BlockFi.com – Bitcoin Instant Loans
No BS about BlockFi: How To Earn Interest And Allow Your Crypto To Soar
Are you concerned that your wealth is falling this season? Well, today’s blog will introduce you to a new BFF called BlockFi. What is it? No it doesn’t deal with concrete blocks if you’re in the construction niche. Instead, I’ll summarize what BlockFi is and why it can help you to become a financial wizard.
Are you ready to block with the best and without any BS?
Bountiful Benefits: BlockFi
First, I’ll briefly enlighten you about what BlockFi is as well as its numerous benefits. In essence, it’s a cryptocurrency-based wealth management firm that facilitates your ability to accrue interest, borrow money, and extend your wealth using your cryptoassets. So much better than asking a family member to spot you, right?
As far as BlockFi’s origins, it emerged in June of 2017 by a trustworthy New Jersey-based company. Check out its impressive math stats: for example, you can easily attain up to 6.2% annually or receive cryptocurrency-backed loans with a loan-to-value ratio of up to 50%! How’s that for “Show me the money?”
Besides the company’s obvious financial perks, they also aim to deliver excellent customer service, coupled with supreme safety for collateralized, stored, and assets. Don’t block this amazing opportunity to try BlockFi!
As you know, safety is paramount in today’s era. By collaborating closely with Gemini, a renowned, New York trust company, fully licensed by the New York State Department of Financial Services, you can rest assured that you’re protected prominently. In fact, the value-to-ratio on any loan can’t exceed 50%, so there’s no bankruptcy or ethical fears on your end, only cheers!
BlockFi’s Savvy Services:
After examining safety, customer service, and economic perks associated with BlockFi, I want to explain and classify their savvy service specialties into 2 main types: interest accounts and crypto interest accounts.
First, let’s peek your interests about the interest account. This type, as its name implies, helps you to earn without any burn or attain cryptocurrency-backed loans backed by bitcoin, ether, and litecoin swiftly. Talk about some superheroic feats, eh?
Peeking Your Interests: Interest Accounts
Have I peeked your interests yet about BlockFi? In reality, the vast majority of current crypto investors use custodial exchange or cold storage for their long-term needs and asset storage. Although there’s no investment police who’ll chastise you for doing this route, the inability to yield any interest is a major downfall.
On the other hand, you can unlock interests with BlockFi! You can also quickly deposit your assets to a secure address, while simultaneously yielding to 6.2 % interest annually. BlockFi’s same-day service is also a major interest peeker and attention seeker: within less than two minutes, begin earning same-day interest! Now that’s quicker than making my morning latte!
On the flip side, I need to specify that the crypto interest account is regional in its coverage currently. It’s presently unavailable in the following states: New York, Connecticut, and Washington. There are also account opening restrictions now in place for these specific nations due to sanctions: Cuba, Iran, North Korea, Sudan, and/or any other country with prohibitions.
Lastly, I’ll break down some digits to reinforce that this service really puts its money where its mouth is. On a 6% compound interest on your 2 BTC deposit, you’ll achieve 2.12 BTC in one year. Using today’s rate (BTC at $8350), you’ve snagged $1000. Are you ready for that memorable trip to Europe or Caribbean cruise? Based on merely a two-minute registration process, that’s a cash cow without any labor! More milk for that latte, right?
BlockFi’s Balancing Act: How Does BlockFi Stimulate Interest?
Think of BlockFi as an acrobat of sorts since it specifically produces interest by taking deposited assets and lending them to a coveted 3rd party institutional and corporate borrowers. Based on this brilliant balancing act, loans are successfully collateralized with the exact same structure as offered by BlockFi’s crypto loans. Now that’s a standing ovation!
BlockFi’s trusted methodology ensures not only meticulous risk management, achieved by its rigorous 24/7 systems monitoring positions, but it also relies closely upon BlockFi eminently high expectations that echo customers’ objectives accordingly. BlockFi also validates that no conflicts of interests occur. In other words, BlockFi accepts full accountability and serves the party that takes any losses, thus always firmly protecting clients’ needs as the first rule of order in this balancing act!
