Sunday, January 12, 2020

How to set up a BlockFi Interest Account (with screenshots)

So you want to earn the disgusting high interest rates on USD and take on crypto custodial risks? You have come to the right place my friend. (see post for how I am doing this, but for 1000 ETH)

Here's the quickie version for all those big brain bois that need minimal G hand holding.

Here's how to do it:

Step 0: Register your BlockFi account with my referral link

Step 1a: log into your verified Circle account and submit a "Tokenize USD" request

Step 1b: use DBS overseas to send the matching deposit request in USD to Circle

*USD deposit is usually confirmed by Circle usually within 24 hours on weekdays*

Step 2: in BlockFi, find out your BlockFi USDC address (Deposit  > Select USDC)

Step 2b: in Circle, paste in your BlockFi USDC address and transfer out your USD as USDC to Blockfi

Step 3: USDC is deposited into BlockFi, and you earn interests monthly
(screenshot of my GUSD balance, since USDC only just launched)

Step 4a: in Circle, locate your USDC deposit address under "Transfer USDC In"

Step 4b: in BlockFi, go withdraw your USDC back to Circle (Withdraw  > Select USDC)

Step 5: "Redeem USDC" which sends back USD to your bank account

Step 6: money appear back in your local bank account

What are the risks? Plenty of them, mainly custodial related. When you sign up for your Circle and BlockFi account, there's a whole section on risks that you're probably not going to read and just agree to, but they are there. Don't be a lazy shit. Go and read them.

Also, since I am NOT BlockFi or Circle customer support, I'll probably ignore any stupid or lazy comments.

I hope this guide was helpful as a REFERENCE.

At the end of the day, it's your money, your choices, and you clicking all the buttons. You better damn well know what you are doing and what risks you are taking!

Thursday, January 9, 2020

BlockFi now let's you earn 8.6% pa in USDC!

Remember my last post about a week ago when I did my Dec 2019 interest update, that I was saying that USDC should be coming as a deposit option very soon for BlockFi?

Well, it's here!

I just wanted to make a quick post to inform people about it. You can check the rates here.

I plan to write a much more comprehensive post later in the future, but I'll give you the rundown.

GUSD has always been a BlockFi option, but GUSD is a dying USD stablecoin. GUSD has a marketcap of less than $5M USD, which is ridiculously pitiful! USDC on the other hand has a marketcap of over $450M USD. So, much larger marketcap, widely accepted as a stablecoin on many platforms, and it is a very viable alternative to DAI in the DeFi sphere. If all those words mean nothing to you, then oh well.

USDC is a fiat-redeemable stablecoin. This means that you wire actual USD to a company, they receive it and keep your USD safe, and issue your IOU tokens to collect back your USD, and those tokens are called USDC.

So you can use these USDC as if it is USD, and earn 8.6% interest on platforms like BlockFi, and then you can send the USDC back to the company, and request for the USD to be sent back to your bank account.

I have done this several times. It works for me, and I love it.

You know what's better than a stable, fast, digital money? A stable, fast, digital money that can help you earn 8.6% a year!

Anyway, USDC is great. I have some lying around here and there. I am considering depositing some USDC into BlockFi and eat those delicious delicious interest rates which get paid out monthly, with no lock-up. Yes, no lock-up. This is NOT a fixed deposit account. It's an interest savings account.

So if you're interested, sign up with my referral link.

With USDC finally released, I am thinking of doing a very detailed and comprehensive guide to explain stablecoins, the BlockFi platform, the deposit process and the withdrawal process. For people who don't want the crazy volatility of crypto investments like Bitcoin or Ethereum, I actually think that earning interests with stablecoins is a pretty straightforward and simple way to get a massive yield pick up, while being taking on very minor risks (by my own assessment).

I'll probably make an entirely new page and sticky in blog posts. I'm thinking of this as the contents:
- Stablecoins, what and why?
- The different type of stablecoins
- Crypto lending and borrowing (and the risks)
- BlockFi as a crypto lending platform (and the risks)
- How to send USD and get USDC
- How to use USDC to earn interests in BlockFi
- How to withdraw USDC from BlockFi to get SGD in your bank account
- The future of crypto lending and borrowing

As of now, those are the ROUGH posts that I am thinking of doing.

As you can see, I really would rather prefer on slowly EDUCATING people on what I AM PERSONALLY doing and how I do it. If you want to do it too, then great, at least you can refer to my guide and hopefully not mess up.

Please do let me know if you have any suggestions or questions regarding my new series of posts that I have planned.

Remember, there are no stupid questions! Only stupid people asking them! Lol, just kidding. Please, ask away!

Wednesday, January 8, 2020

PSA that you probably don't have the stones for crypto

*actually drafted this out yesterday, but I seem to have forgotten to post it

Recently, I have been getting a few messages from readers.

Many were curious about SNX, since that has been the biggest driver of return to my portfolio.

Look at SNX today.


-42.5% dump.

Some people might shit themselves seeing a move like that. But this is crypto, and moves like that happen all the time.

