Are you deeply interested in cryptocurrency but not really sure where to start? Well, let me introduce you to BlockFi, often considered the best cryptocurrency trading platform. If you’re looking for an investment platform that caters to cryptocurrency, BlockFi is seemingly one of the best options around right now and it continues to perform well amongst its competitors. This BlockFi review will certainly help you out.
It is one of very few options available at the current time that is available to cryptocurrency investors. The main goal is to offer a hub of sorts for borrowing, earning, and trading interest on cryptocurrencies. It conducts business much like a bank does, however, it is not officially a bank.
It was founded back in the year 2017 by a man known as Zac Prince. Seed funding almost completely funded the adventure as well as from the investment platform known as Sofi Invest. You can check out the Sofi Invest review here. The main feature that is capturing everyone’s attention is the non-existent fees, high-interest rates, and the reliability of the platform when it comes to managing your crypto assets.
For cryptocurrency traders who are looking to consolidate their investments, BlockFi is one of the best options around right now. It is the best bank-like option in the market as well as one of the most efficient. For more reviews like this one, check out this TopStepTrader review.
BlockFi banking options
People seem to be particularly impressed with the banking options offered by BlockFi, so, let’s take a better look into them.
BlockFi Bitcoin Rewards Visa Credit Card
In early 2021, BlockFi launched a credit card that works similarly to a cash-back credit card which you have likely heard of. The BlockFi Visa offers great rewards in the form of Bitcoin. All of the purchases made with this card offer a 1.5% rewards rate paid in Bitcoin. When you spend 3,000 0r more in the first three months, you will be able to earn a $250 Bitcoin bonus.
One thing to remember is that it can be an expensive card to hold as it comes with a $200 annual fee.
BlockFi Interest Account
One of the main accounts made available to consumers is the BIA, also referred to as the BlockFi interest account. Minimum balances are not a requirement, but interest rates may vary depending on the coin you choose to hold your balance in. An example of it is that for accounts with more than 20 bitcoins, the interest rate is low (0.5%, however, holding the Paxos Standard Token yields a high-interest rate (8.6%.
Coins are able to be converted into other coins which means that you can easily diversify your portfolio to meet your goals. Deposits are able to be easily made via wiring USD and interest can be paid into any coin you choose.
BlockFi Crypto Loans enable you to borrow USD against your deposited coins. $5,000 USD is the smallest amount you can borrow, however, keep in mind that you will have to put up collateral of no less than 50% of your coins which is a loan-to-value ratio. These loans have a duration of 12 months and the standard interest rate is 4.5%.
The only downside to this is the fact that cryptocurrency is highly volatile. This means that if your loan-to-value ratio reaches 70%, a trigger event will occur. You will then need to put up far more of your coins as collateral to bring it back down. While it is great in other ways, we believe there are many other, far better alternative lending options available.
The pros and cons of BlockFi
BlockFi is wonderful because it offers many cryptocurrency investors chances that they didn’t have on other platforms such as the ability to maximise the potential of their crypto assets. It offers a great alternative to traditional investing with yield comparable to real-world monetary assets. It is one of the best options for crypto investors. Check out these pros and cons for more information on BlockFi.
- Very few fees
- Best interest rates on the market right now
- Offers borrowing and trading of cryptocurrency
- High-interest rates are not available on all coins
- Requires at least a small amount of knowledge of cryptocurrency to get started
BlockFi is a great platform and is often regarded as the future of cryptocurrency investing. It may not have the same protections that a traditional bank may have, no customer has ever lost money with BlockFi and likely never will. Its security and precautions make it ideal as well as the way it operates in this low-interest environment.
Click here to create an account with BlockFi today and claim up to $250 in bitcoin when you make a deposit.