Last update: Jun 28, 2022

BlockFi Review

BlockFi is a breakout company providing low-cost, simple application solutions to financial growth in the crypto industry. To find out if BlockFi is right for you, consider the following facts in our BlockFi review.

  • BlockFi


    1. Operating Since 2017
    2. Currencies Supported 6+ cryptocurrencies
    3. Fees Varies
    4. Deposit Methods Bank transfers, wire transfers, etc.
    5. Fiat Currencies No
    6. Verification Methods 2FA
    7. Margin Trading Yes
    8. Futures Trading Yes

BlockFi Explained

Whether you are a relatively new or long-time investor in BitCoin or other forms of cryptocurrency, you may wonder how to attain financial growth. It can be hard to see growth and change in your cryptocurrency investment aside from directly investing more money, and standard crypto storage methods don’t build wealth.

BlockFi is the first digital cryptocurrency platform and financial institution of its kind. It specifically offers cryptocurrency growth options starting with interest accounts and growing to include loans, trades, and credit cards. Growth services through BlockFi are open worldwide across multiple crypto platforms with interest rates and earning potential often exceeding most standard U.S. dollar accounts.

Compared to Decentralized Finance (DeFi), BlockFi can use its own equity capital to hedge great volatility when risk signals flash. The exchange’s flagship finance product was their BlockFi Interest Account (BIA), which enables users to earn compound interest on digital assets like BTC, ETH, PAXG, GUSD, USDT, LTC, and USDC.

BlockFi History

BlockFi is a cryptocurrency custodian that enables its users to take out USD loans against their digital assets. Zac Prince and Flori Marquez established the company in August 2017 and is based in Jersy City, New Jersey.

BlockFi is a professional U.S.-based digital assets company formed in 2017 by a team of wealth management investors with extensive experience in the global financial lending market. They developed a system allowing investors to use cryptocurrency and stablecoins to secure traditional fiat currency loans. This option saves investors from withdrawing their digital currency to create cash flow to support a specific need.

Supported Assets

Dozens and dozens of new crypto assets have emerged in the digital market since the inception of BitCoin, and more continue to develop every day. BlockFi does not support all cryptocurrencies or stablecoins, primarily due to customer usage and asset history. But BlockFi supports the industry-leading cryptocurrency and stablecoin exchange mediums, including those found below.

Cryptocurrencies 

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Chainlink (LINK)
  • Paxos Standard (PAX)
  • PAX Gold (PAXG)
  • Litecoin (LTC)

Stablecoins 

  • Gemini dollar (GUSD)
  • Tether (USDt)
  • USD coin (USDC)
  • Binance (BUSD)
  • Dai (DAI)

Participation and Transaction Costs

BlockFi is a transaction and investor-friendly company. They do not charge minimum deposit or transaction fees, allowing members to manage their portfolios without additional expenses. They also offer a free withdrawal of funds once a month. A single withdrawal in a month does not incur a fee or penalty; however, subsequent withdrawals in the same month do.

The fee on subsequent withdrawals is higher than many other crypto wallets. However, it is possible to minimize costs by consolidating the number of withdrawals made each month. The amount of the withdrawal fees depends on the currency. There is no minimum balance or maximum amount required to open or maintain a BlockFi account.

Savings and Interest-Earning Accounts

A BlockFi interest account is a crypto storage method for interest-earning savings accounts. Investors open savings accounts at specified rates, which may vary monthly. Interest is then accrued monthly and deposited directly into each member’s account. This monthly payout and immediate return mean that the interest earned is compounded each month, making BlockFi one of the most profitable passive income resources.

Savings account investors can elect to receive and convert their interest into varying types of cryptocurrency. This option means that the interest earned does not have to be paid out using the same currency platform that initially made the interest. This option is a part of an interest payment flex plan, and investors can change the type of currency at any time.

This interest-bearing account stores coins that you have purchased or deposited on the exchange. It functions in the same way as a traditional savings account or investment account. The main difference is that any money you deposit in a bank account will be protected against loss of funds by FDIC Insurance. SIPC insurance would also protect any cash in a brokerage account. These protections are not available if your savings are deposited into a BlockFi interest account (BIA).

There is a withdrawal limit of one withdrawal per month for crypto and one withdrawal per month for stablecoin. Each withdrawal will be subject to a fee. Automatic transfers can be made to any Plaid-connected bank account. This allows you to securely transfer data from and to your bank via apps.

