BlockFi Review – Is It Legitimate?

The world of finance has transformed with the onset of cryptocurrency. Bitcoin loans are now replacing traditional financial services. To help people get the best Bitcoin loan for their financial needs, platforms such as BlockFi create an ideal lender-borrower marketplace in the crypto space.

What is BlockFi?

BlockFi is essentially a trading platform where users can buy, sell, and exchange Bitcoin and other leading cryptocurrencies. One of the primary services provided by BlockFi is a Bitcoin loan. In this complete BlockFi review, let’s learn how the platform offers competitive prices and BlockFi rates of Bitcoin loans, helping beginners with sizable financial help. Before we start with actual review, let’s know about the platform in brief overview.

BlockFi Review: Top Perks, Pros and Cons

Perks

BlockFi Overview

Headquarters US
Found in 2017
Native Token None
Minimum Deposit $0
Withdrawal Limit 100 BTC per 7-day period
Withdrawal Fees 0.00075 BTC
APY Max 8.6%
App iOS and Android
Customer Support Chat Bot, Phone Support, Raise a Ticket
  • The best part of BlockFi caters to the “crypto curious” users. People intrigued with Bitcoin and Bitcoin loans can learn everything with the help of the BlockFi platform.
  • Helping crypto native- investors with Bitcoin loans makes BlockFi a leader in crypto adoption and crypto literacy content.
  • BlockFi is also best for investors interested in alternative assets such as Bitcoin.

Pros

  • BlockFi is like a fee-free platform as it charges meager transactional fees on Bitcoin loans. 
  • Earning Bitcoin loans at a low interest rate is possible on the BlockFi platform.
  • BlockFi offers centralized and market-best interest rates on Bitcoin loans.

Cons

  • The platform does not have any long-term committed relationship with investment advisors and leaders in the crypto trading world.
  • Bitcoin loans by BlockFi, however, are prone to the volatility of crypto markets.

How does BlockFi work?

How Does BlockFi WorkHow Does BlockFi Works

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According to our BlockFi review, BlockFi works as a crypto management platform. It helps in leveraging cryptocurrency assets, particularly Bitcoin, for repurposing them to fair financial uses. At BlockFi, users can sign-up and register their trading account. They can seek Bitcoin loans for up to 8.6% interest p.a on their Bitcoin holdings. The platform helps users to borrow loans in cash/fiat currency by placing crypto assets as collateral.

Products & Services

According to multiple BlockFi reviews, the platform is an all-in-one crypto bank for beginners and professional investors. This review about BlockFi shows how it offers a dynamic portfolio of services, including different financial products and partnership programs.

BlockFi Fees Products and ServicesBlockFi Products & Services

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BlockFi Review About Products

  • BlockFi Interest Account: For maximizing cryptocurrency balance, the platform offers BlockFi Interest Account (BIA). It helps in watching crypto assets grow as users keep depositing them in the BlockFi Interest Account. This account allows them to increase their crypto balance in value by earning lucrative interest. Currently, BlockFi offers interests up to 6% on Bitcoin and around 8.6% on stablecoins.
  • Crypto-backed Loans: This is an excellent BlockFi feature where the user enjoys the relaxed liquidity of Bitcoin and crypto-assets. The Crypto-Backed Loans help in offloading Bitcoin and other cryptos for some quick cash. Users can borrow up to 50% of their Bitcoin asset value from BlockFi.
  • Trading Account: BlockFi Trading is a multi-purpose product used by investors and traders. It helps in leveraging various crypto assets within the BlockFi ecosystem. BlockFi trading is a seamless experience where users can earn interest on trading their Bitcoin assets.
  • BlockFi Bitcoin Rewards Credit Card: BlockFi has launched the world’s first credit card with a Bitcoin rewards system for US-based users. The BlockFi Bitcoin Rewards Credit Card helps users earn 1.5% interest by purchasing Bitcoin via this credit card.

Review of BlockFi for Services

  • BlockFi Partner Program: By becoming a BlockFi partner, users can earn passively by promoting BlockFi financial services such as Bitcoin loans to crypto investors and the general online audience.
  • Refer A Friend: BlockFi users can share a referral code and help others join the platform. Each deposit of $100 made by the referrals into their respective BlockFi Interest Account helps the users earn $10 (BTC).

