2021 Honest BlockFi Review
You can earn up to 8.6% APY on your crypto investment but let’s take a full look.
BlockFi is a company that is redefining banking with a digital platform that provides savings accounts for crypto and offers crypto-backed loans and also supports crypto-trading on their platform. It is a service that is getting increased exposure as time goes by and since I have tried it out for a couple of months now I considered it would be a good time to provide a review.
Earn up to 8.6% APY on your investment
BlockFi is getting famous for this tagline because on top of the market movement which in this current bull market is positive, you can earn extra APY on your investment during the time as well. This means that the compound effect you can create with this is amazing and even when the market is down you would still earn some money on your crypto investment.
However, this does not paint the full story since it does not mean that you will earn 8.6% if you leave your Bitcoin or Ethereum there for instance. There is a clear difference in the rates depending on the different crypto investments you chose. The 8.6% APY is related to the stablecoin GUSD so if you basically want a safe bet then you can get the 8.6% APY. But most crypto investors own either Bitcoin and Ethereum and the rates for these investments differ.
For Bitcoin, there are two tiers available. Tier one means that you have between 0–2.5 Bitcoins and then you are eligible for an APY of 6% whereas a person in tier 1 that has more than 2.5 Bitcoins would be eligible for an APY of 3%. For Ethereum the APY is currently standing at 5.25%. So the rates are not bad at all but people think that you will get 8.6% APY on all your crypto investments which is not the case. Although, receiving interest on your crypto investment instead of keeping it in a wallet while it does nothing is considerably better since the interest is paid in the corresponding cryptocurrency you hold as well. BlockFi is ahead of their time and this is something that I think will become more regular as time goes on.
Crypto backed loans and Bitcoin Rewards card
BlockFi also offers crypto-backed loans and by this, I mean that you can borrow funds against your crypto assets without having to sell your investments. You can basically continue to hold while taking a loan which is a great opportunity and the interest for these could be as low as 4.5%.
Still, what excites people the most is the Bitcoin rewards credit card that they have available. What this basically means is that for every purchase you make with this credit card, you get 1.5% back in bitcoin which is a great opportunity for building up your bitcoin position long term. The downside to this is that it is new and there is a waitlist so obviously the earlier a person joins the waitlist the better. Personally, I think demand will be big in the future and I am happy that I got my credit card early.
Trading platform and transferring crypto
BlockFi also has its own trading platform, although it is limited. You can trade your cryptos through their market but it currently only has BTC, ETH, LTC, USDC, GUSD, PAX, PAXG, and USDT. More might show up in the future but it is not a full crypto trading platform with 100's of coins like others, but as a tool to keep your crypto investments for the interest it is definitely worth it.
It is also easy to transfer your current crypto assets from other wallets to BlockFi. It is as simple as sending it to your wallet address on their platform and the problem is solved so getting started is very easy for the beginner and the platform is very user-friendly.
Final words
I hope you liked my review of BlockFi and if you want to get started and start to get interest on your crypto investments, I will share a link below:
https://blockfi.com/?ref=e82c53a9
