Blockfi Referral Code
Blockfi Review – What is BlockFi
BlockFi is an operator of the Crypto world that offers financial services.
The company has been active since 2017, is based in New Jersey, and was born as a meeting point between the demand for capital and the supply of Cryptocurrencies.
It basically offers three types of services:
- Interest Account: i.e., a deposit account for Ether, Litecoin, Bitcoin, Link, USDC, and GUSD;
- Crypto Loans: i.e., the granting of a loan against collateral set up in BTC, Ether, or Litecoin;
- Trading: i.e., the possibility of converting the above coins into another selected currency.
The services are expanding rapidly, and the introduction of a card with a Bitcoin cashback function is expected very soon.
This option is already available to US investors, and we are therefore expecting its introduction eventually.
BlockFi has significant lenders, including Peter Thiel’s Velar Capitaland Winklevoss Capital, Coinbase, and Fidelity.
How to open an account
- To open an account on BlockFi, just go to the site and click on GET STARTED.
- I remind you that the site is in English, but it is also fully available for Italian users.
- After entering your data and verifying your identity, you will be ready to explore the opportunities offered by this platform.
- To start, you will have to deposit by clicking on Deposit and choosing the desired currency.
You will get the address to send your crypto to.
As general advice, I divide your money between various platforms and never deposit everything in one account.
This is to limit the risk of scams, cyber-attacks, and in general, to limit the risk associated with this type of investment.
How the Interest Account works
The BlockFi Interest Account (BIA) is a Deposit Account that will allow you to earn monthly on deposited cryptocurrencies.
Once you have therefore deposited your BTC, ETH, LTC, USDC, GUSD, you will receive monthly interest.
The interest will increase the Deposit amount, allowing you to make the most of the power of Compound Interest.
I like most about BlockFi to choose a different currency than the deposit currency as the interest payment currency.
You can then deposit Bitcoin and get Litecoin, Ether, GUSD, or USDC as interest.
To change these settings, simply go to Profile Settings, click on interest and change the currency to obtain interest.
How Crypto Loans work
Crypto Loans are loans offered by the platform with BTC, ETH, or LTC collateral.
They allow you to get cash without having to sell your crypto but by placing them as collateral.
Consider that the minimum loan amount is 5,000 USD and that the collateral will be at least double (Loan to Value 50%).
Also, do not forget that if your cryptocurrencies’ price falls during the term of the loan and the
LTV reaches 70%, you will be required to pay new money as a guarantee for the loan.
On average, the interest rate is higher than other loans and can vary based on the amount requested.
The simulations I tried to do are equal to 12.50%, but increasing the collateral can go down.
Finally, remember that the collateral is deposited in a separate account and maintained by Gemini, a company specializing in the custody of digital assets regulated by American law.
How Trading Works
Finally, BlockFi offers a fairly primary but still functional currency exchange function.
In fact, by clicking on Trading, you can trade Bitcoin, Ether, Litecoin, GUSD, and USDC.
The rates are competitive, and therefore it may be convenient to use the platform for this purpose.
What is my experience?
Since the summer, I have been using BlockFi, and I have to say that I am enjoying it.
I came across it almost by chance, but I immediately appreciated its extreme simplicity and the presence of specific and functional services.
Thanks to the Interest Account, I am accumulating small amounts every month that help me to increase my crypto assets, accumulated mostly thanks to promotions and free airdrops.
The BlockFi card should be launched soon, adding the possibility of obtaining rewards and cashback in BTC.
Ultimately, although very risky, like the whole alternative financial world, it is an exciting reality and worth investigating.
In essence, it offers financial and investment services based on cryptocurrencies and blockchains.
The difference compared to other services seems to me to be seriousness, respect for the rules, and a team and a network of partners of absolute importance.
If you also want to open an account on BlockFi, all you have to do is sign up and start depositing your crypto.