BlockFi Lending Platform – Crypto Loans, High-Rate Deposits and Trades

Project Reviews / 28.09.2020

The emerging niche of Decentralized Finance (DeFi) brings us one step closer to mass crypto adoption. Before it becomes universally accepted, the cryptocurrency industry has to offer similar benefits to those that traditional banking institutions have to offer.

Lending platforms like BlockFi are the pioneering providers of wealth management solutions that have existed for centuries in the classic financial system. However, they take them one evolutionary stage further by making them available through blockchain technology.

This BlockFi review should help you take a peek into a not-so-distant future when crypto lending companies will fuel a dynamic, trustless, and decentralized economy based on the incessant movement of digital assets.

What is BlockFi?

BlockFi is a crypto wealth management platform that provides cryptocurrency owners with access to a wide range of DeFi operations, such as:

  • Gain interest on their digital assets
  • Use their cryptos as collateral to borrow USD
  • Trade a wide range of cryptocurrencies

Additionally, BlockFi provides startups with loans in cryptocurrencies and USD along with several financial services from industry experts.

In layman’s terms, BlockFi allows you to put your crypto funds to work and make money for you. Instead of having your assets locked in a digital wallet and waiting for the market’s volatility to swing in your advantage, you can roll them around and, hopefully, multiply them.

The Team behind BlockFi

BlockFi was founded in 2017 in New Jersey, USA. Its co-founders are Zac Prince and Flori Marquez, who are still part of the company’s leadership team, and who have a solid experience in tech companies and bank lending services.

Since its launch, the company has quickly expanded to establish offices in New Jersey, New York, Argentina, and Poland. For a platform that calls itself “The Future of Finance,” BlockFi does not waste time in building a distinct presence on the DeFi market, and the opening of a Singapore office is also on the cards.

BlockFi’s impetuous ascent is bolstered by more than a highly professional team. In its short existence so far, the company has managed to earn the trust of notable names from the crypto industry. Among its investors are Akuna Capital, Coinbase Ventures, Galaxy Digital Ventures, and the popular Winklevoss twins. The latter offers more than their moral support as they provide custodian services for BlockFi through their crypto exchange, Gemini.

BlockFi Services and Client Benefits

Crypto lending platforms may be tricky to understand by neophytes, but BlockFi cuts through the entire industry lingo and presents its services in an easy to grasp manner. Its customers can engage in several operations involving digital assets, such as:

The BlockFi Interest Account

One of the basic features of all wealth management services is making a deposit and watching the interest grow almost immediately. BlockFi offers it to crypto owners everywhere, and at convenient rates, too.

For example, depositing 100 Bitcoin (BTC) for four years will earn you around $700 per week and an approximate total interest of over $145,000 during the same period. The USD-equivalent value of earned interest will vary depending on the conversation rate between USD and the applicable cryptocurrency from time to time.

Cryptocurrency Loans

This service is an ideal solution for when you want to use the fiat value of your crypto holdings without selling them.

On BlockFi, you can deposit BTC, Ethereum, or Litecoin as collateral for a USD cash loan that you receive in your bank account. However, the minimum loan that you can apply for is $5,000. The maximum loan-to-value (LTV) rate is 50%, with rates of 30% and 20% also accessible.

The best part about it is that you can use that money in transactions that would otherwise not accept crypto payments, such as buying property, cars, or paying for high-end holiday trips.

The BlockFi Trading Account

One of the platform’s most captivating features is the BlockFi’s no-fee trading service, which enables you to deposit funds and use them to trade a variety of cryptocurrencies and earn interest the moment your trade is placed.

BlockFi lets you exchange pairs between major cryptocurrencies, including BTC, ETH, LTC, USDC, USDT, GUSD, PAX, and PAXG safely and transparently. This way, you can keep up with the market, or speculate on profitable price fluctuations, and without paying more than the price displayed for each trade.

How does BlockFi work?

BlockFi works similar to any lending service from the traditional financial system or the crypto management niche.

The platform uses the clients’ deposits to finance loans and institutional funding. It also uses an automated risk management system that monitors its financial productivity constantly. As a result, it can provide institutional lending services to:

  • Retail investors
  • Traders
  • Investment funds
  • Over-the-Counter (OTC)market traders
  • Cryptocurrency ATMs

BlockFi pays interest on the money it lends at a lower rate to that charged by it to corporate customers. The platform also benefits from an increasing number of sign-ups that enhance its asset pool and enable it to engage in major crypto operations.

How Safe is BlockFi?

BlockFi is one of the safest wealth management platforms in the DeFi ecosystem, and it is all thanks to its custodian, Gemini. The crypto exchange has recently obtained the highest level of security by passing the SOC 2 Type 2 exam, which makes it virtually impenetrable.

Besides the powerful support from Gemini, BlockFi also employs high-security protocols like Two-Factor Authentication (2FA) and full data encryption.

So, it’s safe to say that your assets will benefit from security features that are hard to match by most of the other crypto lending platforms.

What is the BlockFi Customer Support like?

Creating an account on BlockFi is fairly easy even for those who are new to crypto trading. The process is quick, and it usually takes a maximum of 48 hours to verify and validate your credentials.

If you have any problems joining BlockFi or simply signing in, the platform’s excellent customer support will provide you with solutions. Their arsenal includes live chat assistance, email support, telephone assistance, and a long list of answers to FAQs.

The Bottom Line – BlockFi Review

All in all, BlockFi seems like a viable solution for crypto owners who don’t like to sit on their assets. It provides a dynamic movement of cryptocurrencies that opens a broad horizon of investment opportunities.

BlockFi has a highly-experienced team and the support of an industry-leading crypto custodian. The platform grows in relevance together with the DeFi market, and it is mainly for its convenient wealth management services and care for customer experience. The way things are shaping out right now tells us that BlockFi will soon become one of the top companies in the industry.

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A creative writer in the field of content writing for the past 7 years. Iulian is passionate about his work and his interest in areas such as technology, travel, sports, literature and gastronomy have aided him to the research quality in articles that reflect these themes. Recently, he discovered the Bitcoin and the blockchain technology and he’s a big fan now.