Our articles, research studies, tools, and reviews maintain strict editorial integrity; However, we may be compensated when you click on or accept offers from our partners.
Cryptocurrency has become a popular investment alternative to traditional stocks and bonds. BlockFi is a cryptocurrency trading platform that has expanded beyond digital currency to other financial products including interest accounts, loans and credit cards.
If you are interested in trading cryptocurrencies, this BlockFi review takes a closer look at what the platform has to offer.
Who is BlockFi?
BlockFi is a cryptocurrency exchange and wallet. Over a million individuals and companies worldwide use the platform to trade and store cryptocurrencies. In terms of who is a suitable BlockFi, you may consider this platform and its products if you:
- You have a basic understanding of cryptocurrency trading and how it works.
- Interested in trading cryptocurrencies and earning a high interest rate on deposits.
- You want to apply for a crypto-backed loan or a crypto rewards credit card.
- Feel comfortable keeping the money in a deposit account that is not insured or insured by the Federal Insurance Corporation (SIPC).
- It carries more risks and volatility.
BlockFi allows you to earn high interest rate on deposits and pay low interest rate on loans. But these rates can change quickly based on market conditions.
If you are looking for a low fixed rate loan to consolidate debts, pay off medical bills or move forward financially, you may want to consider getting a personal loan from a bank or online lender instead.
On the other hand, BlockFi can be a great option for cryptocurrency trading. There are no minimum deposit requirements and no monthly fees for trading.
There are also no commission fees when buying or selling cryptocurrencies and the deals are instant.
Main Features of BlockFi
Every cryptocurrency platform is different when it comes to the types of digital currencies you can trade, fees, and account features or benefits. In terms of what makes BlockFi unique, the best features include:
High APY for deposit
When you open a BlockFi interest account, you can earn an APY on your crypto holdings well above the national average APY offered by banks or credit unions. BlockFi outperforms even the best high-yield savings accounts for the interest earned.
Crypto Rewards Credit Card
BlockFi is one of the few companies that offer a credit card that rewards you with cryptocurrency when you spend. With the BlockFi Rewards Visa Signature credit card, you can earn unlimited 1.5% in crypto rewards on purchases.
Borrow for your cryptocurrency
Your crypto holdings with BlockFi can be used as collateral to secure a low-interest loan. The minimum loan amount is $10,000, and you can get financing the same day it’s approved, without an upfront penalty if you pay the loan early.
It is easy to buy and sell Bitcoin, Ethereum, Litecoin and other cryptocurrencies through the BlockFi platform. Instant deal execution means you can start earning interest on new crypto holdings in your interest account right away.
BlockFi allows you to schedule automatic trades so you can build your own cryptocurrency wallet on autopilot. This can make investing easy without the need for hands-on training.
Compare BlockFi to Other Crypto Platforms
BlockFi is not the only place to trade cryptocurrency online. If you’re looking for some other possibilities, here are two more companies you might want to compare.
Robinhood Crypto does not charge any fees for cryptocurrency trading and you can start trading with as little as $1. At this time, Robinhood does not offer crypto loans or crypto credit cards, so you may consider this platform if you are seriously interested in trading Bitcoin, Ethereum, Dogecoin or other cryptocurrencies.
Coinbase is one of the largest cryptocurrency exchanges, with more than 73 million users. You can use the platform to set up a self-hosted crypto wallet, earn crypto rewards on spending, or borrow with bitcoin as collateral for a loan. Compared to BlockFi, Coinbase charges a higher APR for loans.
Not sure about encryption? Compare investment platforms to help you decide what is right for you.
BlockFi Pros and Cons
Before entering the world of cryptocurrency with any platform, it is important to consider the potential advantages and disadvantages. Here’s how to measure the pros and cons of BlockFi.
how to start
You can register for a BlockFi account online. You will need to provide your name, email address and create a password. You will also need to prove that you are at least 18 years old.
After verifying your email, you will need to give BlockFi some additional information, including:
- social protection number
- source of income
- date of Birth
You must also upload a valid photo ID. This is all used to verify your identity. Once this step is completed, you can fund your account and start trading.
Accounts can be funded by linking an external bank account or other crypto wallet and scheduling the transfer.
BlockFi has some attractive features, although there are some potential drawbacks to consider as well. When comparing any crypto wallet or exchange, it is important to consider how the features and benefits match what you need.
Signing up for BlockFi is not the same as opening an online bank account or applying for a credit card. There are some additional steps needed to verify your identity before you can start trading.
However, the process is not difficult and it is easy to navigate the BlockFi platform. If you need help, chat support is available to answer questions or resolve issues.
Fees and prices
BlockFi is an inexpensive platform for cryptocurrency traders. There are no monthly fees or trading fees. There are no penalties for prepayment on crypto-backed loans, although you will pay interest.
However, there is a withdrawal fee if you are withdrawing funds from your interest account. The fees depend on the type of cryptocurrency you own.
There are also limits to the amount of each cryptocurrency you can withdraw from your account each month.
Finding information on the BlockFi website is fairly easy. There is a comprehensive FAQ section if you can’t find what you’re looking for on the main menu or on the homepage.
BlockFi clearly states their fees, what are the rules for trading, and the fact that the interest account is not FDIC insured or SIPC protected.
Overall, the platform generally does a good job of ensuring that people understand how it works and what the risks of trading cryptocurrency are.
In terms of flexibility, BlockFi gives you multiple options for trading cryptocurrency rather than restricting you to just one or two options. You can open an interest account if you choose but you are not required to. The interest account allows you to withdraw cryptocurrencies and transfer them to another crypto wallet if you prefer.
Apart from the website, you can also download the BlockFi mobile app. The app is easy to use so you can keep track of your collectibles or place deals on the go. As mentioned, chat support is available but you can also contact customer service by phone Monday through Friday at 646-779-9688.
Cryptocurrency may be new territory for you – or old hat. If you are looking for a platform that allows you to trade cryptocurrency, earn interest on cryptocurrency holdings, apply for a credit card or use your digital currency as collateral for a loan, BlockFi checks out all these funds.
When you’re ready to get started, you can take the following steps and open your BlockFi account online.