Best BlockFi Review

BlockFi is at the cutting edge with other best crypto savings account. It is equally beneficial both for native crypto users and beginner curious investors. Because of the lower overheads of this trading and lending platform, now you can earn up to 8.6% annually. BlockFi has announced raising over $50 million in Series C funding and now it is raising a Series D funding at a $2.85 billion pre-money valuation. It is also looking to raise $150M before the launch of a new credit card product and public market debut. Now, don’t worry about your loans and investment plans as you can manage them successfully with BlockFi. Here is our BlockFi review.

BlockFi is a fintech brand established in 2017. BlockFi brings often restricted-to-access institutional-class financial products to crypto markets. As compared to its competitors, this cryptocurrency banking and mobile wallet offer no tokens and ICO (Initial Coin Offering) and functions like a normal bank account allowing you to treat your savings as an interest-growing account.

BlockFi is all about financial products including crypto-based interest accounts with an annual profit of up to 8.6% on bitcoin, ether, and stablecoins. There is also a crypto-backed loan service with access to up to 50% convertible to cash assets’ value in USD and zero-fee trading. You can manage your wealth well through digital asset investments.

The company’s goal is to render credit services to the markets with confined access to financial products. Its diversified approach enables the clients to earn interest, borrow money, and trade crypto. It is here to fill up the crack between cryptocurrencies and conventional financial products while turning crypto treasures more useful and beneficial for its holders. Now, you can achieve your financial goals by considering your crypto assets as collateral and can gain profit from backing by fiscal giants like Fidelity and SoFi.

blockfi review
BlockFi review

Who is BlockFi Best for?

  • Beginner investors
  • Intermediate investors
  • Retirees
  • Young investors
  • Low minimums
  • Smartphone users

BlockFi is endorsed by well-reputed financial institutions and billionaire investors like Coinbase, Winklevoss Capital, Fidelity, Hashkey, Mike Novogratz’s Galaxy Digital, Peter Thiel’s Valar, Kenetic Capital, Castle Island Ventures, and more.

BlockFi suggests ‘‘never invest more than you can afford to lose”. If you are a crypto fringe or a crypto native client and own your bitcoin, don’t let your coins sit idly and lend them for more profit. BlockFi is the best platform to take your crypto assets to the next level. With BlockFi borrow, lend, and trade your crypto at one dashboard.

How Does BlockFi Work?

Many crypto bearers do not invest their digital assets into business and keep them frozen, so they are unable to get immediate profit. BlockFi enables such crypto holders to earn steady interest.

BlockFi works with other institutional parties in financial transactions or contracts and offers them liquidity. BlockFi is a spread business platform that makes money by borrowing capital at a certain rate, this is the interest rates it gives to its users and lends it at higher rates i.e. the interest rates it offers for loans (BTC/ETH/GUSD loans). The borrowers are Traders, Over the counter market makers (OTC), and Other Business Organizations that need cryptocurrency to give their clients liquidity.

BlockFi Features

No Minimum Balance

There is no set account minimum for BlockFi accounts. If you want to withdraw any amount your interest account is dependent on the withdrawal minimum set by the custodial agent of BlockFi namely Gemini. And your withdrawal request is under a 30-day waiting process if you do not have sufficient balance as set by Gemini.

Membership and Trading is Free

You can join BlockFi without paying any fee because its membership is fee-less and BlockFi does not charge any amount when you open a BlockFi Interest Account. The same is the cost-free process for trading. Only Crypto-Backed Loans cost you money and you have to pay a low interest when you borrow, but this could be compensated easily as returns are high when you invest the loan money in assets.

blockfi trade
blockfi trade

Breeze to Use

If you are knowledgeable in crypto and trading, BlockFi promises ease of use. The website’s interface is user-friendly and its mobile app centers on managing your loans, trades, and interest account. Now, manage your crypto, earn interest, trade or borrow from your smartphone wherever you go.

Tried and True Financial Products

No matter you are a crypto native, crypto fringe, or crypto curious client, BlockFi’s interest accounts and credit services are here to soothe your needs.

Institutional Backing

BlockFi is the only financial services company with institutional backing at its scale. This cryptocurrency exchange helps you earn interest on your deposits with the best savings account rate of over 8X. Don’t waste your coins when the market is down as you can get a loan against them. Moreover, BlockFi shields its clients by accommodating US law and financial regulations.

Refer-A-Friend Program

BlockFi functions uniquely to provide individuals credit services with quality benefits which other crypto platforms are unable to offer. Its referral program lets its clients earn more. All you need is to have a BlockFi account. Once you are signed-in, just touch the button “Refer A Friend”, you will get a link i.e. BlockFi referral code to share with your friends and earn up to $20 for each successful referral.

BlockFi Referral Code for February 2021 was PARTNER250. The depositing amount doesn’t matter with BlockFi. New users with a depositing amount of over $20,000 would receive a $250 BTC bonus and if you have only a little deposit of $25, you can still get a BTC bonus.

