Most long-term investors in the cryptocurrency market focus on keeping their Bitcoin (BTC) in cold wallets. This provides them with security and the knowledge that only they have access to it. This obviously involves making money during a bull market, but at the same time reducing the value of the asset during a downturn. However, there are solutions that mean you can make money from cryptocurrencies regardless of the stage of the cycle you are currently in. These are, of course, loans.
How you can lend and borrow Bitcoin (BTC)
First of all, it is important to mention that loans are part of the standard financial system. In order for the world of crypto-assets, which aims at a kind of decentralization and liberation of finances, to function fully, platforms that provide loans have been created. There are many such platforms on the market. One of the most popular and trusted is Blockfi.com. It is an application created in 2017, based in New York. Thanks to the services provided by Blockfi’s developers, we are able to both borrow cryptocurrencies from other market participants and feed liquidity pools so that it is borrowed from us. The platform provides access to many cryptocurrencies, the most popular of which is of course Bitcoin.
Bitcoin Interest Account
Earning through Blockfi is very simple and begins as soon as you deposit your crypto funds. By holding Bitcoin in the app, we can earn a regular monthly return. As we mentioned earlier, it absolutely does not matter if we are in a bull market or a bull market. We can earn throughout the year. If you are interested in what the exact rate of return is, we encourage you to visit the official website of the service provider and read the details. These figures can fluctuate from time to time, so it is best to check with the source. But importantly, the amounts are a few percent, making the Blockfi interest account a much better way to earn money than traditional banks offer through their savings accounts.
Drawing down Bitcoin loans
Since it is possible to add funds, give liquidity to the market and earn interest, of course cryptocurrencies can also be used to borrow cash for your own needs. This process is also done within the app, and it takes no longer than 24 hours to grant funds. To obtain such a loan, 50% of the borrowed funds must first be deposited as collateral for our transaction. The duration of the loan period is 12 months and the interest rate is just 4.5%. However, it is important to note that these values can be variable, and therefore, as with the interest account, we encourage you to read the exact terms and conditions directly on the Blockfi.com platform.
Is it worth using?
The Blockfi platform gives you the possibility of earning, regardless of the period you are in, which makes it a very interesting and quite safe way of getting regular income from the cryptocurrency market. The owner of the application declares to make every effort to ensure that the funds accumulated in Blockfi are as well protected as possible. This allows us to focus on constantly increasing our crypto resources. Obtaining loans is equally interesting. The only risk we bear is the funds we have deposited. However, it should be remembered that they are only a security in case of our insolvency.
