If you think you’re going to withdraw your funds from BlockFi whenever you want, you really need to watch this video.
On BlockFi you can store your Bitcoin, Ethereum, Litcoin and many stablecoins to earn interest on them.
A far greater return than what any bank will offer you.
For example you could exchange the money you keep in your bank for stablecoins and you can earn over 8% per year in interest.
Likewise, you can earn up to 6% per year on the Bitcoin that you are holding anyway.
Celsius Network, Nexo, Crypto.com, and many others offer the same crypto landing services where they lend out your funds to third parties and repay you with interest. That’s how they manage to pay this interest back to you.
But be careful, all these platforms are not insured like your funds in the bank are. It’s possible that you’ll lose it all if things go haywire.
So you are risking 100% of your funds for some yearly interest. The cryptocurrency market is highly unregulated so you should understand the risks.
That being said, it’s still a good option to allocate a part of your portfolio to earn interest, just not all of it.
The withdrawal process is not as easy as on other platforms. For starters, you won’t be able to instantly withdraw your funds. Withdrawals are processed manually.
If you want to sell your Bitcoin you can do it straight from the website or the mobile app and that would be faster than withdrawing. The fee for selling is around 0.5% which is pretty standard.
To withdraw you’ll just go to Withdraw, Select the coins you want to get out, add the amount, select a new wallet, and paste the address of the wallet you are sending to. For extra security, you can whitelist your wallet addresses, but that will put your withdrawals on hold for 7 days. Any new address that you add won’t be usable for a week. That’s to make sure your account won’t be compromised and depleted by hackers.
To continue, Review your Withdrawal and confirm it.
There won’t be any fees at first. There is one free crypto withdrawal and one free stablecoin withdrawal per calendar month. Make more than one Bitcoin withdrawal per month and you’ll be quite the fee: 0.0025 BTC (which is around 100$ at the moment of this recording). For the other assets though the fees are all right.
At this point, you should have 2 Factor Authentication enabled for your account. But be careful, on the next screen you are not supposed to enter the 2FA code but the code you receive in your email inbox. I see boxes, I understand 2 Factor Authentication. But read the text carefully, it says ‘sent via email’.
I made the withdrawal request at 10 AM on January 4th.
I was told to expect the funds by 8 PM on January 5th. That’s more than 24 hours.
Finally click on Finish and check your email for confirmation.
However, things don’t stop here.
I received this email which said that my account was flagged for additional review and requires me to verify my identity before they can process my withdrawal.
I’m pretty sure I did the identity verification when I first opened the BlockFi account but now they want it again.
I did that right away but the account was verified only the next day, on January 5th.
4 hours later my withdrawal request was processed and complete.
That’s the whole process I had to go through to get my Bitcoin back, but it’s not all bad.
Since BlockFi has a free withdrawal every month, it could be a great idea to Dollar Cost average your Bitcoin investment while your funds are earning interest. Then once a month you can withdraw to your Trezor or Ledger or whatever safe hardware wallet you are using.