Silver Lining: No Minimums and Fast Withdrawals
Lastly, I’ll unveil the silver lining: no minimums and fast withdrawals. In today’s fast and furious-based world, we all want to accrue interest on our cryptos at top speed but with minimum efforts, right? Directly following the mere two-minute registration process, the best news or silver lining is your GOLDEN ability to deposit any desired amount of cryptoassets, any time you want. Financial freedom also abounds for withdrawals, as same day releases are also granted. We must caution: withdrawals aren’t automatic, since BlockFi typically warrants up to 7 days for processing your request. Regardless, these silver lining perks are priceless!
Lightning Speed: Cryptocurrency Backed Loans
You can emulate a meteorologist when you try BlockFi. In sum, you’ll not only earn interest, but also obtain a cryptocurrency collateralized loan on your bitcoin, ether, or litecoin, paid in USD or GUSD at lightning speed!
In general, every loan operates on the loan-to-value ratio: while you won’t not be able to attain 100% on your bitcoin, you can expect up to 50%. Your weather report financially will shine since this approach helps to curtail the instability and volatile nature of today’s cryptocurrency markets. Because BlockFi fully minimizes any risks, you can head to sunny financial skies on both individual loans and professional business loans. Again, with “speed to please” since typical approval time is less than one hour. Don’t you wish your daily commutes to work were at that lightning speed?
Peep At the Process: An Overview BlockFi Loans
After applying a loan, let’s take a quick peep at the overall BlockFi loan process. It’s super simple and requires just the typical, basic personal data, as noted:
- Name, surname
- Email address
- Date of birth
- Social Security Number (for U.S residents only)
- Phone number
- Location
In addition, you must specify the type of account (individual or business) and all accept terms and conditions. You must also be 18 year of age or older to register for an account. As mentioned above, crypto interest accounts and loans are provided within one personal profile. Approval excludes residents of New York, Connecticut, and, Washington, as well as Cuba, Iran, North Korea, Sudan, Syria, or any other country where sanctions presently apply.
Keeping Score: Will Crypto Loan Impact My Credit Score?
Are you concerned about your credit score? Will a crypto loan impact your credit score? These relevant questions are concisely covered in this section. Based on the fact that BlockFi’s loans are wholly collateralized, they’re backed by assets, so there’s really no need or provision to check your credit score. BlockFi differs from other crypto loan organizations since BlockFi can expedite your loans quickly, even with the most unsavory credit score.
In addition, BlockFi will even level the playing field if you’re keeping score of your credit score because the loan’s outcome will have no bearing on your credit score. BlockFi doesn’t soft pull, so it gives you more relief from keeping score of the credit score chaos games that often ensue with other cryto loan companies!.
Time after Time: Accepted Collateral
If you’re a fan of the iconic Cyndi Lauper song, then think of it as BlockFi’s anthem. As a BlockFi customer, time as well as money will on your side. Your ability to obtain money with a loan-to-value ratio of up to 50% on bitcoin, ether, or litecoin can Because BlockFi delivers a loan calculator that guides you to calculate in real-time how much collateral you’ll need, there’s zero guess work.
Time is on your side with BlockFi as this calculator computes and simulates with speed and accuracy. For example, as of 10/14/2019, to secure a $10,000 bitcoin-based loan with LTV of 50%, you’d need roughly 2.45 BTC. If you chose a BlockFi loan, you’ll time and travel will be your companions, as you can realistically get approved, even within the hour, inclusive of the overall registration process.
Flex Those Money Muscles: How Much Can BlockFi Deliver?
Are you eager to flex those “money muscles” to find out how much BlockFi can actually deliver? Based on BlockFi’s most flexible loan amounts on the market, even an individual could get up to $100,000,000, with merely a minimum of $5,000. Of course rules govern all supported cryptoassets: bitcoin, ether, and litecoin, but what a way to flex those financial muscles with Blockfi!
Not a New Type of Television: What’s Loan-to-Value Ratio (LTV)?