BlockFi Referral CodeUse exclusive BlockFi code: PARTNER250
BlockFi BTC BonusUp to $250 BTC Bonus
BTC Bonus ChartDeposit $25-$249 – $15 BTC
Deposit $250-$999 – $20 BTC
Deposit $1,000-$4,999 – $40 BTC
Deposit $5,000-$9,999 – $75 BTC
Deposit $10,000-$19,999 – $150 BTC
Deposit $20,000+ – $250 BTC
RequirementsAvailable for all US (except NY, CT). One free withdrawal per month.
Last VerifiedFebruary 2021

Bonus Offers

BlockFi promotes its users with various bonuses which they offer repeatedly. One example with no expiration date is that the new clients can make up to a $250 BTC bonus if they succeed in creating qualifying deposits within the first 30 days of opening.

BlockFi Products

Interest Account

Do you have cryptocurrencies in your wallet? and having no idea of selling them, put them in BIA and earn up to 8.6% interest on stablecoins and up to 6% on BTC. This whole procedure is closer to earn interest from the traditional savings account. BIA (BlockFi Interest Account) is free to use and there is no minimum balance required at all.

Follow 3 simple steps to open an interesting account.

  1. Enter your information
  2. Fund your account with crypto
  3. Get monthly interest in cryptocurrency you like i.e. Bitcoin, Ether or Stablecoin
  4. You also earn compound interest

BlockFi’s interest calculator provides you with the idea of your earning on a certain crypto balance within a certain period. Rest assured that your assets and data are safe with BlockFi lock and key.

Have a look at the table below.

CurrencyAmount  APY
BTC (Tier 1)0 – 2.56%
BTC (Tier 2)˃2.53.2%
ETH˃05.25%
LTC˃05.0%
USDC˃08.6%
CUSD˃08.6%
PAX˃08.6%
PAXG˃04%
USDT˃09.3%

Last Verified February 2021

BlockFi holds the opportunity for you to earn 8.6% annual return interest with its Interest Account if you have $10,000 worth of stablecoins in your BlockFi Interest Account. So you can expect to get up to $860 after a year.

Another unique characteristic of the BlockFi Interest Account is that you don’t need to buy new coins as you can conveniently diversify your crypto assets. With your BIA you are allowed to get the interest in any of the offered currencies. For example, you can get your interest paid in BTC without considering how you deposited whether it was BTC, ETH, or USDC.

If you are new to the crypto world, you can buy crypto directly through wire transfer with BlockFi. Its registration is simple and quite easy and it is the right entry point you are looking for as a crypto curious client. BlockFi supports the most popular cryptos available i.e. Bitcoin, Ethereum, Litecoin, USDC, GUSD, Tether, PAXG, and PAX, so you can earn competitive compound interest rates on all these cryptocurrencies.

BlockFi withdrawal fees are flat and are deducted from the total withdrawal amount. One withdrawal is free once a month.

BlockFi Loans

BlockFi helps you get cash without having to sell your cryptocurrency. This is the relaxed liquidity of your crypto assets as you can borrow up to 50% of the value of your crypto (LTV) and the loan rates are as low as 4.5%. The lowest possible loan amount is $5,000 and the loan duration is 12 months mostly. When the LTV (loan-to-value) reaches a trigger event (70%), you will get a notification (margin call) from BlockFi. You will have 72 hours to bring the LTV down to 50% by adding more collateral or paying the loan balance.

You can use these loans to invest in more crypto assets to optimize your portfolio. Applying for a BlockFi loan is quite simple and fast. Just fill in the loan application form and you will get a loan offer within 24 hours when once your application is reviewed by BlockFi. Origination fees may be charged.

Loan eligibility demands:

  1. Cryptocurrency worth $15,000 or more
  2. No bankruptcy record
  3. Must be over eighteen
  4. Not living in a US-sanctioned country or watch list
  5. Not from EU, NY, or Washington
blockfi loan
blockfi loan

BlockFi Trading Account

BlockFi trading account is without any hidden fees, flexible and best for quick and streamlined trading. Start trading once your account receives funds and you can easily trade in all the popular cryptocurrencies of your choice e.g. BTC, ETH, LTC, USDC, and GUSD. Just select the currency you want to trade-in and experience the benefits of this seamless trading. Once you accomplish a trade successfully, your deposited amount will start generating interest. You can raise your interest-earning by buying low and selling high as BlockFi allows you to trade with any deposited currency to different crypto.

Bitcoin Rewards Credit Card

BlockFi is going to launch ever first credit card in the crypto ecosystem which is already replete with debit cards. This would enable you to use the card for everyday spending as the card is a premium visa card and is designed to spend dollars but the rewards will be in bitcoin. $200 is set as the annual fee for the card and for the first year the clients with $3,000 expenditure will get a stipend of $250 in the first quarter.

BlockFi Fees

Interest Account Fees

BlockFi is free for BIA (BlockFi Interest Account) when it comes to account maintenance, deposits, or investment services related to BIA with one free withdrawal per month. The later withdrawal fee charges depend on the currency withdrawn. Wire transfer is also free of cost, but there may be bank charges.

