Introduction-
Scams are present everywhere, and so exist in the crypto market. If you are on the way to invest in the crypto market, make sure you are investing with the right company. The number of these crytpo scams is being increased daily, leaving the investor’s funds at a riskier place. Scammers are finding new ways every day to steal your money using cryptocurrency. Let’s have a look at one of the most popular crypto exchanges, BlockFi, and whether it is a legit or scam.
What is BlockFi –
BlockFi was founded in 2017 with the objective of offering credit services to markets. It offered restricted access to financial products. BlockFi claims to be a team of professional experts with deep knowledge of financial services and technology. Their website mentioned some of their core values as Pragmatic pioneering, transparency builds trust, Individual effort-collective Success, etc. BlockFi is said to be connecting traditional finance and blockchain technology. This is because of the financial empowerment offered to clients on a global scale.
The products offered by BlockFi are BlockFi interest accounts (BIA), Trading Accounts, Crypto-backed loans. However, it does not offer any joint or custodial accounts. Making it one of the drawbacks of BlockFi. Adding to this, interest accounts offer limited free withdrawals. If you are planning to trade your crypto assets at a regular interval, then you will have to pay a small amount or no fee at all. But, if you are planning for frequent trades, fees could add up quickly. Also, interest rates are flexible and can change anytime. The cryptocurrencies offered by them to trade are BTC, ETH, LTC, UNI, BAT, PAX, GUSD, USDC, BUSD, LINK, PAXG, BUSD & USDT. This comes with limited options as other platforms offer a larger variety. But it is not mandatory that every country will have the privilege to access these services offered by BlockFi leading to some BlockFi scams.
Some resources suggest that BlockFi is a trustworthy company regulated by federal and state-level within the USA and New York State Department of Financial Services. The other drawbacks include the APY and loan rate volatility plus your saving are not protected against bank failure. In order to earn interest, you need to pass the KYC test. If you are someone who prefers keeping your identity hidden and private, then it is difficult for you to trust this platform. The numerous benefits are stated in BlockFi’s websites but reading about the limitations and drawbacks, there seem to be potential BlockFi scams.
Is BlockFi a Legit or Scam?
A large number of platforms are available for crypto trading. The crypto exchange, being an unregulated space, is quite difficult to trust this platform as there is no assurance of the company acting in the users’ best interest. Several crypto trading platforms have been indulged in crypto scams and other illegal activities. Some of the reports state the data breach in May 2020 where the marketing database holding customer information was impacted. However, they made clear that no funds were lost. It is always advisable to do crypto trading with a good crypto exchange and a good history.
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