BlockFi Review 2021 | Earn 8.6% interest rates on your Crypto
Pur your crypto into work and get the best interest rates on your Bitcoin and other cryptocurrencies
In this article, we will review BlockFi, a crypto lending platform founded in 2017 and has its headquarters in New York. With BlockFi, You can earn up to 8.6% annual returns (APY) by lending cryptocurrencies. BlockFi is available in almost all countries worldwide.
BlockFi operates within the federal and state guidelines of the United States. BlockFi’s investors include some of the crypto industry’s biggest names such as Galaxy Digital, Valar Ventures, Akuna Capital.
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What is BlockFi?
BlockFi is a crypto lending service that provides you interest on your Bitcoin and other crypto-assets (including Stablecoins) through BlockFi Savings account. In other words, BlockFi is a sort of crypto bank.
How to create a BlockFi interest account?
You can create a BlockFi Interest account by visiting the BlockFi website or by calling customer care at 888–978–6139. You should be at least eighteen years old.
You have to go through a BlockFi KYC process, where you need to upload a clear photo of your documents for identity verification. If all the details are correct, your account is approved within minutes. If your account has not been approved in 48 hours, you can write to them at firstname.lastname@example.org.
For business accounts, you have to submit identification information of your business’s managers and equity owners.
BlockFi also offers promotions to attract customers and currently offering up to a $250 sign-up bonus with a $25 or higher deposit in crypto.
You are required to complete your Know your Customer (KYC). It helps the organization to prevent money laundering activities and other such practices.
Use this link and get a $250 sign-up bonus with a $25 or higher deposit in crypto.
BlockFi Interest Rates
BlockFi interest account provides compound interest on deposits on the first business day of every month. There is no minimum balance required to earn interest.
If you don’t own any of the above coins, you can wire USD into your BlockFi Interest Account (BIA). Your fiat will be converted to any of the above coins of your choice. These rates may change, keeping other factors in mind, but you will be given prior information. Also, they change once in two or three months compared to other platforms that change rates weekly. Therefore, BlockFi provides consistent earnings.
BlockFi offers Payment Flexibility. If you are depositing your funds in a particular cryptocurrency, you can earn interest in your choice of cryptocurrency. For example, if you deposited BTC; you can earn in BTC, ETH, LTC, GUSD, PAX, PAXG, USDC, or USDT.
You have to adjust this information at least two business days before the month’s last business day. If you fail to do so, you will earn interest in the type of cryptocurrency you had deposited.
BlockFi also provides monthly statements that state the funds you hold, the interest you have earned, and the projected interest you can earn next month. BlockFi will email you the monthly statements, and you can also download them in PDF format from the platform.
You can also download the transaction history in CSV file format under your account section. Additionally, you can also filter transactions in a specific date range and download accordingly.
BlockFi generates interest by lending its funds to trusted corporates and institutional borrowers, buying ETFs and other securities. However, it does a thorough credit analysis before lending money to anyone.
BlockFi Withdrawals Fees
You get one free crypto and stablecoin withdrawal every month, and you can withdraw it anytime. Each free withdrawal applies to a single cryptocurrency each month. After you place a request, your cryptocurrency will be first transferred to BlockFi Trading LLC and then to the required address. If you want to make an additional withdrawal, you will be charged as follows.
BlockFi accounts are subject to Gemini’s minimum withdrawal amount, which is 0.003 BTC and 0.056 ETH. If your withdrawal amount is smaller than this, it may take up to 30 days to complete the process. If you are using wire withdrawal, you will have a limit of $5000.
The loan amount depends on your collateral you deposit against your loan. Additionally, 20% of LTV is applicable only for BTC-backed loans of up to $20k.
Closing the account
You can close your account whenever you want. If your wallet has cryptocurrencies, you can get it transferred to another account along with its interest. If you don’t deposit any amount within sixty days of opening your account, it will be closed automatically.
BlockFi Review: Security
BlockFi uses Gemini as its primary custodian to secure its funds regulated by the New York Department of Financial Services (NYDFS). It has received a SOC2 Type 1 compliance audit from Deloitte. Gemini stores 95% of their funds in a cold wallet, i.e., offline and safe, and the remaining 5% in the hot wallets, insured by Aon. BlockFi also states its client funds are placed ahead of employee funds or equity in losses.
