BlockFi is a cryptocurrency ecosystem that allows 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 a great choice for users of the platform. BlockFi also offers crypto exchanges, low-interest loans and crypto rewards credit cards. You can also earn interest-bearing accounts that offer up to 8% APY.
Who is BlockFi for?
From crypto beginners to advanced traders, BlockFi offers attractive services and features. It is based in the United States. Clients with at least $500,000 worth of crypto assets will be considered high-net-worth individuals and can have a relationship manager assigned for their account.
Given the confusing pricing of many competitors, BlockFi’s transparent fees structure is a welcome addition. BlockFi Wallet allows you to manage your digital currencies from the platform. The BlockFi crypto rewards credit card can help boost your digital currency account.
BlockFi’s transparent pricing and great feature set will appeal to anyone who is located in the U.S. and trades the curated collection of cryptocurrencies available on the platform. If you are a U.S.-based customer and want to trade in more than a dozen cryptos on the platform, then you need to look elsewhere.
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Cryptocurrency assets are volatile in nature. Buy and trade at your own risk.
73% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
The platform continues to support interest-earning BlockFi Income Account (BIA). This account is now closed to new users due to the February 2022 ruling of the Securities and Exchange Commission (SEC).
Data breaches are always a concern. BlockFi suffered a security breach in 2020 when a SIM card of an employee was stolen. BlockFi has taken additional security precautions and hired a new chief security officer.
Investing in cryptocurrency should be done only by people who are able to accept and understand the risks.
BlockFi Cryptocurrencies
BlockFi offers 13 digital assets, which is quite low compared to other exchanges. Coinbase and Kraken offer more than 100 digital assets, respectively.
Here is a partial list of assets BlockFi supports:
- Bitcoin (BTC)
- Chainlink (LINK)
- Etherium (ETH)
- PaxGold (PAXG)
- Litecoin (LTC)
- Dai (DAI)
- US Dollar Coin (USDC)
- Tether (USDT)
- Gemini Dollar (GUSD)
Trading Experience
BlockFi provides an online dashboard as well as mobile apps for iOS and Android. Trading on this platform 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 Fees
BlockFi does not charge transaction fees to trade on its exchange. Fees will apply if you withdraw funds more than once per month from your account. You’ll also have to pay origination fees as well as interest for crypto-backed loans that you borrow through the company.
Withdrawal Fees
| SERVICE/ITEM | COST |
| First monthly withdrawal of crypto | No cost |
| First monthly stablecoin withdrawal | No cost |
| Bitcoin | 0.00075 BTC |
| Ethereum | 0.02ETH |
| LINK | 0.10 LINK |
| Litecoin | 0.0025 LTC |
| Stablecoins | $10.00 USD |
| PAX Gold | 0.015 PAXG |
Loan Rates and Fees
| Loan-To-Value | Interest Rate | Origination Fee |
| 50% | 9.75% | 2% |
| 35% | 7.9% | 2% |
| 20% | 4.5% | 2% |
Features
Cryptocurrency Trading
BlockFi is a cryptocurrency trading platform that charges reasonable fees. You can trade individual coins or a variety of currency pairs. Pairs trading allows you to trade one coin for another such as Bitcoin/Litecoin (BTC/LTC).
Customers of this exchange have the ability to set up automated cryptocurrency purchase orders, much like traditional banking. BlockFi Wallet allows customers to instantly execute orders from multiple exchanges. The actual price is displayed immediately, without any additional fees.
This exchange offers tax-loss harvesting as an investment strategy which offsets taxable gains by losses.
BlockFi Wallet
The default storage place for crypto is the BlockFi Wallet. This account is non-interest bearing and allows you to store, buy, trade, and protect your crypto assets. This exchanges does not lend out assets.
External cryptocurrency can generally be transferred to the BlockFi Wallet. Assets within the wallet can also be transferred out. However, this feature is not available for U.S. customers for certain cryptocurrencies.
Dogecoin (DOGE), Bitcoin Cash(BCH), and Algorand [ALGO] fall within this category. These cryptos cannot be withdrawn or funded from a personal account.
BlockFi Loan
BlockFi Loans are similar to other margin loans. You receive U.S. Dollars transferred to your bank account, while your crypto assets are used as collateral. This loan is a great way to get cash without having to sell your cryptocurrency. It also doesn’t require you to have a good credit score. The collateral cryptocurrency is returned to your account once the loan has been repaid.
BlockFi crypto-backed loans don’t require credit information. You can be approved as long as you have enough collateral.
Rewards Credit Card
Consumers love to use reward credit cards. The BlockFi Rewards Credit Card offers cryptocurrency enthusiasts a 3.5% return in cryptocurrency (up to $100) on all purchases within the first 90 days.
Users will receive 1.5% in crypto rewards after the promotional period. If you spend more than $50,000 annually, you will receive 2% crypto rewards.
The card’s international transactions are not allowed.
BlockFi Personal Yield
All clients, current and prospective, with a minimum amount of crypto assets on the platform that are less than $3 million, are eligible for the BlockFi Personalized Yield premium services.
These products can be customized to meet the needs of each client. Prospective clients get high-level onboarding as well as a designated client relations manager.
BlockFi Personalized Yield clients receive reduced trading costs and negotiated crypto interest rate margin borrowing. They can also lend their crypto to the platform for additional returns. To apply, eligible clients complete a secure qualification form.
BlockFi Trusts
Individuals and institutions can invest in any of the three BlockFi Trusts: Bitcoin, Ethereum, or Litecoin.
Trust owners get crypto storage and the possibility to have their crypto assets passively managed. The annual management fee for trusts is 1.75%, and the minimum investment amount of $50,000.
These trusts in cryptocurrency are high-risk investments. The trust’s value could be different from the actual value of digital assets.
BlockFi Live and Help
Live Chat available from 9:00 a.m. – 8:00 pm (EST) and by phone Monday through Friday from 9:30 a.m. – 8:00 PM (EST).
BlockFi’s help centre segregates help topics by product category, making it easier to find detailed answers to your questions. You can also search for specific queries.
BlockFi Live is a YouTube Channel that the company owns. The topics include general-interest videos on crypto, interviews and tutorials on how to use the platform.
Pros and Cons
| Pros | Cons |
| Ability to borrow against crypto | In some states, services are restricted |
| A large selection of cryptocurrency trading pairs | High withdrawal fees |
Conclusion
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.
