- 1 Interest rates are low on bank savings, high on crypto-assets
- 2 What is BlockFi?
- 3 BlockFi offers high interest rates of up to 8.6%!
- 4 Review Taikichi’s results on the smartphone app
- 5 Taikichi’s results (edited 8 days later on 7.28.2020)
- 6 Try it yourself! What to prepare?
- 7 How do you obtain your interests?
- 8 Stablecoins will not crash.
- 9 Note#1: Crypto-assets Exchange
- 10 Note#2: Opening a BlockFi account
- 11 Get Bitcoins by referring a friend (campaign !)
- 12 Don’t forget to file your taxes!
- 13 Summary
- 14 If you liked this article
Interest rates are low on bank savings, high on crypto-assets
Taikichi has exchanged some of his savings with crypto-assets, knowing he can earn more interests than from a regular savings account. Simply depositing money in a savings account at a Japanese bank, as a lot of people do, comes with an interest rate of 0.001%. This means that a million yen deposit will only increase by 10 yen after a year. However, with crypto-assets, it’s possible to earn 8,600 times that amount with the 8.6% interest rate. In other words, 1,000,000 yen will become 1,086,000 yen after a year. This is far more attractive than the yields on stocks and mutual funds. This article introduces a new crypto-asset bank called BlockFi, its high interest rates, and how to benefit from it.
What is BlockFi?
BlockFi is a bank for crypto-assets. In Japan, cryptocurrency exchanges such as BitFlyer and Coincheck are famous, but they are mainly for buying, selling, and storing crypto-assets, and basically do not offer interests.
Though Coincheck’s lending service offers up to 5% interest, you have to wait for the lending to be processed and your assets will be locked during lending. But with BlockFi, interests will be calculated from day one and you can withdraw your money at your convenience.
BlockFi offers high interest rates of up to 8.6%!
The table below shows the list of interest rates by BlockFi.
This shows that if you deposit your crypto-asset in Bitcoins (BTC) for one year, you will earn 6% interest (for up to 5 BTC). The rate is 4.5% For Ethereum (ETH), the second largest by market capitalization, and a whopping 8.6% for GUSD, a stablecoin linked to the US dollar. If you deposit your assets at an interest rate of 8.6% for 5 years, the calculation is 1.086 x 1.086 x 1.086 x 1.086 x 1.086 x 1.086 ≒ 1.51. In other words, if you deposit your assets at BlockFi and keep them there for 5 years, they will multiply by 1.5.
Review Taikichi’s results on the smartphone app
BlockFi has a smartphone app that allows users to check balances and interest rates, transfer and deposit money, and exchange with other cryptocurrencies.
Taikichi currently has $21,669.72 worth of crypto-assets on deposit, which means he earned $51.76 in interest in a month. You can see it’s a much better deal than a regular savings account.
Taikichi’s results (edited 8 days later on 7.28.2020)
7/28 – The crypto-asset prices soared, and Taikichi’s balance went up from $21,669.72 to $28,131.93. Crypto assets can be a dream come true. The one-month interest came out to be $91.48.
Try it yourself! What to prepare?
- Bank account (any account that you normally use)
- Exchange wallet (open a free account on BitMEX,BINANCE,Bitfinex etc)
- BlockFi account (open one for free)
How do you obtain your interests?
The following steps outline how you can transfer your savings to BlockFi, earn interest and withdraw.
- Transfer JPY from your bank account to a crypto exchange wallet.
- Exchange the JPY with crypto-assets (such as BTC).
- Transfer the crypto-assets from the exchange wallet to your BlockFi account.
- Just wait. Interests will be added to your balance every month.
- Transfer the crypto-assets from your BlockFi account to your exchange wallet when you want to withdrawal.
- Change the crypto-assets back to JPY at the exchange.
- Transfer the JPY from the exchange to your bank account and make a withdrawal.
Stablecoins will not crash.
Crypto-assets fluctuate in price. For that, the interest you earned may be lost if the price goes down. There is way to prevent this from happening. Change your crypto-assets into Stablecoins at BlockFi. Stablecoins are cryptocurrency based on fiat money, therefore the price is also linked to fiat currency. The price of GUSD, for example, is linked to the US dollar. If you convert your crypto-assets to GUSD in step 4 above, you can benefit from a high interest rate of 8.6% and your risk will only be that rising from USD/JPY exchange rate. The exchange risk of USD/JPY is at most about +/-10%. Even if JPY drops by 10% in its value, the 8.6% interest rate will let you get your money back after depositing it for one to two years.
※JPY→your fiat currency
Note#1: Crypto-assets Exchange
In Japan, bitFlyer and Coincheck are famous. You can open an account for free. Driver’s license is required for verification.
Note#2: Opening a BlockFi account
BlockFi is a bank based in New York. You can easily open an account from your country. You need your passport or driver’s license to verify your identity. BlockFi is an English website so I suggest you use Google translate as necessary.
Get Bitcoins by referring a friend (campaign !)
Open an account on cryptocurrency bank blockFi and get BTC worth $10.
— たいきち/オンライン薬剤師 (@taikichi_room) August 16, 2020
- access this URL→ blockfi.com/?ref=4cc93ace
- Open an account with your ID
- Remember to enter this referral code 4cc93ace
- get BTC worth $10
Don’t forget to file your taxes!
For exanple, Profits from crypto-assets are classified as miscellaneous income. In Japan, you will be required to file your taxes if you have more than 200,000 yen worth of miscellaneous income per year. I recommend you to sign up for this tax accountant service so that you can consult with them once a year.
- Ordinary savings can be a loss of opportunity. Benefit from high interest rates with BlockFi.
- Change your assets to Stablecoins that are unlikely to crash.
- Don’t forget to file your taxes if you earn more than $200,000 interest a year(if, in Japan).
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