BitCoin is currently on a tear and gaining value every day. But that’s not always the case. The volatile nature of crypto currency means you can often goes months (or even years) without seeing a profit. Or, in some cases, getting back to your initial investment level.
Look at BitCoin prices over the past year.
There are several points (such as February, 2020) where you could have bought in, and would still not be back to your initial purchasing price.
Personally, this is one of my few gripes with BitCoin, because the lack of dividend or interest payments means you are relying on pure asset appreciation.
Luckily, there’s a solution to this: BlockFi.
In this BlockFi review I’ll explain what the platform is, my personal experiences, and how you can use the system to your advantage.
What Is BlockFi?
To keep things simple, BlockFi is crypto banking platform that’s very similar to a traditional financial institution.
Much like your traditional savings account, BlockFi pays you interest on any funds you keep with them (they accept BitCoin, LiteCoin, Ethereum, and several stable coins). But, unlike you’re local Chase or Wells Fargo, BlockFi pays out an incredibly generous interest rate between 6–8.6% annually.
What’s cool about BlockFi (as opposed to many other crypto banking platforms) is that you can deposit popular currencies like BitCoin or Ethereum. You don’t need any obscure tokens to start earning interest.
It’s very straightforward and convenient.
By now you’re probably wondering how BlockFi can pay such high interest on your deposits. And that’s a good question. Like a traditional bank, BlockFi uses a portion of their funds to finance loans.
BlockFi allows borrowers to use crypto as loan collateral.