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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


  • 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.


  • 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

Compare to Other Crypto Exchanges


BlockFi logo

Buy, sell, and trade a variety of cryptoassets at competitive prices

Up to 1.5% back in crypto on every purchase with Rewards Credit Card

Earn interest on Bitcoin or borrow money at rates as low as 4.5% APR


Coinbase logo

Store all of your crypto and NFTs in one place (100 cryptocurrencies)

Earn crypto rewards with Coinbase Visa debit card (up to 4% cashback)

$2 account minimum and 0.5% – 4.5% fees varies by type of transaction


Binance logo

Largest crypto exchange in the world in terms of daily trading volume

Automatically invest on a scheduled basis with dollar-cost averaging

$10 account minimum and 0.1% – 5% fees varies by type of transaction

What is BlockFi & How Does it Work?

BlockFi is a one-stop-shop wealth management platform focusing on crypto assets. It allows you to not just buy them, but also earn interest on them, take a loan or trade your cryptocurrencies.

Crypto assets BlockFi supports:

  • Bitcoin
  • Litecoin
  • Ethereum
  • USD stablecoins (e.g., GUSD, USDC, and PAX)

To make it easier for you to manage your cryptocurrencies, BlockFi provides an app for your Apple and Android devices.

BlockFi Requirements

  • Minimum deposit: $0
  • Minimum balance requirement: none
  • Maintenance fees: none
  • Withdrawal minimums: 0.003 BTC or 0.056 ETH
  • Withdrawal limits: $5,000 per wire withdrawal

How Much Can You Earn with BlockFi?

The platform offers you to open an interest account with an APY of up to 8.6%, trade currencies or borrow money without selling your assets.

Is BlockFi Safe & Legit?

BlockFi is a legit company holding insurance for your funds. However, you’ll definitely find negative reviews on the internet that are mostly written by customers who have misunderstood the terms. 

Since FDIC (Federal Deposit Insurance Corporation) doesn’t apply to digital assets like cryptocurrencies, your funds aren’t covered by FDIC insurance. 

However, BlockFi partners with Gemini as its custodial service provider that provides $200 million in custody insurance coverage.

Gemini on its own is a fiduciary and qualified custodian that’s licensed by the State of New York to custody digital assets. As a result, Gemini Custody is regularly audited and is required to have a certain capital reserve that ensures you can withdraw your funds even if the company goes bankrupt.

BlockFi Products: What Does BlockFi Offer?

BIA – BlockFi Interest Account

BlockFi offers an interest-bearing account, called BlockFi Interest Account, i.e. BIA. This account enables you to earn interest in BTC, ETH, LTC, USDC, GUSD, and PAX without a minimum balance requirement.

Here’s the BIA current interest rates:

  • BTC Tier 1: 6.00% (for amounts of 0 to 2.5)
  • BTC Tier 2: 3.20% (for amounts over 2.5)
  • ETH: 4.50%
  • LTC: 5.00%
  • PAXG: 4.00%
  • USDT: 7.00%
  • USDC: 8.60%
  • GUSD: 8.60%
  • PAX: 8.60%

Even if you don’t own any of the above-mentioned crypto coins, you can wire USD into your BIA. This way, your USD will convert to stablecoins (USDC, GUSD, or PAX) and you’ll be able to earn interest on those currencies.

Regardless of the crypto coins you have, you’ll get paid out interest on your BIA monthly – in Bitcoin, Ether, Litecoin, USD Coin, or Gemini Dollar.

BlockFi also lets you diversify your portfolio across various coins, meaning you’re free to choose which coin you want to receive interest on.

Crypto Loans

BlockFi offers Crypto Loans meaning you can borrow USD against your coins on deposit. To take a crypto loan, you can use BTC, ETH, LTC or PAXG.

The minimum loan amount is $5,000 and the loan duration is 12 months. Plus, the interest rate for your loan works out to 4.5%.

The LTV (loan-to-value) ratio is 50%, meaning 50% of your coins need to be put up as collateral. As cryptocurrencies are generally very volatile, you can quickly fall outside of the 50% LTV. But when the LTV reaches 70%, BlockFi will notify you and tell you to put up more collateral to bring the LTV back down to 50%.

Crypto Trading

BlockFi also offers a no-fee trading service allowing you to trade between a variety of cryptocurrencies and start earning interest immediately.