A business account or corporate account can be set up. This account functions in the same manner as an individual BlockFi interest account, but it is under the name of the entity. You will need additional documentation and to be verified, it takes longer. After you submit your application, a member from BlockFi’s compliance department will reach out to you to assist with the remainder of the sign up process.

Average Interest Per Currency

BlockFi has very attractive interest rates that vary depending on the type of cryptocurrency and market values. Our BlockFi review shows that in some cases, interest account holders can earn up to 4.5% APY on their cryptocurrency, depending on how much they have held on the trading platform.

  • BTC: 0.25 – 4.5% APY (Tiered)
  • ETH: 0.25 – 4.5% APY (Tiered)
  • LTC: 3% APY
  • LINK: 5.5% APY
  • Stablecoins: 7.5% APY
  • PAXG: 2% APY

How Does BlockFi Crypto-Backed BlockFi Loans Works?

Unfortunately, not everything individuals do has advanced to supporting crypto services. Sometimes, members need standard USD as a cash flow to fund other projects, investments, and services. As an independently owned lending platform, BlockFi offers members an opportunity to take out a cash loan backed by their cryptocurrency as collateral. This option allows member-owned cryptocurrency to remain stored in their BlockFi savings accounts, continuing to earn interest.

When crypto investors sell crypto, they have to report any gains earned on their taxes. The option to borrow eliminates this tax requirement, and interest on the loan could be tax-deductible, saving additional money.

Crypto loans are an appealing option to many customers considering a BlockFi review of services. The origination fee to cover the cost of processing the loan is a low 2%, with interest rates falling between 4.5% and 9.75%. Currently, any loans requested require backing and collateral of cryptocurrency held within BlockFi, equal to 50% of the loan amount. Approved loan requests receive available funds on the day of the request.

BlockFi loans can be used to finance major purchases, refinance or pay down a mortgage.

To back the loan, you must use crypto assets. The loan-to-value ratio (LTV) must be at least 50%. This means that your collateral must equal at least half of the amount you owe. You can borrow USD, GUSD or USDC and also put up collateral in Bitcoin or Ethereum.

To receive your loan, you will pay a 2% origination charge and interest rates between 4.5% to 9.75% depending on your LTV.

BlockFi Trading

In addition to taking out loans, BlockFi offers members unlimited fee-free trading of cryptocurrencies. This cost-saving option allows members to manage their crypto portfolios while diversifying and expanding their crypto footprint.

Funds held in BlockFi interest accounts can purchase cryptocurrency through the BlockFi cryptocurrency exchange. There may be some trading limits based on account size, but there are no trading fees associated with this kind of trading. Any crypto purchased begins earning interest through your interest account immediately.

BlockFi also allows instant trading among multiple crypto platforms with investments from another crypto wallet. Additionally, it offers recurring automatic trades either daily, weekly, or monthly to allow continuous growth.

BlockFi and Visa Rewards

Following the same idea that allows members to request standard USD loans backed by cryptocurrency, Bitcoin and BlockFi have partnered with Visa to offer a rewards credit card that earns cashback rewards paid out in crypto. This cashback is paid directly to a member’s BlockFi savings account, where it can immediately begin accruing interest.

Traditionally, credit card holders earn cashback at 1.5% of all money charged to the rewards card. With spending greater than $50,000 or more in a year, active credit card users increase to a reward rate of 2% cashback on all purchases made.

This BlockFi rewards credit card charges no annual fees and no foreign transaction fees. Our BlockFi review indicates that it is one of the most competitive Bitcoin rewards or crypto rewards credit cards.

Is BlockFi a Safe Interest-Earning Option?

Since its formation, BlockFi has received financial support and backing from highly accredited financial institutions such as Morgan Creek, Galaxy Digital, Susquehanna, Coinbase Ventures, and Valar Ventures, to name a few. BlockFi investments and practices are U.S. government and cyber security regulated.

It is one of few cryptocurrency exchange providers based in the United States. Its custodian, Gemini, is regulated by the New York State Department of Financial Services.

Regulations governing BlockFi exist across 48 U.S. states, with rules and policies varying from state to state. Services can be limited in some states. Approximately 95% of BlockFi funds are managed and held by Gemini, a New York-based investment firm. Gemini serves as the managing trust company to protect the security of member investments.

As with any financial institution, some individuals seek to take advantage and illegally steal funds. Attempts to hack into BlockFi investments and accounts are handled and prevented by advanced digital security systems able to obtain bank-like security levels to protect every investor. BlockFi offers two-factor authentication methods to gain access, and to date, no financial or privacy data losses have occurred.

