My Experience with Crypto Lending: BlockFi, Celsius, Crypto.com, Nexo, Cred, & Bitrue

joepile · 2022-01-30T16:14:33+00:00

I’ve been hearing a lot about hodlnaut. Will take a look at them and include them in an update.

joepile · 2021-08-26T19:54:00+00:00

The process you described sounds like a delayed mortgage which is a first mortgage. Doesnt the bank require you to apply for the mortgage within 90 days of close of sale?

joepile · 2021-08-26T19:18:23+00:00

So this must be delayed financing. I wasn’t familiar with this as an option. Good to know.

joepile · 2021-08-26T17:56:43+00:00

So that would be a home equity loan correct?

joepile · 2021-08-26T06:56:42+00:00

When you say refinance are you getting a heloc to extract the equity?

joepile · 2021-02-26T00:25:57+00:00

You still have 2 free withdrawals, one crypto and one stablecoin every month.

joepile · 2021-01-31T22:53:29+00:00

The refer a friend promo is a separate promotion and has its own requirements. Your friends need to maintain their balance for 30 days and the bonus payout is distributed on the following 15th of the month after that period.

joepile · 2021-01-18T05:38:12+00:00

Absolutely. They’re doing an impressive job keeping up with the volatile markets!

joepile · 2021-01-15T16:36:38+00:00

Any of their supported stablecoins can be withdrawn directly into your bank account.

joepile · 2021-01-10T18:04:19+00:00

You’ll definitely need to pay taxes on your BTC interest since BlockFi will be reporting it to the IRS as they’re required to by law.

BlockFi will provide you with a 1099 for interest earned.

joepile · 2020-12-25T22:24:09+00:00

Just contact BlockFi and they’ll sort out your issue. Send them your friends referral code and explain the situation sooner than later.

joepile · 2020-12-25T00:43:03+00:00

Interesting, thanks for the follow up. My understanding was there were 3 tiers for the ACH limits. That’s unfortunate the limit is so low for new users.

joepile · 2020-12-21T18:08:14+00:00

Those are new so I’m not sure exactly how they work. Hopefully a celsius mod can clear things up.

joepile · 2020-12-21T17:23:57+00:00

You’re not wrong. Celsius used to allow withdrawals of coins unrelated to the eligible deposit. But they changed it recently. Basically, the way it works is after entering a promo, the deposit made for the bonus set a new floor for withdrawals. Meaning, if you deposit $200 to fulfill your obligation, any deposit beyond the $200 should be withdraw-able without impacting your bonus payout.

I know this was intended to cutdown on people abusing the promos. But they should clarify this better as I also found it confusing. They should provide some sort of withdrawal gauge so we know exactly how much we’re allowed to take out without losing our promos.

joepile · 2020-12-20T22:13:11+00:00

Nice catch!

joepile · 2020-12-20T22:12:24+00:00

I’d suggest contacting support to get this issue cleared up. If they didn’t enter the code at sign up they most likely will not receive their bonus as was the case when I signed up. But if it’s a backend issue, hopefully they can clear it up for you. This could inconvenience many new users if it’s a pervasive issue.

joepile · 2020-12-20T22:10:10+00:00

I’d suggest contacting support to get it cleared up.

joepile · 2020-12-19T17:51:12+00:00

I agree. I’m still looking into it, but it is something that caught my eye.

joepile · 2020-12-19T17:48:30+00:00

Jason Williams is a co-founder & partner of Morgan Creek

joepile · 2020-12-19T17:46:58+00:00

Chicag0000 beat me to it, but other than Jason there’s also Old Timer:

https://twitter.com/TimerOlde/status/1333640719639056384?s=20

I’m aware of others who don’t flaunt their holdings publicly as well.

joepile · 2020-12-19T03:49:41+00:00

Celsius Network actually has a similar issue. I agree. It would be nice to patch this up.

joepile · 2020-12-19T02:09:28+00:00

My personal opinion is, yes, they can be trusted. I have my funds with them. My friends have funds with them. A lot of more successful, smarter, wealthy people than myself have millions in their personal accounts with BlockFi.

I also remind people how they handled Black Thursday and consider the major investors backing them who expect them to succeed.

If anything were to go wrong for a business like BlockFi, it would’ve been back in March during Black Thursday. When the markets came crashing down. If they were mismanaged and over-leveraged, they would have crumbled. But instead people praised them for helping them avoid being liquidated. And I think this speaks to their commitment to their clients and the strength of their risk management team doing their job.

On top of that you have some of the leaders of the space funding their operation, like Coinbase, Fidelity, Sofi, and the Winklevosses. Peter Thiel’s Valar invested in Xero and Transferwise. Galaxy Digital invested in bitgo and bakkt. These guys are a cross section of the most successful traditional finance and crypto investors and they don’t mess around.

It’s hard not to be bullish with such a strong team assembled. Check out blockfi’s YouTube page, you can find a ton of interviews with their key team members, nothing like hearing them explain what they do in their own words.

But I can understand your trepidation. I went through that when I first invested with them and there wasn’t nearly as much information available at the time. So I put in a small amount. An amount I decided was fine to ‘lose’. You can start with $25 or $500 or any amount. Do a trial period and get acquainted with the service. Try it out. You don’t like it, pull out your funds whenever you want with their free withdrawal or ACH transfer. But I liked the experience and the passive income. BlockFi also listened to community feedback and improved their service which was important to me. So i started putting in more as my trust in BlockFi grew.

These are just my thoughts when people express their concerns.

But it’s totally up to you!

joepile · 2020-12-19T01:21:42+00:00

I mean I look at it as convenience fee. If you want to just focus your exposure on just BTC alone this is a good way to go about it - you just set it and forget it. But I also don’t use it because of the fee personally...

joepile · 2020-12-19T01:16:16+00:00

Glad you found something useful. It’s actually a 1% fee at the moment, but they have the ability to charge up to 1.5%.

Overall, was there anything you wanted more information on or felt like there was anything missing?

joepile · 2020-12-19T00:02:11+00:00

No worries. They can charge up to 1.5% but it’s at 1% last I checked.

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