When it comes to investing, cryptocurrency can be a smart choice. After all, if you had invested in one Bitcoin in 2015 for $327, it would currently be worth $46,795.70! That’s over 143 times more than your original investment! But even if you invest in cryptocurrency, are there any opportunities to earn more from your investments?
Most people “store” their cryptocurrency in a crypto wallet, but while crypto wallets offer some levels of stability and security, they don’t earn you any anything, and they can also have security flaws. That’s where crypto interest accounts, such as this one provided by BlockFi, come in. Keep on reading to find out if a BlockFi Interest Account is right for you!
Benefits of BlockFi
So what are the benefits of BlockFi? To start, they make opening an account super easy and simple. All you have to do is fill out your information and deposit currency into your new account by linking your bank, sending a wire, or transferring your current crypto. Once you’re all set up, you can start earning interest every day, which is paid each month. As of May 2021, you could earn as much as 8.6% APY on your cryptocurrency! With a BlockFi Interest Account, you will be actively earning more money instead of just letting your cryptocurrency sit in some wallet.
BlockFi doesn’t have any hidden fees or minimum balances, and it allows you to choose which cryptocurrency you want to earn interest in, whether that’s stablecoin, ether, or bitcoin. You can also access your cryptocurrency with no withdrawal restrictions or lock-up periods, allowing you to have access to your money when you need it. And with the BlockFi App, you can easily view and manage your cryptocurrency profile anywhere, anytime!
Why Not a Wallet?
You’ve heard of the benefits of a crypto interest account, but perhaps you’re wondering exactly how it’s different from a wallet. Besides the fact that crypto wallets don’t earn any interest, some people also don’t like how wallets can easily be lost, such as if you lose your key information. This means you could lose everything. Crypto banks, such as BlockFi, utilize redundancies to keep crypto-keys secure, ensuring that you won’t accidentally misplace that vital piece of information.
However, when you put cryptocurrency into an interest account, you will essentially be giving your keys to the bank, which gives the bank the opportunity to lend out your cryptocurrency. While this is what earns you interest, not everyone is comfortable with giving up their keys. This is primarily a matter of preference, but remember that wallets can still be compromised if someone else gets access to your keys, or they could become permanently locked if you lose your keys. By working with a crypto-bank, you will get the benefit of bank-level security and protection.
A Positive Projection
If you deposit your crypto into BlockFi’s Interest Account, how much can you expect to earn? The actual amount of interest that you’ll earn over time depends on multiple factors, such as BlockFi’s current interest rate and the amount of cryptocurrency in your account. However, let’s look at a couple of scenarios based on today’s rates, in May of 2021.
Say you deposited 0.02 Bitcoin (which currently equals approximately $801 USD) into a BlockFi Interest Account. In one year, you would earn $37.85 worth of cryptocurrency. In five years, you would earn $209.13 in interest. In ten years, that would be $476.06, or over half of what you originally deposited! Of course, if you deposit more over time goes on, the amount of interest that you could potentially earn goes up too! And since you’ll be earning interest in cryptocurrency (not USD), if the value of the cryptocurrency goes up, the dollar amount of the interest you earn goes up too.
The Value of Friendship
If you try the BlockFi Interest Account and like it, you might want to consider referring your friends. When you refer someone to use BlockFi, you each will earn $10 USD worth of Bitcoin. If you do this five times, then for each additional referral, you will earn $20 worth of Bitcoin! And of course, that amount continues to earn interest as well!
Limited Time Offers!
Like many other banks, BlockFi will occasionally have limited time offers for new and existing customers. Currently, all new stablecoin balances between now and July 31, 2021, will earn 10% APY in crypto! If you’ve been wanting to invest your cryptocurrency but haven’t yet, now’s the time!
All Caught Up with Cryptocurrency
Are you ready to read more about Cryptocurrency? Check out these other articles from RateZip!