If you want to invest in cryptocurrency, you have more options than ever before.
There’s been a rise in crypto platforms that let you do more with your crypto, and BlockFi is one of them
BlockFi is a leading crypto platform that has a crypto wallet, trading platform, rewards credit card, and for non-US customers, its BlockFi Interest Account (BIA).
Our BlockFi review is covering everything you need to know about this popular crypto interest account and if it’s the right choice for you.
Important Notice: On November 10, 2022, BlockFi was forced to suspend customer withdrawals due to fallout from the FTX bankruptcy. As a result, customers aren't able to access their funds. This liquidity issue is a big red flag and we encourage customers to avoid BlockFi. As of November 28, BlockFi officially filed for bankruptcy.
Crypto Savings & Lending Platform
Up to 7.75% APY
Up to $250 Free Bitcoin
Pros And Cons
What Does It Offer?
BlockFi lets everyday investors buy, sell, lend, and borrow against their cryptocurrencies. It’s a robust platform overall, and there are several features BlockFi offers.
Interest rates are subject to change. It’s also worth noting that the highest interest rates aren’t available for more popular cryptocurrencies like Bitcoin or Ethereum.
But you can get up to 8.75% APY with the first tier of USDT, which means you can earn 8.75% APY on $20,000 worth of USDT; much better than your basic high-interest savings account.
You can also choose the cryptocurrency your interest is paid out as. This helps you diversify your portfolio. And you can always pick a coin that earns a high interest rate with BlockFi.
If you currently use another cryptocurrency exchange like Coinbase, you can also transfer your funds to your BlockFi Wallet address as long as it's a cryptocurrency or stablecoin the platform supports.
Just note that all funds held inside your BlockFi Wallet will not earn interest. If interest is what you're after, assets will need to be transferred out of your BlockFI Wallet into a BlockFi Interest Account.
Another one of BlockFi’s features is its loan offerings. BlockFi lets you leverage your cryptocurrencies to take out USD loans. If you need cash to cover a sudden emergency or fund a business venture, this lets you access capital without having to sell your crypto. The image below demonstrates who the crypto lending process works.
The minimum loan amount is $10,000, and BlockFi lets you leverage Bitcoin, Ethereum, PAXG, and LTC to take out loans. Interest rates are as low as 4.50% APY. Your specific interest rate and how much money you can borrow will depend on the value of collateral you post, or your loan-to-value (LTV) ratio.
BlockFi Loan Rates
A 20% LTV is only available for Bitcoin-backed loans of up to $20,000 USD, and rates are subject to change.
Loans originate for a 12-month term and there’s a 2% origination fee, which is a downside. If you want to avoid origination fees and borrow less than $10,000, the Celsius Network is superior to BlockFi and has lower interest rates.
BlockFi Trading Account
BlockFi Trading lets you buy, sell, and trade cryptocurrencies right on BlockFi without paying transaction fees. Currently, BlockFi supports the following cryptocurrencies and stablecoins, including:
Trade execution is instant and you start earning interest immediately.
BlockFi Rewards Visa Signature Credit Card
The BlockFi Rewards Visa Signature card lets you earn Bitcoin for everyday spending. The card is available to U.S. residents excluding residents of New York.
Currently, BlockFi’s credit card has numerous perks, including:
- Unlimited Bitcoin Back: Earn 1.5% back in Bitcoin for your first $50,000 in annual spend and 2% back in Bitcoin on annual spending over $50,000.
- Intro Bonus: Earn 3.5% back in Bitcoin for your first three months (up to $100 in Bitcoin.)
- Trading Bonus: Earn 0.25% back in Bitcoin for eligible trades (up to $500 in Bitcoin per month.)
- Fees: No annual fees or foreign transaction fees.
- Referral Program: Earn $30 in Bitcoin for referring new cardholders.
You can use this card anywhere that accepts Visa. You need a “good” to “excellent” credit score to apply. Deserve, the company that actually runs the platform that BlockFi uses for its card, also runs a hard pull on your credit score if you accept the credit card offer after applying.
