Blockfi is a good fit for investors who want to add a few top cryptos to their portfolio or use their crypto as collateral for a loan. So, how does Blockfi interest work? Is your money safe on Blockfi? Let's see.
What is Blockfi?
BlockFi is a cryptocurrency exchange and platform that offers a crypto wallet, crypto trading, crypto-backed loans, and a crypto rewards credit card. Non-US customers can also open a BlockFi Interest Account and earn interest on their assets.
Another advantage of BlockFi is that you can borrow against your coins. Instead of selling them when you need funds, you can take out a loan. This avoids having to sell into a down market. In this article, we'll go over how BlockFi is able to offer loan services while allowing you to earn interest on deposits.
How does Blockfi interest work?
The BlockFi Interest Account (BIA) is a crypto interest-bearing account, which provides market-leading yields to clients who store their crypto with BlockFi.
Assets held in a client's BIA will earn monthly compounding crypto interest. Crypto interest begins accruing the day after funds are transferred from the BlockFi Wallet to the BlockFi Interest Account (BIA). Crypto interest is paid out on a monthly basis at the end of the month. Crypto interest compounds monthly, so after you receive your first crypto interest payment, the next month's crypto interest will accrue on your original principal + crypto interest earned!
For example, in a month with 30 days, if you transfer assets to your BIA on the 15th, you will earn ~15 days' worth of crypto interest.
If you transfer funds to your BIA on the 20th, you will earn ~10 days' worth of crypto interest. Each instance is prorated based on the number of days that the funds were held in the account.
Crypto interest account statements are available on the first business day of each month.
Is Your Money Safe On BlockFi?
Money deposited with BlockFi is not as safe as being on deposit at a bank. BlockFi, or rather its custodian, Gemini, is not insured by the FDIC or SIPC.
Gemini does, however take measures to protect your funds. These measures include keeping the majority of funds in cold storage (ie, offline). BlockFi also says that its client funds are placed ahead of any equity or employee funds in the event of a loss .
Gemini is a New York trust company regulated by the New York State Department of Financial Services (NYSDFS) and a licensed depository trust. Gemini is also SOC 2 Type 1 security compliant.
How Does Blockfi Interest Work? Is Your Money Safe On BlockFi? I hope this article can provide you with a better understanding of Blockfi.
