BlockFi features a new online lending platform

BlockFi Introduction

BlockFi is a new addition to the crypto sphere. This platform has been around since 2017 and is becoming a leader in crypto lending services. It was founded by Zac Prince a previous employee of Cognical a consumer lending business and Flori Marquez a registered investment advisor. The company expanded through seeding funding and is now available to users worldwide.

What are the BlockFi Features?

Pros

• Earn interest on the BlockFi Interest Account
• Apply for a loan on the BlockFi lending platform
• Simple users interface
• Easily transfer crypto to crypto or fiat to crypto trades
• Online support team available for queries (support.blockfi.com)

Cons

• Lower APY on some of the stable coins to it’s competitors such as Wirex and Crypto.com
• In depth data analysis with crypto charts
• Fees after 1 withdrawal per month
• 24-48 hours to withdraw funds

Earning and Lending with BlockFi

You can earn up to 8.6% APY (Annual Percentage Yield) with the BlockFi Interest Account. There is also a lending facility that enables you to receive a loan with the crypto as a guarantee. You can use a variety of different crypto assets to lend including Bitcoin, Ethereum and Litecoin. Furthermore, there is no minimum amount required to start earning interest on your account. This is great if you are only earning to invest a small amount starting out. The identity check is quite in-depth as you are required to input personal details. This also ensures the integrity of the platform.

Security of BlockFi

Although there is a delay in the withdrawal time of funds it can also act as a buffer should there be any security issue that needs to be investigated. As security is a high priority it is reassuring knowing that the Gemini assets are insured by AON.

Crypto and currency Interest Rates

I have outlined the Blockfi interest rates as follows:

You can earn interest on your Blockfi Account of up to 8.6% APY with the USDC stable coin. Bitcoin is also competitive at 6% annual percentage yield returns. The advantage of having your stable coin and crypto invested with BlockFi is the ability to earn a passive income. As more platforms get additional features there will be a greater selection of coins and assets that can earn interest earns a return through staking a crypto asset.

Crypto and currency Fees

I have outlined the following Annual Percentage Yield return on the following crypto and currency:

There are also fees attached to withdraw assets after the initial 1 withdrawal limit has been used. Therefore, it is important to weigh up the frequency that you trade when deciding on the platform that you would like to use. I have also included the Top 10 crypto platforms as a comparison when reviewing the market competition. However, if you are happy with the features that Blockfi offers that it can be a great entrance into the crypto market.

Sign up with BlockFi

To sign up with BlockFi you can follow these 3 easy steps:

1. Sign up using the code 4c8ba155, alternatively head to the sign up page.
2. Complete a transfer to your “interest account” with a minimum of $100 (I would recommend $105 accounting for market fluctuation) either in crypto or fiat (support team said a fiat transfer via ACH gets converted to a stable coin and it’s valid),
3. Hold that balance until the nearest second Friday of a month, and you’ll get a $10 bonus in Bitcoin!

First, you must create an account with BlockFi and verify your identity and account details. Once you have done this you can either:

1. Wire Transfer – Transfer funds in fiat currency
2. Crypto Transfer – transfer crypto from your crypto wallet

Given that I already had some Bitcoin in my Coinbase wallet I decided to transfer across the crypto. This would be at a cost of  $0.08 (0.00000135 BTC) in network fee! It is recommended that when transferring across your crypto or fiat currency you send $105 to account for any market fluctuations.

BlockFi Summary

There are many different crypto exchanges that are available to investors. It is therefore important that you do your own research to determine which platform has the features that suit your investing needs. We can cover the interest rates, fees and features when reviewing the BlockFi crypto platform. If you would like some more information on the pros and cons of investing in crypto have a read of the following article Investing in Crypto.