So I’m going to be giving an update to my BlockFi account and showing some of the dividend payments I’ve received for holding my crypto here for the last year. Now, BlockFi is basically an interest earning account for cryptocurrency, but they do have some other features on here as well, such as a crypto credit card and a margin borrowing service. Personally, I’ve only used the interest feature, and I’ve got this account up to $5,000. BlockFi has around 10 coins available to earn interest on, but for this account I’m mainly holding the BAT Token.
Reasons to Use BlockFi
If you’re not really a trader and more of a long-term holder then it would make a lot of sense to use a service like BlockFi. Even if you do trade stacking some of these coins is a realistic way to generate passive income for yourself. The actual income you can make on here depends on how much money you’re starting with. Even if it’s a small amount to begin with a year down the road you’ll probably be happy you at least got started.
Interest Rates for Different Coins
When it comes to receiving dividend payments on BlockFi it all comes down to the coins you’re holding. The interest rates on here change over time, and the more your holding of each coin will also differ. We have some examples below you can check out.
Ethereum works via the public blockchain network and is an open platform for building decentralized applications. Their digital coin is Ether. Here is how the tiered structure functions for this cryptocurrency on BlockFi:
Tier 1 – 0-1.5 ETH → 5%
Tier 2 – 1.5-50 ETH → 1.5%
Tier 3 – 50+ ETH → 0.25%
A decentralized oracle network, Chainlink provides input on different forms of external data operating outside of the Blockchain.
Tier 1 – 0-100 LINK → 3.5%
Tier 2 – 100-500 LINK → 0.5%
Tier 3 – 500+ LINK → 0.1%
Basic Attention Token
Using the Brave web browser, Basic Attention Token is a blockchain system that monitors time and attention media consumers spend on websites.
Tier 1 – 0-4000 BAT → 3.25%
Tier 2 – 4000 – 20,000 BAT → 0.2%
Tier 3 – 20,000+ BAT → 0.1%
Top 3 Coins to Get Started With
Okay, next I wanted to go over three coins I would recommend buying on BlockFi, and you might be surprised at the ones I recommend. Obviously, already know I own the Basic Attention Token so we can throw that one out the window. But personally, I would buy Ethereum here. I would not buy Bitcoin. The reason for that is I’m just not a fan of Bitcoin. If I was, I guess I would say buy it, but, yeah, Ethereum for sure, because I see the value and price of Ethereum going up a lot more. So, you’re going to get a good return on ETH over Bitcoin over the next, probably, couple of years. I also really like Chainlink. I think Chainlink’s a good one to get in on here as well.
Crypto Dividend Compounding Effect
Now, the other thing about doing this and getting involved with this strategy is that you’re not only going to get these dividend payments, but you also get the coin appreciation. So, you’re going to make money off the coins going up in value, and then it kind of compounds for you, which is awesome.
The last thing I wanted to touch on was the borrow feature. If you ever need to borrow money, the interest rate on here is low. It’s 4.5%, and they don’t even check your credit on here. So, if you have $10,000 in your account, you can borrow against your crypto. And if you do this responsibly, it’s smart. Now you do have to have a minimum of $10,000 into Ethereum, Bitcoin or Litecoin. More coins should become available for this feature in the future.
Well that wraps up the 1 year update on my BlockFi dividend payments. Honestly I think just about anyone can benefit to using this type of service. I mean the ultimate goal for everyone should be to generate as much passive income as possible. If you never start then you’ll just end up regretting it later on. You can learn more about BlockFi by clicking here.