BlockFi - 8.6% Compound interest on BTC, LTC, and ETH Deposits
Alright, it's time for a shameless affiliate link plug.
I'm not sure how many of you have switched over to the Brave browser yet. But if you have, you've got the option to turn on ads and earn BAT tokens for random ads showing up every now and then while simultaneously blocking ads from all other sources. My favorite blocked ads are from Youtube where I haven't had a video cut off for those damn repetitive ads in I don't know how long.
If you're not using Brave yet, get it.
That's not the shameless plug, though. That one was a freebie.
It was through one of those ads from Brave that I discovered BlockFi<-- Shameless Link.
This company is currently offering an 8.6% compound interest on anything in your wallet. The great part is, the cryptocurrency you deposit stays as cryptocurrency. Plus, they give you the option to either be paid in the currency you deposited, or let you choose the currency to be paid.
Now let's get things straight, as tempting as it may be, I'm not telling you to dump all your cryptocurrency into this. The key rule still applies - if you don't exclusively hold the keys to the wallet, you don't own the cryptocurrency. There is always a risk when leaving cryptocurrency on exchanges or sites like this. But, if you've got some spare BTC lying around somewhere like Coinbase or an exchange, why not park it on BlockFi to get a little interest payment instead.
There is no minimum deposit amount so you could put even a small amount of BTC in there to check it out.
So how does BlockFi earn money with the cryptocurrency that's deposited?
It's best if you go right to the source:
BlockFi generates interest on assets held in Interest Accounts by lending them to trusted institutional and corporate borrowers. To ensure loan performance, BlockFi lends crypto on over-collateralized terms (similar to the structure of our crypto-backed loans). Furthermore, BlockFi’s automated risk management system monitors positions 24/7, providing the same trusted risk management system used with BlockFi’s crypto-backed loans. BlockFi has the ability to terminate a borrow in a timely fashion and also manages reserve balances to facilitate clients withdrawals from Interest Accounts. Reserves are stored securely with our primary custodian Gemini, a New York trust company regulated by NYDFS.
I've done some looking around and I didn't really find anything shady looking about this company. It's basically just operating as a bank - taking your deposited money and lending it to someone else at an interest rate. These guys are just doing it with cryptocurrency. And it's got some reputable companies backing it so from my point of view it looks alright. There are some articles in Forbes and Yahoo about the company and Coinbase is also invested in them. It doesn't sound like a BitConnect kind of scam but you should still do your own research if in doubt.
I've had some cryptocurrency in there for a few months now and they are paying what they say. In fact, when I joined up the interest rate was around 6.4% and it has since gone up to 8.6% so I'm sure they are getting some good business on the lending side in order to increase their payments on deposits.
Speaking of which, they can also give you a loan if you need one by putting your cryptocurrency up for collateral, but I don't have any experience on that side, so I won't get into that.
Anyway, if you've got some loose BTC hanging around doing nothing, why not park it on BlockFi for a few months. You don't have to worry about Bitcoin going up or down while you earn and the only thing that will happen is they'll pay you more Bitcoin for leaving it there.
By clicking this link, I'll also get a bit of BTC out of the deal if you make a deposit so win-win for everyone right? On top of that, the more people move towards cryptocurrency type services, the more we all move towards mass adoption and the more cryptocurrency services will be available so...