Andreas M. Antonopoulos coined the phrase “Not your keys, not your bitcoin.” That’s excellent advice. Keep your bitcoin in your wallet and make sure you store the passphrase in a safe and secure place. Alas, many people manage to mess that up. They lose their passphrase, or they never even accurately wrote it down. So let’s rephrase Mister Antonopoulos his advice: “Not your keys, not your bitcoin unless you are a dumb-dumb” Being your own bank is not for everybody.
So if you’re going to use a custodial service to store your coins, it makes sense to choose a service where you get paid for it. Here BlockFi comes into the picture. They started with offering crypto backed loans and followed this up with bitcoin interest accounts. It’s not harder to use than Gmail or Facebook: sign up for a new account, and you’re ready to go. Deposit bitcoin to your BlockFi account and receive 6.2% interest APY (for balances between 0.5 and 25 BTC). That’s a pretty sweet deal. BlockFi stores their coins at Gemini, the US regulated bitcoin exchange from the Winklevoss twins, so it’s probably one of the safer places to trust your bitcoin with.
It’s also possible to deposit and earn interest on Ether. However, if you still don’t understand that you will lose all your money playing around with shitcoins; please, leave now.
So to summarize: you should absolutely NOT put all your coins in a BlockFi savings account if you have some basic understanding of how bitcoin works. However, it might make sense to put some of your bitcoin there. 6.2% APY is pretty cool. It’s paid out every month directly in bitcoin and keeps compounding over time. So you are earning bitcoin on your bitcoin. It’s also a simple but robust alternative compared to trying your luck trading on popular sites like BitMex or Binance. Albert Einstein once said that he considered compound interest the most powerful force in the universe. This quote has become a universal truth in the finance world. The medium-to-long term upside of compound interest has significant implications for investors. At BlockFi you’re not only getting compound interest, but you’re getting it in bitcoin.