BlockFi is an easy place to buy, sell, and earn cryptocurrency. Are you considering diversifying your investment portfolio with cryptos?
What is BlockFi?
BlockFi is a cryptocurrency exchange that offers interest-bearing accounts and low-interest-rate loans in all 50 US states. You get zero transaction fees and no minimum balance requirements, along with transparency.
Zac Prince and Flori Marquez founded BlockFi in 2017. It sets itself apart from other crypto asset service providers by pairing market-leading rates with institutional-quality benefits.
The company is the only independent lender with institutional backing including SoFi, Galaxy Digital, Akuna Capital, Fidelity, CMT Digital, Morgan Creek Capital Management, Winklevoss Capital, and Coinbase Ventures.
What is Cryptocurrency?
Cryptocurrency is a digital currency that uses cryptography for security. Currently, many treat crypto as a crypto asset.
How does BlockFi work?
BlockFi offerings include interest-earning accounts, low-cost crypto-backed secured loans, and fee-free trading of popular cryptocurrencies. Through the platform, you can:
- Buy and sell a variety of cryptocurrencies like Bitcoin and Ethereum.
- Earn interest in your crypto holdings.
- Borrow against your portfolio instead of selling your cryptocurrency assets.
It’s crucial to understand crypto trading involves substantial risk of loss. It’s not suitable for every investor. Volatility can drastically affect crypto prices. As a result, you may lose all of your original investments.
Features & Benefits
BlockFi can help you diversify investments and earn interest on crypto balances.
- Trading: Buy, sell, or exchange various cryptocurrencies at competitive prices and start earning interest the moment your trade is placed.
- Interest Account: Earn up to 8.25% APY. Interest accrues daily and is paid monthly. There are no hidden fees, no minimum balances.
- Crypto-backed Loans: Borrow funds against your crypto assets, so you can get a loan while continuing to hold.
- Credit: Bitcoin Rewards Credit Card lets you earn an unlimited 1.5% back in Bitcoin on every purchase.
The Federal Deposit Insurance Corporation (FDIC) does not cover digital assets like your crypto holdings, so your deposits have no insurance.
- Be 18 years or older.
- Social security number.
- Valid phone number.
- Valid government-issued photo ID.
- Real-time selfie photo.
- No commission fees.
- No monthly payments or minimum deposits.
- Interest account withdrawal limits and withdrawal fees apply.
Who is it best for?
BlockFi is best for people who are interested in using cryptocurrencies similar to fiat currencies. If you’re looking to earn a competitive interest rate, borrow against your digital asset, and want to crypto back from a Bitcoin Rewards credit card, then it’s a great option to consider.
In our BlockFi review of its products, they distinguish themselves from other crypto exchanges. Like using a bank for fiat currencies (US dollar), BlockFi uses cryptocurrencies instead to offer financial products for your everyday needs.
BlockFi is a legit company and not a scam. It also has a 3.9 out of 5 rating on Trustpilot as of review time.
- US-based and regulated
- Enjoy instant transactions
- Immediate interest accrual
- Crypto loans without selling digital assets
- Only one free crypto or stablecoin withdrawal per month
- No custodial accounts
BlockFi offers institutional services and works with investment funds, market makers, and other crypto-based businesses. Gemini is the company’s primary custodian and is a licensed NY trust company subject to cyber security regulations. Gemini stores 95% of assets in cold storage and 5% in hot wallets.
24/7 customer service is available with the AI-powered chat assistant or request to speak with a client service specialist.
How to Start a BlockFi Account
The time needed: 3 minutes.
Step-by-step to open a BlockFi Trading
- Get started
- Create an account by clicking on the link here.
- Enter the following information
- Legal first and last name, email address, and referral code.
- Submit your application
- Verify your email and personal information.
- Transfer funds
- Deposit funds into your new account using cryptocurrency, bank transfer, or stablecoin like USD Coin.