In all my correspondence with readers that have reached out to me, I purposely make it a point to stress like 2-3 times that crypto is extremely complicated, and SNX is one of the most difficult crypto out there to understand.

If you can't even understand Bitcoin, it is impossible to understand SNX.

1st week into 2020, and SNX already got rekt, almost being sliced in half since its high just a while ago.

Crypto is volatile and dangerous.

If you guys do not know what is going on and have no clue what you are doing, please, do NOT try your hand at crypto, you will be massacred.

I'm still long and strong though, and I have quite high hopes for SNX and RUNE for this year.

In other news, I'm still a millionaire, so no worries. Haha.

Friday, January 3, 2020

Collecting my Crypto Interests (Dec 2019) on my $170,000 account

It's that time of the month again. Sorry I am late, I was busy at the start of the month.

I'll try to follow the same format as last month, but of course with the updated figures.

Since the start of Dec, BlockFi actually has not done anything fundamentally different from the previous month.

However, I would like to clarify that the $10,000 daily trading limit on the platform across the different currencies actually carry 0% fees, so it is a perfect place to rebalance crypto!

Here's the rates, which are the same as the previous month.

6.2% for up to 10 BTC.
4.1% for up to 1000 ETH.
8.6% with not limits for GUSD.

Simple and straightforward.

Since my 1000 ETH balance last month was not deposited on the 1st day of the month, mathematically my expected interest is lower than the "perfect" 4.1% x 1000 / 12 of 3.416 ETH interest.

Here is the actual interest payment for the month of Dec.

2.916 ETH at today's current rate is ~$500 SGD. Kind of shit, but hey the price of ETH has been shit lately, so that's to be expected, haha!

I must say, the upgraded interface is a lot more pleasant to look at, more modern and professional.

One thing that I did mention last month is that I am planning to fill up my 10 BTC limit as well. So since my ETH in my Blockfi account in excess of 1000 ETH is earning only 0.5%, I decided to convert the excess to BTC so that BTC can earn 6.2% instead. So here we go, a solid 1000 ETH balance. Well, except the conversion engine was slightly a bit shit and the rate moved while I was doing the conversion, so I have to deal with this fugly ass 999.966 ETH balance instead. Lol, oh well.

$126,435 USD is about $170,000 SGD.

Anyway, that move to convert excess ETH to BTC means I get a nice 5.7% yield pickup while also "diverisfying" away from my heavy ETH position. In absolute dollar returns over a long period, this early conversion to BTC might actually lower my returns, but as an isolated portfolio, I think it is fine. It's nice to mentally know that I am working towards building a "capital base" of 10 BTC / 1000 ETH and I that I may one day possibly just live off the interests. And mind you, what I have here in BlockFi is but a small portion of my total portfolio.

The worst thing about this strategy so far is of course crypto just naturally being a shit. ETH price has collapsed from $180+ USD to about $120+ USD today. Oh well, what can you do about it? Does the volatility surprise you? Welcome to crypto.

Of course, the workaround to this is to farm and eat the ridiculously high 8.6% yields in GUSD and not worry about the volatility. In fact, I have very reliable information that USDC will be available as a deposit and interest option in Blockfi soon. I think USDC deposits is a fantastic idea, and I will probably do that as well.

Initially, I was not very appreciative of the new trading interface that Blockfi had launched. However, I think I was thinking about it the wrong way. The trading interface is more to allow users to rebalance their portfolio, especially management of the interests. If you want to convert a sizeable chunk of your portfolio from one asset to another, you should probably use an actual exchange for that.

With USDC coming, I am looking forward to the time when I can "forward" all my interests from BTC/ETH collected for the month, and convert it to USDC to actually drawn down for my expenses.

Of course, this is front running a future feature, so I guess when it does get finally integrated, I'm going to be doing a long post about how you can get money into Blockfi to earn the high yield on stablecoins, and also how you can get it out. It is stupid if you can only put money in, but you don't know how to take it anyway.

Anyway, if you have idle BTC and ETH just sitting around in exchanges or your hardware wallet, and you don't mind assuming some custodial risks for interests, then this is my ref link if you wanna be a degen like me. Or if you're smart enough to navigate into GUSD before the release of USDC and prefer that instead, then power to you.

There's lots of risk in leaving your money with a custodian. This goes even for the traditional finance space. If humji please don't do. BlockFi tomorrow run road, what will I do? Just move on with life lor. Lan lan suck thumb, what can I do? So please don't put all your eggs into one basket. This is simple and basic risk management.

That is all. I am currently thinking of making a Blockfi series because I think it is the most actionable thing that people would want to do, and also because I have a ref link (yes, obviously I am driven also by personal interests, but hell I am a happy customer, as you can see above lol).

I know many people are hesitant to buy volatile crypto to earn 4-6% but possibly lose much much more. If you don't already own crypto, that is probably a stupid thing to do.

But I also know that there are many people who are scratching their heads about how to earn 8% in USD stablecoins, and honestly I think that using BlockFi is a perfectly good strategy if you understand the risks involved and are willing to assume it.