Compound interest

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 trillion, many financial advisers are telling young clients to allocate 1-5% of their portfolios 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 specially 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 it has been said that 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.

Image via BlockFi

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 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” that are permanently linked to the US dollar. These high interest rates therefore provide crypto investors with a built-in way to mitigate some of the risks involved in trading other cryptocurrencies.

Image via BlockFi

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 comprehensive crypto platform that 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 cryptocurrency-backed loans. By using your crypto holdings as collateral, you can get loans worth up to 50% of the value of your assets at a very competitive APR of 4.5%. This allows you to operate your crypto holdings without cashing out. And that means you won’t be left out when the value of a particular currency used to have in your wallet soars down the road.

Finally, BlockFi’s latest product is the Visa BlockFi Rewards Signature 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.

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