There are several online platforms catered to those who want to add cryptocurrency to their investment portfolio and make some money from trading in digital currency.
BlockFi is one of the most powerful cryptocurrency exchanges that stands out from others for its valuable loan and interest tools among other things to benefit crypto traders.
In this review, we take a closer look at the BlockFi offerings to see how effective and useful its interest-generation and trading tools are.
BlockFi Review – Updated 2022
A cryptocurrency custodian founded in 2017 with an aim of expanding banking access to areas that traditional services didn’t serve, BlockFi has grown into a global cryptocurrency exchange and platform that features crypto-backed loans, crypto trading, wallet, and crypto rewards credit card.
Users can open an interest account with the platform to earn interest on their crypto assets. You can also borrow money against your tokens and coins instead of selling them out.
Currently, BlockFi offers 13 digital assets available for trading along with a plethora of other useful products to help crypto traders maximize their crypto investments.
The wallet this exchange offers allows users to buy, sell and hold digital currencies. The wallet also lets you store your rewards earned from the Bitcoin Rewards Credit Card.
However, you can’t earn interest for assets stored inside this wallet. To be eligible for interest generation, the tokens should be kept in an interest account.
With BlockFi, you can avoid selling your crypto assets when in need of money. You can borrow US dollars against your coins with affordable interest rates.
Supported coins include LTC, BTC, and ETH. The minimum loan amount is $10,000 while the loan-to-value ratio is 50%. You can take a loan for a duration of 12 months at a 4.5% interest rate.
Borrowing instead of selling cryptocurrency means you can save on taxes as there is no need to report capital gains. Moreover, the interest can be tax-deductible, bringing down your tax bill further. However, it is worth noting that you can easily lose your coins when prices drop.
When the price goes down and assets fall outside the loan-to-value ratio, you need to deposit more collateral to maintain it.
Rewards Visa Card
BlockFi is the first-ever platform to introduce a Bitcoin Rewards Credit Card that earns you rewards in Bitcoin on your purchases.
The card gets you rewards at a rate of 1.5% in Bitcoin on all your purchases without any annual fee.
The rewards are automatically added to your interest account. You also earn 3.5% rewards with the card for the first three months.
This is the interest-bearing account with which you can earn 3-8.6% compounded interest for your crypto holdings.
The account doesn’t require maintaining any minimum balance and has no hidden charges. The rate of interest you can earn depends on the type of currency and varies with the market condition. It accrues daily and gets deposited into your account every month.
The interest is paid out monthly in Ether, Bitcoin, USD coin, Litecoin, or Gemini Dollar. You get the option to choose the currency you get paid in. The advantage of choosing the payout coin is that you can easily diversify your crypto portfolio. The account is available to non-US residents only.
BlockFi offers an online dashboard and a dedicated mobile app for Android and iOS devices. The platform provides an intuitive and simple way to trade with cryptocurrencies.
On the dashboard, you can find the asset selection right on the top to select and make a quick trade. Interest account holders can also set up recurring trades on a daily or weekly basis or specific dates of the month.
The trading experience is quite straightforward for those who are well-versed with online brokerage accounts or financial applications.
Safety and Security
BlockFi is one of the few US-based crypto exchanges and its custodian, Gemini is regulated by the NYSDFS. A BlockFi account does not keep your funds as safe as a bank.
The exchange is not insured but takes some measures and uses some practices to keep users safe and protected.
To prevent any occurrence of fraudulent activity on the platform, BlockFi requires users to verify their identity when opening an account.
You must submit a government-issued identity proof and provide some personal information to sign up for a BlockFi account.
The platform also uses two-factor authentication to protect user accounts. It is currently optional but encouraged.
BlockFi considers holding its funds in cold storage which means the storage doesn’t connect to the internet and secures the funds better. The platform also sees that client funds are placed ahead of any employee or equity funds in any unexpected event of a loss.
BlockFi lets you contact customer service through a variety of methods including a ticket system, chat, or phone call. You can reach out to the support team through the chat facility or phone for any questions or assistance.
Apart from these options, you can use the help centre to find answers to common queries about the platform and features. Loan borrowers have a dedicated portal they can use to get in touch with the loan department.
- Fully featured crypto platform
- Useful help centre
- Interest earning capability
- Ability to borrow against crypto
- No monthly fees or minimum balance
- Free monthly withdrawals
- Not beginner-friendly
- Limited number of cryptocurrencies
- No video explainers
- No insurance
- Interest account not available to US users
While there are several platforms that facilitate cryptocurrency trading with support for a large number of digital currencies, BlockFi provides you a centralized hub for trading crypto assets, generating interest on your holdings, and borrowing funds.
It is a valuable solution for beginners as well as intermediate-level cryptocurrency investors looking for some extra ways to earn from their crypto investment.