In this BlockFi review, we will tell you all you need to know about the platform and how it works.
For crypto enthusiasts and newbies alike, BlockFi is a platform that facilitates crypto transactions. In addition, they provide low-interest rate loans and interest accounts.
Did you know you do not have to pay a single dime of fees when trading? Did you also know minimum balances are not a problem?
All of this and much more are waiting for you in this BlockFi review.
What is BlockFi?
BlockFi is a cryptocurrency exchange for trading crypto assets, acquiring loans backed by crypto, and creating interest accounts.
Founded by Zac Prince and Flori Marquez in 2017, its headquarters is in Jersey City, NJ. BlockFi was created to make credit services more available to markets with little access to essential trading/financial products.
BlockFi offers 13 digital assets you can purchase. This BlockFi review will break down why they are worth considering as a go-to crypto platform.
BlockFi Review Pros and Cons
- The pricing is transparent
- No monthly fees
- No minimum deposits
- You can get a crypto rewards credit card
- Margin lending accounts are available
- Trades are executed instantly
- Their cryptocurrency roster is not extensive
- New customers don’t have access to accounts that earn interests
- You can only get access to business accounts and individual accounts
Cryptocurrencies Available on BlockFi
Even though BlockFi has a relatively limited range of cryptocurrencies, you can count on it to offer you the popular ones (including Bitcoin and Ethereum, of course). It has also GUSD, which is the currency of BlockFi’s custodian company Gemini.
Check out some of the best they have to offer:
- Ethereum (ETH)
- Bitcoin (BTC)
- LINK (LINK)
- Litecoin (LTC)
- Gemini (GUSD)
- Paxos Standard (PAX)
- PAX Gold (PAXG)
- USD Coin (USDC)
- Tether (USDT)
- Binance USD (BUSD)
If you want to know how to buy Ethereum in Canada, check out our comprehensive article. You can also check out our article on how to buy Bitcoin in Canada.
BlockFi Trade Experience
You can get access to BlockFi’s services via the website or mobile apps (which are available for download on Android and iOS). If you want a trading experience that is simple and straightforward, you will enjoy BlockFi.
It’s as simple as indicating what your asset of choice is and how you want to trade it. No hassle, no unnecessary complexity.
If you have a BlockFi Interest Account, there is a recurring trades feature that helps you automate when you wish to trade. Whether it is daily or weekly, you can set it to what is ideal for you. You can also set it to the first day or the 15th of any month you want.
So, this BlockFi review recommends BlockFi if a smooth and direct trading experience is what you are after.
BlockFi Fees
Withdrawing crypto into an external wallet attracts a withdrawal fee which is subject to the cryptocurrency in question. You might also have to deal with a withdrawal limit. Also, you won’t be able to withdraw more than 100 BTC in a week.
However, there are some cryptocurrencies that will let you withdraw for free once a month. These assets are:
- Bitcoin (BTC)
- Litecoin (LTC)
- Tether (USDT)
- USD Coin (USDC)
- Dai (DAI)
ETH, BAT, LINK, PAXG, UNI won’t give you the privilege of free withdrawals, though.
How to Open a BlockFi Account
Creating an account is a straightforward walk in the park. They just need you to provide some necessary information (like your country of residence, address, and legal name) and some verification of who you are.
To complete the self-verification, they will need your photo ID. So, have all the need necessary information ready before starting the process.
How Do I Withdraw from BlockFi?
You can withdraw on BlockFi in two ways:
- Through the web
- Through mobile
If you want to use the mobile route, follow these steps:
- Log into your app and click into your ‘Wallet’
- Select the coin to withdraw from your available balance
- Choose ‘Bank Transfer (ACH)’
- Select the bank account to use
- Input the amount you would like to withdraw
- Confirm the transaction
For the web:
- Locate your ‘Wallet’ tab area
- Choose the coin to withdraw
- Go ahead to select the ‘Bank Account’
- Choose ‘via ACH’
- Select and go for a linked bank account
- Type in the amount you like to withdraw
- Tap to confirm the transaction.
Other BlockFi Features
1. BlockFi Interest Account (BIA)
BlockFi’s BIA account can be likened to the kind of savings account you are already used to. However, the difference is that it takes cryptocurrency as opposed to dollars. Also, keep in mind that it is not insured by CDIC.
An advantage that BlockFi gives you is that you can link exchanges and wallets if you want to fund your BlockFi Interest Account. So, the lending and trading platform isn’t all you get from a BIA account.
Another benefit of this account is that you can buy crypto with little money (as small as $20) from the web or via the app.
To begin using this account, you may link your bank account to BlockFi and purchase cryptocurrency. Another option is to link your bank account to an external wallet if you own crypto outside of BlockFi.
After this is done, you can move said crypto assets into your BIA account and start enjoying the benefits.
