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BlockFi Review 2022: Is BlockFi Legit? (+Pros & Cons of Using BlockFi)

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BlockFi Review

blockfi logo

BlockFi is a cryptocurrency exchange platform that enable users to buy and sell cryptocurrencies. The platform is one of the largest exchanges worldwide, with over 1 million verified clients and over 250 institutions using it. In addition to cryptocurrency trading, the platform also offers users the opportunity to earn interest on their cryptocurrenceis, via its interest account or credit card.

Safe & Legit

Service Fees

Annual Returns

Payout Process

Pros

  • Referral bonus – get a $10 bonus for each friend you refer who completes a purchase of at least $100 worth of cryptocurrency on their account.
  • Get up to 3.5% cashback – the platform offers the world’s first Bitcoin credit card, which offers up to 3.5% cashback on all purchases made with it.
  • Low interest rate for borrowing – you can borrow money at interest rates from as low as 4.5% APR so you don’t have to sell your crypto to get cash.
  • High interest rates – the platform offers interest rates of up to 9.5% APY for users who deposit their crypto into the BlockFi Interest Account.

Cons

  • Limited free withdrawals – you only get 1 free withdrawal per calendar month. After that, the platform charges a 0.00075 BTC fee on withdrawals.
  • Cannot withdraw fresh funds immediately – if you fund your account with a bank transfer, you must wait at least 5 days before you can withdraw.

Jump to: Full Review

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How Does BlockFi Work?


BlockFi‘s core function is as a cryptocurrency exchange. Users can buy and sell various digital currency stocks on the platform, also known as cryptocurrencies. The platform works like a regular stock exchange, with regularly updated buy and sell prices for various cryptocurrencies.

To purchase a cryptocurrency, select the one you are interested in and choose how much of it you want to buy. The platform will then show you how much cryptocurrency you will get for your investment.

If you are satisfied with the transaction details, click on the Authenticate Trade button. The platform will automatically process your buy order.

How Much Can You Earn With BlockFi?


Your earnings on BlockFi will ultimately depend on various factors, such as the state of the market and your buy and sell price. You can potentially earn up to 50% interest or more on your cryptocurrency investments. For example, if you had invested in Bitcoin stocks at the start of 2021, you would have earned a 48.5% return on your investments.

Nonetheless, remember that like with all investments, there are risks involved, and there is the potential for you to lose money on your investments.

BlockFi Reviews: is BlockFi Legit?


Review WebsiteBlockFi Reviews
Trustpilot3.6 out of 5 stars
Apple App Store3.3 out of 5 stars
Google Play Store3.9 out of 5 stars

BlockFi is a legitimate platform that has received generally positive reviews from its users. Most users praise the company for its reliability and ease of use.

However, some users have complained that the platform charges high withdrawal fees and unfavorable spread rates.

Nonetheless, despite these issues, BlockFi is still a popular platform to buy and sell crypto, especially if you intend to hold onto your cryptocurrency for the long term.

Who is BlockFi Best for?


BlockFi is best for anyone looking for crypto to invest in. Beginners on the platform will benefit from the various resources on the platform. These resources help new investors to learn how to identify cryptocurrency stocks for beginners to buy, and how to invest in crypto stocks.

At the same time, experienced investors can also benefit from using the platform. BlockFi features exclusive benefits for high net-worth clients.

Some of these benefits include:

  • Negotiable crypto interest rates
  • Fiat borrowing
  • Trading costs
  • And many more

BlockFi Fees: How Much Does it Cost to Invest With BlockFi?


BlockFi has one of the lowest crypto trading fees of all the different crypto trading platforms. The platform does not charge any fees for users who want to buy and sell crypto.

However, do note that due to the fluctuating prices of cryptocurrency stocks, there may be a plus or minus 1% difference relative to a crypto stock’s spot price. Nonetheless, the platform displays each price for 60 seconds, so you can be sure that the price you see is the price you are paying for a cryptocurrency.

BlockFi Features: What Does BlockFi Offer?


BlockFi Interest Account

Apart from being a crypto marketplace, BlockFi also offers the BlockFi Interest Account. This feature enables users to earn interest on the cryptocurrency they deposit into the account. Using the BlockFi Interest Account will allow you to make up to 11% returns on your investment per annum.