It’s worth noting that BlockFi pays you with points for spending and converts those points into free Bitcoin monthly. This means you’re not earning instant Bitcoin back when you shop.
If you already have one of the best cash back credit cards, you’re likely better off using that card and then funding your BlockFi Interest Account with the money you’re saving so you earn interest immediately.
BlockFi Interest Account
Note: BlockFI Interest Account (BIA) are no longer offered to new clients who are U.S. Persons or persons located in the United States. Existing clients that are U.S. persons or located in the United States will be unable to transfer new assets to their BIAs. The BIAs have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States, to U.S. persons, for the account or benefit of a U.S. person or in any jurisdiction in which such offer would be prohibited.
BlockFi was best known for its crypto interest account. If you want to earn monthly interest on your cryptocurrencies rather than letting your holdings sit on a cryptocurrency exchange or wallet, this is what you’re looking for.
However, this account is no longer available to US-based persons.
Creating an account is free, and there isn’t a minimum balance requirement. Once you open an account, you can deposit over a dozen different cryptocurrencies and stablecoins to begin earning interest. You can also connect your bank account and deposit USD which BlockFi converts into stablecoins like USDC that’s pegged to the U.S. dollar.
BlockFi lets you earn up to 8.75% APY, and interest accrues daily and is paid monthly. Your interest rate depends on the type of cryptocurrency or stablecoin you deposit and the value of the deposit. BlockFi rates are as follows:
BlockFi Interest Rates
0 - 0.10 BTC
0.10 - 0.35 BTC
> 0.35 BTC
0 - 1.5 ETH
1.5 - 50 ETH
> 50 ETH
0 - 20 LTC
>20 - 100 LTC
> 100 LTC
0 - 100 LINK
100 - 500 LINK
> 500 LINK
USD Coin (USDC)
0 - 20,000 USDC
20,000 - 2M USDC
Gemini Dollar (GUSD)
0 - 20,000 GUSD
20,000 - 2M GUSD
Paxos Standard (PAX)
0 - 20,000 PAX
20,000 - 2M PAX
Pax Gold (PAXG)
0 - 1.5 PAXG
1.5 - 5 PAXG
> 5 PAXG
0 - 20,000 USDT
20,000 - 2M USDT
Binance USD (BUSD)
0 - 20,000 BUSD
20,000 - 2M BUSD
0 - 20,000 DAI
20,000 - 2M DAI
0 - 100 UNI
100 - 500 UNI
> 500 UNI
Basic Attention Token (BAT)
0 - 4,000 BAT
4,000 - 20,000 BAT
> 20,000 BAT
BlockFi Bonus Offer
Another BlockFi feature is it’s bonus offer of up to $250 in free Bitcoin for opening a new BlockFi Interest Account.
Currently, there are six reward tiers, and payouts vary depending on the minimum balance you maintain.
BlockFi Bitcoin Bonus
$100 - $1,499
$1,500 - $19,999
$20,000 - $39,999
$40,000 - $74,999
$75,000 - $99,999
Promotional rates are subject to change. Typically, you have to maintain the minimum balance for approximately three months to get your free Bitcoin.
Are There Any Fees?
BlockFi doesn’t charge account management fees or fees if you dip below a certain balance. But you do pay withdrawal fees and face certain withdrawal limits.
BlockFi Bitcoin Bonus
Since Gemini is the primary custodian for BlockFi, withdrawal minimums are subject to Gemini’s requirements of 0.003 Bitcoin and 0.056 ETH. Smaller withdrawals are still possible but take up to 30 days to process.
One BlockFi perk is that BIA account holders get one free crypto and one free stablecoin withdrawal per month. If you’re mostly holding crypto to earn passive income, BlockFi fees shouldn’t be a problem.
How Does BlockFi Compare?
BlockFi is one of the most popular crypto interest accounts on the market, but it’s far from the only one.