2. BlockFi Rewards Visa Signature Card
The BlockFi platform has a card that is called the BlockFi Rewards Visa Signature Card. It is one of the pioneering crypto rewards credit cards in North America. The features of this card include:
- There are no annual fees
- You can earn 3.5% back (and up to $100 in cryptocurrency) during the first 3 months.
- 25% cashback in crypto on all eligible trades and 1.5% back in crypto for every purchase
- You can also earn 2% back in crypto when you spend $50,000 a year
- There are no foreign transaction fees
What Is BlockFi Best For?
BlockFi is best for three main things, and they are:
- Crypto-to-crypto trades
- Interest-carrying accounts
- Crypto-backed borrowing
The coins on BlockFi are undoubtedly limited when compared to its competitors. So, you might outgrow it if the need for a more extensive roster becomes your priority. Fortunately, the very best alternatives to BlockFi have already been explored in this BlockFi review.
You can check out our article on the best crypto to buy if you want to broaden your crypto portfolio.
Is BlockFi Safe?
Even though it is not CDIC insured, BlockFi is generally considered safe if user reviews and reputation are anything to go by. This BlockFi review gives a thumbs up to the platform.
Also, BlockFi holds its funds in cold storage. Partners like Gemini also do the same. Cold storage means that assets are not connected to the internet or stored on the internet. This makes them less likely to suffer security breaches.
How BlockFi Compares to Other Cryptocurrency Exchanges
Just in case you are not convinced by what BlockFi has to offer and you want to look into available alternatives, our BlockFi review comparison table below should help you do that at a glance:
BlockFi | Coinbase | Coinsmart | Bitbuy | Newton | |
Crypto coins Supported | Less than 20 coins | Over 150 coins | 16 coins | 7 coins | 10 coins |
Fees | No added trading fees (the spreads are priced in) | A base spread of 0.50% Trading fee between 1.49% to 3.99% | 0.2% Trading fees | 0.1% - 0.2% Trading fees | No added trading fees (spread of 0.5-0.7%) |
Minimum deposit | None | $50 | $100 for Interac e-transfer deposits | C$100 | C$10 |
BlockFi vs Coinbase vs Coinsmart vs BitBuy vs Newton Table
For more information on what Coinbase has to offer, check out our Coinbase review.
Conclusion of BlockFi Review?
BlockFi is a cryptocurrency exchange that offers many services, including a crypto-backed lending platform and a credit card that can be used by merchants who accept cryptocurrency.
It’s important to know that withdrawals on this platform often take longer than expected. So, if you like to get your withdrawals snappily, you might have to be a bit more patient than you are used to.
Unfortunately, they are also known for their somewhat sluggish customer support service. If you are one who likes quick responses when you have a question to ask or a grievance to air, then BlockFi might not be the one for you.
Hopefully, this BlockFi review has equipped you with everything you need to know about the platform.
FAQs on BlockFi Review
Is BlockFi Commission-Free?
On the BlockFi platform, no trading fees are present, but the mark-up price for crypto assets is 1%. BlockFi gives its users 1 free crypto withdrawal and 1 free monthly withdrawal of stablecoins in particular.
Is BlockFi Better Than Coinbase?
Both of them offer unique experiences but differ in what they offer. Their structures are quite different. People seeking to hold on to their crypto instead of trading should go for BlockFi.
But users looking to trade on more coins (as BlockFi offers only 13) can go for Coinbase. Overall, investors may prefer Coinbase to buy, sell, learn about crypto, and also earn money.
Can You Lose Money on BlockFi?
Yes, you can. Any trader can lose money at any time on any platform if they’re not investing with caution.
How Does BlockFi Afford Interest?
BlockFi can afford the interest it pays out by making more through lending. They make money by borrowing money at a rate, and lending at a higher one.
How Often is BlockFi Interest Paid?
It is paid monthly. Interest in BlockFi accrues daily.
Is BlockFi a Wallet?
Yes, BlockFi is a cryptocurrency exchange and wallet that serves users in Canada and other countries. It has the following features:
- An interest-earning account
- Crypto-backed loans
- A free trading platform
- Users can fund their account with USD, crypto, or stablecoins
Is BlockFi Available in Canada?
Yes, BlockFi is available and legitimate in Canada. So, you do not have to worry about breaking the law in order to access their services.
Hi, I'm Adeola Adegoke. I am a licensed Insurance Broker in Manitoba, and I hold a master’s degree in Mathematical Sciences (with a major in Financial Modeling) from the African Institute for Mathematical Sciences (AIMS), Tanzania.
Also, I have a second master's degree in Statistics from the University of Regina, and I am currently pursuing my Ph.D. in Statistics at the University of Manitoba.
The primary purpose of Money Reverie is to help everyday Canadians make better financial decisions by providing up-to-date financial news and information, reports, product reviews, and government programs.