The interest rates that you can earn with this account will fluctuate depending on market conditions and the type of cryptocurrency you invest in.

Crypto StockAPY
0 – 0.10 BTC4%
0 – 1.5 ETH4%
SOL5%
DOT10%
MATIC11%

The interest you earn on this account will accrue daily, and you will receive it monthly. The platform does not charge any fees to use this feature, and there are also no minimum balances.

BlockFi Loan

BlockFi also offers Crypto Loans that enable you to borrow USD against your cryptocurrency. To take a crypto loan, you can deposit BTC, ETH, LTC, or PAXG as collateral.

The LTV (loan-to-value) ratio for crypto loans is 50%, meaning that you will need to put down 50% of your coins as collateral. Since cryptocurrencies are volatile, you can quickly fall outside the 50% LTV. If your LTV reaches 70%, BlockFi will notify you and require you to put up more collateral to bring the LTV down to 50%.

The minimum loan amount is $5,000, and the loan duration is 12 months. The platform offers interest rates as low as 4.5%, so you can easily borrow cash if you need it.

BlockFi Personalized Yield

BlockFi also provides specialized services for high-net-worth individuals. If you are willing to commit over $3 million in assets to your BlockFi account, you can enjoy any benefits under the BlockFi personalized yield feature.

Some of the benefits you can enjoy include:

  • Negotiated rates
  • Custom trading spreads
  • Personalized support
  • And many more

BlockFi Bonus Offers & Promotions

BlockFi also regularly offers various bonus offers and promotions each month. These offers include cash rewards for inviting friends to join the platform and bonus credit for topping up your account.

The platform features new offers and promotions each month, and you can check the BlockFi Promotions Page regularly to ensure that you do not miss out on any offers.

BlockFi Requirements


There are relatively few requirements for you to start investing with BlockFi. The platform has no minimum deposit or balance amounts, and it also does not charge any maintenance fees.

It is free to download and start buying cryptocurrencies with BlockFi.

BlockFi Payout Terms and Options


While the platform does not charge any maintenance or trading fees, it does charge withdrawal fees. Users can enjoy one free crypto withdrawal per calendar month. If you want to withdraw your cryptocurrencies more than once per month, you will need to pay a fee.

Withdrawal Limit (1 Free Withdrawal Per Month)Fee for Each Withdrawal After the First
BTC100 BTC per 7-day period0.0025 BTC
LTC10,000 LTC per 7-day period0.0015 ETH
GUSD, USDC, BUSD, PAX, DAI, USDT1,000,000 per 7-day period0.0025 LTC

However, note that some crypto stocks are not eligible for free withdrawals, so be sure to check your BlockFi dashboard to see how much withdrawal fees you will need to pay.

BlockFi Risks: is BlockFi Safe to Invest with?


It is safe to invest with BlockFi since the company uses top-tier protection to secure your cryptocurrency stocks. You can also set up biometric and two-factor authentication to further protect your account.

Nonetheless, there are always general risks when investing your money. You may lose money if the cryptocurrency you invest in goes down in value.

How Does BlockFi Protect Your Money?


Since the FDIC does not protect digital assets such as cryptocurrencies, your funds will not be covered under the FDIC. However, BlockFi also partners with Gemini to provide $200 million in custody insurance coverage.

The company also maintains sufficient capital reserves to ensure that its members can withdraw their earnings whenever they want.

What Are the BlockFi Pros & Cons?


BlockFi Pros

  • Earn up to 11% returns on your investments per year
  • No minimum deposit amount or balance requirements
  • Borrow money against your crypto assets at rates of as low as 4.5%
  • One free withdrawal per month

BlockFi Cons

  • You will need to pay withdrawal fees after your first withdrawal each month
  • The platform does not have the most favorable spread rates

How Good is BlockFi Support and Knowledge Base?


BlockFi offers multiple options for users to contact customer support if they face any issues with their accounts. The platform has a live chatbot that you can use if you have any questions. Alternatively, you can also contact customer support via email, live chat, or over the phone.

