Day By Day

Here’s What You Need to Know About the Safety of Your Cryptocurrencies With Blockfi

According to a 2021 report released by Markets and Markets, the global crypto asset management market size is projected to hit the $1.2 billion mark by 2026, registering a Compound Annual Growth Rate (CAGR) of 21.5% between now and then. Key among the drivers expected to propel growth is the proliferation of blockchain technology, which will breed new investment opportunities in the crypto asset management market. And talking about investment opportunities, Blockfi is one of the few companies that saw an opportunity within the crypto asset management market and ran with it.

This interactive crypto asset management platform has popularized crypto trading, made access to liquidity easier and allowed crypto users to efficiently manage their digital assets under one roof. 

But is Blockfi safe? In this article, we are going to lift the veil behind this platform to determine whether it is safe for you or not. While at it, we are also going to reveal some of the helpful features that you can take advantage of.

Brief Blockfi Overview

Founded in 2107, BlockFi is a New Jersey-based crypto asset management firm that offers fast cryptocurrency-backed loans, a crypto trading platform, and interest-earning cryptocurrency accounts with some of the most competitive rates on the market. 

And since the firm operates in a capital-intensive industry, it is backed by leading investment companies in the world including Morgan Creek Capital Management, Susquehanna Government Products, Valar Ventures, and several others. 

In March 2021, the company announced it had closed on a massive Series D $350 million funding, which gave the company a $3 billion market valuation.

Blockfi Review: Features

Perhaps what has earned Blockfi the massive market valuation are the platform’s flagship products. They include;

Interest Account (BIA)

This is BlockFi’s flagship product, and it allows crypto owners to earn compound interest on their cryptocurrencies including BTC, ETH, LTC, GUSD, USDC, USDT, and PAXG. And since the firm now offers direct ACH deposits, you don’t require deep cryptocurrency literacy to start earning an interest of between  3% and 8.6% on your assets.

Blockfi Loan

If you need cash and don’t want to sell off your crypto assets, BlockFile allows you to borrow funds against your crypto holdings. By doing so, you can save money in taxes as you don’t have to report capital gains on your assets. Still, the interest is tax-deductible in some countries, further reducing your tax bill.

BlockFi’s interest loan rates are pegged on the loan to value (LTV) ratio of your assets, with the current rates being:

With that said, however, all loans attract a 2% origin fee.

Blockfi Trading

This product allows you to buy and sell BTC, ETH, LTC, PAXG, LINK, & any other supported stablecoins via the BlockFi app.

Rewards Credit Card

Recently, BlockFi became the first company to issue the Bitcoin rewards credit card. This Visa credit card earns users a 1.5% back in bitcoin on all purchases. All the Bitcoin rewards are automatically added to your BlockFi Interest Account, meaning you start earning interest right away.

BlockFi Review: Security

Blockfi has invested in a number of security features to ensure the safety of your account. For starters, most cryptocurrency deposits are held by the Gemini Trust Company, a firm that is licensed and regulated by the New York Department of Financial Services. Those that aren’t are stored in cold wallets, making it almost impossible for hackers to access them.

Blockfi has a 2-factor authentication, as well as allows allowlisting, which is a self-service security feature that lets you ban or restrict withdrawals to certain addresses.

Blockfi Review: Customer Support

Blockfi does offer 24/7 customer support via live chat, email, and a telephone number. The support reps are professionals who respond almost immediately. If you are in a hurry, however, the site does also run a comprehensive FAQ section. 

Final Thoughts

After weeks of researching and conversations, our team of reviewers has no problem declaring BlockFi a safe and secure crypto trading and management platform. Along with offering innovative products and generous interest rates, the company’s custodian is licensed and regulated by the NYDFS, stores most up to 95% of its assets in cold storage, and recently received Deloitte’s SOC2 compliance. Combined, all these factors make Blockfi worth trying.