BlockFi is a Canadian cryptocurrency platform that allows users to trade crypto assets, acquire loans backed by crypto, and create high-yield interest accounts for Bitcoins, Ethereum, and other cryptocurrencies.
Founded by Zac Prince and Flori Marquez in 2017, BlockFi has become one of Canada’s most popular platforms for cryptocurrency investors looking to earn interest on digital assets and borrow funds against their crypto holdings.
The platform offers a range of attractive features for both cryptocurrency investors and borrowers. Its user-friendly interface, competitive rates, flexible terms, and credit card rewards program have made it a popular choice for Canadian investors.
In this BlockFi review, we will explore the platform’s features, benefits, and potential drawbacks to help you decide whether it is the right choice for your crypto needs.
Features of BlockFi Platform
1. BlockFi Interest Account
You can deposit your cryptocurrency into a BlockFi Interest Account and earn up to 8% interest annually. You can also choose to compound your interest by leaving your assets in the account and earning additional interest on your interest earnings.
Currently, BlockFi’s interest account supports interest accounts for Ethereum, Litecoin, Bitcoin, USDC, GUSD, BUSD, PAX, UNI, BAT, DAI, USDT, PAXG, and LINK. You can receive interest in whatever cryptocurrency you prefer.
You don’t have to stake your crypto for a set time, as there is no lock-up required for BlockFi’s interest accounts. Payments are usually made at the end of every month, and some stablecoins offer more interest than regular cryptocurrency on BlockFi.
2. BlockFi Rewards Visa Signature Credit Card
BlockFi is the first to offer a Bitcoin Rewards Credit Card in Canada. Here are a few features of this credit card:
- There are no annual fees
- You can earn 3.5% back (up to $100 in cryptocurrency) during the first three months.
- 25% cashback in crypto on all eligible trades and 1.5% back in crypto for every purchase
- You can also earn 2% back in crypto when you spend $50,000 a year
- There are no foreign transaction fees
3. BlockFi Trade Experience
You can access BlockFi’s services via the website or mobile apps (available for download on Android and iOS). If you want a straightforward trading experience, you will enjoy BlockFi.
It’s as simple as indicating your asset of choice and how you want to trade it. No hassle, no unnecessary complexity.
If you have a BlockFi Interest Account, a recurring trades feature helps you automate when you wish to trade. You can set it to what is ideal for you, whether daily or weekly. You can also set it to the first day or the 15th of any month.
4. BlockFi Wallet
BlockFi offers a non-interest wallet that allows you to store your coins. This is a custodial wallet, but it lets you buy, sell and trade crypto all in one place.
Secure your wallet with a 2FA authentication to secure your assets. The BlockFi wallet lets you easily find your interest account and credit card.
5. Crypto-backed Loans
With BlockFi, you can deposit your cryptocurrency to access a collateralised loan. However, you can only borrow against Bitcoin, Ether, or Litecoin holdings.
So if you are in a financial emergency and need funds to cover unexpected expenses, you can take a loan with BlockFi.
When you deposit your crypto, you can borrow up to 50% of your cryptocurrency value from BlockFi. So if you deposit $200,000 USD worth of Bitcoin to BlockFi, you can access a loan of up to $100,000 USD.
BlockFi holds your cryptocurrency throughout the duration of your loan to protect itself against possible defaults. If you fail to repay the loan, BlockFi will seize the cryptocurrency deposit.
Cryptocurrencies Available on BlockFi
Even though BlockFi has a relatively limited range of cryptocurrencies, you can count on it to offer you the popular ones (including Bitcoin and Ethereum). Also, it has GUSD, which is the currency of BlockFi’s custodian company Gemini.
Check out some of the best they have to offer:
- Ethereum (ETH)
- Bitcoin (BTC)
- LINK (LINK)
- Litecoin (LTC)
- Gemini (GUSD)
- Paxos Standard (PAX)
- PAX Gold (PAXG)
- USD Coin (USDC)
- Tether (USDT)
- Binance USD (BUSD)
BlockFi Fees
BlockFi offers its users one free cryptocurrency withdrawal every month, which is an amazing offer compared to other exchanges in Canada.
Unfortunately, BlockFi doesn’t offer free withdrawals on some cryptos like Ethereum and Chainlink. You will be charged 0.015 ETH and 2 LINK for every withdrawal.
Currency | Withdrawal Limit (per 7-day period | Fees (charged for every subsequent withdrawal in the month) |
Eligible for one free withdrawal monthly | ||
BTC | 100 BTC | 0.00075 BTC |
LTC | 10,000 LTC | 0,001 LTC |
USDC, USDT. GUSD. PAX, DAI, BUSD | 1,000,000 | 50 USD |
Not available for free withdrawals | Fee per withdrawal | |
ETH | 5,000 ETH | 0.015 ETH |
LINK | 65,000 LINK | 2 LINK |
PAXG | 500 PAXG | 0.035 PAXG |
UNI | 5,500 UNI | 2.5 UNI |
BAT | 2,000,000 BAT | 60 BAT |
Is BlockFi Safe?
Even though it is not CDIC insured, BlockFi is generally considered safe if user reviews and reputation are anything to go by. This BlockFi review gives a thumbs up to the platform.
Also, BlockFi holds its funds in cold storage. Cold storage means that assets are not connected to the internet or stored on the internet. It uses Gemini Exchange for its crypto custodial services. Gemini Exchange, founded by the Winklevoss twins, is a renowned secure and regulated exchange.
