How good are BlockFi interest rates? Let’s have a look over them

What is BlockFi

BlockFi is one of the leading crypto lending platforms in the cryptocurrency market space. Crypto lending was a paradigm shift in the traditional loan system, but BlockFi brought it further. 

Cryptocurrency lending or crypto loan services have started following the traditional loan system. Moreover, crypto lending platforms made possible with DeFi and Dapps made it easy and reachable to more users. BlockFi and Celsius are some examples of such crypto lending platforms. 

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These crypto lending platforms are among the best-performing ones in terms of their interest rates, consumer base, and usability. But BlockFi is considered to be the top of all, but why’s that, what are the BlockFi interest rates and the way it brings such impressive rates and most importantly, why it could be trusted; let’s find out —

BlockFi Interest Rates 

BlockFi has a lot of perks to offer its customers. Firstly the BlockFi interest rates are among the best in the market, between 0.1% to 10% APY for different cryptocurrencies and stablecoins. 

The platform has cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC). LINK and stablecoins include PAX, USDT, USDC, and GUSD. Let’s check them out one by one according to BlockFi interest rates.

Bitcoin (BTC)

The flagship cryptocurrency users can have interest rates in different tiers, as BlockFi’s official website shows. If users deposit BTC on the platform, for bitcoins between 0 to 0.10 interest rate would be 4.5%, more than 0.10 to 0.35 BTC it would be 1%, and for more than 0.35 BTC, the interest rate would be 0.1%. 

Ethereum (ETH)

Smart chain cryptocurrency Ethereum has some better rates of interest on BlockFi. For ETH between 0 to 1.5, users will get 5% interest. For 1.5 to 5 ETH, rates would be 1.5%, and for more than five ethereum coins, the BlockFi interest rate would be 0.25%. 

Litecoin (LTC) 

The cryptocurrency is identical to Bitcoin; Litecoin is also there on the BlockFi platform. It provides 3.5% for 0 to 20 LTC, 1% for LTC between 20 to 100, and more than 100 LTC users can have 0.1% of interest. 

Chainlink (LINK)

For cryptocurrency for oracle network Chainlink, BlockFi interest rates are 2.50% for 0 to 100 LINK. If a user has LINK tokens between 100 to 500, then the interest rate it can get would be 0.20%, and for more than 500 tokens, it would be 0.1%. 

Other than these cryptocurrencies, several stablecoins are also available on the BlockcFi lending platform, and comparatively, they get better interest rates than the former. 

Tether (USDT)

The topmost stablecoin, according to the market capitalization on the global crypto market list, is available on BlockFi with pretty good interest rates. For less than 20 thousand USDT and more than 20 thousand USDT, depositors can have 9.25% and 8.25% interest rates, respectively. 

USD Coin (USDC)

Another stablecoin, the main rival of USDT, has interest rates slightly less than what Tether has on BlockFi. For users depositing up to 20,000 USDC, the interest rate would be 8.75%, and the interest rate would be 7.75% for more than 20,000 USDC. 

DAI (DAI) 

Besides those topmost ‘centralized’ stablecoins, the platform also has DAI stablecoin from MakerDAO. The BlockFi interest rates are 8.75% for less than 20,000 DAI and 7.75% for more than 20,000 DAI stablecoins. 

PAX Dollar (USDP)

US dollar-pegged stablecoin PAX Dollar’s USDP has interest rates same as DAI that are 8.75% for less than 20,000 PAX and for more than that 7.75%.

PAX Gold (PAXG)

Gold-backed stablecoin from PAX that is PAXG avails 3.25% for PAXG up to 1.5, for 1.5 to 5 PAX 0.2% and more than 5 PAXG it gives 0.1%. 

Binance USD (BUSD)

Stablecoin based on Binance Smart Chain, Binance USD has the same BlockFi interest rates as most other stablecoins, 8.75% for up to 20,000 BUSD and 7.75% for more than 20,000 BUSD. 

Gemini Dollar (GUSD)

Native cryptocurrency of cryptocurrency exchange and custodian services firm Gemini, Gemini Dollar also has BlockFi interest rate of 8.75% for below 20,000 GUSD and 7.75% for more than that. 

As the website displays, these popular cryptocurrencies and stablecoins are also available on the BlockFi platform. According to the number of UNI tokens, Uniswap BlockFi’s interest rates are between 0.1% to 3.5%. For BAT tokens, it’s 0.1% to 1%. 

BlockFi provides interest rates up to 5.5% on Cardano (ADA), for Filecoin (FIL), it’s 2.0%, for SOL toke of Solana network, it’s 5%. Cosmos’ token ATOM earns 7%, Polkadot’s DOT gets 9.5%, and AVAX of Avalanche earns 10% of BlockFi interest rate. 

How much is BlockFi Trading Fees

BlockFi keeps one transaction a month free of cost; there are no fees for trading, either deposit or lending on assets once a month. If there is trading more than once in a month, it charges trading fees over that. 

For Bitcoin, it’s 0.00075 BTC, 0.2 ETH for Ethereum, for LINK, it’s 0.10 LINK, and for stablecoins, the BlockFi trading fees for transactions more than once in a month is $10 per transaction. For PAX Gold, it’s 0.015 PAX. 

BlockFi charges some trading fees because it spends a lot for security purposes and on infrastructure to maintain the services on the platform. 

BlockFi interest rates are best in the market, but how

BlockFi can provide a pretty good interest rate to its customers by lending the digital assets to crypto businesses further. The exchanges or payment transfer platforms that need cryptocurrencies for various purposes borrow from BlockFi and pay the interest. 

BlockFi gets a huge interest rate, most of which it pays back to its customers, which is why their interest rates are higher than any other traditional financial institute. 

The Fintech company enables users to buy and sell cryptocurrencies of their choice, and on the platform, they can also borrow or lend their digital assets and earn a sweet interest on them. All these services can be done with BlockFi’s own credit card itself. 

Other than that BlockFi platform also offers various services to clients and customers across the globe, including spot trading, crypto trusts, credit capabilities, or margin trading. 

Is BlockFi safe, and do you trust it?

Users might doubt BlockFi after seeing the significant interest rates. To clarify the doubts and check the platform’s authenticity, you can consider the support and backing of BlockFi. The funds and trust of some big names in the world behind the platform make it reliable. 

As Crunchbase reported, in 11 rounds of debt and equity funding, BlockFi raised a total of $508 million of funds. The investors were Akuna Capital, Bain Capital Ventures, Valar Ventures, SoFi, Winklevoss Capital, and the list has more names like these. 

As reported in March 2021, BlockFi valuation was sitting at $3 billion, and currently, it’s the biggest crypto lending platform all over.