BlockFi: Cryptocurrency & Digital Asset Backed Collateral Loans?

BlockFi is a lending platform that enables users to borrow funds and use cryptocurrencies as collateral. The project is on a mission to change the trajectory of financial markets in the digital era. This non-banking entity creates debt products for owners of blockchain assets who in turn receive dollars into their accounts.

Why BlockFi?

The significant strength of this platform is the ability to use one’s crypto portfolio as collateral for loans. The interest rates on the loans taken are also fair with flexible repayment plans.

The lending ecosystem on BlockFi is of high-security standards which is essential when dealing with cryptocurrencies. The platform’s operations are regulated by United States federal laws. The team that manages the network is also professional with vast experience in digital finances.

How Does BlockFi Work?

The first step is to apply for the desired amount where one is given a chance to lock down the desired terms of the loan. A response is usually delivered within a few hours after the application is received.

On approval, one sends the crypto assets to a secure address for storage. On receiving the collateral, BlockFi then credits one’s account with dollars. One is required to pay interest on a monthly basis using Bitcoin and Ethereum or fiat currency. The principle is cleared at once, and one has an option to refinance.

Benefits of BlockFi

There’s a myriad of benefits when it comes to this blockchain empowered loan facility. For individuals, the benefits are:

For corporations:

  • Ability to support the day to day running of the .business entity
  • Make even larger crypto investments
  • Gain from tax benefits of borrowing
  • Diversify the firm’s balance sheet
  • Systematic audit and verification by a trustworthy third party

BlockFi Terms and Conditions

The amount one qualifies for is 40% up to the value of crytpoassets used as security; 40% for BTC and 35% for ETH. The standard interest rate is 12% although the rate may vary depending on loan amount and origination fees. The maximum period of the loan is 12 months although one has the option of refinancing at the end of the credit.

BlockFi wants people and corporations grow from their crypto investments. The win-win situation is excellent for the crypto space since it’s filled with transparency, flexibility, and accuracy. Such financial features help enrich the crypto experience and validate the whole blockchain technology.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,486FansLike
2,795FollowersFollow
4,267FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

IRS to Revise Form 1040 to Make it Harder for Traders to Escape Crypto Tax Obligation

The Internal Revenue Service is planning to change the 2020 tax form and make sure all taxpayers report about their cryptocurrency transactions. The standard 1040...

China State-Owned Media Covers Crypto as 2020’s Best Performing Assets Driven by DeFi & Weak Dollar

In an unusual coordinated report on Friday, several Chinese state-owned media covered cryptocurrencies, calling them the best-performing assets of 2020. The country’s top broadcaster, China...

Crypto Exchange Gemini Makes an Aggressive Move, Adds 15 Hot DeFi Tokens

DeFi is all the rage in today's crypto world, and no one wants to be left behind, especially cryptocurrency exchanges. Over the past few months,...

Ethereum ‘Getting Ready for Spadina' Testnet Next Week

The Spadina testnet of ETH 2.0 has been scheduled for genesis before the month ends, on September 29 at 12 pm UTC, as per...

KuCoin Hack: Exchange’s Insurance Fund to Cover User Loss “Completely,” Tether Freezes 33M USDT

The Singapore-based cryptocurrency exchange KuCoin released a statement regarding detecting large withdrawals on September 26, 2020, at 03:05:37 (UTC+8). The exchange has reportedly lost $150...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today