Earning passive income with cryptocurrency has become increasingly popular, and BlockFi is one platform making waves in this space. Whether you're looking to earn interest on your crypto holdings or borrow against them, this review covers everything you need to know about BlockFi’s offerings, security, fees, and more.
BlockFi Overview
BlockFi provides financial services for crypto enthusiasts, including:
- Interest Accounts: Earn compounding interest on deposits (up to 8.6% APY).
- Crypto Loans: Borrow cash using crypto as collateral (no credit checks).
- Trading Platform: Convert between major cryptocurrencies like Bitcoin, Ethereum, and stablecoins.
Pros
- Monthly interest payouts (in crypto or fiat).
- No credit checks for loans.
- One free withdrawal per month.
- Funds can be withdrawn anytime.
Cons
- Custodial risk (you don’t control private keys).
- Not available in all U.S. states (e.g., NY, CT).
- Withdrawal limits and fees apply after the first free transaction.
👉 Learn how BlockFi compares to other crypto interest platforms
BlockFi’s History and Team
Founded in 2017 and headquartered in New Jersey, BlockFi aimed to bridge traditional finance and crypto. Backed by investors like Galaxy Digital and ConsenSys Ventures, its leadership includes CEO Zac Prince and Flori Marquez (VP of Growth).
BlockFi’s Key Services
1. Interest Accounts
Earn APY on:
- Bitcoin (6.2%)
- Ethereum (4.1%)
- Stablecoins like USDC/GUSD (8.6%)
Interest compounds monthly, paid in crypto or USD.
2. Crypto-Backed Loans
- Loan-to-Value (LTV) up to 50%.
- Funds disbursed in 90 minutes.
- No credit score impact.
3. Trading Platform
Swap between BTC, ETH, LTC, and stablecoins without transferring funds elsewhere.
4. Institutional Services
Custom lending and investment strategies for enterprises.
Security Measures
- Custody via Gemini: Funds held in cold storage.
- 2FA (Google Authenticator): Mandatory for account protection.
- AML/KYC Compliance: Required for all users.
Note: Like all custodial services, there’s inherent risk.
How to Sign Up
- Provide email, name, and password.
- Verify identity (ID upload + SSN for U.S. residents).
- Enable 2FA.
- Deposit crypto to start earning interest.
Available globally (except sanctioned regions).
Fees and Limits
- Withdrawals: 1 free/month, then fees apply (e.g., 0.0025 BTC).
- Loan Rates: Vary by LTV; use BlockFi’s Loan Calculator.
Customer Support & Resources
- 24/7 Email Support: [email protected].
- FAQ Section: Detailed answers to common questions.
- Referral Program: Earn 10% of referrals’ interest.
- Blog/Newsletter: Updates on partnerships and features.
Is BlockFi Trustworthy?
Yes—but remember:
- Gemini (custodian) has a strong track record.
- Interest payments are reliably reported by users.
- Always assess personal risk tolerance.
Final Verdict
BlockFi is a legitimate option for passive crypto income and loans, but it’s not risk-free. Ideal for those comfortable with custodial platforms.
👉 Explore BlockFi’s competitors and alternatives
FAQs
Q: Can I withdraw my crypto anytime?
A: Yes, but exceeding the 1-free/month limit incurs fees.
Q: What’s the highest APY offered?
A: 8.6% for stablecoins (USDC/GUSD).
Q: Is BlockFi available worldwide?
A: Mostly, but excludes sanctioned countries and some U.S. states.
Q: How secure is BlockFi?
A: Funds are held by Gemini (cold storage) + 2FA required.
Q: Are there hidden fees?
A: No—all fees are transparent (withdrawal/loan rates).
Q: Can I earn interest in Bitcoin?
A: Yes, payouts are flexible (crypto or USD).