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BlockFi Review

By Tom Blake • January 9, 2023

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BlockFi Review 2022

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.


BlockFi logo

Quick Summary

  • Buy, sell, and exchange various cryptocurrencies and stablecoins
  • Use your cryptocurrency as collateral to take out loans
  • Crypto interest account for non-US customers

BlockFi Details

Product Name

BlockFi

Product Type

Crypto Savings & Lending Platform

Minimum Deposit

$0

Interest Rates

Up to 7.75% APY

Promotions

Up to $250 Free Bitcoin

Pros And Cons

Pros

  • Earn up to 8.75% APY on your crypto
  • Earn up to $250 in free Bitcoin for signing up
  • No account management fees or minimum balance requirements
  • One free crypto and stablecoin withdrawal per month
  • Quickly buy, sell, and exchange cryptocurrencies on the platform

Cons

  • Withdrawals are frozen due to lack of liquidity
  • Interest rates aren’t always superior to the competition
  • $10,000 minimum loan requirement and 2% origination fees
  • Bitcoin cash-back rewards don’t pay instantly


Table of Contents
Pros And Cons
What Does It Offer?
BlockFi Wallet
Crypto-Backed Loans
BlockFi Trading Account
BlockFi Rewards Visa Signature Credit Card
BlockFi Interest Account
BlockFi Bonus Offer
Are There Any Fees?
How Does BlockFi Compare?

How Do I Open An Account?
Is BlockFi Safe?
Is BlockFi Worth It?
BlockFi Features

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.

BlockFi Wallet

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.

Crypto-Backed Loans

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.

Crypto lending

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

LTV

Interest Rate

Origination Fee

50%

9.75%

2%

35%

7.90%

2%

20%

4.50%

2%

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:

  • Bitcoin
  • Ethereum
  • Litecoin
  • LINK
  • USDC
  • GUSD
  • PAX
  • PAXG
  • USDT
  • Dai
  • Uniswap
  • BAT

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

Bitcoin (BTC)

Tier 1

0 - 0.10 BTC

3.50%

Tier 2

0.10 - 0.35 BTC

2.00%

Tier 3

> 0.35 BTC

2.00%

Ether (ETH)

Tier 1

0 - 1.5 ETH

3.50%

Tier 2

1.5 - 50 ETH

2.00%

Tier 3

> 50 ETH

2.00%

Litecoin (LTC)

Tier 1

0 - 20 LTC

3.75%

Tier 2

>20 - 100 LTC

1.25%

Tier 3

> 100 LTC

0.10%

Chainlink (LINK)

Tier 1

0 - 100 LINK

3.00%

Tier 2

100 - 500 LINK

0.50%

Tier 3

> 500 LINK

0.10%

USD Coin (USDC)

Tier 1

0 - 20,000 USDC

8.50%

Tier 2

20,000 - 2M USDC

7.00%

Tier 3

2M+ USDC

7.00%

Gemini Dollar (GUSD)

Tier 1

0 - 20,000 GUSD

8.50%

Tier 2

20,000 - 2M GUSD

7.00%

Tier 3

2M+ GUSD

7.00%

Paxos Standard (PAX)

Tier 1

0 - 20,000 PAX

8.50%

Tier 2

20,000 - 2M PAX

7.00%

Tier 3

2M+ PAX

7.00%

Pax Gold (PAXG)

Tier 1

0 - 1.5 PAXG

3.25%

Tier 2

1.5 - 5 PAXG

0.20%

Tier 3

> 5 PAXG

0.10%

Tether (USDT)

Tier 1

0 - 20,000 USDT

8.75%

Tier 2

20,000 - 2M USDT

7.50%

Tier 3

2M+ USDT

7.50%

Binance USD (BUSD)

Tier 1

0 - 20,000 BUSD

8.50%

Tier 2

20,000 - 2M BUSD

7.00%

Tier 3

2M+ BUSD

7.00%

Dai (DAI)

Tier 1

0 - 20,000 DAI

7.00%

Tier 2

20,000 - 2M DAI

5.00%

Tier 3

2M+ DAI

4.00%

Uniswap (UNI)

Tier 1

0 - 100 UNI

3.25%

Tier 2

100 - 500 UNI

0.20%

Tier 3

> 500 UNI

0.10%

Basic Attention Token (BAT)

Tier 1

0 - 4,000 BAT

3.25%

Tier 2

4,000 - 20,000 BAT

0.20%

Tier 3

> 20,000 BAT

0.10%

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

Reward Tier

Balance Minimum

Bitcoin Bonus

1

$100 - $1,499

$15

2

$1,500 - $19,999

$20

3

$20,000 - $39,999

$40

4

$40,000 - $74,999

$75

5

$75,000 - $99,999

$100

6

$100,000+

$250

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

Currency

Withdrawal Limit
(Per 7-Day Period)

Fees

BTC

100 BTC

0.00075 BTC

ETH

5,000 ETH

0.02 ETH

LINK

65,000 LINK

0.95 LINK

LTC

10,000 LTC

0.0025 LTC

Stablecoins

1,000,000

$10.00 USD

PAXG

500 PAXG

0.015 PAXG

UNI

5,500 UNI

1 UNI

BAT

2,000,000

35 BAT

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.

BlockFi Features

Product Type

Crypto savings and borrowing platform

Min Deposit

$0

Min Balance Requirement

$0

Interest Rate On Crypto Deposits

Earn up to 8.75%

Interest Rate On Loans

As low as 4.5%

Min Loan Term

12 months

Credit Check Required On Loans

No

Maintenance Fees

No

Withdrawal Fees

Vary depending on the crypto

Supported Payment Types

Wire transfers and possibly ACH transfers

Supported Coins

12+

Insurance

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.

Security

BlockFi requires verifying your identity to open an account and may sometimes re-request identity verification to keep your account secure.

You can also enable 2-Factor Authentication and set specific wallet addresses that your account is able to send transfers to.

Mobile App Availability

Android and iOS

Desktop Availability

Yes

Customer Support Phone Number

1-646-779-9688 for active clients

Customer Support Email

[email protected]

Promotions

Earn up to $250 in free Bitcoin For signing up

Tom Blake
Tom Blake

Tom Blake is a personal finance writer with a passion for making money online, cryptocurrency and NFTs,  investing, and the gig economy.

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors’. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone’s responsibility to ensure all posts and/or questions are answered.

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