If you are looking for a company that is not a bank but can give you loan in fiat currency for offering collateral in cryptocurrency, then you will find BlockFi an interesting place to be. Depositing cryptocurrencies here also qualifies one for interest. Accepted cryptos for the savings include BTC, USDC, and ETH.
BlockFi works on a centralized platform but it accommodates decentralized finance protocols that are established on smart contracts.
There are different interest rates for the variety of assets available for lending. The assets and their rates are BTC (6%), USDC (8.6%), GUSD (8.6%), ETH (4.5%), LTC (3.5%), and PAX (8.6%).
BlockFi Referral Code
As you register on BlockFi.com, you will be asked to enter a referral code but you can still proceed if you don’t have one.
Brief History of BlockFi
The man behind the existence of BlockFi is Zac Prince and it happened three years ago in August. He worked as the Senior Vice President of Cognical and as the Vice President of Orchard Platform.
BlockFi has successfully raised funds in the past many times. The first it did generate was $1.6 million two years ago in February. Some of those whose contributions meant a lot were SoFi and ConsenSys Ventures.
Not long ago, it organized a Series B funding round where companies such as Valar Ventures, Winklevoss Capital and some more contributed up to $30 million to it.
Benefits of BlockFi
BlockFi has increased crypto’s awareness to a wider audience by implementing a system of giving loans in fiat currency while they accept collaterals in cryptocurrency. This is one reason why lenders on decentralized protocols will still have business to do there.
Cryptocurrency holders who need fiat currency for certain projects but still do not want to exchange their coins will find BlockFi an interesting place to be.
On BlockFi, users can also make gains just like it is done when investments are made on smart contracts provided by decentralized platforms but the difference here is that there risk is lower.
Notwithstanding, there are challenges associated with investing in centralized platforms. Some things that may cause concern in this case include custodial risks, how the funds will be managed, and how buoyant the company is. If these concerns are not addressed, no investor would want to take the chance except if smart contracts have proven to be risky or the decentralized platform of interest isn’t functional.
BlockFi Lending Procedure
The first thing to do if you must partake in this opportunity is to visit, https://blockfi.com/crypto-interest-account/
Once you are logged in, you’ll see the button that says “Earn Interest Now.” Click on it.
After that, a page will appear for the person signing up to supply his or her full name, email, and password. There are terms and conditions every user is subjected to so it will be nice to go through them.
The email address should be accessible because a verification code will be sent there. The code must be entered in the space provided before registration can continue.
Because of BlockFi’s affiliation to traditional finance, there are more fields to fill and submit unlike a decentralized platform. BlockFi would like to know every user well and discourage them from partaking in money laundry activities.
In the last stage of the registration, the user will verify his details. Once this is done, the registration becomes successful and the user will instantly have access to his dashboard and interesting features on BlockFi.
How interests in cryptocurrency are received
Investors should make up their minds to be paid in whatever asset they used for deposit. This means if an investor paid with BTC, he should expect to have BTC accrue as his interest. However, there is a provision to change this default mode on the settings panel.
The deposits sent by users to BlockFi are held by Gemini. From here, it goes to companies that need money for their businesses and of course, they pay interest on it. Some of the profits made are shared among depositors once per month.
What do you pay with?
Interested participants should endeavor to have Bitcoin, Litecoin, USDC, PAX or GUSD once they are registering so that their interest will not be delayed.
To get the latest from BlockFi, be a part of its teeming community on Twitter or you can choose Telegram. BlockFi also has a blog for users to know the latest about its platform and what’s happening on the lending market.