And, depending on the value and type of cryptocurrencies you hold and where in the world you're located, different platforms might be superior to BlockFi.
Before you pick a company to deposit your crypto with, check current rates. BlockFi is superior to Celsius and Nexo for some cryptos, but not for every crypto. You can likely find the best value by opening interest accounts with multiple companies.
How Do I Open An Account?
You open a BlockFi account online with your name and email address. BlockFi requires uploading a picture of government ID and a selfie to verify your identity. Verification normally takes a few minutes but can take up to 48 hours.
Once you complete verification, you can transfer funds or crypto to your BlockFi Wallet. BlockFi supports wire transfers. It's unclear if they also support ACH transfers as some of their FAQ entries say they do while others say they don't.
Funds typically take one to three business days to show up in your account. If you’re transferring crypto, you can find your wallet address in your account tab.
Is BlockFi Safe?
When you use BlockFi, you’re taking on certain risks because BlockFi isn’t a FDIC-insured bank. And unlike stock brokers, BlockFi isn’t registered with FINRA and thus isn't SIPC-insured either.
However, that's starting to change and BlockFi is working to register itself with the SEC.
Note: Beginning July 2021, multiple state regulators have sent cease and desist letters to BlockFi, alleging that the company's interest accounts are unregistered securities. BlockFi disagrees and is in active discussions with regulators. Investors will want to monitor this story as it develops.
Furthermore, when you deposit cryptocurrencies or stablecoins with BlockFi, the company lends a large portion of it out to borrowers. This is similar to depositing money in a bank. However, given the volatility of cryptocurrency and lack of regulation, there’s more risk in lending. BlockFi even states on its websites that “this is not a risk-free product and loss of principal is possible.”
That said, BlockFi and its primary custodian Gemini take measures to limit risk. For example, BlockFi doesn’t lend out all of its assets and keeps some in liquid positions or with banks and brokers. Gemini also keeps much of its funds in cold storage, which is basically offline storage that’s not vulnerable to hackers.
Finally, BlockFi was forced to suspend withdrawals in November 2022 due to poor liquidity. This is a big red flag for investors.
The bottom line is you shouldn’t put all of your eggs in the BlockFi basket. But if you hold crypto and want to earn interest, you can generate strong returns with a BIA account.
Just remember it’s your responsibility to protect your wallet information and login credentials since BlockFi isn’t liable for damages or theft caused by unauthorized access of your account.
Is BlockFi Worth It?
BlockFi is a straightforward, low-fee solution to get started with cryptocurrency. If you aren’t actively trading crypto, depositing a portion of your portfolio with BlockFi benefits you far more than holding it in a basic wallet.
However, it’s vital you understand the risks of cryptocurrency lending and take steps to protect yourself. Many cryptocurrency investors use multiple platforms like BlockFi, including Celsius and Nexo, to diversify their holdings in case one company goes under or gets hacked.
So take advantage of BlockFi’s sign up bonus and get started. But never lend out cryptocurrency you can’t afford to lose.
Crypto savings and borrowing platform
Min Balance Requirement
Interest Rate On Crypto Deposits
Earn up to 8.75%
Interest Rate On Loans
As low as 4.5%
Min Loan Term
Credit Check Required On Loans
Vary depending on the crypto
Supported Payment Types
Wire transfers and possibly ACH transfers
BlockFi uses Gemini as its primary custodian. Gemini is regulated by the New York Department of Financial Services, but it’s unclear what might happen if BlockFi is ever hacked or goes out of business.
BlockFi requires verifying your identity to open an account and may sometimes re-request identity verification to keep your account secure.
Mobile App Availability
Android and iOS
Customer Support Phone Number
1-646-779-9688 for active clients
Customer Support Email
Earn up to $250 in free Bitcoin For signing up
Tom Blake is a personal finance writer with a passion for making money online, cryptocurrency and NFTs, investing, and the gig economy.