In our BlockFi Review 2021 we will see what interest accounts BlockFi offers and you will get a great sign up bonus with our referral code.
BlockFi offers among the best crypto interest accounts for Bitcoin, Ethereum, Litecoin and stablecoins.
We have used BlockFi for a year now and we are very satisfied with the service and the interest.
If you are about to deposit you cryptocurency holdings into BlockFi, the first question you ask yourself is if BlockFi is safe, or not?
In this BlockFi review we will go through BlockFi´s products and review them. BlockFi offers interest accounts, crypto loans and crypto trading.
Other related business we have used for Bitcoin and crypto interest accounts are Crypto.com, Nexo and Celsius. You can read more about Celsius in our Celsius Network Review.
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.
What rates does BlockFi offer?
BlockFi offers interest accounts for many different cryptocurrencies and stablecoins. As you can see in the table below, you will only earn interest up to a maximum amount.
* APYs reflect effective yield based on monthly compounding. Actual yield will vary based on account activity and compliance with BlockFi’s terms and conditions. Rates are largely dictated by market conditions, which are a key factor in a company’s ability to provide its clients yield on their crypto assets. For more information, please see our Terms of Service. Rates are subject to change. BlockFi will communicate any rate changes prior to these changes taking effect. Digital currency is not legal tender, is not backed by the government, and the BlockFi Interest Account (BIA) is not a bank account nor a brokerage account, and is not subject to FDIC or SIPC protections.
**Although there is no minimum balance required to earn interest, accounts are still subject to Gemini’s withdrawal minimums: 0.003 BTC and 0.056 ETH. Withdrawals for balances smaller than these amounts may take up to 30 days to process.
***BlockFi Interest Accounts are available in most countries worldwide and all U.S. states other than NY
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.
How does BlockFi earn money?
BlockFi generates interest on assets held in Interest Accounts by lending them to trusted institutional and corporate borrowers.
What is the blockFi 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.
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.
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.