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Friday, September 30, 2022

BlockFi Review in 2 Minutes

With over 150 million dollars in funding from notable community figures, BlockFi is the go-to place for growing your cryptocurrency. But is it as good as it sounds? Hi, I’m Nate Martin, and we’re taking a deeper look into BlockFi in our 2-minute review. Founded in late 2017, BlockFi is a US-based centralized crypto-finance company that supplies a variety of financial services for both private and institutional clients. 

BlockFi Interest Accounts, BIAs for short, enable users to earn up to 8.6% interest annually on cryptocurrency deposited to their account. The way this works is that BlockFi lends the users’ deposits to institutional and corporate borrowers, who pay an interest rate to BlockFi which in turn pays its users.

Although user deposits are prioritized over other company equity to reduce their risk, they are not FDIC or SIPC insured. BlockFi also allows users to deposit cryptocurrency as collateral and borrow up to 50% of the collateral value in US dollars. Through this service users can get access to cash almost instantly without the need to trade their cryptocurrency, avoiding hassle, fees and a taxable event.

Finally, BlockFi provides “no fee†crypto trading services. However, some users have complained that even though there is no direct fee, the final exchange rate is less than optimal. BlockFi’s customer support seems to be solid with the main user complaint being the lengthy withdrawal process of funds.

One thing to point out is that BlockFi is a centralized company, meaning they have control over your funds. Additionally, in May of 2020 BlockFi experienced a security breach, and while no funds or sensitive documents were stolen, some of its users’ personal information was compromised.

To conclude, BlockFi provides a great alternative for traditional finance and DeFi services so you can earn interest on your cryptocurrency and secure super quick loans against it. However, the company’s centralized nature and short track record still make it a bit risky for any amount you can’t afford to lose.

Make it 4.3 Stars from us here at 99Bitcoins as we consider it a solid platform for growing your crypto holdings passively. Have you used any of BlockFi’s services? Let us know what you think in the comments.

For more information and our detailed review, check the links in the description below. That’s today’s 2-minute review and I’ll see you in a bit. If you’ve enjoyed this video, leave us a thumbs up and make sure to subscribe and click the notification bell so you don’t miss a review, news update or the clearest information about Bitcoin and cryptocurrencies anywhere.

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