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What is BlockFI?
- Founded in 2017, BlockFi is a US based centralized crypto-finance company that supplies a variety of financial services for both private and institutional clients.
What is BlockFI interest account?
- BlockFi enable users to earn up to 8.6% interest annually on cryptocurrency deposited to their account. BlockFI lends the users’ deposits to institutional and corporate borrowers, who pay an interest rate to BlockFi which in turn pays its users.
- Although user deposits are prioritized over other company equity to reduce their risk, BlockFI is not FDIC or SIPC insured.
- BlockFi also allows users to deposit cryptocurrency as collateral and borrow up to 50% of the collateral value in US dollars.
- Through this service, users can get access to cash almost instantly without the need to trade their cryptocurrency, avoiding hassle, fees and a taxable scenario.
Pros about BlockFI
- BlockFi is a centralized company, which means they have control over your funds.
Conclusion
- BlockFi provides a great alternative for traditional finance and DeFi services so you can earn interest on your cryptocurrency and secure super quick loans against it.
- However, the company’s centralized nature and short track record still makes it a bit risky. Do invest with an amount that you can afford to lose. In other words, start small.
