I am sure a lot of you have seen ads for the app called BlockFi. If you are wondering what it is for, this blog might be useful for you.
This app is used for buying, selling and earning cryptocurrency. You can earn 7.5% on your currencies.
Note: Cryptocurrencies are not insured by FDIC
Let's say I have $50,000. I can either put this money in a Wells Fargo Savings account that gives 0.01% APY or I can invest this money in BlockFi to earn 7.5% APY.
Some people are curious about how BlockFi offers such attractive lending rates. The short of it is, they lend coins to hedge funds, exchanges, institutional traders, and by issuing asset-backed loans to retail customers. If you think your banks don't do the same, then you are mistaken.
BlockFi Pros and Cons
Here is a sneak peek into my BlockFi account. I started using BlockFi this month (August 15th) and it took me almost 10 days to transfer $50,000 via ACH transfer because the maximum transfer limit per day is $5,000.
Now that I have $50,000 in my BlockFi account, I traded my dollars to purchase USDC cryptocurrency. In less that 10 days, I have earned an interest of $64.59.
Based on BlockFi Multiple tier ratings, I will get 7.5 APY for USDC (stable coin) ranging from 0 -50,000. The moment my USDC changes to more than 50,000 - the APY rate drops to 5%.
You’ll have to decide whether BlockFi is the right fit for you! There are plenty of lending platforms out there with their own pros and cons. As always, I suggest doing your own due diligence and make sure you stay informed!
The Celsius app offers 8.88% APY for stable coins like USDC but unfortunately, the regulations are different for each state. Texas does not allow Celsius app to reward on stable coins.
If you are interested in creating a BlockFi interest account, you can use my link HERE and receive $10 Bitcoin bonus.
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