Support OptionResponse Time
Creating a Support TicketGet a response via email within a few hours
Live Chat9:00 PM EST – 8:00 PM EST every day
Phone CallMonday – Friday from 9:30 AM EST – 8 PM EST

The platform also has a comprehensive knowledge base you can refer to if you have any questions about BlockFi’s products or services.

BlockFi Review Verdict: is BlockFi Worth It?


BlockFi can be worth your time if you are looking for a way to earn money by investing in Bitcoin stocks or other crypto assets. Depending on the cryptocurrency that you purchase, you could potentially earn up to 50% or more in investment returns per year.

The company also takes many precautions to protect your assets. It works with Gemini to ensure that it has enough assets on hand for users to withdraw.

As with all investments, note that there are always risks to investing money.

How to Sign Up With BlockFi?


Signing up for BlockFi and opening your interest account is a straightforward and effortless process.

Here are the steps that you can take to sign up with BlockFi:

  1. Click the ‘Get Started’ button on the BlockFi website to create an account using your email address and phone number.
  2. You will then need to verify your email address.
  3. After verifying your account, you must verify your identity before you can make a deposit.
  4. You can complete the verification process by uploading documents, such as an ID card, passport, or driver’s license.
  5. Once you have verified your account, you can then deposit money into your account and start buying crypto stocks.

Sites Like BlockFi


ComparisonBlockFiNexoCoinbaseBinance
Service Fees1% spreadsNo feesStarting from 0.5% per trade25% spot trading fee
Min Investment$0$0$250
Best ForBeginner tradersFrequent withdrawals and depositsWidest range of cryptocurrenciesHigh APY

BlockFi vs. Nexo


Nexo is one of the best alternatives to BlockFi, and both platforms offer users a way to earn interest on your crypto investments.

However, unlike Coinbase which offers up to 11% interest rates, the highest rate that Nexo offers is only 8%. Both platforms have their benefits, and you can try out both platforms to find one that works for you.

BlockFi vs. Coinbase 


Coinbase Summary

  • Over 4500 cryptocurrencies to choose from
  • Low minimum deposit amount of just $2
  • Get $10 when you sign up for an account
  • Get a $10 bonus for each friend you refer

Coinbase is a great crypto marketplace that you can join if you are looking for altcoins to buy. The platform features over 4500 cryptocurrencies that you can buy and sell, enabling you to invest in cryptocurrencies that BlockFi may not even have.

In addition, Coinbase also has a low minimum deposit amount of just $2, making it a great alternative crypto platform to BlockFi.

BlockFi vs. Binance


Binance Summary

  • Low fees
  • Offers stocks, futures, and options
  • Powerful tools to learn active trading
  • Eide range of products for passive income

Like BlockFi, Binance is also one of the best platforms that you can join to buy and sell cryptocurrencies. You can earn an APY of up to 35% when you invest in cryptocurrencies on Binance.

However, note that Binance has a high minimum deposit amount of $50. Thus, if you are just a beginner looking for a way to get into crypto trading with a low commitment, BlockFi may be the better option.

Other Sites Like BlockFi


BlockFi FAQs


What is BlockFi?

BlockFi is a digital wealth management platform that specializes in crypto stocks. Unlike a traditional crypto trading platform that only enables users to buy and sell crypto, BlockFi also allows its users to invest their crypto and borrow money.

The platform supports a wide range of different cryptocurrencies, including:

  • Bitcoin
  • Litecoin
  • Ethereum
  • GUSD
  • USDC
  • PAX
  • And many more

The crypto exchange has over 1 million clients, and it manages $10 billion in assets. To date, BlockFi’s users have earned over $700 million in interest and rewards.

The platform also provides an app for both Apple and Android devices, that you can download to manage your cryptocurrency stocks and assets.

Can I Trust BlockFI?

BlockFi is a legitimate company with millions of users worldwide and you can trust the platform.

Is it Smart to Use BlockFi?

If you want to invest in cryptocurrencies over the long term, it is smart to use BlockFi as the platform will protect your assets.

Is BlockFi Better than Coinbase?

Both BlockFi and Coinbase have their pros and cons, and they cater to different markets. You can try out both platforms to see which one works best for you.

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