Blockfi cryptocurrency platform is a good fit for newbies and intermediate cryptocurrency investors who wish to bridge the gap between traditional finance & crypto.
BlockFi platform is intermediate to the advanced crypto trader looking for a one-stop-shop for their cryptocurrency needs.
This platform does not only offer the ability to buy, sell, and trade crypto but offers several other products for crypto enthusiasts.
About Blockfi
BlockFi is a crypto exchange and platform offering a crypto wallet, crypto trading, crypto-backed loans, and a crypto rewards credit card. Non-US clients can also open a BlockFi Interest Account and earn interest on their assets.
Another advantage of BlockFi exchange is that one can borrow against their coins. Instead of selling them out when you need funds, one can take out a loan, preventing having to sell into a down market.
Is BlockFi Legitimate?
In addition to Blockfi state-regulated custodians, BlockFi is backed by reputable investors. And they include the following:
- Valar Ventures,
- Morgan Creek Capital Management,
- Coinbase Ventures, and more.
Blockfi Interest Rates
With a BlockFi Interest Account, one can earn between 3% and 8.6% compounding interest on cryptocurrency holdings. There are no hidden fees on the account and no minimum balance requirement.
The Pros of Blockfi
- U.S-based and regulated
- Instant trades
- No commission fee is required
- There are no minimum deposits or monthly fees
- Available worldwide, except in sanctioned or watch-listed countries
The Cons of Blockfi
- There are No joint or custodial accounts
- Limited free withdrawals from interest accounts
- APY and loan rate volatility
- Savings aren’t protected against bank failure
How BlockFi Works
BlockFi platform is a crypto exchange and wallet that serves businesses and individuals worldwide. It offers an interest-earning account, portfolio-backed loans, and fee-free trading.
As with several other best cryptocurrency exchanges, you can fund your blockfi account with USD, crypto, or stablecoins.
Is BlockFi a Good Investment?
BlockFi platform may be a good option for any user seeking a crypto exchange that offers unique features and products like crypto-backed loans, a crypto rewards credit card, and an intuitive user experience.
Is Blockfi Safer than Coinbase?
BlockFi exchange and Coinbase are well-known, trusted crypto exchanges. Each platform is suitable for newbies, and both will soon offer a credit or debit card with crypto rewards.
Though, Coinbase supports more cryptocurrencies than blockfi, allows different payment methods, and features a Pro platform for advanced users. For investors who wish to trade regularly and diversify their altcoins, Coinbase is better off.
When it comes to selection, the Coinbase exchange is the winner. Coinbase supports 150 cryptocurrencies, most of which are purchased by U.S-based investors. The coins include many known options, like
- DOGE,
- BAND,
- and BCH.
In contrast, the BlockFi exchange only supports eight: BTC, ETH, LTC, PAXG, USDC, USDT, GUSD, and PAX. Of these coins, one can’t purchase PAX, PAXG, or GUSD on Coinbase.
BlockFi exchange also doesn’t support fiat currencies. Instead, it turns your bank or wire transfer into the stablecoin, GUSD.
Coinbase accepts cash deposits and more than 20 fiat currencies, including USD, EUR, and GBP. However, on the two platforms, users can purchase coin fractions.
BlockFi Vs Coinbase: Security
These U.S.-based crypto exchanges operate under strict regulatory standards and meet or exceed industry guidelines.
Both exchanges follow “know your client” (KYC) and account verification methods. They both make use of bug bounty programs to search for security weaknesses.
BlockFi exchange uses Gemini as its primary custodian, meaning that Gemini handles and oversees the funds.
As part of their partnership, Gemini keeps most of the crypto holdings in cold storage and ensures their hot wallets through Aron.
In comparison, the Coinbase exchange stores 98% of account funds offline in cold storage and then holds an insurance policy that protects one’s funds in hot storage against fraud and theft. The Federal Deposit Insurance Corporation insures Coinbase exchange cash balances.
Both platforms offer a hot wallet, use 2FA, a password, and device confirmation. Users can opt for whitelisting, also known as allowlisting, to protect their funds further.
But investors do not have control over their private keys on either crypto platform, and Coinbase manages your keys, whereas BlockFi’s custodian, Gemini, handles your account keys.
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Does BlockFi Report to the IRS?
Yes, BlockFi exchange reports any interest earned to the IRS.
Since any interest earned on a user savings account is taxable, BlockFi will send you a 1099-misc form at the
You must report to the IRS at the beginning of each calendar year.
Does BlockFi Have Fees?
BlockFi has a series of fees you will have to consider, but it mostly depends on the operations you want to do. It may also differ in comparison to several other similar platforms.
For instance, what you need to know is that BlockFi exchange is commission-free crypto, and this means that you won’t need to pay anything for just the action of buying or selling crypto.
You will only have to worry about the spreads, which may go anywhere between 0.7% and 1.5%.
BlockFi Withdrawal Fees
While this Blockfi exchange does not charge commission fees, BlockFi does charge a withdrawal fee.
With that in mind, the amount depends on the cryptocurrency you are trying to use, and the currency will also be in the crypto that you are trying to work with.
You may also want to note that regardless of the payment, each crypto will have a withdrawal limit.
These limits will apply over seven days. Here are the withdrawal fees that you will want to consider:
- Bitcoin: 0.00075 BTC fee with a 100 BTC limit withdrawal
- Ethereum: 0.02 ETH fee with a 5.000 ETH limit withdrawal
- Chainlink: 0.95 LINK fee with a 65,000 LINK limit withdrawal
- Litecoin: 0.0025 LTC fee with a 10,000 LTC limit withdrawal
- Gemini Dollar/USD Coin/Tether: $10.00 USD fee with a $1,000,000 limit withdrawal
- Basic Attention Token: 35 BAT fees with a 2,000,000 BAT limit withdrawal
- Uniswap: 1 UNI fee with a 5,000 UNI limit withdrawal
Above are the average withdrawal fees; users should know they get one free monthly withdrawal.
If they keep within the monthly withdrawal limits, they may not have to pay any withdrawal limits.
For instance, anyone who withdraws one Bitcoin every week may pay more than anyone who withdraws 4 Bitcoin a month in one go.
Have you had experience with Blockfi exchange?
Kindly share your experience and view with us in the comment section.
Watch the video below to know the Blockfi review:
About Author
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My name is Precious Ejiofor, I am a professional self motivated, dependable writer and editor, with over 4 year of experience in writing for variety of business and platforms. I am able and capable to write on any kind of topic.
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