Although it’s not a new type of luxury TV, loan-to-value (LTV) reflects a critical component to influence how much collateral you’ll need to do deposit to earn a certain amount of USD or GUSD. It also allows the lender to be incentivized to pay the loan. LTV is further utilized to pay the lender in instances when the borrower cannot pay back.
To illustrate, if Paul Pesos seeks a $20,000 loan on his bitcoin, as of 10/14/2019 (BTC price at $8350), he can opt for a loan-to-value ratio of 20%, 35%, or 50%. To receive his cash, Paul is required to deposit 12.27, 7.01, or 4.91 BTC. Every consumer can pick one’s own LTV, which won’t influence the overall application process.
The Long Haul: Loan Term
Every BlockFi loan features a 12-month duration, with payments easily made at any time, without any exorbitant fees or penalties. Don’t you wish your long haul flights had the same stipulations? What’s more, simply deposit your crypto assets into your account, which will be collateralized after receiving the funds, and you’re set to receive your funds. Kindly note that although you’ll be approved to receive the money within an hour technically, it might realistically take a few days before your wire transfer appears in USD. You can omit it by requesting the payment via blockchain by GUSD, or whatever your needs require.
Date With the Rates: Interest rates
Let’s face it, interest rate dates aren’t usually fun for the wallet, right? Conversely, BlockFi offers thoroughly-defined, structured interest rates from 4.5% paid during the loan’s duration. For instance, if you got a $20,000 loan with a 50% loan-to-value ratio, your total interest will be $2,250 or $187.50 each month during the 12 month span. If you pay the loan as an early bird person, you won’t need to pay the remainder of the interest. Make your bank account smile when you discover that BlockFi’s versatile payment structure, let’s you prepay or be flexible. You can customize how you pay these ways:
1. Cryptocurrency:
Choose it for the sensational, same-business day processing perks, which allows you to punctually pay your loan balance via PAX, USDC, or GUSD. Funds are normally received within 10 minutes and processed within only one hour. You can also choose to pay your balance with the collateralized coins at just 1% trading fees. If so, a portion of your collateral will be liquidated while the rest transfers to your address.
2. Wire transfer:
It enables you to wire to the BlockFi loan processor, which usually takes from just 1 to 2 business days. After the transfer is received and processed, BlockFi quickly disseminates your crypto back to the address. Let’s get down to the wire with that fast release, right?
3. ACH payment:
It encompasses a general processing time from 5 to 10 business days, but it’s vital to mention that five days are needed for banks’ clearances. It it also involves a typical 48 hour window for funds to be deemed as “processed.”
Security Guard On Your Side: Loan Safety Measures
BlockFi is like a security guard on your side since it embeds various safety mechanisms to cover your funds, personal data, and overall financial security. Because BlockFi allows you to integrate a 2FA authenticator via the Google Authenticator app for Android and iOS devices, security is literally at the tip of your fingers! The app automatically generates a new code every 30 seconds, as long as the person holding his or her phone can access one’s account.
This security guard at your side protective assurance from BlockFi also accommodates all your assets, bitcoins, ether, and litecoins deposited onto its platform securely and proactively by storing offline in a cold storage wallet that works in conjunction with Gemini, a New York-based, licensed custodian exchange, and coveted 3rd party for more security guard on your side safety. In unlikely events of disappearance of BlockFi or bankruptcies, Article 9 of the Uniform Commercial Code keeps you covered!
Yoyo Effect: Summation of Cryptocurrency Price Fluctuations and Impacts on BlockFi Loans
The yoyo metaphor is quite indicative of cryptomarkets’ tendencies to fluctuate. Because BlockFi incorporates a loan-to-value ratio, so you can obtain 20%, 35%, or 50% of deposited assets as a loan to counteract the yoyo prices!
If you’re still pondering what ifs scenarios if Bitcoin, Ether, or Litecoin prices plummet and the subsequent implications on your BlockFi loans, well, exhale with ease! Even among chaotic cases in today’s bear market, where prices of crypto can drop significantly, even up to 90%, retain peace of mind. Similarly, if such a situation occurs, the value of your collateral can decrease considerably, and you might even attain a margin call. If that occurs, your immediate action will be required: 1. deposit more collateral or 2. pay back part of your loan.
