BlockFi - Avoid or Use?

BlockFi - Avoid or Use?

By johnwege | johnwege | 28 May 2020


As many of you are aware, DeFi is the new buzzword in the cryptocurrency scene.  Everyone seems to looking for new possible ways to earn a passive income and DeFI seems to be a great option. There have been many crypto start-up companies that have promised great things.  Some of them have come and gone, while some seem to be sticking around.  One of those companies is BlockFi. 

In short, you can lend your coins to Blockfi where they will then lend it out to other people, all the while paying you a high compound interest rate.  It sounds too good to be true and it was.

That was until recently.

Just a few weeks ago BlockFi was hacked into, where approximately half of its users had their names, account balances, addresses’, and e-mail leaked.  They did through an e-mail assure its users that no-ones funds were stolen, and that the hackers basically only saw a few of it, they couldn’t do anything to the account.  But that isn’t the point, in the field of cryptocurrency where there is so much money at stake, and people value their privacies very much, a breach of trust has been lost that BlockFi may never be able to re-gain.

 

But, with all that said, I do continue to use BlockFi, and let me explain why.  (But please do your own research, after all, Not your keys, Not your Bitcoin.)

I am always looking for ways to make a passive income, and BlockFi has afforded me that. At this point, I am making over $100 per month off of just pure interest.  

83ad6c6ff963961ffc78ea50de8c7fc3d89fa33ced771a1a5b86fb50ece9e482.png1) Bitcoin  (Up to 6% APY)

 

2)   Ethereum (Up to 4.5% APY)

 

3)   Litecoin    (up to 3.8% APY)

 

4)   USDC      (Up to 8.6% APY)

 

5)  GUSD     (up to 8.6% APY)

 

6) PAX (up to 8.6% APY)

Those are some very attractive interest offerings, but like I mentioned above, it does come with its one risk.

My strategy

My current strategy with BlockFi is to store a significant amount of Bitcoin and Ethereum with them,  I will keep my Ethereum there until ETH 2.0 is released, and then I will be able stake my own ETH.

Not only that, but recently I have decided to use a small portion of my spare cash and store it with them.  I purchase USDC at Coinbase, and then transfer that to Blockfi.  It’s a very easy, and great way to make a significant larger interest percentage than you would find at any bank.

 

If you do want to withdraw your funds that is also easy.  You just request a withdrawal, there is a 1-day pending time, to avoid hacked withdrawals and then you’ll have your funds.  They do offer 1 free withdrawal a month, and then after that there is a fee to withdraw.

My Favorite Feature

My favorite feature with BlockFi is one that was added relatively recently and I love it.  You are now able to trade within the app.  You can exchange your Bitcoin for Ethereum, USDC for Bitcoin and vice-versa, or any other combination of coins on the app.  My new strategy for purchasing Bitcoin is to transfer USDC to BlockFi, where I will gain a great 8.6% APY, then when there is a nice dip in the Bitcoin price, that is when I trade within the app and get my Bitcoin.  It’s very convenient.

 

I highly recommend thinking about using BlockFi, it has made me a lot of money since I started using it. But with that said, especially with the recent hack, I definitely recommend you to do your own research. If you do decide to use the website, remember to not put all of your coins on the website just to be safe.

 

If you do decide to sign up for BlockFi, please use my referral link, that way we can both earn free money.

https://blockfi.com/?ref=dde31f50

 

What other DeFi options have you been using?  As I mentioned above, I love making a passive income and would be very interested to hear your story.

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johnwege
johnwege

Hello I'm John Follow me on Twitter! https://twitter.com/johnwege


johnwege
johnwege

Living day by day, stacking sats and trying to retire early. Check out my substack blog https://johnwege.substack.com/ Follow me on Twitter twitter.com/johnwege

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