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How to Use BlockFi: The Beginner‘s Ultimate Guide

Introduction

Hi there! As a leading crypto financial services company, BlockFi offers an innovative way for crypto investors like yourself to earn interest, borrow, and trade using your holdings.

Founded in 2017, BlockFi has experienced massive growth in assets and users. By Q4 2022, over 1 million clients stored over $20 billion in assets on the platform!

As a crypto industry expert and BlockFi user for over 2 years, I‘ve seen firsthand how powerful these products can be. So let me walk you through everything step-by-step. We‘ll explore:

  • Earning passive income on your crypto
  • Unlocking liquidity via crypto-backed loans
  • Trading top cryptos 24/7
  • Tips to manage your BlockFi account

Sound good? Let‘s get started!

Creating Your BlockFi Account

First things first, you‘ll need to create your free BlockFi account…

  1. Go to BlockFi.com and click "Get Started"

  2. Enter your name, email address and create a password

  3. Apply referral code: ebaebea5 to get a $250 Bitcoin bonus

  4. Accept terms and conditions

  5. Click Submit

You‘ll then provide some personal details so BlockFi can verify your identity…

  • Date of birth
  • Phone number
  • Residential address
  • Government ID info
  • Source of funds

Identity verification ensures BlockFi meets regulatory requirements around Anti-Money Laundering (AML) and Know Your Customer (KYC) rules.

Rest assured your data is stored securely using encryption.

Verifying Your Identity

To complete identity verification, you can provide:

  • Driver‘s license
  • Passport
  • National ID card

Here‘s how it works if using a passport:

  1. Select passport as verification method

  2. Upload passport photo page

  3. Capture selfie photo holding passport

The process takes just a few minutes. Once verified, you can start earning interest, trading crypto, and borrowing funds!

Funding Your BlockFi Crypto Interest Account

Now for the fun part – depositing crypto into your BlockFi Interest Account (BIA)!

Over 1 million users store crypto on BlockFi across:

  • Bitcoin (BTC)
  • Ether (ETH)
  • Litecoin (LTC)
  • Stablecoins (USDC, USDT, more)

You can fund your account four ways:

  1. Send crypto from an exchange like Coinbase

  2. Transfer crypto from external wallets

  3. Trade supported assets directly on BlockFi

  4. Buy crypto with USD (ramp coming soon!)

I‘ll walk through sending crypto from an exchange, as it‘s the simplest option…

  1. Log into BlockFi and select Fund from menu
  2. Choose which crypto you want to deposit to see wallet address
  3. Copy the address provided
  4. Go to your external exchange and select Withdraw
  5. Paste the address and send funds

Once sent, crypto should reflect in your BIA within 1 business day. Exciting!

Earning High Crypto Interest

This is what makes BlockFi special – you can earn up to 8% interest paid monthly!

Let me break down the interest rates…

Crypto APR Up to Amount
BTC 4% 0.25 BTC
ETH 4.5% 25 ETH
GUSD, USDC 8% $30,000
USDT 6.5% $100,000

Rates do fluctuate based on market conditions and demand. But 4-6% on BTC and ETH is common.

And with stablecoins, earning 8% APY is possible! This outperforms most legacy bank savings accounts.

Interest accrues daily and is paid monthly in the asset you choose – avoiding any taxable events!

Log into your BIA anytime to view interest earnings. $720 from 0.1 BTC over 5 years? Yes please!

Borrow USD Loans Against Crypto

Now say you want to access USD funds, but don‘t want to sell crypto. This is where BlockFi crypto-backed loans come in handy!

You can unlock liquidity from gains while continuing to earn interest and upside. It‘s a win win!

Here‘s how it works:

  1. Initiate loan request from your BlockFi dashboard
  2. Select desired loan amount and terms (12-48 months)
  3. Provide KYC details for eligibility check
  4. Upon approval, funded to bank account within 2 days

For collateral, you must deposit crypto to account equal to 125% of the loan amount. This protects against market swings.

I took a small $5k loan to fund a home renovation project last year. Definitely recommend BlockFi loans over selling ETH!

Tips for Managing Your BlockFi Account

If starting out on BlockFi, keep these tips in mind:

  • Start small – No need to deposit your entire portfolio from the get go! Start with a small amount and increase over time.
  • Spot trade crypto – You can swap between assets using BlockFi‘s trading platform without fees.
  • Set repayment reminders – Avoid penalties by setting payment alerts for any loans.

Hope this gives you ideas on how to maximize BlockFi products for your needs!

The Bright Road Ahead

As one of the largest crypto financial platforms, BlockFi is poised for massive growth in 2024 and beyond by:

  • Expanding services globally, currently serving over 100+ countries
  • Adding support for growing assets like Cardano and Solana
  • Pushing innovation in web3, DeFi, and blockchain payments

With over $50 billion in assets funded and 1 million+ clients, the future looks very bright for BlockFi!

And hopefully bright for your crypto portfolio too by leveraging BlockFi‘s products to:

  • Earn high stablecoin returns of 8% APY
  • Access liquidity via low rate crypto loans
  • Save on taxes trading between cryptos
  • And growing your net worth! 🚀

Ready to Get Started?

Hope you enjoyed this in-depth beginner’s guide to maximizing BlockFi’s platform!

Ready to open your account and put your crypto to work?

Sign up on BlockFi now using the referral code ebaebea5 to get your $250 Bitcoin bonus!

Have questions or need guidance getting set up? Feel free to reach me at the email below.

Here‘s to earning, borrowing, trading, and unlocking the power of crypto! 🥂

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