blockfi review part 2

We recently published the FAQs first article about BlockFi. We looked BlockFi’s bankruptcy and how it affects users. BlockFi filed for Chapter 11 bankruptcy in November and users have been unable to access their funds.

Let’s look at some BlockFi FAQs:

Where is BlockFi Located?

BlockFi is a financial services company that is headquartered in Jersey City, New Jersey, USA. They also have offices in New York City and Poland.

How BlockFi Works?

BlockFi is a platform that allows individuals to earn interest on their crypto holdings, as well as access loans using their crypto as collateral. Here is how it works:

  1. Users deposit their cryptocurrency into a BlockFi interest account.
  2. BlockFi uses these deposits to make loans to institutional clients, earning interest on the loans.
  3. A portion of this interest is paid back to the users who deposited their crypto, in the form of interest payments on their account.

Users can also borrow cash or stablecoins using their crypto as collateral, by opening a BlockFi loan account. Additionally, BlockFi also offers trading services where users can trade crypto assets on BlockFi trade platform.

Who Does BlockFi Lend to?

BlockFi lends to institutional clients, such as hedge funds and trading firms, as well as other companies that use crypto assets as collateral for loans. These clients are typically seeking to borrow money for short-term investments or to cover operational expenses. BlockFi does not lend to individuals or retail customers.

BlockFi vs Celsius

BlockFi and Celsius are both crypto lending platforms that allow individuals to earn interest on their crypto holdings and access loans using their crypto as collateral. Here are some key differences between the two platforms:

  • Loan-to-value ratio: BlockFi’s loan-to-value ratio is typically lower than Celsius, meaning users need to have more collateral to borrow the same amount.
  • Platform features: BlockFi also offers trading services, and the ability to earn interest in more than just crypto assets, such as US dollars or stablecoins. While Celsius is focused mainly on lending and borrowing of crypto assets.
  • Withdrawals: BlockFi users can have one free crypto withdrawals each month. But, Celsius offered unlimited free crypto withdrawals.
  • Payout: Celsius paid out weekly while BlockFi paid monthly.

Ultimately, the choice between BlockFi and Celsius will depend on individual needs and preferences, such as the interest rate offered, the types of assets supported, and the platform features available. It’s important to do research and compare different lending platforms before choosing one.

FTX Vs BlockFi
BlockFi and FTX are two different companies that operate in the cryptocurrency space. BlockFi is a lending and borrowing platform for crypto assets, whereas FTX is a cryptocurrency derivatives exchange that offers futures and options trading. Both companies offer different services and have different target audiences. BlockFi was geared towards individual investors looking to earn interest on their crypto holdings or take out loans, while FTX targeted more experienced traders who are interested in derivatives trading.
Both platforms filed for bankruptcy last year. However, customers are yet to access their funds.

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