blockfi sending eth there for interest gains?

[jimlaman8]

im still a tad new to all this, i've been mining eth and i have almost a full eth so far, but i noticed that you can get 4-5% apy on eth by sending it over to blockfi.

Any reason to NOT do this?  Is it stuck there permanently in some way or limited on when / how soon you can withdraw if you need to quickly?

Or is blockfi typically used by most (i was planning on ultimately moving things to a ledger that i ordered), wondering what everyone does in this situation?

Thanks in advance

[mk4]

Any reason to NOT do this?

The same reason why people don't like leaving funds on exchanges— because of the risks of hacks and such, and the distaste of giving a company total control over your funds. I'm personally not a fan, but it's totally up to you if you think the 4-10% APY is worth the risk.

Is it stuck there permanently in some way or limited on when / how soon you can withdraw if you need to quickly?

As far as I know, you can withdraw any time from Blockfi.

[TryNinja]

im still a tad new to all this, i've been mining eth and i have almost a full eth so far, but i noticed that you can get 4-5% apy on eth by sending it over to blockfi.

Honestly, don't. If you want to stake your ETH, how about using lido.fi or another ETH2 staking solution? Right now, Lido is offering 5.7% and, AFAIK, they are the top 2 "staking pool" on the entire network with over 334k ETH. You can swap sETH to ETH quite easily through Curve, so there is no lockup.

Any reason to NOT do this?  Is it stuck there permanently in some way or limited on when / how soon you can withdraw if you need to quickly?

BlockFi is known for taking a bit to process withdrawals. They may or may not ask you to send them a verification selfie and they may or may not delay your withdrawals. They also don't process them on the weekends or holidays.

They are also entirely centralized, so you're risking your coins since they could get hacked, freeze your account, etc... better to go with a trustless solution (in the case of ETH).

[Bitcoin_Arena]

Custodial service would be a no-go area for me when it comes to staking but the problem is most of the noncustodial services do require a minimum of 32 ETH

What if you wake up one day and blockfi are gone with your ETH? 

This list might not be updated, you can look through it for any alternatives

https://stake.fish/en/ethereum/services/

This discussion ight be helpful too
- https://www.reddit.com/r/ethstaker/comments/k62si1/has_anyone_done_a_review_of_all_in_one_non/

[OgNasty]

I’ve got ETH staked at Coinbase earning 6%. It feels as safe as can be for me, but I don’t hold a large % of my crypto portfolio in ETH so it doesn’t bother me much having it on an exchange. Plus, it had to be locked into ETH2 with no way to trade it, so not even I could steal it from myself until they unlock ETH2 for trading. That along with Coinbase being flush with cash from their recent IPO makes me think there is no safer place my ETH could be right now.

[cmg777]

im still a tad new to all this, i've been mining eth and i have almost a full eth so far, but i noticed that you can get 4-5% apy on eth by sending it over to blockfi.

Any reason to NOT do this?  Is it stuck there permanently in some way or limited on when / how soon you can withdraw if you need to quickly?

Or is blockfi typically used by most (i was planning on ultimately moving things to a ledger that i ordered), wondering what everyone does in this situation?

Thanks in advance

BlockFi has reduced their interest rates for ETH and have others said they have reduced their rates below 5%. They do take some time to withdrawal funds more so than Nexo for instance and this can be taken as "what if they get hacked or exit scam"? See the link below for more information about the security of Blockfi as I doubt they would be hacked and if so then they would have to pay out the FED stamps to you (and hopefully some crypto) worst case.

https://coincentral.com/blockfi-review/

I would consider going with Nexo as they pay a higher interest rate if you lock in your funds for one month (5%) or if you leave your funds in there for quick withdrawals at a steady 4% (they sometimes send your crypto into a slower withdrawal fee which makes it take longer). So you could keep up 15 ETH at BlockFi for a 4.5% and anything higher move to Nexo. There is Celcius (I think they are a bit shady founder gave a bunch of their CEL token to his wife they seem like BitConnect 2.0). I'm experimenting with Voyager but they have withdrawal limits of $25000 (FED Stamps) per day. What I don't like about Voyager and Celcius is you have to have a Mac or Android just to use them as their platforms are in the app stores with no native web presence.


You could use the ETH staking services if you don't trust any of these as Bitcoin_Arena pointed out. Or if you have 32 ETH just stake them yourself.

[hugeblack]

There are many Altcoin systems that have trusted POS which give you an annual return equivalent to 5% with the possibility of making profits if the price of the currency rises.

The second thing is that we are in a rising market that is about to reach its ATH meaning that locking your currencies now for 10% will be considered a waste of time, wait until we reach ATH and then you can lock your currencies because the price will be fairly stable during the coming years.

[joniboini]

I'm not a fan of them, I'd rather participate in P2P lending through the forum or a platform. The risk might be greater, but the rewards/interest is worth it. For example, you can find 5% fixed interest on yield.credit with collateral where you can claim if the borrower defaulted. But the fee on ETH is not really friendly right now to do anything meaningful.

[Quickseller]

Any reason to NOT do this?

The same reason why people don't like leaving funds on exchanges— because of the risks of hacks and such, and the distaste of giving a company total control over your funds. I'm personally not a fan, but it's totally up to you if you think the 4-10% APY is worth the risk.

Whenever interest is being paid on anything, be it crypto, stablecoin, or dollars, (unless it is some kind of ponzi), the reason you are receiving interest is because the entity you are depositing to is lending out your asset to borrowers, who in turn pay interest to company you deposited your assets with. This means that in addition to the risk of loss due to things like hacks, there is the risk that too many borrowers will default on their obligations, and there will not be enough money to payout your deposit plus the interest you are due.

The above is what happened to poloniex. I am surprised this doesn't happen more often, given the volatility of crypto markets.

[Insanerman]

Any reason to NOT do this?  Is it stuck there permanently in some way or limited on when / how soon you can withdraw if you need to quickly?

If you value your ETH and you worked for it for a long time with your maximum effort, then do not send your ETH on such platforms. Also, just upon sending it, you would already spend approx 200USD just for the transaction fee, which is possibly equivalent to your one year hold return if you continue staking it on BlockFi. I would just suggest you hodl it. AFAIK if it were ETH staking, it sometimes takes 3-7 days to withdraw after you unstake it depending on the platform's staking rules. Lastly, ETH staking isn't really profitable as ETH itself is not made to have an allocation for Staking programs, you might as well consider using it to stake other altcoins that has higher APY if you are onto making profits than being onto long term holding.