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Earn compound interest on your crypto assets with BlockFi

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Avatar for CryptoWordsmith
Written by   75
1 year ago

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.

Table 1: BlockFi Interest Account rates (APY) - Screen cap from blockfi.com/rates (Nov 1, 2020)

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.

Table 2: BlockFi withdrawal limits and fees - Screen cap from blockfi.com/rates (Nov 1, 2020)

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

Graphic 1: BlockFi Halloween 2020 promotion - Screen cap from https://twitter.com/BlockFi/status/1322562482691547139/photo/1

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:

Table 3: Halloween 2020 Promo payout structure - Screen cap from https://try.blockfi.com/oct-btc-offer/#lp-pom-text-750

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 

#EarnFreeCrypto

#EarnPassiveIncome

Cover image by BlockFi 

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BlockFi hack: You can even choose which cryptocurrency to receive your interest payments in!

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!

 


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Related reading: Beginner's guide to The Sandbox

Thanks for your support!

Resources:

  1. https://help.blockfi.com/hc/en-us/articles/360048862572-What-are-the-risks-with-depositing-my-crypto-at-BlockFi-

  2. https://help.blockfi.com/hc/en-us/articles/360048862552-Need-help-creating-your-account-

  3. https://help.blockfi.com/hc/en-us/articles/360048863672-Who-is-eligible-for-the-BlockFi-Interest-Account-

  4. https://try.blockfi.com/oct-btc-offer/#lp-pom-text-750

  5. https://cointelegraph.com/news/blockfis-data-breach-may-allow-criminals-to-extort-rich-clients

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Avatar for CryptoWordsmith
Written by   75
1 year ago
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Comments

This seems an interesting and profitable site

$ 0.00
1 year ago

i have received monthly interest payments on my crypto deposits...working out well for me so far! thanks for visiting!

$ 0.00
1 year ago

I think this is very good site. Thanks for sharing about it. And please back my post.

$ 0.00
1 year ago

thanks for visiting!

$ 0.00
1 year ago

💝

$ 0.00
1 year ago

I don't think I can try it just yet. My brain isn't digesting all these weeks information and it's about to explode lol. Thank you for sharing it to everyone! And may you all be successful! 😊

$ 0.00
1 year ago

Lol...one step at a time. =) kind of like sipping from a fire hose. 🚒

spreading info one article at a time. thanks for visiting and for the tip.

$ 0.00
1 year ago

nice informative article

$ 0.00
1 year ago

thanks for visiting!

$ 0.00
1 year ago

welcome

$ 0.00
1 year ago

BlockFi is really excellent

$ 0.00
1 year ago

i totally agree with you!

$ 0.00
1 year ago

Wow! Looks good. I want to try it.

$ 0.00
1 year ago

Registering with their current promo (ends Nov 7) is better than using my referral link. glad you found some value with this article!

$ 0.00
1 year ago

I was especially happy that you included this section. "How safe is it to use BlockFi?"

It's very tempting to try it. 👍

$ 0.00
1 year ago

Hi friend, glad you got value from it.

they have typical "centralized" system risks with data breaches. other than that, much more stable than DeFi at the moment.

i've been happy with the product, with the exception of the data breach.

$ 0.00
1 year ago

I'm a bit worried when I hear crypto and interest in the same context, because I am a bit burnt from the Cred thing. But BlockFi have an insurance at least. I believe that I will try my luck here. Hopefully, more successfully than last time. 😅

$ 0.00
1 year ago

I say cheers to that! Ok, how many eggs in here??? lol 😆

$ 0.00
1 year ago

😂 I know I should not put all of them in that basket, but I'm tempted to do that. 😅

$ 0.00
1 year ago

yes, sorry about your experience with cred...

take some time to think about it. the october promo has been extended.

they also have some great partnerships, including Coinbase Ventures and Gemini (Winklevoss twins).

$ 0.00
1 year ago

That sounds really good. 👍

$ 0.00
1 year ago

I have some crytos and seems like I need to store on the Blockfi

$ 0.00
1 year ago

i've been happy with the product. if you register for an account before Nov 7, you should use their October promotion code, instead of my referral code. thanks for visiting!

$ 0.00
1 year ago

Thanx for the information dear . I will check it out

$ 0.00
1 year ago

Thanks... Its good to try.. Since there is free withdrawal per month, so meaning you can fully withdraw your money on january 😁

$ 0.00
1 year ago

yes, that's an option. you can also choose a different crypto to receive your interest payment with, but you would need two withdrawals. note that registering with the current promo (ends Nov 7) is better than using my referral link.

$ 0.00
1 year ago

I am actually worried about the gas fee when it comes to investing using btc

$ 0.00
1 year ago

Nice article, keep it up bro

$ 0.00
1 year ago

thank you!

$ 0.00
1 year ago

This platform looks good keep it up follow me please

$ 0.00
1 year ago

thanks for visiting!

$ 0.00
1 year ago

You welcome ☺️

$ 0.00
1 year ago

Good writhing dear i learned a lot thanks for information

$ 0.00
1 year ago

thanks for visiting!

$ 0.00
1 year ago