BlockFi ServicesBlockFi Services

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BlockFi Review About Fees

For offering Bitcoin loans at attractive BlockFi rates, BlockFi charges a limited amount of fees. The fees charged by BlockFi include:

BlockFi FeesBlockFi Fees

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  • Withdrawal Fees: BlockFi app allows a fee-free Bitcoin withdrawal and one free, stable coin withdrawal every month for its users. The remaining leaves are charged with fees as per the withdrawal terms of the cryptocurrency. For example, every 100 BTC withdrawal in a week (7-day) is charged with 0.00075 BTC fees.
  • Loan Rates and Fees: For Tier-1 Bitcoin loans (0 – 0.5 BTC), BlockFi charges a 5% interest rate (APY). For Tier-2 Bitcoin loans (0.5 to 20 BTC), the loan rates and fees come up to 2%. For Tier-3 Bitcoin loans (above 20 BTC), the platform charges a flat 0.5% rate.
  • Minimum Account Balance charges: The platform charges up to 4.5% fees if the user fails to maintain the minimum account balance in its BIA account.
  • BlockFi Bonus Offer fees: New and existing BlockFi users can maintain additional stable coin assets by earning bonus offers from the platform. There are no fees charged on these bonuses. However, BlockFi increases the loan rates on these other balances to 10% APY.
  • Interest Rates on BlockFi: Interest rates on BlockFi Bitcoin loans are competitively low compared to market rates. The platform charges a 4.5% rate on the Bitcoin collateral, which reduces when the collateral value increases. Moreover while we did detailed BlockFi review, but BlockFi does not charge any additional fees on crypto-backed Bitcoin loans.

BlockFi – Key Advantages

This BlockFi review highlights that the crypto exchange platform has several features, each offering a pivotal advantage to Bitcoin holders and crypto investors. Users can benefit from these features and increase their interest earnings with Bitcoin loans. Here are the main advantages of BlockFi features:

  • BlockFi Interest Rates: BlockFi offers the best interest rates on Bitcoin loans. It is lucrative for Bitcoin lenders and helps them generate a high passive income.
  • BlockFi Fees: The fees charged by the platform are reasonable and do not take a toll on the financial earnings of the user.
  • BlockFi Referral Code: Users can earn from BlockFi by simply adding more people to this ecosystem. This can help them earn Bitcoin-based rewards for every $100 deposit made by their referrals.
  • Withdrawal Limits: There is a $5,000 withdrawal limit on bank transfers, which is better than other Bitcoin loan platforms.
  • ACH Integration: The platform helps in connecting crypto-friendly bank accounts to the user accounts via Plaid.
  • Transfer Speed: Small Bitcoin loans are transferred within hours, and the platform takes less than five business days for transactions on heavy Bitcoin loans.

As per our BlockFi review, the promotional offers on BlockFi are also beneficial for the users. However, the most significant benefit of BlockFi is the amount of cash it offers on Bitcoin loans, which is second to none.

FAQs

Is BlockFi Legit?

Every user must have a question – “Is BlockFi safe?” Well, the answer to this is Yes. BlockFi is legit as its primary custodian – Gemini – the leading crypto exchange platform in the world. 95% of BlockFi assets are stored in cold storage, and the remaining 5% are stored in AON-insured hot crypto wallets.

How to open an account with BlockFi?

Go to the BlockFi website and sign-up with personal information. The platform conducts a quick online verification process via email and phone numbers. After this process, the user can choose which account to open on BlockFi.

Who is eligible to use BlockFi’s services?

A list of sanctioned and watchlist countries/US states have been provided on the website. This list gets updated periodically as people from more areas become eligible to use BlockFi services according to BlockFi review. Besides this, every owner of Bitcoin assets is suitable for BlockFi services.

What types of accounts does BlockFi offer?

BlockFi Trading Account and BlockFi Interest Account are the two types of user accounts offered by BlockFi.

Does BlockFi offer Business Accounts?

Information on BlockFi Business Accounts is currently unavailable. However, the platform is expected to launch the business accounts soon.

How to get in touch with BlockFi Customer Service?

The Client Service Representative at BlockFi is available from 9.30 AM to 5 PM ET, from Monday through Friday. The best way to get in touch with BlockFi customer service is to call their toll-free number – 888-798-6139.

Which countries does BlockFi support?

BlockFi supports leading economies where cryptocurrency markets are active and decently regulated. 

Does BlockFi have an app?

BlockFi web app and mobile app are available on Android and iOS platforms.

What is BlockFi withdrawal time?

The maximum time taken by BlockFi for withdrawals is 1-5 business days.

Can you lose money on BlockFi?

As per BlockFi review, crypto-based services by BlockFi are subjected to market volatility. Such situations could cause economic losses. However, users would not lose money on BlockFi beyond such market-related factors.

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Conclusion

A complete BlockFi review, as described so far, helps users find the best things about the BlockFi platform before joining it. The above information on BlockFi interest rates, BlockFi fees, and even the BlockFi referral code helps get a clear picture of how the platform works. Multiple BlockFi reviews on online websites showcase that the platform is a great marketplace to get Bitcoin loans and earn a good passive income by lending BTC assets.

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