Pros Explained
- Holistic platform: BlockFi provides users a centralized hub for the different financial services they would like to use ranging from taking out a loan, holding their cryptocurrency, or managing credit card expenditures using the BlockFi credit card.
- Comprehensive help center: This tool shares unique use cases to use cryptocurrency and educates BlockFi’s users on how to use the platform.
- Ability to earn interest on crypto: Users can earn up to 9.5% in interest by holding assets in a BlockFi interest account.
Cons Explained
- Not beginner-friendly: The user interface may be confusing for some beginners.
- No video explainers: Its resource center is limited to written case scenarios vs. providing video explainers, which can be useful for certain users.
- Limited number of cryptocurrencies: BlockFi only supports 13 digital assets, while other exchanges may support hundreds.
Introduction
BlockFi is a complete cryptocurrency ecosystem for advanced crypto traders. It has over 1 million verified users and over $10 billion in assets
Users of this platform may appreciate the range of products BlockFi offers. In addition to its crypto exchange, BlockFi offers low-interest loans, a crypto rewards credit card, and an interest-bearing account that lets you earn up to 9.5% APY.
Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed.
Company Overview
Founded in 2017, BlockFi is currently headquartered in Jersey City, NJ. This company’s primary mission is to reimagine and expand access to banking resources in communities that traditional banking services hadn’t served. Since its founding, BlockFi has grown into a global company with over 800 employees.
BlockFi offers 13 digital assets available for purchase and several useful products. Overall, it could be a good option for advanced crypto traders.
Cryptocurrencies Available
There are 13 digital assets available on BlockFi, which is a low number compared with competitor exchanges. For instance, Coinbase and Kraken both offer over 100 digital assets. Here’s a partial list of assets BlockFi supports:
- Bitcoin (BTC)
- Chainlink (LINK)
- Etherium (ETH)
- PaxGold (PAXG)
- Litecoin (LTC)
- Paxos Standard (PAX)
- US Dollar Coin (USDC)
- Tether (USDT)
- Gemini Dollar (GUSD)
Trade Experience
BlockFi offers an online dashboard and mobile apps for Android and iOS. Overall, trading on BlockFi is intuitive and relatively simple to do. On desktop, users looking to make a simple trade would go to the table at the top of their screen and indicate which assets they’d like to trade.
Users with a BlockFi Interest Account can also choose to set up recurring trades. Daily, weekly, monthly trading is offered, and you can also choose to set recurring trades for the 1st or 15th of the month. Its recurring trades feature makes BlockFi stand out among competitors.
Overall, the trading experience is straightforward for those accustomed to using financial apps or an online brokerage account.
Fees
BlockFi’s fee schedule is slightly different than many exchanges, which often charge straightforward maker/taker fees. While BlockFi does not charge trading fees, it does charge withdrawal fees and imposes withdrawal limits. With certain assets, you’re eligible for one free withdrawal per month. But with others, you will be charged a fee for every withdrawal. See BlockFi’s full fee schedule for more information.
Security
BlockFi employs various user and platform security practices. To help prevent fraudulent activity on the platform, users will need to verify their identity when signing up for a BlockFi account. To do so, you’ll need to provide a government-issued photo ID as well as some basic personal information. BlockFi also offers optional two-factor authentication, which helps protect user accounts. Currently, two-factor authentication is not required of users but is encouraged.
BlockFi holds its funds in cold storage with its institutional partner, Gemini. Cold storage means that assets are held in storage that’s not connected to the internet, making them generally more secure.
It is important to note that BlockFi was hacked in 2020. An individual was able to access a client’s information inadvertently via an employee’s lost phone. BlockFi shares the details of this hack on its website.
Opening Up a BlockFi Account
Opening a BlockFi account is a relatively straightforward process. BlockFi requests personal information such as your legal name, address, and country of residence. In order to trade on the platform, you’ll need to complete an identity verification process, so it’s a good idea to have your photo ID on hand to save time.
Customer Service
BlockFi offers a few different options for customer support, including the ability to submit a ticket, contact a representative over the phone, or chat with a chatbot. This is useful for customers who have questions or need assistance. In addition to its support options, users can also access BlockFi’s help center to get answers to common questions.
It is not clear which ADA-specific services are available to users at this time. BlockFi Loan borrowers have a separate portal that they can use to speak with the loan department.
Customer Satisfaction
While many customers have reported that they’re happy with their BlockFi experience, BlockFi receives an average of 3.7 out of 5 stars across 233 user reviews on Trustpilot.
Trustpilot reviews report a few common concerns. Some users mentioned having difficulty connecting with customer service when they encountered urgent issues. Others noted that withdrawal fees were higher than what they expected. While both of these issues are concerning, BlockFi receives high marks overall from its users.
Account Management
BlockFi customers can use its web-based portal or mobile app to manage their accounts. When you log in, you’ll see a summary of your account details. Details will include interest paid on your holdings and the amount you currently have in your account. You’ll also be able to access tabs for different actions; for instance, making trades or requesting a loan.
How BlockFi Compares to Other Cryptocurrency Companies
With a large number of crypto exchanges available, it may be difficult to understand why you should choose one company over the other. In fact, there are several companies that are somewhat similar to BlockFi, including Coinbase, Uphold, Gemini, and Binance.
Fortunately, users do not need to limit themselves to one option and may prefer to use multiple platforms to access unique features specific to each.
BlockFi vs. Coinbase
BlockFi and Coinbase are both established crypto exchanges, but they have some differences in service and platform design that are important to consider.
- Coinbase offers FDIC insurance on fiat currencies, while BlockFi does not. For users who have larger deposits being held on Coinbase, this may give peace of mind that they will be able to recover their fiat holdings if the platform is hacked.
- BlockFi supports only 13 digital assets, while Coinbase supports over 100.
- BlockFi provides users with 1 free withdrawal per month. For users who prefer to limit the number of withdrawals that they’re making each month, this is a useful feature.
- BlockFi offers the BlockFi Rewards Signature Visa crypto rewards credit card. Applicants will likely need a 680 credit score to get approved for this card. Coinbase offers a crypto rewards debit card, Coinbase Card.
- Both BlockFi and Coinbase allow users to earn interest on their crypto.
- BlockFi lets you take loans out against your crypto, while Coinbase does not.
Final Verdict
BlockFi may be a good option for users seeking a cryptocurrency exchange that offers unique features and products such as crypto-backed loans, a crypto rewards credit card, and an intuitive user experience. However, it’s important to be aware of some of the challenges that customers have experienced with slow-to-respond customer support and longer-than-expected withdrawal times.
Methodology
Investopedia is dedicated to helping those interested in cryptocurrency investing make informed and safe decisions. We are committed to providing our readers with unbiased reviews of the top cryptocurrency exchanges for investors of all levels.
Exchanges are only considered for review if they are safe, secure, liquid, and either regulated by a proper agency or entirely decentralized.