A review of BlockFi for lenders and borrowers

What is BlockFi?

BlockFi is a wealth management technology firm servicing crypto investors.

  • Bitcoin
  • Ethereum
  • Litecoin
  • USD stablecoins.
  • BlockFi Interest Accounts (BIA)
  • Crypto-backed loans
  • Trading

How does BlockFi work?

Many crypto holders store their digital assets in cold storage or on exchanges to keep them safe long-term. However, this doesn’t always bring much immediate profit as most coins fluctuate quite a bit. BlockFi enables companies and individuals that own crypto assets to earn steady interest despite volatility.

Done smartly, borrowing capital from BlockFi could yield serious dividends
Done smartly, borrowing capital from BlockFi could yield serious dividends (source: icospotters.com)

BlockFi loans for borrowers

BlockFi loans are all-purpose. Applying for a BlockFi loan requires no membership and on average takes less than three minutes.

  • For 200% LTV: 9.75% with a 2% origination fee
  • For 350% LTV: 7.9% with a 2% origination fee
  • For 500% LTV: 4.5% with a 2% origination fee
  • Fast and easy process: BlockFi loan decisions are made in less than 24 hours.
  • BlockFi loans do not impact credit scores.
  • You need a large amount of collateral to access their best rates.
  • Limited collateral types are available.

Investing with BlockFi

BlockFi Interest Accounts (BIAs) let you put your crypto to work earning monthly interest payments in whichever asset type you deposit.

  • Bitcoin users can earn up to 6% annual interest on deposits under 5 BTC, and 3.2% on any BTC amount above the 5 BTC threshold.
  • Ethereum users can earn up to 4.5% in annual interest on deposits under 500 ETH, and then 0.5% on amounts over that 500 ETH threshold.
  • Litecoin users can earn up to 5% in annual interest on all deposits.
  • All interest compounds every month.
  • No minimum balance is needed to begin earning interest.
  • High fees: At 0.0025 BTC and 0.0015 ETH respectively, BlockFi’s withdrawal fees are quite high.
  • Elongated monthly payouts: Interest is paid on the 1st business day of every month as opposed to daily or weekly payouts offered by others.
  • Lower value withdrawal times: All withdrawals under 0.056ETH and 0.003BTC may take up to 30 days to process.
  • No USD investment options are available on BlockFi at this time.

Trading

BlockFi lets you seamlessly and instantly trade between any of their supported cryptocurrencies.

Is BlockFi safe?

BlockFi does not hold their crypto assets; they outsource them to Gemini for increased security. Gemini keeps up to 95% of its assets in cold storage(offline) and 5% in hot wallets, insured by AON.

Is BlockFi legit?

To sum up our BlockFi review, BlockFi is legit. You might stumble upon some negative reviews online that might say otherwise, but these are usually misunderstanding from users who assumed interest was paid in USD and not in BTC/ETH/GUSD.

BlockFi is a great tool for short term crypto investments
BlockFi is a great tool for short term crypto investments (source: pxhere.com)

Should I use BlockFi?

BlockFi is one of the pioneers of crypto banks and a decent way to earn interest on and borrow against some of the top cryptos today.

Borrow against 70+ cryptos and earn up to 9% on BTC, BNB, and ETH with MyConstant

If you want to invest with fiat like USD or hold one of the many cryptos BlockFi doesn’t offer loans against, you may want to try MyConstant.

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