We all know that investing in cryptocurrencies can be a wild ride. And that’s really part of their appeal: you may up 200% for the week, or down 200%; crypto assets do not appear to follow any sort of real-world logic.
It’s a bit like poetry, which, according to Cleanth Brooks, does not “blind us with light . . . but makes us more fully conscious of ourselves in relation to the world.” That world is comprised of failure and victory, of sickness as well as youthful vitality. Crypto currency operates in a world of extremes.
Investing in cryptocurrencies can be exciting, and one can see incredible yields and long-term gains. But it is hard to know where to start. BlockFi, one of the very few platforms devoted to the trading of crypto currencies, can help you along the way – an island in a turbulent stream, if you will.
BlockFi acts as a “hub” for borrowing, trading, and earning interest on cryptocurrencies. It’s helpful to think of it as a bank that specializes in crypto; and like any reputable bank, it lets your money grow – BlockFi interest rates, in fact, are 43x higher than typical savings accounts.
Founded in 2017 by Zac Prince, BlockFi has made its splashes. Prince’s vision was to create a platform that would provide all the management tools and products that crypto investors of all stripes needed, powered by blockchain technology.
For anyone serious enough about crypto investing that they feel a need to consolidate their investments, BlockFi is a great choice, backed by legitimate pedigree. Brick-and-mortar banks are a dying breed – get on the highway of change and consider crypto banking; the potentials are huge, but so are the pitfalls.
An investment platform like BlockFi allows you to mitigate all the potential losses associated with the wild world of cryptocurrencies. Best combined with a great robo-advisor for traditional stock purchases, BlockFi helps set up, secure, and brighten your future.
Major Perks of BlockFi
- BlockFi Interest Accounts: Better known as BIAs among insiders, these are the primary accounts available to users of BlockFi. Supporting a wide range of crypto currencies, such as the popular bitcoin, you can earn varying interest rates depending on what type of coin you hold. BIAs also allow you to easily diversify your portfolio on the fly, for it is possible to convert one type of coin into another; for example, you may want to convert a percentage of your bitcoin into stablecoin for increased peace of mind.
- Crypto Loans: This is a great feature. What BlockFi does is enable its customers to borrow USD against their deposited coins. The minimum one can borrow is $5,000, but if you are in a mess and need cash pronto, this is a valuable safety valve. What’s more, crypto loans have a duration of 12 months and the standard interest rate is a measly 4.5% – better than most personal loans.
- BlockFi Visa Credit Card: It’s worth nothing that the BlockFi credit card does not merely function as a normal credit card, but offers a 1.5% rewards rate paid in bitcoin. This is awesome, as every purchase you make in the real world equates to more bitcoin in your virtual wallet. The only drawback is that it’s an expensive card to hold; the annual fee is $200.
BlockFi Fees and Rates
BlockFi requires no minimum balances, nor are there any hidden fees associated with owning an account.
But they have to make money, right? And that’s the catch: they charge for each and every withdraw made, aside from one free withdraw per month. Fees vary depending on what sort of “coin” one withdraws, but rates are not exorbitant.
Check their going rates before deciding if this platform is for you.
Cons of BlockFi
By all accounts, BlockFi is one of the better services out there for managing your crypto wallet. But there are a couple things you need to be aware of before signing up.
- Not Beginner Friendly: What we mean is that you need to have a bit of knowledge of crypto currency before beginning to use BlockFi. This is not a place where one gains insights or learns, and there is no real community of users by which one can ask newbie questions; no, this is management software, pure and simple.
- Interest Rates: Interest rates on crypto currencies with BlockFi are not necessarily bad, only that their most sterling rates are not available on all coins. It’s a bit hit or miss, really. For example, bitcoin can be as low as 0.5%.
The Bottom Line – Is BlockFi a Legitimate Option?
Yes, and we say that with a resounding, emphatic quality. BlockFi is a great option for those who are serious about investing cryptocurrency, and need a management tool in order to obtain a holistic view of just what their total wallet is doing.
Often we have so many different types of “coins” that things appear awry, frazzled. BlockFi helps you organize your finances and get a grip on this most slippery of currencies.
It has its drawbacks, but overall BlockFi sits astride the competition: free, intuitive, powerful – it’s all a relatively experienced crypto magnate could ask for.