Blockfi CryptoCurrency Platform
BlockFi is a money management platform that authorizes users to collect interest on their online funds as well as borrow funds by utilizing their cryptocurrency holdings as insurance. The project strives to meddle with the financial industry by allowing people to put their digital assets to use, by proposing appealing terms for users planning to make use of their platform. Our Blockfi reviews have mostly positive things to say when it comes to this company.
Why Choose BlockFi?
Blockfi operates in compliance with the United States federal laws, and the team behind the company are experienced experts with significant expertise in digital finance and lending another plus for our Blockfi reviews. Blockfi’s main selling feature is that it allows individuals to place their crypto holdings to apply and deposit them into interest accounts or utilize them as insurance for loans. Our Blockfi reviews say this feature it truly amazing.
Blockfi’s platform also offers flexible repayment arrangements with considerably reasonable interest rates and aims to assist individuals that need cash in short to medium term. All while being able to keep a hold of their digital assets to profit from any anticipated high prices. Concurrently, anyone who purchased cryptocurrencies such as Bitcoin and Ethereum at prices much lower than today’s current costs would be subjected to significant capital increases taxes if they were to trade their holdings.
BlockFi relieves these concerns by offering crypto-backed US Dollar loans that give crypto holders instant access to fiat without abandoning the benefits of owning cryptocurrencies during a possible price surge which our Blockfi reviews claim is unlike any other trading platforms. However, anyone depositing crypto assets with BlockFi can also profit from compound interest being applied to their holdings, which presents them with a unique way to passively grow their portfolio value.
Why Do Users Trust BlockFi?
The company is based out of New York, Blockfi was launched in August of 2017 by founders Zac Prince and Flori Marquez, and the duo has successfully raised over $60m in funding within four investment rounds in less than a year. Blockfi is currently operating in almost 35 states, and collateral options include Bitcoin, Ethereum, Litecoin, and Gemini’s, with plans to unite additional crypto assets in the upcoming years.
Our BlockFi reviews say they feel safe putting their money into Blockfi because it is listed as a secured non-bank lender and offers US Dollar loans that are supported by crypto-assets and performs under Article 9 of the Uniform Commercial Code, which governs secured lending. BlockFi acquires its clients’ crypto assets with Gemini, a licensed cryptocurrency exchange and certified custodian, and issues investments into their bank accounts in the form of USD amounts. The team is also connected with third-party loan servicer Scratch, which manages all loan contracts and compensations which customers claim in their Blockfi reviews that it gives them a piece of mind.
What Can You Use Crypto Loans For?
Crypto financed loans are one of the most affordable and efficient ways to handle your cryptocurrencies when you need access to USD when doing the following.
- Buying a home
- Diversifying investments
- Paying off travel expenses
- Paying off high-cost debt
- Funding a business
What Services Does BlockFi Provide?
The BlockFi Crypto-Backed Loan Account
Users of the best online trading platform can deposit their Bitcoin, Ethereum, or Litecoin to obtain a loan in US Dollars. It’s likely to receive a loan amount up to 50% of the assets you deposit, and the rate of interest begins around 4.5% with a 12-month approved loan term, BlockFi also incorporates options to prepay or refinance at the end of the loan duration.
The BlockFi Interest Account
The BlockFi Interest Account enables you to earn compound profits on your Bitcoin and Ethereum deposits. Currently, users using the Blockfi platform can anticipate an annual yield of approximately 6%.
BlockFi is also home to a mass quantity of daily cryptocurrency traders thanks to their competitive fees and respectable trade execution times.
Why Should You Take Out a Cryptocurrency Backed Loan?
Many crypto holders have a long-term view for their investments. Although they intend to maintain their crypto assets, sometimes events force investors to exchange their crypto for USD. Rather than selling, investors can use their cryptocurrencies as collateral towards cryptocurrency backed loans. In, which allows investors to maintain ownership of their funds while gaining access to the USD they need to fund their plans.
Am I Able to Take Out a Loan on BlockFi?
When applying for a loan, you need to sign up through the website, input your requested loan amount, select the crypto of your choice to deposit and enter your KYC/AML information to verify your identity. Using this best online trading platform will not affect your credit score because BlockFi can operate without having to do a hard credit check its client’s credit as crypto assets are delivered to Gemini and kept as collateral before loan proceeds are issued. This is a huge plus when it comes to our Blockfi reviews.
Is BlockFi Suitable for Beginners in CryptoCurrency?
Blockfi is not for everyone according to some of our Blockfi reviews, considering the requirements and experience needed unless they have newly purchased cryptocurrencies specifically for this purpose. The platform seems to be a better fit for more skilled individuals with some knowledge of business and history in investing. However, there is no minimum when it comes to deposits for the BlockFi Interest Account, which may be appealing to newcomers, although only deposits over 0.5 BTC or 25 ETH collect interest. However, BlockFi works to cater to newcomers to the market by implementing a host of resources on their website. BlockFi’s signup process is straight to the point and can be filled out within 2 minutes, another pleasant experience on the best online trading platform and anyone opening a Blockfi interest account can quickly earn compound interest passively, however, the loan accounts are more complicated to follow.
Is BlockFi a Safe Financial Platform?
All assets that are deposited through BlockFi are securely stored at a unique wallet address generated by Gemini. Gemini possesses digital asset protection coverage and is rated type 1 security compliant with both the exchange and custodian platforms. Gemini is also known for being one of the most protected exchanges out there. Gemini applies security programs that include cold storage, 2FA, and Amazon Web Services hosting. Any assets sent to the company as collateral for a loan, are assigned into Gemini’s cold storage system, this offline storage serves to guard users’ funds against cyber attacks. BlockFi also makes use of 2FA, where users are required to use a password and verification code created by an authenticator app, upon logging in. This is probably the best perk when it comes to what our reviewers say in their Blockfi Reviews.
BlockFi also holds the right to generate interest on assets held in Interest Accounts by loaning them to institutional and corporate borrowers. However, to ensure loan performance, BlockFi lends crypto on over-collateralized terms and employs a programmed risk management system that monitors situations 24/7, and presents the same risk management method used with BlockFi’s crypto-backed loans.
BlockFi offers loans backed by your crypto assets. This means that Blockfi’s clients stake Bitcoin, Ether, or Litecoin as collateral to obtain USD in return. When taking out a loan through BlockFi, clients send their crypto to a unique secure wallet address that is automatically generated for each client.