BlockFi Logo
star_border star_border star_border star_border star_border
0 User Reviews

Blockfi is an online lending platform that allows customers to earn compound interest on the cryptocurrency already owned or use cryptocurrency as collateral for a loan. With investment backing from reputable names like Valar Ventures, Galaxy Digital, Fidelity, Akuna Capital, SoFi and Coinbase Ventures, BlockFi has deep pockets to draw on to back the company’s financial endeavors. In a newer industry like cryptocurrency, BlockFi has a long history and is one of the most well-known in the space.

Top Ranked Companies

Bitcoin IRA Logo
Bitcoin IRA chevron_right
0.0
star_border star_border star_border star_border star_border
(0)
Coinbase Logo
Coinbase chevron_right
0.0
star_border star_border star_border star_border star_border
(0)
TradeStation Logo
TradeStation chevron_right
0.0
star_border star_border star_border star_border star_border
(0)
thumb_up

The Good

  • Good Interest Rates
  • Loan Options
  • Financial Backing

Good Interest Rates 

The interest rates BlockFi offers vary, but are between 3 percent and 9 percent (depending on the cryptocurrency and amount deposited). This is much higher than a savings account and historically has not jumped up and down, making it a safe place to store wealth. With that said, other players in the space, like YouHodler, have rates up to 12 percent, so customers should actively look into various products to get the best bang for the buck.

Loan Options 

The company offers loans against the cryptocurrency customers already own. The loan terms are 12 months with a monthly payment only required on the interest (which starts at 4.5 percent APY). This way customers get cash up front, but also don’t have to sell cryptocurrency. However, the company’s minimum loan amount is $2,000, whereas other competitors like Nexo, offer a starting point of $500.

Secure Financial Backing 

While not backed by the FDIC, BlockFi’s assets are held by Gemini Trust company and regulated by the New York Department of FInancial Services, which has an excellent reputation. Customers can feel secure doing business with BlockFi.

thumb_down

The Bad

  • Withdrawals and Fees
  • Security Breach
  • Fluctuating Interest Rates
  • Not FDIC Insured

Withdrawals and Fees

There is a one day waiting period for withdrawing funds, which can be problematic if assets are needed right away. The company also only allows two withdrawals every month for free; after that fees are charged. It seems likely that active customers will have more than two, so this should be noted and compared to other companies’ offerings.

Security Breach

BlockFi experienced a data breach in May 2020. Although no funds were lost, customers’ personal data was compromised. The company was transparent about the incident and has since made changes to strengthen its cyber security, but customers should be careful to take note of any security issues should a repeat occur.

Fluctuating Interest Rates 

While rates don’t change frequently, they have dropped in the past and customers agree to BlockFi’s terms, to allow the company to change the APY rate at will. This doesn’t particularly benefit customers, and should be monitored actively.

Not FDIC Insured 

As with digital currencies, customers’ money is not FDIC insured, due to the fact of it not being U.S. dollars. So if BlockFi were to be hacked or have a major incident, customers have no backup or way to recover funds.

gavel

The Bottom Line

Blockfi has a solid reputation and history as well as good rates. However, competitors have rates that are very close and may even be lower at certain times. Nexo offers a no credit check loan, but the interest rates are higher. CoinLoan allows you to choose the length and term of a loan as well. Depending on what customers’ needs are, BlockFi is a solid choice, but a competitor may be a better choice if certain criteria must be met.

BlockFi’s third-party custodian of cryptocurrency, Gemini, also has an excellent reputation and there have been no issues with loss of assets. 

View Best Cryptocurrency Exhange Companies

Was this content helpful?
thumb_up Yes thumb_down No

Star Rating

0.0

star_border star_border star_border star_border star_border

0 Reviews

Review Breakdown

5 grade

0%

4 grade

0%

3 grade

0%

2 grade

0%

1 grade

0%

Sentiment Criteria

Value

star_border star_border star_border star_border star_border

Quality

star_border star_border star_border star_border star_border

Service

star_border star_border star_border star_border star_border

Trustworthiness

star_border star_border star_border star_border star_border
Be the first to leave a review.

We're on a mission to empower consumers to make the best decisions and connect confidently with companies that deserve their business.

© 2021 BestCompany.com LLC - All rights reserved Privacy Policy | Terms | Do Not Sell My Personal Information