BlockFi Progress Report (Free) 📈

BlockFi Progress Report (Free) 📈

By Cryptoonestop | CryptoOneStop | 14 Jul 2020


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BlockFi

I discovered BlockFi a month after using Crypto.com (CDC) in 2019. At the time most of my investments were on Celsius Network collecting interests. With Celsius Network gaining traction as being a stable platform to earn interest on crypto assets, it made sense for it to have competition. As more competitors enter, HODLers will reap the benefits because they will have to entice customers with attractive APRs (Annual Percentage Rate). 

The great thing about BlockFi is that it is truly a standalone interest-earning platform. By which I mean it does not have a utility token attached to it.  You do not need to purchase CEL (Celsius) or MCO (Monaco) or BTR (Bitrue) tokens to gain additional perks or benefits—everyone receives the same APRs on their deposits. The platform is easy and simple to use with a wonderful user interface. 

Once you make your deposit, your account automatically starts collecting interest which is paid out on the first day of each month. The only decision you have to make is whether you want kinder pay (default) or flex pay into specific assets. Currently you can be paid in the following: BTC, ETH, LTC, PAX, GUSD, or USDC. In the same manner, BlockFi currently supports only a handful of assets which is one of the downside.

Safety & Security

I use four lending platforms to earn interest on my crypto assets and I feel that both BlockFi and Celsius Network have better security—just slightly—compared to CDC and Bitrue.  The main feature that I hate and love is the 24-hour withdraw period. I am conflicted because it gives me enough time to react if my account is hacked, but if I need to liquidate for an investment opportunity or an emergency then I would be stuck in a rut. From a HODLer’s standpoint, the 24-hour withdraw period should not be a problem. And that is why I still keep a good chunk of my portfolio on BlockFi.

BlockFi was recently hacked in late May 2020. Although no funds were lost, the attacker was able to access BlockFi client information such as names, email addresses, physical addresses, date of births, and activity histories. I believe security is always being improved upon and that there will always be hackers. This risk comes with any platform you put your investments in—even your traditional banks. Crypto is still in the early stages and as early adopters, the risk is inherently greater, but so are the rewards. 

I am glad that BlockFi notified users of the situation rather than try to cover it up. I like transparency in a company—especially when the company holds my investments and assets. The decision to continue with BlockFi is totally up to you. I personally kept all of funds on the platform. It is also good to see that they are actively improving security and recently hired a new Chief Security Officer (CSO), Adam Healy, who has had plenty of experience with cybersecurity.

BlockFi Withdrawals

Be aware that BlockFi only allows one free withdrawal each month and it charges a fee for each additional withdrawal. Currently, the fees for additional withdrawals are 0.0025 BTC or 0.0015 ETH. Doing the math at current market prices: 0.0025 BTC is 23 USD and 0.0015 ETH is 0.36 USD.

I do not know how they determine the withdrawal fee but 0.0025 BTC is quite hefty. As a cautious person, I usually withdraw a small amount as a test transfer so this can be quite costly. I think BlockFi should allow clients to accumulate unused withdrawals—clients get one withdrawal voucher each month for free withdrawal which can be saved up.

Interest Earned

I started with BlockFi in September 2019 and so far I have accrued roughly 900 USD in interest which averages 100 USD per month in passive income. My portfolio is a mix of BTC, ETH, LTC and USDC and I currently get paid in kind.  C1S makes YouTube video updates on my BlockFi account as well so I will not go into much detail here because the video provides many insights. 

Conclusion & Prospect

I consider BlockFi and Celsius Network as my stable long-term investment platforms—I will not be moving any assets in or out any time soon. If you have read previous HODLer’s Den newsletters, you know that I currently have a majority of my portfolio split between CDC and Bitrue due to their aggressive APRs. 

If you are considering BlockFi as a potential interest-earning platform, right now is the perfect opportunity to lock in some insanely good promotions available to new clients! For example, you can earn double the interest on your August 2020 earnings or earn 50 USD worth of BTC. Refer to C1S’s link for more information.

Each week I will report on a different interest-earning platform that I use—mainly, Celsius Network, BitrueCrypto.com, and BlockFi.

If you do not have an account with BlockFi and would like to support my work, please use this referral link to sign up and we both get 10 USD worth of BTC when you deposit 100 USD! Much is appreciated!

 

 



CryptoOneStop
CryptoOneStop

Accredited Investor | Digital Asset Consultant | Keto Diet Adherent | Part Time Market Analyst | PharmD | Former Writer for Altcoin Magazine

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