If your looking for ways to make money with BlockFi you’ve landed in the right place. BlockFi pays its users interest on a monthly basis just for holding certain cryptocurrencies. It’s honestly amazing and can become quite fun to see the interest payments roll in every single month. You can also take out crypto backed loans as leverage to buy more cryptocurrency on BlockFi as well. For now lets cover some of the basics.
Why Get Involved In Cryptocurrency?
A crypto currency is a digital or virtual currency that is protected by cryptography, making counterfeiting and double-spending nearly impossible. Many crypto currencies are based on block chain technology, which is a distributed ledger implemented by a distributed network of computers. Not only will this change the world in the coming years, but also represents an opportunity to make quite a bit of money.
Who Is BlockFi
BlockFi is a crypto currency custodian that enables customers to borrow money in US dollars against their digital assets. This crypto currency network provides a crypto currency exchange, interest-bearing accounts, and low-interest loans to customers all over the world.
How to Earn Interest on BlockFi
Clients with a BlockFi Interest Account deposit crypto currency and gain interest. The interest received by account holders’ compounds every month and is paid out at the beginning of the month, raising the annual yield for our clients. Your interest would compound on the new balance if you add more crypto to your BlockFi Interest Account.
How to Get Loans on BlockFi
BlockFi provides USD loans backed by your crypto currency money. What exactly does that imply? So, BlockFi gives you USD, and you give them Bit coin (BTC), Ether (ETH), or Litecoin (LTC) as collateral. That’s what there is to it. Clients may apply for a loan in less than 2 minutes and have funds deposited directly into their bank accounts or wallets in as little as 90 minutes.
The loan sum must be at least $5,000. The loan-to-value (LTV) ratio is set at 50%. That means you’ll have to put up 50% of your coins as collateral.
How To Make Money On BlockFi – 2 Methods
BlockFi has emerged to be the most sought after crypto currency custodian due to its myriad of benefits. They include:
Method 1: Profit Can Be Earned On Your Investments.
Compound interest of between 3% and 8.6 percent will be earned on your crypto currency assets with a BlockFi Interest Account. There are no secret fees or minimum balance requirements for this account. The interest rate varies depending on the currency and is subject to market fluctuations. Interest is calculated daily and credited in your account annually, so you’ll be earning interest each month.
Method 2: Borrow Money From Your Portfolio.
When you’re short on funds,, don’t sell your crypto. With rates being as low as 4.5 percent, BlockFi allows you to borrow funds in USD against your crypto assets.
You won’t have to record any capital gains or losses, if you borrow instead of selling, which might make you save money on taxes. Furthermore, it’s possible that interest is tax deductible, lowering your tax bill even more.
Is BlockFi Safe?
One of the few crypto currency exchanges available with a US presence is BlockFi. The Department of Financial Services of the State of New York regulates its custodian, Gemini.
BlockFi has not raised funds through an initial coin offering (ICO). Instead, it earns money from its lending products and pays a consistent interest rate.
If you were looking for ways to make money on BlockFi we hope this helped you out. You can simply hold coins to collect interest payments, or take out loans to leverage yourself in a responsible manner. The coins currently available are some what limited, but is likely they will add even more coins in the near future. If you would like to start using them you can grab up to a $250 dollar bonus by clicking here.