What is BlockFi: Earning Interest on your Crypto — Beginner Bitcoin
To satisfy our internet overlords, we need to make it clear that this post is not investment advice and should not be misconstrued as such. Beginner-Bitcoin exists to make cryptocurrency understandable for retail users, and is educational in it’s content. See the Legal Stuff for more info. What is it?
Every once in a while, a crypto project comes along that has the ability to increase the rate of new users in the cryptocurrency market. As this is our mission at Beginner Bitcoin, when we see these projects, we simply have to mention them.
What do they offer?
BlockFi is one such project. Combining the power of cryptocurrency holding and investing with traditional financial instruments, BlockFi is creating the next generation of Bitcoin (and Ethereum) investors.
Created in 2017, the idea was simple: provide credit services to markets with limited access to simple tools like savings accounts. BlockFi boasts of being the only institutionally backed service of its kind with important names like Coinbase, Sofi, and Fidelity backing the project.
The most basic offering BlockFi makes is with their extremely competitive interest bearing savings accounts.
Rather than earning a mere 1.8% annually like the majority of savings account, BlockFi leverages crpytocurrency assets to provide higher yields, upwards of 8.6%. We have mentioned in another article how interest accounts like this are primed to help savers beat inflation.
Why they stand out?
BlockFi also offers traditional trading services, with a limited number of options, and as an incentive, they eliminate trading fees for their users.
They even offer crypto-backed loans, allowing users to withdraw loans in US dollar while collateralizing their crypto.
BlockFi has many advantages, but we believe one of the biggest to be their compliance with regulation. This type of engagement with lawmakers displays their willingness to be above reproach and can ease concerns as newcomers enter the crypto-markets.
Beginner Bitcoin is always concerned about providing opportunities for new Bitcoin holders to enter into the market in ways that are safe and understandable; BlockFi also has a user friendly app and web interface, designed to be intuitive and engaging with new users: it is simple and easy to use, and any beginner can begin with a few simple steps.
Remember, Beginner Bitcoin is not giving investment advice, it’s your life, make your own decisions, and seek the counsel of a trusted financial advisor. But should any reader desire to open a BlockFi account, doing so through the links on this post support our channel and allow us to keep making more content.
Originally published at https://beginner-bitcoin.com on January 17, 2021.