Customer Support Team

Live customer service support is available during regular business hours, Monday through Friday. Additional customer support is available via email tickets with an average response time of two days.

Pros

There are several benefits to investing in a BlockFi account identified above. These include the fact that BlockFi is:

  • Available around the world
  • Regulated
  • Free crypto fees
  • Offers direct ACH deposits
  • Open to instant cryptocurrency trading
  • Considered one of the best high-interest cryptocurrency savings accounts in the world.

Cons

There are also a few drawbacks to investing in a BlockFi account. These include:

  • Unprotected savings (unlike traditional banking institutions)
  • No joint account options
  • Only one free monthly withdrawal
  • Varying and uncertain loan rates
  • Does not allow users to buy crypto with a credit or debit card.

Changing the Future of Cryptocurrency

BlockFi was initially developed for those with existing cryptocurrencies and significant portfolio sizes to obtain a method of crypto storage that provided passive financial growth. It has become one of the fastest ways to earn passive income on cryptocurrencies. BlockFi allows members to invest or deposit money from any platform, including other existing digital wallets.

With changes in the use, types, and support of crypto, BlockFi has developed options to allow new cryptocurrency users to obtain a BlockFi account. With the option to wire transfer funds from standard USD accounts to a BlockFi account, beginners and new investors can instantly purchase stablecoins, store them in an interest savings account, and begin earning passive income immediately.

BlockFi is famous across the globe with no real competition as far as interest-earning and lending are concerned. With so many options available to new and existing cryptocurrency users, BlockFi attempts to change an industry previously considered unstable. Growth opportunities are increasing along with the ability to diversify.

BlockFi as an Option

There is a lot to consider regarding an interest-earning savings account through BlockFi, and BlockFi may not be what everyone is looking for in crypto holdings.

BlockFi is primarily for anyone desiring to open an interest-earning savings account. BlockFi is best used for trading, earning interest, and taking out crypto-backed loans. BlockFi might be a good option if you:

  • are willing to accept state and federal level regulations to add security to your investment
  • want to earn interest
  • want crypto-backed loans to save from reporting interest gains via crypto sales

Anyone looking to continue traditional crypto trading, selling, and buying, without an interest account, can do so through various well-established platforms that handle crypto exchanges.

The basics of cryptocurrency are not something most people understand just yet. It is complex and requires a lot of time to get to know the facts and options. BlockFi can help make your crypto investment profitable, but only once you’ve learned how it works.

If you are new to cryptocurrency, consider learning about crypto basics before venturing into interest-earning accounts. Once ready for an interest-earning crypto account, consider this BlockFi review thoroughly, carefully evaluate current market values and interest rates, and determine your short and long-term financial growth goals.

Overall, regardless if you are native cryptocurrency user or just curious enough to start trading or investing to improve your personal finance, BlockFi seeks to bring institutional-grade financial products to the crypto space that often face restricted access. BlockFi strives to bring crypto enthusiasts low-cost, simple applications designed to maximize the potential of crypto assets. It’s perfect for you if you want easy access to portfolio-backed loans to maintain liquidity without having to incur capital gains taxes.

BlockFi Crypto Exchange Review for Australia

BlockFi is a cryptocurrency blockchain that enables advanced crypto traders to trade. BlockFi has more than 1 million verified users, and it holds over $10 billion of assets

BlockFi’s products are well-received by users of the platform. BlockFi’s cryptocurrency exchange also offers low-interest loans and a crypto rewards card. You can also earn up to 8.8% APY with an interest-bearing bank account.

BlockFi was founded in 2017 and is based in Jersey City, NJ. The company’s primary goal is to expand banking access in areas that have not been served by traditional banking services. BlockFi is a global company that employs over 800 people since its inception.

BlockFi has 13 digital assets that can be purchased and many other useful products. It could be a great option for advanced crypto traders.

BlockFi provides an online dashboard as well as mobile apps for iOS and Android. BlockFi trading is easy and intuitive. Users who wish to make a trade on their desktop would simply go to the table at top of the screen and select the assets they want to trade.

A BlockFi Interest Account allows users to create recurring trades. Trades can be scheduled to happen daily, weekly, on the first or 15th of each month, or any other time. BlockFi’s recurring trades feature is what makes it stand out from its competitors.

The trading experience is simple for people who are familiar with financial apps and online brokerage accounts.

