After buying your first Bitcoin, one can be faced with a myriad of choices on what they can next do with their Bitcoin. Should you trade it for a lesser-known "altcoin" to attempt multiply your Bitcoin? By doing so, you also risk losing a significant portion of your Bitcoin investment in the case of a trade going awry. For all Bitcoin investors (especially if you are new), my highest recommendation would be to stash it away in BlockFi, and let your Bitcoin earn you passive income. BlockFi operates exactly like how a bank operates, paying you interest on your cash deposits - except that it's interest rates are a lot more attractive and are paid out directly in your choice of crypto, compounded monthly. Why I like BlockFi is because its interest rates are amongst the best in industry, but more importantly, after doing research on the background of the company and it's founders - I have confidence its in security protocols and management.
How does BlockFi work?
Just like a traditional bank, BlockFi generates revenue by providing loans to corporations and individuals. The source of these loans are the crypto deposits from retail investors like you and I. BlockFi collects these deposits and issues them partly as loans, rewarding investors with an attractive interest rate that is earned from these loans. To add a further level of safety for investors, loans taken must be backed by a pre-defined amount of crypto-collateral, meaning that in the event that a loan is defaulted, BlockFi already has significant collateral to cash in upon to remain solvent.
What are BlockFi's interest rates?
BlockFi's Interest Account (BIA) rates are one of the highest among it's competitors. Based on the latest BIA yield rates below, by simply depositing and holding your Bitcoin in BlockFi, you can gain 6% interest on your Bitcoin (in any currency of your choice). Don't forget, the interest is paid monthly, so this works out to a slightly higher 6.17% APY. Storing Stablecoins are also another popular option, those yield 8.6% APY before compounding, a far-cry from your bank's 0.5% APY.
Why I Recommend BlockFi for all Users
I have been a BlockFi user since August 2019 and the experience has been impeccable so far.
1. It Does what it Promises - Firstly, my Bitcoin interests are automatically credited into my account on the first day each month without question. The entire process is transaparent and easily trackable. In the BlockFi dashboard, you can easily see the total amount of interest you have earned thus far, and also how much interest you can be expecting at the next interest payout.
2. Great Customer Service - I have been very impressed by the customer service team at BlockFi. While the platform is simple and intuitive to use and I have not have had much queries, in the number of times when I have contacted BlockFi Customer Support, they have always responded swiftly with effective resolution.
3. Funds are highly safe and secure - When storing your Bitcoin anywhere else other than in your offline wallet, there is always a risk (however remote) of your funds being hacked. BlockFi does not hold on to your actual Bitcoins. Instead, Gemini serves as the custodian bank for BlockFi, and they hold the keys to your Bitcoin. In the crypto world, Gemini is a custodian that brings the highest level of confidence, and with the best security track record. They have the largest insurance custody of any Crypto custodian in the world. Read more about Gemini's custodian services here.
4. Flexibility to Withdraw and Manage funds - Your funds in BlockFi can be withdrawn at any time with no minimum required holding. Blockfi provides all users with one free withdrawal per month, subsequent withdrawals will cost 0.0025 btc. Not the best, but if your intention is to hold your Bitcoin in BlockFi without touching it much, then 1 withdrawal a month does suffice. Blockfi also recently rolled-out a "Trade" function, allowing you to trade your Bitcoin for other Cryptocurrencies, such as Ether, Litecoin or Stablecoins for zero fees. However, the exchange rate provided is slightly below the market rate, which is how BlockFi captures a small profit for the service.
All in all, I find tremendous value in storing my Bitcoin and crypto holdings in BlockFi and recommend it as an option for other Bitcoin holders. I personally store more than 50% of my Crypto in BlockFi, allowing me to generate a significant amount of interest monthly.
You can also generate interest in your Bitcoin with BlockFi
If you are interested in also generating attractive interests on your Bitcoin holdings, I have a referral code for BlockFi which I would like to share - use my referral code here. By signing up using my referral code and depositing $500+ worth of Crypto into your BlockFi account (hold for a minimum of 30 days), you and I will both earn a one time bonus of $25 in BTC.