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- BlockFi is a global platform offering interest accounts, crypto-backed loans, and crypto transactions.
- It has no minimum requirements or trading fees, although small propagation fees may apply.
- BlockFi loans are available to both individual merchants and institutional clients.
- Click here to create an account with BlockFi.
Is BlockFi Right For You?
Founded in 2017 by Zac Prince and Flori Marquez, BlockFi claims it was started with a mission to deliver credit and banking services to markets that had little access to savings accounts and similar products.
This has led to its offering of crypto interest accounts, crypto-backed loans, and other crypto asset services. Moreover, the crypto platform also provides a wide selection of crypto trading services for institutions and individuals.
Read on to learn more about BlockFi’s crypto products.
Not sure if BlockFi is right for you? Read on to see how it compares to other crypto platforms.
How does BlockFi compare?
BlockFi, Coinbase, and Abra all offer several crypto services for individual and institutional clients. The three differ mainly when it comes to fees, account offerings, and cryptocurrencies.
For example, Coinbase and Abra have higher minimum requirements ($ 2 and $ 5, respectively), but both give you access to a larger selection of crypto assets. Coinbase offers over 50 crypto assets and Abra offers over 100.
However, BlockFi and Abra do share some similarities when it comes to fees and account types. Both have lower crypto transaction fees, and both offer crypto-backed loans that allow you to use your assets as collateral.
Read on to see if BlockFi is right for you.
Ways to invest with BlockFi
You don’t need to meet a minimum account size to start trading crypto assets on BlockFi. Additionally, trading is generally free of charge (except for a small spread on trades).
BlockFi’s cryptocurrency selection includes bitcoin, ethereum, litecoin, and pax gold. It also offers several stable coins, including the US dollar stablecoin (USDC), tether (USDT), gemini dollar (GUSD), and standard paxos (PAX).
While its trading services are best for stand-alone or convenient traders, you can also use its recurring trades feature to automate your crypto trades on a schedule you choose. Learn more here.
You can earn up to 7.5% interest just by storing certain crypto assets with BlockFi. The account pays you monthly compound interest and BlockFi distributes those payments on the first business day of each month.
Note, however, that the APY you receive depends on both the cryptocurrency and the size of your account balance in that particular asset. This is because BlockFi uses a tiered fee structure. For example, check out the following bitcoin and ethereum rates:
- Bitcoin level 1: 4% APY for 0 – 0.25 bitcoin balance
- Bitcoin level 2: 1.5% APY for 0.25 – 5 bitcoin balance
- Bitcoin level 3: 0.25% APY for> 5 bitcoin balance
- Ethereum level 1: 4% APY for 0 – 5 ethereum balance
- Ethereum level 2: 1.5% APY for 5 – 50 ethereum balance
- Ethereum level 3: 0.25% APY for> 50 ethereum balance
You will also have to pay withdrawal fee from your interest account. You can find more information about BlockFi’s interest rates here.
If you were to encounter a personal emergency where you needed cash, you might consider selling some of your crypto assets. However, BlockFi’s cryptocurrency backed loans allow you to borrow against your cryptocurrencies without selling them.
Interest rates are as low as 4.5%, and the loans include three notable advantages:
- Same day financing: BlockFi Says It Fund You The Same Day You Sign Up For The Loan And Offers A Crypto Guarantee
- Prepayment without penalty: This means that you can pay off your loan as soon as you want without any penalties.
- Flexibility: You can borrow up to 50% of the value of your assets, with the option to invest in other cryptocurrencies
Here’s how it works: you give BlockFi your crypto assets as collateral (acceptable assets include bitcoin, ethereum, and litecoin), and they give you a loan in USD, Gemini Dollar (GUSD) Stablecoin, or US Dollar. (USDC). Learn more here.
BlockFi offers several services for investment funds, market makers, corporations and other institutional clients. These include financing (cryptocurrency loans, stablecoins, and US dollars), over-the-counter (OTC) trading with 24/7 support, corporate treasury solutions, and corporate investments. confidence in bitcoin, ethereum and litecoin.
You can use these services through the BlockFi Prime institutional trading platform. Learn more here.
Is BlockFi trustworthy?
BlockFi currently has an F rating with the Better Business Bureau. BBB ratings range from A + to F, so this is the lowest rating a business can receive when it comes to customer reliability.
In addition to noting how long BlockFi has been in operation, the bureau cites a few reasons for its rating. On the one hand, BlockFi received three complaints, and BlockFi also did not respond to the three complaints filed against them. Other factors the BBB frequently reports on include type of business, history of customer complaints, government actions, and advertising issues.
The New Jersey Bureau of Securities also recently issued a cease and desist order which prevents BlockFi from offering its interest-bearing crypto accounts to new customers. The ordinance claims that crypto securities offered for BlockFi’s interest accounts are not registered with the bureau.
BlockFi has filed two complaints in the past 12 months, according to the BBB.