BlockFi Interest Account Fees

ServiceFee
Account OpeningFree
Account ClosingFree
Crypto DepositsFree
Bank DepositsFree
InactivityFree
MaintenanceFree

Deposit Fees

BlockFi crypto and fiat deposits are fee-less. Fiat deposits are also free of charge when they are converted to Gemini Dollar (GUSD) stablecoins. BlockFi does not support credit and debit card top-up. Another feature of free-of-charge BIA is that USD wire transfers are free of any charges, but a handling and conversion fee may be charged by your bank.

BlockFi Withdrawal Fees

WithdrawalFee
First Monthly WithdrawalFree
BTC0.0025 BTC
ETH0.0015 ETH
LTC0.0025 LTC
PAX0.25 PAX
USDC0.25 USDC
GUSD0.25 GUSD

BlockFi Interest Account also allows you to make a withdrawal of your digital funds as USD by selling them back and requesting a wire transfer of the converted amount. However, the wire withdrawal fee is not mentioned on the website.

BlockFi Loan Fees and Interest Rates

BlockFi loans are available with a 4.5% interest rate with a 12-month repayment duration, but the actual interest rates focus on the loan amount, your credit card history, and your location. To process the loan application, there is an origination fee of 2%. So, the total annual loan cost starts at 6.5%. BlockFi loan product offers three tiers of loans grounded on an LTV ratio.

50% LTV35% LTV20% LTV
9.75%7.9%4.5%
2% Origination fee2% Origination fee2% Origination fee

Withdrawal Fees

The following table is to help you consider BlockFi withdrawal fees and limits.

CurrencyLimitFees
BTC100 per 7-day Period0.0025 BTC
ETH5K per 7-day Period0.0015 ETH
LTC10K per 7-day Period0.0025 LTC
Stablecoins1M per 7-Period$0.25 USD

BlockFi Competitors

BlockFi is supported by Gemini as its primary custodian, and it is regulated in 25 US states. It is legitimate and one of the fastest-growing crypto lending companies. BlockFi is authorized by 30 US regulators to function officially. You can confirm the licenses on their website. BlockFi is backed by big investors such as Fidelity, Coinbase, and Valar Ventures. However, BlockFi is not completely risk-free as crypto interest accounts are not covered by FDIC, SIPC, or any other similar insurance. So, the safety of your funds depends entirely on the company.

Other Competitors to BlockFi

BlockFi and Crypto

BlockFi and OnDeck

BlockFi and Lendio

BlockFi and Avant

BlockFi and Creditas

BlockFi and YouHodler

BlockFi and CoinLoan

BlockFi and Hodlnaut

BlockFi and Argent

BlockFi and MyConstant

BlockFi and SALT

BlockFi and Kava

8.3 Total Score
BlockFi Review Summary/Decisive Point

BlockFi is a trusted wealth management platform, regulated by the New York Department of Financial Services. BlockFi is an impressive competitor in the crypto ecosystem. Cryptocurrency deposits are secure as they are held by Gemini Trust Company. Investors can get high annual compound interest i.e. 8.6%. Registration is simple and easy and it is used around the world with minimal geographic restrictions.

Fees
9.5
Trading
7
Support
7.5
Loans
8.5
Trust
9
PROS
  • General
  • Licenses from 30 US regulators
  • User-friendly interface
  • Easy navigation
  • Two-factor verification
  • Whitelisting
  • Account summary
  • Downloadable reports (tax and earning)
  • Mobile App with biometric authentication
  • BIA (BlockFi Interest Account)
  • Interest on Deposits: BlockFi offers competitive interest rates on deposits
  • Flex Payment: You can diversify your portfolio by choosing the Flex Payment plan and
  • receiving interest in a different asset than your deposit
  • Custodian: Gemini is the Primary Custodian of BlockFi
  • Borrowers: Institutional firms are BlockFi’s borrowers
  • Backing: BlockFi is backed by venture capital firms
  • Supported Currencies: Bitcoin, Ethereum, Litecoin – Crypto
  • USD-backed Paxos Standard, USD Coin, Geminin USD – Stablecoin
  • BlockFi Loan
  • Availability: BlockFi loans are obtainable within 2 hours of applying
  • Collateral Crypto Assets: BlockFi offers USD or Stablecoin loans by considering Crypto Assets as Collateral
  • No Specific Requirement: You can easily apply for a loan from BlockFi as there is no credit check or income requirement
  • BlockFi Trading
  • No hidden fees
  • Easy trading in all popular cryptocurrencies
  • No external exchange and redeposit
CONS
  • General
  • Customer service is not available 24/7
  • BlockFi account is unavailable in some US states and sanctioned countries
  • BlockFi website does not offer multi-lingual support
  • Value is only displayed in USD
  • It is difficult to find some features on the mobile app
  • BlockFi mobile app is without a live-chat option
  • Specific
  • Interest accounts are not insured by FDIC or SIPC
  • Collateral options: BlockFi accepts only BTC, ETH, and LTC as collateral
  • Loan term: BlockFi’s loan term is mostly limited to 12 months
  • Minimum loan amount: BlockFi starts giving loan at $5,000
  • LTV (loan-to-value): BlockFi’s loan to value ratio is low: 50%
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