This seems like the kind of thing I'd want to do with a portion of my crypto after I've made it. Once you have the wealth, just lend it out for some percentage income and live off of that.
Any problems? Obviously you are giving custody over, but that is the same for ANY traditional financial lending instrument as well. BlockFi is US-based and regulated like any other lending firm, and has lots of big names behind it like Morgan Creek.
So yes, I understand the whole "not your keys" argument. But that's if you are just holding your crypto. We're talking about lending here, risk vs. yield.
i've considered using blockfi for the several bitcoin i have only thing is it would be a single point of failure in case they got hacked only thing i don't know is if they have insurance or not i know a lot of the bigboys like coinbase have insurance incase of hacks and shit, and probably the place i would put my crypto i would want to have insurance too
Daniel Walker
Lock in BTC and get paid with PAXG, ezpz
David Hall
You could spread across the alternatives such as Nexo and Celsius which offer the same or better interest on btc/eth. Then there's less risk if any go under. Which is unlikely anyway.
Justin Garcia
nexo i heard before. i think they might have insurance? celcius i've not looked into. only one i think i'd exclude is crypto.com because their returns seem ponzi tier
Easton Smith
I use NEXO because they pay out interest every day and there's no charge to move coins in/out. You can also get good interest in USD/GBP/EUR.
I've used Celsius because for some coins they have better interest rates. But they only pay interest once a week.
I think blockfi pays monthly or requires you to lock funds for 1 or 3 months.
Xavier Smith
>it has big names behind it big names fall user banks are in a terrible spot macroeconomic wise they cant make any money with 0% interest rates they are going to get phases out by central banks yes its a low chance but in my opinion i would not mess with CeFi its not worth the small gains to risk losing it all
Henry Parker
i think this is more about crypto interest rates than 0% fiat bank rates
Jonathan Jenkins
every day sounds pretty good, and no charge in/out is good too i think blockfi charged like 50 bucks to withdraw? either blockfi or binance did i can't remember, but it's retarded and i remembered binance has an option to earn money off of btc but it's only like 2.6% so i wonder how the biggest player (binance) can only earn 2.6% while smaller options are earning 6% not sure what to make of it
Samuel Fisher
This is part of a series of paid shill posts for blockfi. They try to avoid mentioning better alternatives and try to legitimize blockfi in general when it is in fact utter shit.
Jaxson Reed
it might start off as a shill but if people add real input then it's not a total waste
Owen Ortiz
I'm looking at this too. There are a million options. Centralised and desentralized. I'm going with multiple platforms for 2021. Binance liquid swap, Celsius and makerdao or compound with Ledger .
Hope I won't get rugged
Dominic Watson
Question. Assuming all of these upstart CeFi services are garbage but are harbingers of the future of HODLing, when will Coinbase and Gemini or other hyper regulated mainstream providers offer a simple savings account style service?
I realize that Coinbase Wallet allows you to interact with Compound and dydx but they are still blasting disclaimers about how your money isn’t insured and you could lose everything.
Ayden Flores
sorry, pajeets. not gonna use what you're shilling. i'll stick with (pic related)
>Crypto fixed income user, not going to lie, but you just created a potentially billion dollar buzzword for the financial industry....fuggh
Justin Evans
>when will Coinbase and Gemini or other hyper regulated mainstream providers offer a simple savings account style service? When its too late to matter. Damn bro you ever had a bank account?
Sebastian Young
Why wouldn't you just use something decentralized
Ryan Howard
Their software is shit, their service is shit and they don't make money. They're burning investor money on marketing instead of making the business model work.
Samuel Stewart
>Hope I won't get rugged this is my worry if there's reward there's risk that goes with it, that i worry about only one i might think of being no risk is binance since it's (probably) too big to fail, and it's on leverage gains on-platform so it's not like a regular loan where they could default on the principal
Adam Harris
it's funny because coinbase does a % gain on the USDC you keep on the exchange. not sure why they haven't branched out into offering % gains for holding other coins there
Easton Flores
I'm listening
I agree about binance. Look at the fucking amount of dollars in those pools.
Samuel Jones
only thing decentralized i can think of is pooling wbtc in defi but that relies upon trusting the wbtc people, doesn't it?
Levi Bell
they make money on fees, but yes they are doing the typical marketing to catch ahead, and I'm sure they'll reinvest. you kind of have to right now if you want to establish dominance with so much other competition. I'm pissed I didn't get a sign up bonus but somehow I got a referral?
Jayden Barnes
That's not the only thing. Regulatory concern is valid as well. It is custodial so they can just say no withdrawal for you if some bureaucrat somewhere gets you in their sights.
Jose Price
explain pls
Nolan Cruz
wbtc reserves are verified by Chainlink proof of reserve oracles I -think- double check that before depositing
Carter Thompson
Fixed income is a literal trillion dollar market. By you merely adding "crypto" in the front, you are basically tapping into a trillion dollar market. Fixed income is what all the heavy hitter asset management call bonds.
Ryder Lewis
Well it didn't really go as planned for them. I want to figure out this lending shit too.
Connor Baker
You are implying a new way of thinking about an asset's role in a market worth trillions
Christopher Edwards
Their competition has no fees, is profitable and transparent, spends almost nothing on marketing and in practice return a much higher APY than advertised. Blockfi can't compete.
Jackson Stewart
For me, it’s >Nexo for BTC ETH and NEXO very good December promotion happening, 3x interest for new users >Celcius for BTC ETH and CEL mostly for diversification, especially after the Nexo promo ends >Crypto.com for stable coins 90 day 12% apr holds aren’t too shabby but their fees blow considering the other two don’t charge anything
