Crypto-Backed Loans

The BlockFi loan allows users to deposit crypto assets as collateral and receive US Dollars direct to your own bank account. The benefit of using crypto as collateral in comparison to traditional financial lenders is that you can access cash from your crypto investment without having to sell and trigger a taxable event.

The accepted crypto assets that can be used to apply for a loan are Bitcoin, Ether and Litecoin.

The BlockFi interest rate depends on the Loan To Value Ratio that is selected. This is determined by the amount of collateral that you need to deposit to take out a loan. For example, a 50% LVR on a USD $25,000 loan equates to a 12.5% interest rate.

The BlockFi crypt-backed loan would appeal to a long term crypto investor that does not want to sell their investment before the price reaches maturity would benefit from the BlockFi. You can leverage your crypto holdings to borrow fiat currencies and use for other purposes such as diversifying your investment, pay off debts and expenses or start a new business.

To apply for a crypto-backed loan with BlockFi, follow these steps:

  1. Visit the website and create an account at BlockFi
  2. Click on 'New Loan' at the top navigational bar
  3. Select the collateral asset, desired loan amount and calculate offer
  4. Confirm the collateral amount, LVR, interest rate and click 'Proceed'
  5. Review your loan offer and sign the loan agreement
  6. Deposit the collateral into BlockFi's secure storage wallet
  7. Receive the loan in USD to your bank account or stablecoin to your crypto wallet address
  8. Provide interest only payments monthly using USD, BTC, ETH or LTC
  9. Pay off the full principal amount at the end of term or refinance at the current interest rate

Trading Platform

BlockFi has it's own cryptocurrency trading exchange that is available to its users that register an account. It allows investors on the platform to switch between cryptocurrency pairs. The best part is that you still earn compound interest while crypto trading betweenassets!

To sign up for a BlockFi trading account and trade crypto, follow these simple steps:

  1. Visit the BlockFi website and create an account
  2. Complete the email verification and login to your account
  3. Add funds to the account through the user dashboard
  4. Click on 'Trade' at the top navigation panel
  5. Select the crypto asset you want to exchange
  6. Enter the amount you want to purchase
  7. Review the order details
  8. Click on 'Submit Trade' to finalize the transaction

Purchase USD Stablecoins Using Wire Deposit

BlockFi have introduced a new feature that allows users to send cash deposits using wire transfer to the platform. This involves transmitting USD to purchase stablecoins directly on the platform to start a BlockFi Interest Account.

This makes it easy for crypto beginners that have never purchased cryptocurrencies before. They can sign up with BlockFi, deposit US Dollars using wire transfer and receive up to 8.6% in a BlockFi Interest Account.

USD deposits are automatically exchanged into Gemini Dollars (GUSD) which can be converted into crypto such as Bitcoin, Ethereum, Litecoin and USDC using the BlockFi trading platform (and still earn compound interest).

To purchase USD stablecoins with BlockFi, follow these steps:

  1. Log in to your BlockFi account.
  2. Click on 'Deposit' in the top navigation bar
  3. Select 'USD (wire transfer)' as your deposit currency.
  4. Select 'Wire' as the payment method
  5. Enter in your details and send your wire to BlockFi