BlockFi is a crypto company that offers Interest Accounts, Trading Accounts, and Crypto-backed Loans. If you use Coinbase or another brokerage for buying your Bitcoin, Ethereum, or other crypto, you can transfer your money to BlockFi’s Interest Account and earn as high as 8.6% APY on your crypto. I started using BlockFi back in January of 2021 by transferring 2.4 ETH of my Ethereum. Within the past 2.5 months, I have earned $38.40 in interest. Starting a few weeks ago, I decided to transfer all of my mined Bitcoin into my BlockFi Interest Account on a weekly basis. If after reading this post, you decide you are interested in BlockFi, consider joining through my BlockFi link here and receive up to $250 in Bitcoin.
BlockFi’s Interest Account
BlockFi offers some of the highest rates in the business. As of April 1st, BlockFi launched a new interest rate tier and lowered their rates due to changing lending conditions.
Base Rates
- You can earn 8.6% on USDC, GUSD, PAX, and BUSD stable coins
- You can earn 9.3% on USDT
- You can earn 5% on PAXG
- You can earn 6.5% on LTC (Lite Coin)
- You can earn 5.5% on LINK
Tier 1
- If you own up to 1 BTC (Bitcoin), you can earn 6% APY.
- If you own up to 100 ETH (Ethereum), you can earn 5.25% APY.
Tier 2
- If you own >1 and 20 BTC, your earnings go down to 2% APY.
- If you own >100 up to 1000 ETH, your earnings go down to 2% APY.
Tier 3
- If you own >20 BTC, your earnings reduce further to 0.5% APY.
- If you own >1000 ETH, your earnings reduce to 0.5% APY.
Withdrawal Fees
Every crypto platform has fees and BlockFi is no different. Recently, BlockFi started to allow one free withdrawal per currency per month, allowing you to bypass the withdrawal fees of $10 for stable coin withdrawals and usually less than 1% for crypto currency withdrawals. For example, the withdrawal fee for Bitcoin is 0.0075 BTC.
BlockFi Trading Account
A new offering for 2021, BlockFi now allows you to buy, sell, and exchange crypto currencies on their platform. Previously, you had to buy your Bitcoin or other crypto from crypto brokerages such as Coinbase and Gemini. Now you can buy Bitcoin directly from BlockFi and start earning interest immediately.
BlockFi Loans
BlockFi is one of many crypto platforms that offers you the ability to borrow money against your crypto in a similar fashion to portfolio lines of credit or margin accounts. You can borrow for as little as 4.5% APR with a LTV of 20% or as high as 9.75% with an LTV of 50%. All BlockFi loans charge a 2% origination fee. The turn around time for a new loan is 1 business day and there are no pre-payment fees. You can pay back your loan as early as you want.
BlockFi Credit Card
I personally signed up to be one of the first to get BlockFi’s Visa Signature Credit Card where I could earn 1.5% back in Bitcoin and up to $750 in Bitcoin rewards. This metal credit card can be used anywhere where Visa is accepted. All of your Bitcoin rewards are automatically transferred to your BlockFi Interest Account monthly. This is the first card offered that can earn you 1.5% Bitcoin rewards on every purchase.
As a sign up bonus, BlockFi is offering $250 in Bitcoin if you spend $3000 within the first 3 months. For month 4-6, they will offer 3.5% back on every purchase.
Conclusion
BlockFi has grown rapidly over the past year with backing from over 30 major companies including Coinbase and Sofi Invest. They just completed their Series D of funding and are now valued at $3 Billion. Personal Finance YouTuber Andrei Jikh often promotes BlockFi on his channel and is considering becoming an investor himself. With the tagline of the “Future of Finance”, I believe BlockFi has plenty of growth potential and I am excited to try their new 1.5% back Bitcoin credit card. If you are interested, join BlockFi here and receive up to $250 in Bitcoin. When I get and use the credit card, I will post a review on my BlockFi Visa Signature experience. Subscribe to stay up to date on my posts.
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