BlockFi

BlockFi develops a blockchain-driven wealth management platform for crypto investors.

BlockFi was founded in 2017 by Zac Prince and Flori Marquez. The mission being to provide credit services to markets that currently have limited access to products such as simple savings accounts.

BlockFi’s unique proposition and what sets it apart from other crypto asset service providers is that the company pairs market-leading rates with institutional-quality benefits. The company is the only independent lender with institutional backing from investors that include Valar Ventures, Galaxy Digital, Fidelity, Akuna Capital, SoFi and Coinbase Ventures.

Cryptocurrency holders with BlockFi accounts can earn interest on Bitcoin and stablecoins. Here are some of the benefits of having an interest earning portfolio with BlockFi:

• It provides investors with moderate returns on their digital assets (mainly Bitcoin, Ethereum, and GUSD).
• Your digital assets are said to be very secure; the Gemini Trust Company secures all crypto held by BlockFi under the regulation of the New York Department of Financial Services.
• It is readily available in any country; except those that have been sanctioned or are on a watch list.
• Easy withdrawal at any time. There is one free withdrawal available to users monthly.
• Ease of access and registration.

With a juicy interest rate and one which is quite competitive in both the crypto and traditional currency market, the BlockFi interest account seems very attractive. BlockFi also provides loans to interested parties which are obtained from the borrowed digital assets. This guide is to give a brief overview of BlockFi, its security, and how it operates.

How BlockFi makes Profit?

BlockFi makes its money by taking crypto investments with the promise of interest on the money it lends to interested parties through the platform. Ecosystem participants include:

• Traders and investment funds: These traders or brokerage firms require leverage in the financial market. They lend these digital assets as a hedge against price fluctuations in these volatile digital asset markets.
• Third-party market makers: These are individuals/entities that link buyers with sellers who prefer anonymity from public trading platforms. Usually, they are required to hold digital assets for when the buyers or sellers come around. Understanding the cost and risk involved in owning the digital assets, the third-party market makers prefer to lend on BlockFi.
• Other forms of businesses that offer liquidity pools to clients.