BlockFi is a cryptocurrency custodian. It enables customers to take out USD loans against their cryptocurrencies. The founders of BlockFi are zac Prince and Flori Marquez.
The cryptocurrency system was founded in August 2017 and it is based in Jersey City, New Jersey. BlockFi has raised $158.7 million up to a Series C.
Here is what Zac Prince said to Crunchbase:
“We are in very early innings in this sector, and everyone is working together to increase the size of the market and make it accessible around the globe@.
“We are lucky to be in a position where our business is growing rapidly as cryptocurrency has momentum and relevance right now.”
What does BlockFi offer?
The cryptocurrency system enables you to earn interest on your cryptocurrency and also take out USD loans against it. You can as well trade cryptocurrencies on BlockFi. They offer a limited number of cryptocurrencies for trading and they include:
BlockFi Bitcoin Rewards Visa Credit Card
BlockFi is set to launch a Bitcoin rewards Visa Credit Card which is similar to cash-back credit cards and the credit card will earn you rewards in Bitcoin.
The Bitcoin Rewards Visa Credit Card is set to earn a 1.5% rewards rate in Bitcoin on every card purchase. you are qualified to earn a bonus of $250 in BTC after you spend $3,000 or more within the first three months.
Also, the card is going to have an annual fee of $200 which places it on the pricier side of credit card fees.
BlockFi does not charge for deposits or trading. But there is still some withdrawal, fees, and limits that are linked with your assets.
You can also make one free withdrawal; per month. After all, you will then give rise to a fee for each withdraws.
Below are the withdrawal fees for some of the cryptocurrencies:
- BTC – 100 per 7 days Period for 0.0025 BTC
- LTC – 10K per 7 days Period for 0.0025 LTC
- ETC – 5K per 7 days Period for 0.0015 ETH
- Stablecoins – 1 Million per 7 day Period for 0.25 USD.
There are also minimums for withdrawals that are being enforced by Gemini. they include:
- 0.056 ETH
- 0.003 BTC
BlockFi offers different bonus offers often. New clients to BlockFi can as well get up to a $250 Bitcoin (BTC) bonus whenever they make qualifying deposits during the first 30 days of opening. In all, the offer does not have any expiration date.
Is BlockFi Regulated
No, it is not decentralized. But still, it is one of the most well-known companies that offer cryptocurrency-backed loans.
BlockFi is registered with the U.S. Department of Treasury Financial Crimes Enforcement Network (FinCEN”) as a money services business.
The company keeps reserves that are stored with the crypto custodian Gemini, a New York trust company that is being regulated by NYDFS.
Using the cryptocurrency custodian, you can actually earn on cryptocurrency like Bitcoin, LTC, ETH, as well as stablecoins with rates up to 8.6%.
And this is really one of the best for those whose crypto have just been laying in an exchange or wallet for so long without any use. With the ability to gain more crypto while holding their assets.
Interest is being paid per month and compounds. Also, if you include any extra crypto to your BlockFi Interest Account, your interest will compound on their latest balance.
Is BlockFi Safe?
BlockFi is being supported by some of the largest and popular companies in the space. They include:
- Morgan Creek.
- Consensys “Joseph Lubin Co-Founder of Etherum as well as the Founder of Consensys”.
- Galaxy Digital “Michael Novogratz Founder and the CEO”.
They also make use of custodial service just like Gemini.
And Gemini stores 95% of its assets in cold storage. Also, it stores 5% in hot wallets that are being protected by Aon.