BlockFi is not a beginner’s platform, but for those of you with savvy knowledge in the cryptocurrency space, you’ll find plenty of value in the services that they offer (and the monthly free withdrawal on most coins).
Key Takeaways
- Best In-Class Customer Support: Customer service representatives here actually appear to know what they’re doing, and can be reached from online or phone support.
- Other Financial Products: Apart from just crypto, you can get low-interest loans and other financial services
- Good for Seasoned Traders: The fee structure and analytics they provide will make a seasoned investor feel right at home, right away
Pros & Cons
Ever wonder what it would be like to buy crypto and have a cryptocurrency credit card at the same time? Well, you don’t have to wonder anymore, because BlockFi made it a reality.
This platform may not be designed for newcomers to the crypto trading game, but it does boast some features that we know plenty of traders have been asking for from other exchanges… and then there are some that nobody asked for.
We funded our account, traded on BlockFi, and even test drove the new crypto credit card all so that you wouldn't have to. This is what we learned, and what we really think you should keep in mind before signing up for an account with BlockFi.
About BlockFi
BlockFi claims it wants to redefine banking, and that very well may be true. They offer low-interest loans and are actively trying to outdo traditional banking, although there's still a long way to go.
BlockFi prides itself on collective success through individual effort, and being transparent to become a trustworthy platform worthy of your business.
While they were founded on cryptocurrency, they could very well move their way to other forms of banking before long.
Product Offerings
- Crypto Credit Card: Earn rewards up to 1.5% of your total purchase price on qualifying purchases, which can help you build your crypto capital faster.
- Crypto-Backed Loans: Loans that can be exchanged for fiat money with a low APY of around 4.5%, all backed by cryptocurrency and the strength of the crypto market
- Personalized Yield: Applies to high-rollers, but it’s a way to earn money on your money so you can always earn
- BlockFi Wallet: Store your crypto on the platform and trade quickly, and effectively without having to wait
- Trading Account: Access the exchange and buy, sell, and place orders or stakes on cryptocurrency to build your portfolio
BlockFi Fees
BlockFi actually has a very unique fee structuring program. They don’t take commissions, that is to say taker and maker fees, on any of their sales that include your cryptocurrency.
Instead, they charge withdrawal fees, and even with offering one free monthly withdrawal for most of the coins they offer, this is still a good way for them to make money.
That’s basically it: the fee system is basic, plain, and straightforward. It builds on BlockFi’s mission statement about transparency, and we applaud them for that.
Who is BlockFi Best for?
BlockFi is designed to appease the savvy investor that’s tired of being taken advantage of by other platforms. While their fee system is a bit unique, they have the sole goal in mind of being a financial superpower and being transparent (and low-cost) to those who put their trust in them.
To date, we’ve seen good things about BlockFi’s security, so if that’s a concern for you, their security efforts are also a selling point if you want unbridled access to your assets with no withdrawal limits, BlockFi might not be the best choice.
BlockFi FAQ's
BlockFi is legitimate, but there are security concerns. It uses Gemini, another exchange and service, to host its cryptocurrency while on the platform.
While Gemini is excellent with security and protecting your funds and personal information, it’s not insured, so you’re still at-risk.
While BlockFi isn’t handling your currency directly, you should still consider possibly introducing a crypto wallet with cold storage options if you’re planning on investing a lot of money into cryptocurrency in the coming months.
It’s alright, but it’s nothing special. If you’re already a BlockFi customer, it has its benefits, but if you’re just looking to get another credit card then it won’t work.
You have to be an active member with BlockFi to use their credit card options. On top of that, the bonuses and perks are few and far between.
It appears as though BlockFi grabbed onto the trend of other exchanges introducing these cards, as it offers nothing special right now. You can get $75 in crypto after using your card, but beyond that, it’s limited.
The APY rate is competitive.
It depends on the volume that you trade. There are no transaction fees (technically, it gets complicated) when you buy crypto, but instead, BlockFi applies a 1% markup to all crypto coins when you buy them and that 1% is where they make a profit.
That’s why later on we’ll talk about them making money on transactional fees, even though there are some hoops that they jump through.
This varies depending on market conditions, so be sure to pay attention to their fee structures.
Much like other cryptocurrency exchanges such as Binance and FTX, BlockFi deals in other assets such as crypto mining, investments from other financial endeavors, transactional fees, spreads, sponsorships, and interest.
BlockFi makes the bulk of its money, as many exchanges do, via transaction fees.
BlockFi specifically states that they will not sell your personal information. Their privacy policy includes a lot of information, so your information will be used to create marketing and analytical information available to them, and that analytical information may (and most likely will) be used to create relationships with other companies, but your personal information won’t be sold.
Your information and transactional data will merely be masked numbers on an Excel sheet to show numbers and market valuation, but your personal identity will not be attached to it.
Compare to Other Platforms
BlockFi
Don't just buy crypto - start earning on it. Open an interest account with up to 8.6% APY, trade currencies, or borrow money without selling your assets.
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Review Summary:
Don't just buy crypto - start earning on it. Open an interest account with up to 8.6% APY, trade currencies, or borrow money without selling your assets.
