Key Takeaways
BlockFi lets you use cryptocurrency to earn interest at up to 8.6% APY. You can also borrow cash and buy or sell various cryptocurrencies using the platform and mobile app.
Cryptocurrencies currently eligible in BlockFi products and services include Bitcoin, Ethererum, Litecoin, Gemini Dollar (GUSD), Tether (USDt), Paxos Standard (PAX), USD Coin (USDC), and Pax Gold (PAXG).
In addition to banking products, BlockFi allows self-directed IRAs.
While BlockFi promises higher returns than a traditional bank account, your money won't be protected by FDIC insurance.
Even the best online savings accounts currently offer an average of just 0.05% APY, according to the Federal Deposit Insurance Corporation (FDIC). Although your money might be safe in a basic savings account, you're definitely not going to build wealth.
With that in mind, it's smart to keep an eye out for ways to earn a steady return on savings without giving up flexibility and liquidity.
I’ve owned cryptocurrencies since 2014, but just recently found cryptocurrency interest accounts which claim to let you earn up to 8.6% on your crypto deposits. These accounts are the next evolution in Decentralized Finance’s (DeFi) fight with traditional centralized banking, but do they deliver on their promise of higher returns?
Blockfi is an industry leading crypto exchange. This company allows users to deposit stable cryptocurrency (pegged to the US dollar) in an account and earn up to 8.6%. That definitely sounds good, but we wanted to dig deeper to find out how these accounts work as well as who they might be the right fit for. If you're eager to earn a higher rate of return on your assets, keep reading to learn more.
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