Last update: Apr 25, 2022

BlockFi Review

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

  • 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

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.

BlockFi History

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 loans. This option saves investors from withdrawing their cryptocurrency to create cash flow to support a specific need.

Supported Assets

Dozens and dozens of new cryptocurrencies 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. They do, however, support 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)

Participation and Transaction Costs

BlockFi is a transaction and investor-friendly company. They do not charge 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 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 a payment flex plan, and investors can change the type of currency at any time.

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 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

Crypto-Backed Loans

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 lender, 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 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-backed 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 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 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 rewards credit card charges no annual fees and no foreign transaction fees. Our BlockFi review indicates that it is one of the most competitive crypto-earning 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.

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 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 2-factor authentication methods to gain access, and to date, no financial or privacy data losses have occurred.

Customer Support

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 of fees
  • Open to instant cryptocurrency trading

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

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, 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 cryptocurrency 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.

Frequently Asked Questions

Is there a BlockFi mobile application?

Yes. BlockFi has developed a mobile application. 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.

Do you have to have an interest account?

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

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.