BlockFi’s fees are slightly different from many other exchanges that often charge simple maker/taker fees. BlockFi doesn’t charge trading fees but it does charge withdrawal fees. It also imposes withdrawal limits. You can withdraw one time per month with certain assets. For all other assets, however, you’ll be charged a fee per withdrawal. For more information, see BlockFi’s fee schedule.

BlockFi uses a variety of security measures to protect its users and the platform. Users will be required to prove their identity in order to prevent fraud on BlockFi. You will need to present a government-issued photo ID and some basic information in order to verify your identity. BlockFi offers two-factor authentication as an option, which protects user accounts. Two-factor authentication is an option, but it is not mandatory.

BlockFi keeps its funds in cold stock together with its partners, Gemini included. Cold storage is when assets are kept in storage that is not connected to the internet. This makes them more secure.

It is easy to open a BlockFi Account. BlockFi will ask for personal information, such as your legal name and address. To trade on the platform you will need to pass the KYC and identity verification process. It’s a good idea for BlockFi to have your photo ID handy to save time.

BlockFi provides a variety of customer support options, including the ability submit tickets, chat with chatbots, and calling a representative. Customers who need help or have questions can use this option. BlockFi’s help centre can be accessed by users to find answers to most common questions.

At this moment, it is unclear which ADA-specific services are currently available. The BlockFi Loan borrowers have their own portal to communicate with the loan department.

It can be confusing to choose which crypto exchange to use. There are many options. There are many companies that look a lot like BlockFi, such as Coinbase, Nexo, Crypto.com, and Uphold.

Users don’t have to stick to one platform. They may choose to use multiple platforms in order to gain access to unique features on each.

Users looking for a cryptocurrency exchange with unique features such as crypto-backed loans and a crypto rewards card may find BlockFi a good choice. It’s important that you are aware of the difficulties customers have had with slow customer service and longer withdrawal times.

For a list of well-established Australian crypto exchange platforms, click here.

BlockFi Crypto Exchange Review for Canada

BlockFi is an ecosystem of cryptocurrency for advanced crypto traders. It boasts over 1,000,000 verified users and more than $10 billion in assets

BlockFi users may be impressed by the variety of products offered by this platform. BlockFi also has crypto exchange. It offers low-interest loans, crypto rewards credit cards, and interest-bearing accounts that can earn you up to 8% APY.

BlockFi was established in 2017 and is located in Jersey City. BlockFi’s primary mission was to provide banking services in places that traditional banking services haven’t. BlockFi, which was founded in 2007, has grown to be a global business with more than 800 employees.

BlockFi has 13 available digital assets and many useful products. BlockFi could be an excellent option for advanced cryptocurrency traders.

BlockFi offers an online dashboard, as well mobile apps for iOS or Android. BlockFi makes trading easy and intuitive. To make a simple trade from their desktop computer, they would use the table at the top and select the assets that they wish to trade.

Customers with a BlockFi interest account can set up recurring trading. Trades can either be scheduled daily, weekly or every first, 15th, or both. BlockFi stands out from the rest because of its recurring trades.

For those who have used financial apps or online brokerage accounts, trading is easy.

BlockFi’s fee schedule differs from other exchanges which charge straightforward taker/maker fees. BlockFi does NOT charge trading fees. However, it charges withdrawal fees and imposes withdrawal limitations. For certain assets, you can get one free monthly withdrawal. You will have to pay a fee for each withdrawal if you have other assets. BlockFi’s full fee schedule provides more details.

BlockFi has several security protocols in place for both users and platforms. BlockFi users must verify their identity to avoid fraudulent activity. To verify your identity, you will need to submit a government-issued photograph ID along with basic personal information. BlockFi also offers optional 2-factor authentication to protect user accounts. While two-factor authentication may not be required for users at the moment, it is recommended.

BlockFi’s funds are kept in cold store along with its partners including Gemini. Cold storage refers to assets that are not connected to an internet connection, which makes them generally more secure.

BlockFi accounts are easy to open. BlockFi requires personal information like your legal name, address and country of residence. You will need to verify your identity before you can trade on the platform. To save time, it is a good idea if you have a photo ID.

The BlockFi platform offers several options for customer service, including the ability of submitting a ticket, contacting a representative by phone or chat with a bot. This option is great for customers who have any questions or require assistance. BlockFi’s help desk can also be accessed to provide answers to common questions.

It is not known which ADA-specific services users have access to at the moment. Borrowers of BlockFi Loans have access to a separate portal where they can speak to the loan department.

