Blockfi is an online lending platform that allows customers to earn compound interest on their cryptocurrency savings, as well as use cryptocurrency 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.
Continue reading for a full review of this cryptocurrency exchange company, or jump down to Blockfi reviews.
BlockFi offers competitively high interest rates on its interest account. Rates vary depending on cryptocurrency type:
The BlockFi Interest Account has no hidden fees or minimum balances, making it a good option for earning interest on your cryptocurrency assets. Your initial deposit and earned interest will compound from the previous month and then start to earn more interest.
BlockFi also offers a trading product through which you can buy, sell, or exchange a variety of cryptocurrencies, on which you can immediately start earning interest the moment your trade is placed.
You can buy, sell, or exchange the following cryptocurrencies:
Trade execution takes place immediately and will be reflected in your BlockFi Interest Account.
BlockFi offers loans collateralized by your crypto assets — BlockFi will gave you cash and you will give it cryptocurrency as security for repayment. Applying for a loan takes less than 2 minutes and can be funded into your bank account or wallet in as few as 90 minutes.
Many crypto users wonder whether they can make major purchases with crypto assets. The answer is complicated since many financial institutions, such as mortgage providers, don't accept crypto as collateral. However, with BlockFi's crypto-backed loans you can secure cash which can be used for large purchases, such as a house or a car.
If you would like to earn and save more Bitcoin, the BlockFi Rewards Visa® Signature Credit Card allows you to earn an unlimited 1.5 percent back in bitcoin on every purchase made, with no annual fees or foreign transaction fees.
Other rewards include:
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.
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.
Through the BlockFi app, available on both iOS and Android devices, you can manage your cypto portfolio on the go and access helpful financial tools.
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.
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.
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.