The other three stablecoins are decent too, so I’m not saying GUSD and USDC is better. I also like USDC since it’s also highly regulated and established by a collaboration between Circle and Coinbase. GUSD enjoys massive support by reputable investors and the Gemini exchange was founded by Cameron and Tyler Winklevoss, billionaires originally famous for their Facebook disputewith Mark Zuckerberg. dollars held in reserve at State Street Bank and Trust Company. I chose to go with GUSD to earn interest because it’s not only pegged to the U.S. Of those, only the following are stablecoins pegged to the U.S. Which Cryptocurrencies Are Available On BlockFi?īlockFi currently supports 15 cryptocurrencies: It was created by Gemini and is widely considered the first regulated stablecoin in the world – regulated by the New York Department of Financial Services. Gemini Dollar (GUSD) is an example of a stablecoin pegged to the U.S. dollar.Įarlier, I mentioned that I converted my $20,000 into GUSD. Stablecoins are a specific type of cryptocurrency where the value is pegged to an outside asset, like the U.S. Instead, I would convert money into stablecoins only. If you’re only seeking to earn interest on your money and not invest/speculate in cryptocurrencies, I would avoid using Bitcoins and cryptocurrencies like it.Īfter all, it makes no sense to earn interest if you’re losing more money on your principal balance. You’ve probably heard how cryptocurrencies like Bitcoin have tripled in a couple of months time only to lose half of its value in short order. BlockFi is using that same concept with crypto. The difference in rates they lend out versus what they give is how banks make money. It’s sort of like a traditional bank that lends out money at a higher rate (personal loans, student loans, mortgages) than the rate they give you for holding your money (savings and checking accounts, CDs, money market). Part of that can be answered by understanding what BlockFi is – a crypto platform that lets people get loans and earn interest on cryptocurrencies. You may be curious how BlockFi can offer such attractive rates. The content on this page is accurate as of the posting date however, some of the offers mentioned may have expired. This post may contain affiliate links, meaning I get a commission at no cost to you if you decide to make a purchase through my links. The minimal increase in crypto yields do not warrant the additional risks. Ninja Note: With high-yield savings accounts offering rates not seen in over a decade, I recommend saving most of your money at these FDIC-insured accounts. I’ll go over the pros and cons from my experience earning interest with BlockFi, along with how much I’ve earned so far. If so, I’m your perfect guinea pig! I signed up for BlockFi and tested their BlockFi Interest Account to see if you can really earn that much interest on your money. You may be asking if it’s legit or what’s the catch to this. Do you want to earn interest on your money, but savings account rates are too low at banks? BlockFi may be the answer with their offer of incredibly high interest rates.
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