[BlockFi Review]: Is BlockFi Safe? Legit? Pros, Cons For Crypto Trading, Saving, & Lending

    If you're a high-interest crypto trader and you're planning to make it half of your world, you need to make sure you have one of the best cryptocurrency exchange platforms on your list. Not only would this help manage your funds and minimize risk, having a strong exchange platform would give you an edge over others. If you're ready to give one a try, today's, we'll be talking about BlockFi. In this article, we're going to discuss all you need to know about BlockFi before you sign up. Features, Pros and Cons, and so on. Let's get right into it then, shall we?

    Base Info Pros & Cons


    It's extremely rare to see a savings account hit the 1%  mark annually. If you plan to use your money in other ways, you may have a stronger alternative - Crypto. Not only do you have a better chance of earning better interest rates with crypto, but you also have a better chance of earning it with the right exchange platform. This is where BlockFi comes into play.

    BlockFi is a crypto trading and exchange service that allows you to earn up to 8% of the annual interest rates. That's eight times more than the best banks could offer on their savings account.

    Apart from the usual crypto services that BlockFi offers, you're also allowed to borrow against your coins. This means when you're short on coins when the market is moving on a particular cryptocurrency, you can always take out a loan and still earn the interest mentioned above when you make a deposit. As of now, they are offering a special bonus offer that allows you to earn $250 when you make an investment of $25 and maintain it for a fixed period.

    Pros

    Commission-free.

    US-based and highly regulated (this is for verifying legality).

    No requirement for minimum deposits or monthly fees.

    Available to traders all over the world, except countries that have it watch listed.

    Trades are quick.

    Cons

    Doesn't allow for joint accounts.

    Free withdrawals are limited on interest accounts.

    Can be affected by problems from the bank.

    The loan rate and annual interest rate depend on market volatility.

    BlockFi Interest Account

    BlockFi is a 2017 lending platform based in New Jersey. There are a few features on their interest account worthy of mention. In this section, we'll discuss the features the BlockFi Interest Account (or the BIA) has to offer.

    1.  Users can earn compound interest on several cryptocurrencies. These cryptocurrencies include BTC, LTC, USDC, PAXG, USDT, ETH among others.

    2. Secured Coins: All BlockFi's coins are held in trust by the Gemini Trust Company. This company is also regulated by the New York Department Of Financial Services.



    3. Apart from sanctioned or watch listed countries, BlockFi is primarily available worldwide.

    4. Allows for withdrawals no matter what time it is. It's important to note that users on this platform only get one free withdrawal per month. As said earlier, free withdrawals are limited to interest accounts.

    5.  Easy Sign Up: BlockFi offers a simple and easy registration procedure. It asks for the credentials most platforms ask for.

    While BlockFi is said to offer higher interest rates than other savings accounts, it's important to know that BlockFi itself is not a savings account. It's an investment account that comes with a set of risks that other banks do not come with. The stablecoin interest rates include 9% on your first 40,000 USDC and GUSD while USDT gets a 9.5% rate.

    Its Bitcoin interest rates are 4.5% annual interest on deposits less than 0.1 BTC, 1% interest on any BTC between 0.1 - 0.35, and 0.1% for any BTC above 0.35.

    Ethereum interest rates on the other hand include 5% on ETH up to 1.5. 1.5% interest on ETH from 1.5 to 50. And 0.25% interest on ETH from 50 above.

    Fees Overview

    As explained earlier, BlockFi doesn't charge any monthly fee or require a minimum deposit. However, it charges withdrawal fees when you withdraw more than twice a month. It also charges interest rates on loans offered to traders.

    Withdrawal Fees

    Item

    Cost

    1st monthly

    Free

    Bitcoin

    0.00075 BTC

    Ethereum

    0.02 ETH

    LINK

    0.10 LINK

    Litecoin

    0.0025 LTC

    Stablecoins

    $10.00 USD

    PAX Gold

    0.015 PAXG


    You only get one free withdrawal per month. After that, you'll pay for any withdrawal. The fee depends on the currency.

    Loan Rates And Fees

    Value

    Interest

    Fee

    50%

    9.75%

    2%

    35%

    7.9%

    2%

    20%

    4.5%

    2%


    Is BlockFi Safe? Is Your Money Safe on BlockFi?

    Like you already know, BlockFi's coins are being held by Gemini Trust. Gemini Trust keeps 95% of its holdings in cold storage and the reminder in hot wallets that are said to be sponsored by Aon. As a licensed holder and custodian, Gemini Trust is regulated by the New York Department Of Financial Services (NYDFS). Recently, it has received an SOC2 compliance from Deloitte due to its effective custody management. With all these mentioned, you might still not be 100% sure. The interest rates might look good but that might not be enough reason for you to invest with BlockFi. It's natural. Crypto traders are always skeptical when it comes to coin holding, as they should be. So we're going to paint some scenarios and discuss what steps would be taken to tackle the situation if the scenario ever comes to play in real life.

    Let's take a look at some of these what-ifs and see the solution BlockFi has planned, shall we?

    What if BlockFi gets hacked?

    You would see that from the explanations given, BlockFi doesn't hold its coins. They are being held by Gemini Trust, a well-certified custodian regulated by NYDFS and complied with by Deloitte. Since they keep their coins in cold storage and hot wallets insured by Aon, the chances of BlockFi getting hacked are highly unlikely.

    What if a user account is compromised?

    Before this question is answered, it's important to note that this has never happened since BlockFi was created in 2017. However, in the rare chance that it does, BlockFi would freeze the account, schedule a video conference with the account owner to verify their identity, and then help change their email and password so the user can have their account back.

    Is BlockFi Legitimate?

    The short answer? Yes. The awesome interest rates and bonuses offered by this platform might look too good to be true but believe it or not, it is good, and it is true. Since BlockFi doesn't hold the coins themselves but gives them to Gemini Trust to hold, you can be sure that everything is done with proper procedures and no customer is going to feel left out of BlockFi's secure platform. Apart from safety and security, sign-up is easy. You just have to input your basic credentials and a few more information and you're good to go. There's never been an issue of an account being faulty or compromised but there's a safe strategy in place in case this ever happens.

    Since its creation in 2017, BlockFi's success has skyrocketed. It was so huge that as of now, innovative technology is being put in place to help their users make more money off their cryptocurrencies in savings.

    How Do I Apply For A BlockFi Account?

    If you're convinced with BlockFi's interest rates, customer services, and description and you're ready to open an account with them, there are a few instructions you have to follow. These instructions would be listed below.

    1.  In the main menu, amongst other options, you would notice a "get started" option, this is where you're going. Click on it.

    2. Enter a valid email address that can be confirmed quickly and create a strong password. If your browser suggests a password for you and you intend to use it, make sure you keep it in a safe place in case you want to change it or sign in to your account from another device that isn't synchronized to your computer.

    3. A verification code would be sent to the email address you entered, Enter the verification code sent to that email.

    4. And that's it, you're in. To completely verify your identity, click on Deposit. This option would also allow you to make your first deposit.

    5. Some personal information would be required so your identity can be fully ascertained. Enter the answer to the questions asked appropriately.

    6.  Finally, you need to upload a form of ID. A passport, a national ID card, a driver's license, any form. After uploading, you have to be patient and wait while your account goes through the necessary review until it's approved.

    7. Once approved, you can officially start trading on the platform.


    There you have it, a BlockFi review. We hope you're convinced to start a crypto journey with BlockFi. Trade safe and have a lovely day.



    Comments

    • December 7, 8.00
      D. jhon shikon milon

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