Many financial experts claim that Compound interest is the most powerful force in the universe. The long term potential of compound interest has significant benefits for investors.
This financial tool has long been the center of the financial industry and is now available to crypto investors. It provides Bitcoin investors with the ability to earn compound interest on their Bitcoin and cryptocurrency holdings.
BlockFi offers compound interest services for Bitcoin and Cryptocurrency investors World Wide.
Lets dive right in to find out how it all works
How Does Compound Interest Work?
The key to compound interest is patience and staying power. Typically, compound interest products are long term, normally 1-5 years on average. By keeping your money invested and adding to it, it begins to accelerate like a snowball.
Imagine you deposit 10 Bitcoins on January 1 2020 earning 6% interest compounded monthly. By may 1 2020, your balance would be approx 10.1 BTC. You’ve just earned interest on that deposit.
So how does the power of compound interest work?
In the first month you earned interest on the 10 Bitcoins but the next month you would have earned interest on 10.025, increasing the amount of interest you will earn for each month that goes by. This process repeats month over month until you cash out.
If you leave your deposit in for one year your balance will now be 10.62, earning you 0.62 Bitcoin of interest over that time period. Now that you have 10.62, you will start the next year off earning interest on the 10.62 and it will continue to accelerate year after year.
How to start earning interest on your Bitcoin with BlockFi
Before you can start earning interest on blockFi, you must have some crypto first. if you don’t have and Bitcoin or Cryptocurrency I recommend buying it from Coinbase. If you’re in Canada, you can use Coinberry.
Once you have some Bitcoin or Crypto in your wallet, you can now send it over to your blockFi Account.
1. Head over to BlockFi and click on Get Started.
2. After creating your new blockFi account, log in and click on Deposit. I recommend using 2fa Authenticator to login to your account.
Your funds are worth protecting.
3. Now you can choose which Cryptocurrency you want to send your account. Be sure to choose the correct coin otherwise it can be a hassle to deal with.
You’re well on your way to earning compound interest on your crypto!
4. You have the option to copy the wallet address or use the QR code to send the Crypto. If you choose to copy your wallet address, be sure to double check before your press send.
4. After completing your deposit you will automatically be earning interest. Different rates apply to each individual coin you’re holding in your blockFi Account.
Now it’s time to sit back and collect that compound interest.
How often will interest be paid out?
The interest earned in your BlockFi account will be paid out once a month. Blockfi account holders will be able to view the history of their interest payments.
The interest earned will be paid out in the cryptocurrency you’re holding in your BlockFi account. Interest payment Flex allows you to choose a different currency to be paid in, if you choose.
Final thoughts
BlockFi continues to be the leader in the Cryptocurrency lending platform space. It offers a secure platform backed be Gemini and is fully approved and insured.
- Allows users to earn competitive compound interest rates on their cryptocurrency (BTCTier 1, BTCTier 2, ETH, LTC, USDC, GUSD, PAX).
- Offers simple and easy registration.
- It’s available worldwide, outside of sanctioned or watchlisted countries.
- Allows for anytime withdrawals. Users get one free withdrawal per month.
- Keeps cryptocurrency deposits secure. BlockFi’s cryptocurrency deposits are held by the Gemini Trust Company, regulated by the New York Department of Financial Services.