The platform lets you trade between major cryptocurrencies, such as BTC, ETH, LTC, USDC, USDT, GUSD, PAX and PAXG.

BlockFi Bonus Offers & Promotions

BlockFi consistently offers various bonuses and promotions each month, plus additional holiday promotions. 

For example, in December 2020, BlockFi offered 2 types of promotions:

  1. December First Time Traders Promotion: you could get a bonus of $10 to $3,500 as a first-time trader, depending on the volume of your deposit.
  2. Refer a Friend Holiday Offer: you could refer a friend and gift them $50 and you’ll receive a $25 bonus after they’ve made their first deposit.

As I’ve mentioned, BlockFi offers new promotions every month. So make sure you check out the BlockFi Promotions Page not to miss any interesting offers.

BlockFi Fees & Withdrawal Limits

While there are no monthly fees for using BlockFi, the platform has withdrawal limits and fees.

It’s noteworthy that if you don’t plan on trading your crypto assets regularly, then you’ll pay a small amount or no fee at all. But if you want to make frequent withdrawals, BlockFi fees could add up quickly.

Here’s what I mean:

Withdrawal LimitFee
BitcoinUp to 100 per 7-day Period0.0025 BTC
EthereumUp to 5K per 7-day Period0.0015 ETH
LitecoinUp to 10K per 7-day Period 0.0025 LTC
StablecoinsUp to 1M per 7-day Period$0.25 USD

How to Sign Up for BlockFi

Signing up for BlockFi and opening your interest account is a straightforward and effortless process. Let’s take a quick look at all the steps you need to go through:

  1. Click the ‘Get Started’ button on the BlockFi website to create your BlockFi account. You’ll need to enter your name, email address and create a password.
  2. After you click the ‘Submit’ button, you’ll receive the verification code on your email. Follow the instructions in the email to activate your account.
  3. Once you’re logged in, select ‘Deposit’ to verify your identity and make your first deposit.
  4. Next, you’ll need to enter your personal information for verification.
  5. Finally, complete the verification process by uploading documents, such as ID card, passport or driver’s license.

After you’ve successfully completed all the steps above, you’ll just need to wait to get approved. The review process for new members usually takes a few minutes after you upload the proof of your identity.

BlockFi Pros & Cons


  • High yield (8.6%) on your cryptocurrency deposits
  • Gemini-insured wallets
  • No minimum withdrawal requirements
  • No monthly fees
  • Ability to borrow against your crypto assets
  • One free withdrawal per month


  • A 0.0025 BTC withdrawal fee after your first withdrawal of the month

BlockFi Alternatives

BlockFi vs. Nexo

While Nexo is one of the best alternatives to BlockFi, the two differ by the interest rates they offer. BlockFi tends to have higher rates on their interest-bearing account than Nexo. Currently, the highest interest rate BlockFi offers you on your interest account is 8.6% while Nexo’s maximum rate is 8%.

BlockFi vs. Celsius 

Just like BlockFi, Celsius also provides crypto loans and crypto interest accounts. Unlike BlockFi, Celsius offers a minimum loan of $500. But the biggest disadvantage for many crypto investors is that Celsius is only a mobile service. This means you can’t access your financial data or make transactions via desktop. So if you don’t like accessing your financials through your phone and prefer using a desktop, BlockFi is a better option.

BlockFi vs. Linus

Like BlockFi, Linus is a blockchain-based savings account as well, where you can earn interest on your crypto coins. But compared to BlockFi, Linus offers much lower interest rates. While BlockFi’s highest interest rate is 8.6%, Linus only offers a 4.5%. Plus, Linus doesn’t provide an app for your mobile devices, meaning you can’t access your funds on the go.

Other Sites like BlockFI

Is BlockFi Worth It?

Whether BlockFi is worth it or not depends on your needs and level of risk you’re ready to commit.

If you want to just keep your cryptocurrency and earn interest on it, it could be a good choice. For example, 10 BTC would turn into 10.62 BTC in a year, which is around a $5,000 gain for the year. Quite impressive, right?

But be careful when taking a loan against your cryptocurrencies, because wide price swings could cause you to quickly violate the 50% LTV threshold.

Also, you should remember that in case BlockFi or Gemini experience some catastrophic hack, your cryptocurrency would be at risk.

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