Loans

Diversifying Investment Portfolio with a Loan

Published, 17 September, 2020

One of the more popular things we see BlockFi clients doing with their crypto asset-backed loans is diversifying their investments. By investing in a variety of assets, you set yourself up to receive the highest return for the minimum amount of risk. Typically, investors purchase a mixture of stocks, fixed income products, and commodities. Blockchain and crypto provide a completely new portfolio of financial products available for investment.

Diversification is often considered the safest investment strategy because it spreads your risk over different asset classes. BlockFi clients range from real estate investors to crypto traders.

Diversifying Investments with a Crypto Loan – Real Estate

Whether you’re a first-time home-buyer or looking at commercial real estate opportunities, the future value of a property has big implications on your purchase decision. But before you reach that stage, most investors need to obtain a mortgage.

A lot of time and resources go into obtaining a loan from a bank. And if you claim cryptocurrency assets on your application, a bank is more likely to turn you down, preventing the opportunity to obtain financing for portfolio diversification. And, after purchasing the property, it becomes much easier to get a loan from a bank, since you already own the equity in the property.

Click here to learn more about investing in real estate with BlockFi.

Buying Stocks with a Crypto Backed Loan

For many investors, obtaining capital to increase their stock positions is always a challenge. This is especially true for crypto asset investors. Now that the Blockchain ecosystem also offers the ability to long and short assets, there are even more financial products to take advantage of.

With BlockFi, you can leverage your crypto holdings towards a USD loan, meaning that you don’t have to sell and actualize your capital gains to access the liquidity of your investment portfolio. Not only does a BlockFi loan not count as a taxable event, but the interest paid can often be written off when tax season comes around. Nifty right?

Click here for more information on how a BlockFi loan works.

Investing with a Business Loan

A popular way to put your money to work is by investing in a business. Whether it’s a local business or a family start-up, putting money into a business is a great way to diversify your investments with a loan.

Many business owners turn to BlockFi to help with their business. Some of our ICO clients turn to us for funding payroll for their employees in USD. Other companies, such as businesses that accept cryptocurrency as payment, look to BlockFi to help fund their business expansion. Whatever your need, we can help you leverage your crypto holdings without having to give up the potential future upside potential of your assets.

At BlockFi, we understand the frustration that comes with obtaining funding for investment opportunities. Our team of lending professionals work closely with clients to make sure that they’re getting the best possible rates. The best part? It takes less than 2 minutes to apply.

If you have any questions about BlockFi or how our loans work, please visit our contact us page. We love hearing from you.

Last updated on August 8th, 2022

As of February 14, 2022, the BlockFi Interest Account (BIA) is no longer available to new clients who are US persons or persons located in the US and existing US clients with BIA accounts are unable to transfer new assets to their BIAs. Learn More.

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Digital currency is not legal tender, is not backed by the government, and crypto accounts held with BlockFi are not subject to FDIC or SIPC protections. Digital currency values are not static and fluctuate due to market changes. Not all products and services are available in all geographic areas and are subject to applicable terms and conditions. Eligibility for particular products and services is subject to final determination by BlockFi. Rates for BlockFi products are subject to change.

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