If your looking for some tips for using BlockFi you’ve landed in the right place. BlockFi is a great place to earn free interest on your crypto in the form of passive income. It’s actually pretty incredible. If you are not yet involved in cryptocurrency or are interested in using BlockFi, read further because we have some useful tips for you!
Why Get Involved In Cryptocurrency?
Now, you may be wondering why it is interesting for you to invest in cryptocurrency. There is one simple answer for you: the prices are currently going very well, so there is a good chance that your investment will eventually become worth more.
More and more common people are investing in cryptocurrency. Entrepreneurs and large companies are also currently investing in Bitcoin and other crypto coins. Together they ensure that the value is going even higher. Experts even expect the value of cryptocurrency to remain high in the near future.
Why Use BlockFi?
So, now you might be wondering what BlockFi has to do with all this. BlockFi supports various cryptocurrencies and stable coins based on which users can receive an interest payment or a loan. Essentially, BlockFi helps by providing credit to mainly Bitcoin owners who rather want to pay a small interest fee for a flexible short-term loan than to sell their Bitcoin for dollars. The reason is tax related. Every sale of Bitcoins needs to be reported to the IRS.
On BlockFi, both the borrower and the lender enjoy benefits. Bitcoin holders can easily apply for a loan in US Dollars with Bitcoin as collateral or lend Bitcoins via a BlockFi Interest Account. The monthly interest that is paid to the lender can be more than 6% annually!
The last reason why you should consider using BlockFi is that it is safe. Some say that it is safer to deposit money on BlockFi than on one of their competitors. BlockFi is the only one that was able to pay out all loans when the value of Bitcoin dropped 50% in March,2020.
Tip 1. Get the BlockFi Credit Card
We see that more and more exchanges and crypto platforms are investing in offering their own credit card. BlockFi also has its own crypto credit card. In December 2020, they announced that they would open a waiting list for all interested parties as of January 1, 2021.
BlockFi will start shipping their crypto credit cards in the spring of this year. Upon approval of your application, you will receive a personal credit card with a limit in USD. With every transaction you make you receive 1.5% cashback in Bitcoin (BTC)!
Tip 2. Be Aware Of The Volatility of the Crypto Market
Although you will receive extra interest on your crypto, it is important to never forget that the crypto market is a volatile and dynamic market that moves quickly. Where Bitcoin has again reached an all-time high in mid-April 2021, as well as Ethereum, the tide can also turn. As long there is supply and demand, you should always need to keep in mind that the value of crypto can plummet as quickly as it can skyrocket.
Tip 3. Make Use of the Crypto-Backed Loans
BlockFi also provides loans without having to sell your crypto coins. Have you invested a fortune in crypto but want extra cash flow in dollars? You can then apply for a loan. The minimum amount for these loans is $10,000.
BlockFi uses your available crypto as collateral to provide this loan. Be aware of the risks of taking out loans, this is never without danger. It is therefore always important to do your own research into the financial possibilities and consequences.
Tip 4. Invest In Stablecoins
A stablecoin is a cryptocurrency that remains stable in value. It attempts to completely minimize price volatility by linking its value directly or indirectly to that of a real currency such as the Euro or the dollar. Most stablecoins are pegged at a 1:1 ratio. This means that 1 stablecoin is equal to, for example, 1 dollar or 1 Euro.
The main purpose of stablecoins is to create a consistent and reliable market and accelerate the adoption of the entire industry. If you want to keep your risks to a minimum, it is wise to think about investing in stable coins. Stable coins, like Gemini dollar, are tied to the U.S. dollar and therefore are less risky to invest in. The volatility is much lower than other cryptocurrencies. The interest rate on stablecoins is 8.6% which means that you will get $860 if you keep $10,000 worth of GUSD for an entire year!
Tip 5. Make Use of the BlockFi Bonus Offers
Our last tip is regarding the bonuses that BlockFi offers. They pay you in Bitcoin when you open an account and deposit money. You will need to keep the money in your account for a set period to qualify for the bonuses.
The bonus is based on the amount you deposit into your account. So, BlockFi pays you $15 worth in Bitcoin if you deposit $25 – $249. If you deposit $20,000 or more, BlockFi pays you the maximum bonus of $250! You can claim your bonus by clicking here.
Despite the growing number of lending platforms, BlockFi manages to provide an easy-to-use platform for anyone who wants to earn interest on their cryptocurrency to grow the value of their portfolio. For those who only want to hold crypto and not trade, it is a nice and reliable way to generate extra income. Registration is a simple and quick process.
BlockFi is also seen by many experts as the platform where you can get the best interest on your Bitcoin, Ethereum, and a few other great cryptos. If your still on the fence about using them you can check out another great resource by clicking here.