BlockFi Review: Bitcoin and Crypto-Backed Loans

Over a month ago, I found the Bitcoin collateral loan product by BlockFi and decided to give it a try. Collateral loans have spiked in popularity with the latest DeFi boom in crypto. Now, everyone seems to be trying to collateralize their crypto positions to take out a loan and gain instant liquidity.

There are pros and cons to every collateral loan product - whether you’re using a centralized or decentralized protocol. BlockFi offers a professional experience and feels more like using a new-age bank than using a decentralized protocol to collateralize crypto.

With my experience in decentralized loan protocols, I decided to give a centralized loan protocol a shot and see what the pros and cons are. After using BlockFi’s loan product, I can say that there are clear reasons for using either decentralized or centralized loans. For my personal portfolio, using a mix of the two types of loan products makes perfect sense. In this episode, I explain the BlockFi loan product, how it works and the pros and cons between CeFi and DeFi.

In This Episode:

• Why get a loan
  • Liquidity Without Selling - participate in gains of your collateral + use liquidity to generate other returns
  • Tax advantages
  • Use Cases
• How the loan process works
  • General process
  • My experience
  • Interest payments and paying off the loan with your collateral
• How Much BTC Do You Need?
  • Minimum loan amount - $5,000 USD
  • Recommended LTV - 50% (so if BTC is $10k/BTC and you want a $5k loan, you should have at least 1 BTC as collateral)
• Pros and cons for CeFi
  • Customer service (professional)
  • Safety net (margin call grace period)

Sign-Up For BlockFi and get a $20 Signup Bonus* - https://blockfi.com/?ref=fd060997

Relevant Links:

• https://blockfi.com/how-to-get-a-bitcoin-loan
• https://blockfi.com/crypto-loans/
• https://blockfi.com/cryptoasset-loans
• https://blockfi.com/crypto-collateral-value
• https://twitter.com/TheRealBlockFi/status/1275875866736619520

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