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How I earn 6% interest on my Bitcoin holdings and how you can too.
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I've been receiving a lot of questions lately about earning interest on #Bitcoin 
There are a few different companies that offer just this:
- Blockfi
- Celsius
- Voyager
- Gemini
My favorite part about this service is that the interest itself is paid out in BTC.
There are a few different companies that offer just this:
- Blockfi
- Celsius
- Voyager
- Gemini
My favorite part about this service is that the interest itself is paid out in BTC.
This thread will focus on Blockfi, as they are the most common.
Blockfi offers a number of financial services around Bitcoin - including:
- Trading Services
- Borrowing Services
- Interest Bearing Accounts
Blockfi offers a number of financial services around Bitcoin - including:
- Trading Services
- Borrowing Services
- Interest Bearing Accounts
I currently use Blockfi to earn 6% interest on a portion of my Bitcoin holdings (paid out in BTC).
Since Blockfi is a relatively young company and the industry needs time to mature, I don't hold all of my Bitcoin with them.
Bitcoin interest accrues daily and pays out monthly.
Since Blockfi is a relatively young company and the industry needs time to mature, I don't hold all of my Bitcoin with them.
Bitcoin interest accrues daily and pays out monthly.
So how is Blockfi able to offer 6% interest?
They lend out your Bitcoin to others at a rate higher than 6%, and keep the difference themselves.
The borrowers tend to be institutions and corporations (oftentimes to capture the current 20%+ spread in the derivatives market).
They lend out your Bitcoin to others at a rate higher than 6%, and keep the difference themselves.
The borrowers tend to be institutions and corporations (oftentimes to capture the current 20%+ spread in the derivatives market).
Bitcoin holders are also able to use Blockfi to take out a loan using your BTC as collateral.
For example, if you have $1,000 in BTC on Blockfi, you would be able to take out a loan at 50% LTV ($500)
For example, if you have $1,000 in BTC on Blockfi, you would be able to take out a loan at 50% LTV ($500)
This is fantastic for those that would like access to cash without selling any of your BTC.
Additionally, this service allows you to avoid capital gains taxes as a result of selling your holdings.
Additionally, this service allows you to avoid capital gains taxes as a result of selling your holdings.
Although depositor funds take priority over other company equity, the depositors holdings are not insured should the company fail.
Therefore, if the company were to go bankrupt, your holdings may be at risk.
This is key to understand prior to signing up with Blockfi.
Therefore, if the company were to go bankrupt, your holdings may be at risk.
This is key to understand prior to signing up with Blockfi.
However, Blockfi seems to be very well-backed financially.
There is a reason that Blockfi is the most popular platform for Bitcoin depositors earning interest.
Here are a few investors in Blockfi:
- Coinbase
- Peter Thiel
- Winklevoss Capital
- Anthony Pompliano
There is a reason that Blockfi is the most popular platform for Bitcoin depositors earning interest.
Here are a few investors in Blockfi:
- Coinbase
- Peter Thiel
- Winklevoss Capital
- Anthony Pompliano
Blockfi holdings are held with Gemini which is one of the largest cryptocurrency exchanges.
Gemini is a very reputable firm and is regulated by the New York Department of Financial Services.
95% of Gemini's holdings are held in cold storage to ensure the safety of the funds.
Gemini is a very reputable firm and is regulated by the New York Department of Financial Services.
95% of Gemini's holdings are held in cold storage to ensure the safety of the funds.
Not only are you able to earn interest on your Bitcoin, you can also earn interest on USD stable coins as well.
USD stable coins are cryptocurrencies that are backed by USD.
If you'd like to park some of your idle USD on Blockfi, you can start earning 8.6% interest using USDC.
USD stable coins are cryptocurrencies that are backed by USD.
If you'd like to park some of your idle USD on Blockfi, you can start earning 8.6% interest using USDC.
Another exciting development for Blockfi is their credit card that earns 1.5% on every purchase with rewards paid out in Bitcoin.
It is currently still in the works and should be released sometime this year.
They have a waitlist for those who currently have an account.
It is currently still in the works and should be released sometime this year.
They have a waitlist for those who currently have an account.
Below is a referral link to sign up for Blockfi.
If you deposit $100 after using this link, we will both receive $10 in BTC, a win-win for the both of us.
It only takes a few minutes to sign up
https://blockfi.com/?ref=b2626751
If you deposit $100 after using this link, we will both receive $10 in BTC, a win-win for the both of us.
It only takes a few minutes to sign up
https://blockfi.com/?ref=b2626751
