Twitter | Starter Pack | Reddit | YouTube | Patreon | Website | Earn $250 in Promos
Disclaimer: Nothing in this report constitutes investment advice—I am just reporting on my accounts and its progress on each platform. You should not use this report to make financial decisions. I recommend you seek professional advice from someone who is authorized to provide investment advice.
Hey everyone and welcome to the HODLer’s Den!
Here you will find information on my crypto investment portfolio straight from a HODLer’s perspective. This section will focus on HODLing cryptos and interest-earning platforms.
BlockFi
Updates
BlockFi Interest Account (BIA) Rates Update
Once again we see BlockFi updating rates across the entire platform with massive decreases in APR (Annual Percentage Rate).
Bitcoin (BTC) and Ethereum (ETH) now have three tiers of earning while the rest of the assets have two tiers.
The entire earning system is getting complicated and it might hinder new users from coming to the platform.
I understand the need for the tier system but there needs to be a limit or cap on the number of tiers.
You can view the updated rates using the Interest Rate Tracker and see the tiered rates below:
BlockFi Adds 3 New Assets
Users can now earn interest on Basic Attention Token (BAT), Multi-collateral Dai (DAI), and Uniswap (UNI).
Again, you can check out the rates using the Interest Rate Tracker linked above.
DAI is currently the highest yielding asset on BlockFi, but it feels like a promotional rate so take advantage while you can.
BlockFi Rewards Credit Card
The long-awaited credit card from BlockFi is finally here but the excitement for such a card has cooled off because competitors have advertised better benefits compared to BlockFi.
Regardless, BlockFi currently has first mover advantage and it might help them edge out the competition if they play their cards right.
Features of the credit card include paying bills with stabelcoin, earning flex rewards, being able to add authorized users, exclusive card partnerships for bigger bonuses, digital wallet compatible, and mobile tracking of card usage.
With that said, the BlockFi credit card is launching first for US clients on the wait list.
Interest Earned
It has been 4 weeks since the last BlockFi report and during that time my portfolio lost roughly 330 USD in total interest paid. I track my progress with each lending platform using a Google Spreadsheet.
Bitcoin (BTC) is currently at 33.9k USD while Ethereum (ETH) is at 2129 USD. Both of these assets make a majority of my BlockFi portfolio and it is clearly reflected in my portfolio. Both of these assets have pulled back recently and they both have a strong impact on my interest earnings.
However, as a HODLer a market correction allows me to accumulate and compound my earnings so I can usually ignore market conditions.
Conclusion & Prospect
While I see progress in BlockFi because it added 3 assets to the platform, the decrease in interest payment rates and expanded tier system are troublesome. For example, users earn 4% on the first 0.25 BTC which is basically nothing when compared to other CeFi platforms. If you do the math at current prices, holding 0.25 BTC at 4% nets you 340 USD every year which comes out to less than 1 USD per day.
I think having two tiers for each asset is fine, but having three or more tiers makes it difficult and complicated for users. As a HODLer, I need to be able to quickly assess the best platform to place my holdings to earn the best yields possible. Regardless, BlockFi is a godsend when compared to traditional banks where 0.1% APR is considered a “high interest/yield” earning account. I will still continue to use BlockFi but I will only keep enough funds to utilize the first one or two tiers on each asset.
In my last report, I moved BTC from BlockFi to Ledn to take advantage of the 6.1% APR for up to 2 BTC. I am moving over more BTC to Ledn now that the BlockFi updated the tier one for BTC to only 0.25 BTC. You can use C1S’s referral link to sign up with Ledn for a 25 USDC bonus. Ledn is backed by Coinbase but currently only accepts deposits of Bitcoin (BTC) or USD Coin (USDC). If Ledn accepted ETH, I would move some over as well.
I am waiting on the credit card from Celsius Network and Gemini before I make my decision on which is the best. Given Celsius Network’s record for being user- and community-oriented, I am leaning towards their credit card. I also have assets earning on Celsius Network so the stakes are higher.
Since BlockFi is first to launch a crypto credit card they have the edge against their competitors. Hopefully we get positive reviews from BlockFi credit card users which should get more investors onto the platform.
What I Am Doing
This section is dedicated to paid subscribers as I will go into details of what moves I am making with my interest-earning portfolios.
You are currently reading the Free Version. If you would like more information, please consider switching to a paid subscription.
Each week I will report on a different interest-earning platform that I use—mainly, Celsius Network, Bitrue, Crypto.com, and BlockFi.
If you are new to crypto or have considered joining new platforms, check out the Starter Pack created by CryptoOneStop by clicking here or if you want to earn over 250 USD in referral bonuses then click here.