If you weren’t aware, just a few weeks ago the popular crypto lending service, BlockFi, was hacked. While no funds were lost. The hackers were able to get a “window view of BlockFi accounts, around 50% of the customers. This means they were able to see people’s account balances, transaction history, e-mail address and residential addresses as well. It was a big blow to the confidence people had in BlockFi, something that is so critically important for this type of business. This caused countless people claiming they would remove all of their funds from BlockFi, and deleting their account. Even I was contemplating my future with BlockFi.
But, after thinking it over the last few weeks, I decided to keep using BlockFi, and let me tell you why!
My History With The Service
To put it frankly, I think I have become addicted to the passive income that BlockFi has given me each month. It feels really great to wake up on the 1st of each month, and seeing the account balance growing with the compound interest that I have earned. I’m sure others know exactly how I feel, staking also creates the exact same feeling for me as well. Once you start, and really get a significant amount going, that is when the fun begins. Saving can become quite addicting.
Anyways, I have been using BlockFi since early 2019, almost 1 1/2 years now. At the moment I lend out Bitcoin, Ethereum, and USDC.
From the very beginning my strategy was to get as much earnings as possible while BlockFi interest rates were still high. I always imagined that the rates would not last forever. Once the prices of those coins rose to a point it wouldn’t be feasible to pay those rates.
Right now the interest rates go as follows;
Recently I’ve been consumed with the mind-set that I want to collect as much cryptocurrency as I can before the next bull run begins. Specifically Bitcoin, Ethereum, and recently Cardano as well. So with this mind-set, I decided to put a large percentage of my portfolio onto BlockFi to earn off my sitting coins. (Less than 1/2 my portfolio) Always remembering anything I put onto the service was at risk, and could very easily be lost.
Once Ethereum 2.0 is released my plan was then to withdraw all my Ethereum coins from the service, and begin my staking personally. I planned to gradually withdraw my Bitcoin as the price of the coin increased to reduce my risk as well.
Revenue / Earnings
But like I mentioned above, it felt really great to make this passive money. My average monthly returns the last few months have been as follows;
Bitcoin = 1.5% / $150
Ethereum = 25% / $54
USDC = $50
Total - $250+
( I also make extra interest from past referral links)
Granted these dollar price totals vary as the coins go up and down in value. But to me the important part is the value in the coins, not in the dollar amount. While these numbers aren’t crazy high, after just a few months they do begin to add up fast, and the interest compounds as well.
BlockFi Continues to Improve
Since I first joined BlockFi, they have really come a long ways. They have overhauled their website, added new coins, added a daily interest earned counter. (This makes it fun to check each day), and just recently they have finally released a mobile app, which also continues to improve. But most of all, I like their future as well. They announced that they will be offering a credit card in the future that will allow you to earn rewards in cryptocurrency, something that I’m very excited about.
But my favorite feature by far is the trading feature that they released just a few months ago. You can now easily trade between coins on the app, and this doesn’t count as a withdrawal on your account.
My approach has been to hold a nice sum of savings on BlockFi in USDC, all-the-while collecting the very attractive 8.6% interest. Then, when there is a nice dip in price, that is when I will exchange the USDC for either Bitcoin or Ethereum, all-the-while still being able to collect interest on my newly traded coins. It’s so convenient.
With all that said, remember to be careful and do your own research. Not your coins, not your Bitcoin. After all, we all work so hard for our money, we should work just as hard to protect our wealth as well. I have accepted the risk, and that I could lose everything that I put onto BlockFi, and that’s why you definitely shouldn’t put everything there. I also have accepted the fact that anytime you sign-up for any service on the internet, that it will become public knowledge.
But if you’re still interested, feel free to use my BlockFi reference link here. It’s a great way to earn extra income.
Those are the reasons I decided to keep my BlockFi account, and continue using it. It truly is a service that I enjoy a lot. But with all that said, I have become much more careful when deciding how much of my funds to divert to BlockFi. They definitely need to win back our trust.
What do you think? Are you thinking about signing up with BlockFi?
Or did you already delete your account?
Thanks for reading!