Earn instant interests with Blockfi
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Get a passive income with p2p blockchain lending. Earn interests now!
Maybe you know it from your bank. You leave your money in the bank account and get interest on it. The longer the investment horizon, the more interest you receive. But this isn't true. Thats why Blockfi and decentralized banking may be the best bank alternative for 2019.
Blockfi are currently in a low-interest phase. Interest rates are currently low for the year, often in the range of less than 1% p.a..
The person who parks the Bitcoins at the institution, i.e. the creditor, receives interest for this. There are also companies in the crypto sector where you can deposit your crypto currencies such as Bitcoin or Ethereum so that the bank or the company can grant loans again.
Why Blockfi makes sense for you
How Blockfi works
These are e.g. institutions dealing with cryptos or people who need a loan for their taxes, car or real estate. What makes the whole thing interesting and secure is the fact that all people who take out a loan must offer BlockFi more collateral than they receive themselves.
For a borrower to receive e.g. 1 BTC (we take the equivalent of 5000€), he must transfer 6000€ as security. In the English one speaks here of an "overcollateralization". Often borrowers offer an increased security because they do not get a worse credit score e.g. by borrowing BTC or Euro, take advantage of tax advantages or want to fix a certain Bitcoin price. This "overcollateralization" ensures that the business model for BlockFi is risk-free and thus guarantees the success of the company.
There is no minimum investment period. The interest is paid monthly in crypto or stablecoins. This also means that you profit from the compound interest effect if you lend your cryptos for longer than one month.