How to Open a BlockFi Account
Creating an account is quite straightforward. You just need to provide some necessary information (like your country of residence, address, and legal name) and some verification of who you are.
To complete the self-verification, they will need your photo ID. So, have all the need necessary information ready before starting the process.
How Do I Withdraw from BlockFi?
You can withdraw on BlockFi in two ways:
- Through the web
- Through mobile
If you want to use the mobile route, follow these steps:
- Log into your app and click into your ‘Wallet’.
- Select the coin to withdraw from your available balance
- Choose ‘Bank Transfer (ACH)’
- Select the bank account to use
- Input the amount you would like to withdraw
- Confirm the transaction
For the web:
- Locate your ‘Wallet’ tab area
- Choose the coin to withdraw
- Go ahead to select the ‘Bank Account’.
- Choose ‘via ACH’
- Select and go for a linked bank account
- Type in the amount you like to withdraw
- Tap to confirm the transaction.
How BlockFi Compares to Other Cryptocurrency Exchanges
BlockFi Coinbase Coinsmart Bitbuy Newton Crypto coins Supported Less than 20 coins Over 150 coins 16 coins 7 coins 10 coins Fees No added trading fees (the spreads are priced in) A base spread of 0.50% Trading fee between 1.49% to 3.99% 0.2% Trading fees 0.1% - 0.2% Trading fees No added trading fees (spread of 0.5-0.7%) Minimum deposit None $50 $100 for Interac e-transfer deposits C$100 C$10
BlockFi Vs. Newton
BlockFi and Newton are cryptocurrency platforms that allow users to buy, sell, and trade cryptocurrencies, but they have different features and focus on different market areas.
Newton is a Canadian-based cryptocurrency platform that makes cryptocurrency trading accessible and easy for everyone. It supports trading in a wide range of cryptocurrencies and offers competitive fees. Newton has a simple and user-friendly interface, known for its fast processing times and excellent customer support.
Newton has some of the lowest trading fees in the industry, and it does not charge a fee for deposits or withdrawals. BlockFi, on the other hand, does not charge a transaction fee for trades made on its platform. It only charges for lending and borrowing.
RELATED: Newton Crypto Review 2023: Fees, Features, Pros, Cons and More
BlockFi Vs Coinbase
BlockFi and Coinbase are both popular cryptocurrency platforms, but they have different features and focus on different areas of the crypto market.
Coinbase is one of the largest cryptocurrency exchanges in the world, offering trading in over 50 different cryptocurrencies. It also offers various services, including a wallet to store your crypto assets, a mobile app securely, and a platform for merchants to accept cryptocurrency payments. Coinbase is known for its user-friendly interface, robust security, and strong regulatory compliance.
Coinbase charges a transaction fee on each trade made on its platform, with the exact fee depending on the transaction volume. BlockFi, on the other hand, does not charge a transaction fee for trades made on its platform, but it does have some fees associated with its lending and borrowing products.
RELATED: Coinbase Review: Overview, Pros, Cons, Safety, Sign Up & Bonuses
BlockFi Vs. Coinsmart
BlockFi and CoinSmart are cryptocurrency platforms allowing users to buy, sell, and trade cryptocurrencies.
In contrast to BlockFI, CoinSmart is a full-service cryptocurrency exchange that allows users to trade a wide range of cryptocurrencies. They also offer a mobile app for trading and managing your portfolio. CoinSmart provides a comprehensive educational section on its website to help users learn about cryptocurrency and trading.
Both platforms charge fees for certain transactions, such as trading and withdrawals, but the fee structure may differ between the two platforms. CoinSmart’s fees tend to be slightly lower than BlockFi’s, but this can vary depending on the transaction.
RELATED: A Detailed Coinsmart Review in 2023: Fees, Pros and Downside
Final Thoughts on BlockFi Review
Whether you want to earn high-interest rates on your crypto assets or borrow against them in times of need, BlockFi has got you covered.
BlockFi offers a range of features for cryptocurrency investors and borrowers. Its user-friendly interface, competitive rates, and credit card rewards program make it a popular choice for Canadian investors.
With BlockFi, you can earn up to 8% interest annually on your cryptocurrency deposits, trade popular cryptocurrencies like Bitcoin and Ethereum, and take collateralized loans.
The platform’s services are available via the website or mobile apps, making it easy to use on the go.
BlockFi is a great choice for those looking to earn passive income on their cryptocurrency holdings and take advantage of other crypto-related services.
FAQs on BlockFi Review
Is BlockFi Commission-Free?
On the BlockFi platform, no trading fees are present, but the markup price for crypto assets is 1%. BlockFi gives its users 1 free crypto withdrawal and 1 free monthly withdrawal of stablecoins in particular.
Is BlockFi Better Than Coinbase?
Both of them offer unique experiences but differ in what they offer. Their structures are quite different. People seeking to hold on to their crypto instead of trading should go for BlockFi.
But users looking to trade on more coins (as BlockFi offers only 13) can go for Coinbase. Overall, investors may prefer Coinbase to buy, sell, learn about crypto, and earn money.
Can You Lose Money on BlockFi?
Yes, you can. Any trader can lose money at any time on any platform if they’re not investing with caution.
How Does BlockFi Afford Interest?
BlockFi can afford the interest it pays out by making more through lending. They make money by borrowing money at a rate and lending at a higher one.
How Often is BlockFi Interest Paid?
It is paid monthly. Interest in BlockFi accrues daily.
Is BlockFi Available in Canada?
Yes, BlockFi is available and legitimate in Canada. So, you do not have to worry about breaking the law to access their services.
