Let me introduce you to a cryptocurrency lending and trading platform into which I have deposited most of my crypto assets. BlockFi offers compound interest on deposits for eight different cryptocurrencies.
Their business model follows that of a traditional bank in that they receive crypto assets from depositors, and lend some of them to individuals and companies. Interest is collected from their borrowers, and some of it is paid back to customers with deposits.
BlockFi Interest Account (BIA)
The BlockFi product for retail customers like you and me is the BlockFi Interest Account (BIA). It offers customers interest accrued daily, compounded monthly on their crypto deposits, with no minimum deposit required. Individuals must prove their identities with a KYC (Know Your Customer) process to be eligible.
BIA interest rates on crypto deposits
Table 1 below shows rates in Annual Percentage Yield (APY), which reflect effective yield based on monthly compounding.
Note: USDT offering only available to customers outside of USA only.
Update: I found this tweet notifying an upcoming interest rate change effective November 1, 2020:
BIA withdrawals
Customers are allowed one free crypto withdrawal and one free stablecoin withdrawal per calendar month. The free withdrawals apply to one type of cryptocurrency, and to one type of stablecoin.
Although there are no minimum deposit amounts required, the minimum withdrawal amounts are 0.003 BTC and 0.056 ETH. Withdrawals for balances smaller than these amounts may take up to 30 days to process.
Additional withdrawal limits and fees are listed in Table 2 below.
Interest Flex Payment option
One of the most attractive benefits of having a BIA is that customers can choose which cryptocurrency they wish to receive their interest payments with. For example, if a customer deposits both Bitcoin and Ethereum into their BIA, they can choose to receive all of their interest payments in only Bitcoin, or only Ethereum by choosing the Interest Flex Payment option.
How safe is it to use BlockFi?
BlockFi only lends to vetted and qualified institutional clients.
The majority of the crypto assets they manage are placed in cold storage wallets, and only a smaller amount is stored in hot wallets for operational use.
The hot wallets are covered by an insurance policy, and BlockFi assures its customers that the total value of assets stored in hot wallets will never exceed that policy.
BlockFi's custodian of crypto assets is Gemini Trust, a limited purpose New York trust company which is regulated by the New York Department of Financial Services. Additionally, Deloitte completed a SOC2 examination of Gemini's custody solution.
BlockFi suffered a data breach in May 2020, which resulted in the loss of
customers’ full names, email addresses, dates of birth and notably, activity information and physical addresses. The company stressed that no “non-public identification information” was leaked, which would include bank account numbers, passwords or social security numbers. A new Chief Security Officer was hired in the wake of the data breach.
Who is eligible for a BIA?
The BlockFi Interest Account is available to clients worldwide, with a few exceptions. For example, due to legal restrictions, BIA is not available to users located in sanctioned or watchlist countries. Additionally, the Interest Account is available to clients in 49 of 50 U.S. states (excluding New York), - BlockFi
Browser options when setting up a BIA
The following is a list of currently supported browsers for our applications:
Google Chrome
Safari
Firefox
Internet Explorer 11+
Brave (If you're using Brave Browser, please change your camera settings from 'blocked' to 'allow.')
Current promotion
A great promotion was just extended until November 7, 2020.
New customers will receive a minimum $25 in Bitcoin when they fund their accounts for the first time. The promo works as follows:
Terms of the promo:
Offer valid until 23:59:59 UTC on November 07, 2020. To be eligible for the promotion, you must have a balance of $0 at 04:00:00 UTC on October 13, 2020
This must be your first ever deposit in the BlockFi Interest Account, and you must maintain a $25+ balance through 23:59:59 UTC on January 14, 2021. (Does not specify what type of crypto needs to be deposited).
You must also have a valid promo code or receive a targeted email to be eligible for this promotion. I suggest that you use this promotion while it lasts, and do not use my referral code below until after November 7, 2020!
This offer is not valid in conjunction with any other current or past promotions and the promo code on the account will be used to determine promo eligibility for new accounts.
The bonus will be paid in BTC on January 15, 2021 based on the prevailing market price at the time of payment.
Payout will be based on your average daily balance (USD equivalent) maintained through 23:59:59 UTC on January 14, 2021.
Any withdrawals made before 23:59:59 UTC on January 14, 2021 may affect your tier.
There is a maximum of one bonus per client. Terms subject to change.
My thoughts
I have been a BlockFi customer for over a year, and other than the data breach, it's been an excellent way for me to earn passive income on my crypto assets. I'm not sponsored by BlockFi, and this is just my opinion.
Thanks for reading, and stay safe!
If you would like to support my work, please hit like 👍 and subscribe! 😊
Follow me on Twitter: @CryptoWordsmith
Cover image by BlockFi
It's the perfect time to start earning free crypto while you learn about it!
If you want to earn free BCH, read.cash is always looking for new members and for aspiring authors. Previous writing experience is not required! I invite you to create an account using my referral link by clicking here.
I'm earning up to 8.6% annual interest compounded monthly on my crypto deposits at BlockFi, and you can too. When you sign up for a free account using my referral link by clicking here, we can both receive a bonus!
Related reading: How I will earn $20 in free Bitcoin from BlockFi
You can also earn free crypto such as EOS or XLM by watching Coinbase Earn videos! Register for your free account using my referral link here, and we can both receive a bonus!
The Sandbox Metaverse offers users an opportunity to create their own 3D games and NFTs. Register for your account using my referral link here!
Related reading: Beginner's guide to The Sandbox
Thanks for your support!
Resources:
This seems an interesting and profitable site