In case your account is compromised, it will be frozen for one week. BlockFi will conduct a video call with you and will verify your identity. After your account is verified, you can change your email address and password and regain control of your account.
BlockFi uses two-factor authentication (2 FA) for securing your account. Once you enter your password, you have to enter a verification code from the Google authenticator app. To enable two-factor authentication, you have to go under the profile setting and click on security.
BlockFi also offers a wallet address book that allows you to save your frequently used crypto addresses. They also provide Allowlisting that adds another layer of security. Allowlisting allows cryptocurrencies in your BlockFi account to be transferred only to a list of known withdrawal addresses. You can configure your Allowlisting settings here. In addition, you can also label withdrawal addresses. If your allowlist is empty, you cannot make any withdrawals. To make a withdrawal, you have to add active addresses to your wallet. It takes seven days for your address to get approved; hence you might consider doing it beforehand. You can make allowlist changes only through the web platform. BlockFi mobile app provides read-only information.
You can also enable PII Verification. They are fed by various factors such as amount, the velocity of transactions, and geographic location. It has an automated risk management system that monitors 24/7.
BlockFi Referral Incentives
If you refer BlockFi to any of your connections, they deposit $100 or more into their BlockFi Interest Account (BIA), you and your connection both can earn $10 in BTC. The $100 should be deposited into the account until the following interest payment day to receive the benefits.
To refer, you have to follow the following three steps -
- Sign in to your BlockFi account. Go to your dashboard.
- Click on “Refer a Friend” on the top right corner.
- Now you will you to share the URL with your connection.
After you have completed five referrals, you will get $20 BTC for each referral, while your connection will continue to get $10 BTC.
BlockFi Affiliate Partner Program
You can earn passive income by joining BlockFi Affiliate Partner Program. You have to introduce your audience to BlockFi Financial Tools. You will be provided training and will be connected to a dedicated Partner Manager for guidance.
You will have a cookie window of 30 days. All the marketing and promotional resources are available in the dashboard, and you can also track your performance and earnings in the dashboard.
You will earn .5% of all the deposits your network invests in BlockFi, up to $1000 in commission for every referral. You will get paid via PayPal or directly electronically in your bank account. There is no limit on the number of referrals.
You can market in BlockFi in many ways, such as -
- Link BlockFi in your articles
- Ads on your website
- Social media posts
- Create new content
BlockFi Institutional Services
BlockFi provides institutional services such as customizable borrowing and lending of stablecoins, cryptocurrencies, and USD. It customizes lending products according to the client’s business strategy. BlockFi supports rapid onboarding, fast trade execution, and enterprise-level reporting. They help you develop insights by being your strategic partner. For further details, you can contact them by filling this form.
BlockFi Customer Support
BlockFi Review: Pros and Cons
Let’s summarize BlockFi’s pros and cons.
- Institutional quality financial services.
- You earn interest monthly and in compounds.
- They provide responsive customer support.
- Utility Tokens are not required.
- They provide consistent earnings.
- Funds are insured by Aon and regulated by Gemini.
- BlockFi has a limited crypto-asset option compared to other platforms.
- KYC is mandatory.
- Lower value withdrawals take a lot of time.
BlockFi apps are also available on Android and iOS and have an intuitive interface. They offer a user-friendly interface and can be accessed quickly and safely through biometric login features.
We can see conclude that BlockFi is a trustworthy platform as it is backed by big names in the crypto space, insured by Aon. It is regulated by the New York Department of Financial Services (NYDFS) and uses various techniques to secure the platform. BlockFi has competitive interest rates, a user-friendly platform, and extensive customer support.
Frequently Asked Questions (FAQ)
How does BlockFi make money?
BlockFi generates interest by lending their funds to trusted corporates and institutional borrowers and buying ETFs and other securities.
is BlockFi safe? is BlockFi insured?
Digital currency is not legal tender, is not backed by any government, and the BlockFi Interest Account is not a bank account nor a brokerage account and is not subject to FDIC, SIPC, or other similar protections. Interest rates, withdrawal limits, and fees are subject to change and are largely dictated by market conditions. This is not a risk-free product and loss of principal is possible.
Is BlockFi legitimate?
BlockFi operates within the federal and state guidelines of the United States and regulated by the New York Department of Financial Services (NYDFS).
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