If you snooze, you’ll lose, if you fail to take action and your loan meets the margin. As a result, liquidation occurs. It’s vital to understand how a first margin call transpires at a 70% loan-to-value ratio. That means so you’ll have a full 72 hours to respond. Be cognizant that if a loan reaches 80%, part of your collateral will be sold.
Up, Up, and Away: Aftermath Of Bitcoin, Ether, or Litecoin Price Surges
Since bitcoin is incessantly on the move and groove, just as you are, “the up, up, and away” possibility is totally realistic. Studies further suggest that 30% or even 50% bitcoin movements can happen within a month. If a price surge occurs, all gains received will go to you after your loan is paid. Although you can’t withdraw any portion of the collateral as the value escalates, you’re totally free to pay the loan with the collateralized crypto. If airdrops or coin curve balls occur, there’s no sweat on you. If Gemini supports them, you’ll even earn some additional coins after paying your loan. Let stress now “go up, up, and away”-the BlockFi way!
Purposeful and People-Driven: Tenets of BlockFi’s Customer Support
Two words characterize the crux of BlockFi’s customer service mission: purposeful and people-driven. Likewise, customers praise the loyal, accessible, professional demeanor. Clients are able to communicate via email support@blockfi.com or calling 646-779-9688 during regular EST business hours.
BlockFi’s Pros and Cons
As with anything in life, BlockFi embodies some major pros and cons to review:
I label the pros using the MINE:
- M: Monthly compounding interest: Say what? Every payment is specifically computed each month and balanced based.
- I: Interest forgiveness: When you pay the loan early, there’s no need to pay any interest. Feeling forgiveness is fiscally fun and calculated using a typical 12-month period.
- N: No penalties and no minimums. If you seek to withdraw funds early, pay zero penalties. The pro of no minimums allows you to immediate earn with BlockFi based on any cryptocurrency amount.
- E: Exudes safety. Your deposited cryptocurrency is super safe and managed by Gemini, a secure, trustworthy, fully regulated, New York-based company.
BlockFi’s cons involve what I call LOW:
- L: Local restrictions apply, so check your local laws first.
- O: Only web-based: Currently, BlockFi doesn’t presently support Android-based apps or iOs at the time of writing this article.
- W: Withdrawal fees: BlockFi’s high fees on bitcoin and eth withdrawals (0.0025 BTC or 0.0015 ETH) as well as withdrawal time (up to 7 business days in some cases for processing)
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Talk Taxes: What Are BlockFi’s Crypto Services and Taxes”
Let’s quickly talk taxes since they’re inevitably an integral part of any financial endeavor. You’ll pay taxes on some of BlockFi’s services offered by BlockFi. The most prevalent ones apply to tax payments on BlockFi Interest Accounts, where monthly interests occur. In turn, users will pay capital gain taxes. Taxes on short or long term capital gains are also applicable, depending on how long your investments entail.
Tax talk can become tricky here, so it’s important to contextualize. In a case where you received on your bitcoin, but the bitcoin actually diminished in its value, you could theoretically result in a loss, with zero capital gain.
Crypto loans’ tax talk, too, can sometimes be quite daunting indeed. When a crypto loan is deemed as a regular one, there’s no taxes for you. Since this guide is merely generalized information, always consult your specific tax professionals, consultant, or advisors for personalized implications.
Rave Reviews: BlockFi Reviews
All in all, BlockFi’s glowing reviews and accolades depict how the majority of users report positive or very positive service findings. Most consumers praise convenience, speed, and quality of offers. Overall, there’s proof that pros can overwhelmingly outweigh the cons. The bottom line: when searching for an ethical, dependable, and safe company when dealing with crypto loans, let your finances fly high with BlockFi!
More about Blockfi:
https://pitchbook.com/profiles/company/224072-83
https://www.coindesk.com/bitcoin-and-ether-lender-blockfi-raises-18-3-million-series-a
https://techcrunch.com/2019/08/06/blockfi-which-lends-money-to-cryptocurrency-holders-just-raised-18-3-million-led-by-valar-ventures/