Welcome to our BlockFi interest account Review 2022.
Here, we will see what interest accounts BlockFi offers and you will get a great sign up bonus with our referral code.
BlockFi used to offer among the best crypto interest accounts for Bitcoin, Ethereum, Litecoin and stablecoins.
However, there are many new platforms like NEXO, Crypto.com, YouHodler and Celsius which you see in our list over the best crypto interest rates.
What is BlockFi?
BlockFi is a cryptocurrency online application that offers three main products
- Interest accounts
- Crypto loans
- Crypto trading
In this BlcokFi review we will focus on the interest account.
With the BlockFi interest account you can deposit and earn Bitcoin and crypto passive income. The interest is paid out in the beginning of every month. The interest earned by account holders compounds.
In the case you wish the compound interest to be paid out in different asset other than the one you deposited, BlockFi offer Interest Payment Flex.
Interest Payment Flex gives you the option to hold your crypto in you BlockFi Interest Account and get all of your interest paid out in the currency of your choosing.
BlockFi Best SignUp Bonus 2022
BlockFi has the best signup bonus 2022 among all interest accounts.
With the BlockFi signup bonus you can get up to $250 for free.
However, you must fulfill the terms and conditions which you can read if you go to the BlockFi signup bonus page via our link.
BlockFi Crypto Interest Account Rates
BlockFi offers interest accounts for many different cryptocurrencies and stablecoins.
Important Note: BlockFi uses many different Tier levels which means that you will only get the maximum interest rate for a certain amount of deposited crypto.
What does this mean?
If you are a newbie and hold a small amount of crypto it doesn´t really matter.
However, if you hold a decent amount of crypto your interest rates will dramatically get lowered with a higher deposit amount.
Let´s take Bitcoin BTC interest rates and Tier levels as an example
- If you deposit less than 0.1 BTC, you will receive 4.5% interest rate which is a decent rate
- If you deposit over 0.1 BTC, you will only get 1% for 0.1-0.35 BTC which is a very low rate and you want to compare other options.
Blockfi interest account minimum deposit
There is no minimum deposit or maximum deposit for the BlockFi Interest Account. However, there are Tier levels which means that larger deposits will earn lower rates.
BlockFi Interest Account VS Competitors
BlockFi offers some unique features attached to its interest account compared to the competitors.
Many of the competitors, like Nexo and Celsius for instance, promote their native token and connect their offers to it. BlockFi doesn’t rely on such an internal token and all users are treated the same and you will earn in the deposited cryptocurrency.
Pros and Cons with Blockfi VS competitors
+ No native token, interest is paid in the deposited cryptocurrency
+ No lock up periods
+ BlockFi crypto credit card available
+ Signup bonus up to $250
– Different tier levels (which is confusing and not good for large holders)
– Only good/decent rates for small deposit amounts
How does BlockFi earn money?
BlockFi generates interest on assets held in Interest Accounts by lending them to trusted institutional and corporate borrowers.
BlockFi Bitcoin Credit Card
With the BlockFi credit card you can earn an unlimited 1.5% back in bitcoin on every purchase.
There is no annual fee.
There is no foreign transaction fees. Just bitcoin back on every purchase.
You can join the waiting list on BlockFi or read more about the BlockFi Visa credit card.
Compare all the crypto credit and debit cards.
Blockfi interest account taxes
Yes, you have to pay taxes on the interest you earn from BlockFi (in most countries). You will be taxed at the fair market value of the crypto you receive at the time you receive the payout. This will be taxed at your income tax rate.
Read more about how to pay tax on crypto interest payouts.
Is BlockfFi safe?
Many ask themselves, whether or not, BlockFi is safe? We will explain how BlockFi have established a safe crypto platform for lending and loans.
BlockFi works with some of the best crypto security in the world (Gemini Custody). Gemini is BlockFi’s primary custodian. Gemini keeps 95% of their assets in cold storage and 5% in hot wallets that are covered by insurance provided by Aon. Any funds compromised in cold storage would be covered by their new insurance policy.
BlockFi is registered with the U.S. Department of Treasury Financial Crimes Enforcement Network (“FinCEN”) as a money services business (“MSB”). As a registered MSB, BlockFi is subject to the Bank Secrecy Act and its implementing regulations.
Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections.
BlockFi is as safe as one can wish. However, the whole cryptocurrency industry is young and still volatile.
Read more about safe, regulated and insured crypto interest accounts.
What are the BlockFi risks?
Exchange Risk – There is always a risk when you let a third party handle your private keys. If they are hacked and your keys are compromised you lose your cryptocurrency.
Borrower Default Risk – What happens if the borrower default their loan?
Interest Rate Risk – The interest rates are dynamic and will change over time. They will likely decrease over time when the volume increases.
Read more about crypto risk management.