You may find it difficult to decide which company you should use. BlockFi is actually a combination of several companies, including Coinbase uphold, Gemini and Binance.

Users do not have to choose one platform. Instead, they can use several platforms to access different features.

For users looking for an innovative cryptocurrency exchange, BlockFi could be a good option. It offers unique features, such as crypto-backed loan, crypto rewards credit card and intuitive user interface. But even after this review, you don’t feel like giving BlockFi a shot, don’t worry, here’s our guide for the best crypto platform similar to BlockFi in Canada.

BlockFi Crypto Exchange Review for UK

BlockFi provides a complete ecosystem for advanced cryptocurrency traders. It boasts more than 1,000,000 verified users with over $10 Billion in assets

BlockFi may offer a wide range of products to its users. BlockFi has a crypto currency and offers low interest loans, a cryptocurrency rewards credit card and an interest bearing account that allows you to earn as much as 8% APY.

BlockFi was founded 2017 in Jersey City. This company has the primary mission to improve access to banking resources in areas where traditional banking services are not available. BlockFi was established in 2005 and has since grown to include over 800 employees.

BlockFi provides 13 digital assets for purchase as well as a variety of useful products. This could be a good choice for advanced crypto traders.

BlockFi has an online dashboard and apps for Android and iOS. BlockFi’s trading platform is very intuitive and easy to use. If you want to make a quick trade, go to your desktop and click on the table.

With a BlockFi Interest account, users can also set up recurring trades. Trades can set up to occur daily or weekly, as well as on the 1st, 15th or 15th each month. BlockFi’s recurring trading feature sets it apart from other competitors.

If you are comfortable using financial apps, or an online brokerage account, trading can be straightforward.

BlockFi has a fee schedule that is slightly different to many exchanges. Many of these exchanges charge simple maker/taker charges. BlockFi does not charge trading fee, but does charge withdrawal fees. There are also withdrawal limits. Certain assets allow you to withdraw up to one month free of charge. With other assets, you will only be able to withdraw one time per month. BlockFi’s complete fee schedule has more details.

BlockFi implements a number of security features for its platform and users. BlockFi requires users to verify their identity before they can create an account. This is done in order prevent any fraudulent activity. To do this, you will need a government-issued ID photo and basic personal information. BlockFi also offers optional two factor authentication that helps protect user accounts. Although two-factor authentication does not currently exist, it is highly recommended.

BlockFi shares its funds with Gemini in Cold Storage. Cold storage is where assets are stored in storage that isn’t connected to the Internet, making them generally safer.

BlockFi is very easy to set up. BlockFi asks for personal information such your legal name. Address and country of residency. To trade on the Platform, you will need an identity verification process. Therefore, it is a good idea that you have your photo ID ready to go.

BlockFi offers customer support in a number of ways. You can submit a ticket or contact a representative via phone. Or chat with a chatbot. This service is available to customers who need help or have specific questions. BlockFi’s help section is also available for customers who need assistance.

Users are not able to access ADA-specific services at the moment. A separate portal is available to BlockFi Loan borrowers that allows them to contact the loan department.

It may seem difficult to know why one crypto exchange is better than another. BlockFi can actually be compared to several other companies like Coinbase Uphold Gemini or Binance.

Users don’t need to be limited to one platform. In fact, they may prefer to use multiple platforms to access specific features.

Users who are looking for a cryptocurrency platform that provides unique features and products, such as crypto backed loans, a rewards credit card with crypto, and an intuitive user interface, may consider BlockFi.

So, will you try BlockFi? If not, don’t worry, there are still similar UK-based crypto platforms out there. Here’s a list of the best crypto exchanges to trade digital assets in UK.

Frequently Asked Questions

Is there a BlockFi mobile app?

Yes. BlockFi has developed a mobile app available for Android and iOS. However, it continues to update its features due to customer requests and complaints.

BlockFi is available worldwide, but does that mean every country?

Although you can invest in and use your BlockFi worldwide, not all countries qualify as sanctioned to work with BlockFi financially. Visit BlockFi website (blockfi.com) for more info.

Do you need to have a crypto interest account?

You do not have to have an interest account. BlockFi wallet is also a crypto wallet and crypto exchange that offers financing options to trade crypto or take out crypto-backed loans.

 

 

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author Marco Vela

A crypto obssessed digital marketer passionate about making a difference in the world. When he's not behind the computer he can be found hiking, camping and relaxing with his dog.