BlockFi is a $ 3 billion startup that lets you earn compound interest on crypto
It is now evident that cryptocurrencies are not a fad. In fact, with the global crypto market now worth over $ 2,000 billion, many financial advisers tell young clients to allocate 1-5% of their wallets to crypto. And the good news is that there is now a smart way to do it thanks to a pioneering crypto startup called BlockFi.
Founded in 2017 by Zac Prince and Flori Marquez, BlockFi is an online crypto investment and management platform. It was specifically created to bridge the gap between the worlds of traditional finance and crypto. To accomplish this, the company has used several rounds of venture capital funding over the past four years to make traditional financial products and services available to crypto investors for the first time.
How are things going so far? Well, a year ago BlockFi was valued at $ 435 million. Today they are valued at $ 3 billion, and we talked about it yet another round of funding could push them to $ 5 billion. So things are going pretty well.
Today, BlockFi offers crypto investors a variety of wealth management services. However, their flagship product is still the BlockFi Interest Account. And it is changing the way people invest in crypto.
The BlockFi Interest Account (BIA) is the world’s first compound interest cryptocurrency savings account. With compound interest savings accounts, the interest you earn over a specified period of time is added to the principal balance, which ultimately allows you to earn interest on the interest and grow your wealth. exponentially. Compound interest has been available in traditional finance for centuries. However, it was not available to crypto investors until now.
The interest rates offered on BlockFi interest accounts are quite impressive. Right now you can earn:
- Annual percentage return of 4.5% on Bitcoin deposits up to 0.1 BTC
- 5% annual percentage return on etherium deposits up to 1.5 ETH
- Annual percentage return of 4.75% on Litecoin deposits up to 20 LTC
- 8% Annual Percentage Return on Gemini Deposits up to USD 40,000B
- 8% Annual Percentage Return on USD Coin Deposits up to C $ 40,000
Particularly noteworthy are the rates for GUSD and USDC. GUSD and USDC are “stablecoins” which are permanently linked to the US dollar. These high interest rates thus provide crypto investors with a built-in way to mitigate some of the risks involved in trading other cryptocurrencies.
Earning compound interest on your crypto holdings may be the most obvious reason to sign up for BlockFi, but it’s not the only reason. BlockFi is a complete crypto platform which allows you to easily manage your crypto assets and optimize portfolio allocation. Users can add funds to their account with their local fiat currency, making deposits and withdrawals directly from their checking accounts.
BlockFi also offers crypto-backed loans. Using your crypto holdings as collateral, you can get loans worth up to 50% of the value of your assets at a very competitive 4.5% APR. This allows you to operate your crypto holdings without cashing out. And that means you won’t be left behind when the value of a particular currency hits you. used to have in your wallet soars down the road.
Finally, BlockFi’s latest product is the BlockFi Rewards Signature Visa Card. With no annual fees or overseas transaction fees, this credit card allows you to earn 3.5% in Bitcoin for every dollar spent for the first three months, then 1.5% on every dollar spent up to 50,000 $ per year, and 2% on every dollar you spend over $ 50,000 per year. It also allows you to earn 0.25% in Bitcoin on all eligible transactions up to $ 500 in Bitcoin per month, plus $ 30 in Bitcoin for each customer referral.
Considering all the growth we’ve seen over the past few years, one could emphatically state that crypto is the asset class of the future. If you’re looking for a smarter way to build and manage your digital asset portfolio, you need to take a look at BlockFi.
Futurism Fans: To create this content, a non-editorial team worked with an affiliate partner. We may charge a small commission on items purchased through this page. This post does not necessarily reflect the opinions or endorsement of the Futurism.com editorial team.
Would you like to support the adoption of clean energy? Find out how much money (and planet!) You could save by switching to solar power at UnderstandSolar.com. By registering via this link, Futurism.com may receive a small commission.