stored in monitored, access-controlled facilities.
Two-Factor Authentication is required when an account is accessed in any way. Gemini is also the world’s first cryptocurrency exchange and custodian to complete a SOC 1 Type 2 exam, SOC 2 Type 2 exam, and earn an ISO 27001 certification.
SOC 2 Type 1 is an exam done by an independent party to test the security of a platform's customer internal controls in the areas of risk management, logical access, data security, and more. SOC 2 Type 2 are exams done by an independent party to test the security of security and privacy procedures. ISO 27001 certification is a certification that proves an organization has invested in people, protocols, and technology to protect data and sensitive information.
So is BlockFi safe? As safe as Gemini is — which, seems to have taken as many steps towards security as possible.
BlockFi is a United States-based company that utilizes another United States-based company as their primary custodian, meaning that user deposits that aren’t in use for liquidity stay in the United States. BlockFi takes government compliance on a state and federal level seriously, as well as security. They are backed by a large team of well-known investors and offer comprehensive and flexible plans with great rates.
This article is not intended to be taken as financial advice. If you found this article helpful please follow VoskCoin here on Medium, YouTube, and check out the VoskCoin website!
- Date of publication:
- Tue, 05/04/2021 - 07:36
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