Best Cryptocurrency Exchange

BlockFi Review: Pros, Cons, and More

Crypto.com Review: Pros, Cons, and More
Written by publisher team

BlockFi is a cryptocurrency exchange and wallet that serves individuals and businesses around the world. It offers interest-earning account, portfolio-backed loans, and zero-fee trading.

As with many of the best cryptocurrency exchanges, you can fund your account with US dollars, cryptocurrencies, or stablecoins.

BlockFi Interest Calculation

This interest bearing account holds the coins you deposited or purchased at the exchange. It is very similar to a traditional savings or investment account. One big difference is that the money you put into a bank account will be protected up to $250,000 against bank failure through FDIC insurance. Likewise, any money in the brokerage account will be protected by SIPC insurance. But if you put your savings into a BlockFi interest account, you will not have this protection.

You are limited to 1 cryptocurrency withdrawal and 1 fixed currency withdrawal per month. After that, you will pay a fee for each withdrawal. You can make automatic transfers to any bank account connected to Plaid, a company that allows apps to securely transfer data to and from your bank.

You can also set up a business or company account. It works in the same way as a single BlockFi interest calculation but in the name of the entity. It requires additional documentation and a longer verification process. Once you apply, a member of BlockFi’s compliance team will contact you to assist with the rest of the registration process.

Pays these interest rates:

  • Bitcoin (up to 2.5 BTC): 6%
  • Bitcoin (over 2.5 BTC): 3%
  • Ethereum: 5.25%
  • Correlation: 5.5%
  • Gold PAX: 5%
  • Litecoin: 6.5%
  • Standard packages: 8.6%
  • USDt: 9.3%
  • US dollar, US dollar, US dollar, US dollar: 8.6%

Interest begins to accrue the day after the deposit and the monthly pools.

BlockFi pays interest by lending assets to institutional and corporate borrowers with high collateral. It stores the reserves – so it can fund your withdrawals – with the New York Trust, Gemini, and other third parties.

The BlockFi interest account is available to clients in most countries and in all US states except New York.

BlockFi Trading

Use the funds from your BlockFi interest account to buy cryptocurrency on the BlockFi exchange without fees. You will have daily trading limits based on your account size and activity.

To make a trade, simply log into your BlockFi account, enter the buy or sell amount and currencies, and authorize the trade. You can make a one-time trade, or automate the trade to be repeated daily, weekly or monthly.

When you buy cryptocurrency on the exchange, it will land in your interest account and start earning interest right away.

Cryptocurrency backed loans

Use a BlockFi loan like a Personal Loan to finance major purchases, refinance debt or make a down payment on a home purchase.

You must use crypto assets to back the loan with a loan-to-value (LTV) ratio of at least 50% (which means your collateral is equal to at least half of what you owe). You can borrow in USD, GUSD or USDC; And subtract the collateral in Bitcoin, Ethereum or Litecoin.

You’ll pay a 2% origination fee to receive your loan, and you’ll pay interest between 4.5% and 9.75%, depending on the life value of your loan.

About the author

publisher team