BlockFi:Review 2022 – The complete guide

Binance Review 2022

Founded in 2017, BlockFi is a cryptocurrency exchange that provides a safe and convenient method to purchase, sell, and trade cryptocurrencies online. This exchange also offers customers the opportunity to earn income on their crypto assets, as well as the ability to obtain crypto-backed loans. BlockFi Now supports just 13 currencies, which is lower than the number of cryptocurrencies accepted by the majority of exchanges. BlockFi is a cryptocurrency exchange that is aimed to assist newbie cryptocurrency investors in purchasing Bitcoin and other popular cryptocurrencies using fiat currency. While this platform does provide basic cryptocurrency trading, it is not intended for active traders, and it only offers simple market order buying and selling, which is not ideal for active traders. Although BlockFi does not allow for institutional investing, it does provide 24-hour assistance for institutional investors, including an over-the-counter (OTC) 9 trading desk and the possibility to invest in a crypto trust product.

Why you should use BlockFi?

If you are a beginning or intermediate cryptocurrency investor willing to accept more regulation in return for improved security, BlockFi is the right choice for you. If you want to earn interest on your cryptocurrency holdings, BlockFi is the best option. BlockFi allows you to access portfolio-backed loans quickly and easily, allowing you to keep your liquidity while avoiding capital gains taxes.

Binance Review 2022

BlockFi Review 2022: General overview

BlockFi, founded by Zac Prince and Flori Marquez, is a crypto loan and savings platform that specializes in cryptocurrencies. It is a regulated exchange situated in the United States with its headquarters in New Jersey. The cryptocurrency assets of BlockFi members are held in the custody of Gemini Trust Company, which is regulated by the New York State Department of Financial Services (NYDFS) BlockFi is available in the majority of nations throughout the world, as well as 45 states in the United States. It is not presently accessible in the following states: New Mexico, Nevada, New York, Vermont, and West Virginia Individual customers may look forward to a straightforward trading experience on BlockFi. This exchange also provides a platform for institutional investors, which allows corporate clients to take out loans, trade stocks, and invest in mutual funds. Individuals can deposit cryptocurrency or fiat cash, as well as purchase and sell cryptocurrency, using the company’s standard platform.

Binance Prominent features:

  • Trade at a minimum

    Users may start trading with a minimum of $20 if they're utilizing funds to trade via ACH, according to BlockFi. The minimum amount to swap stable coin for cryptocurrency or crypto-asset for crypto-asset is $1.50. Its crypto interest accounts have no minimum balance requirement.

  • Fees for trading and transactions

    On its platform, BlockFi does not impose trading fees, but it does mark up crypto-assets with a 1% margin. According to the company, that amount is subject to change depending on market conditions. BlockFi provides one free stable coin withdrawal and one free crypto withdrawal each month. Following that, costs apply, which vary depending on the sort of cryptocurrency. A bitcoin withdrawal, for example, would cost.00075 BTC.

  • The number of cryptocurrencies available

    Depending on state rules, BlockFi may provide up to 13 currencies.

  • Pairs of crypto-to-crypto trade

    In some areas, BlockFi has as many as 66 trading pairs, however, the number is as low as 28 in states where stable coin trading is prohibited. In New Mexico, Nevada, New York, Vermont, and West Virginia, BlockFi does not provide any trading pairs.

  • Security and choices for digital wallets

    Customers can move assets to and from the BlockFi platform using their own digital wallets. The company claims to take security very seriously and has implemented both financial and technological measures to protect its accounts. While BlockFi's interest and lending services may resemble those of a bank, funds maintained on the platform are not protected by the Federal Deposit Insurance Corporation.

  • A mobile app

    BlockFi has a mobile app that is available for iOS and Android and has received a good rating from users.

  • Options for customer support

    BlockFi offers live phone assistance. The company also offers chatbot support, which it claims can help clients open a ticket and connect them to human support for persistent issues.

Other features

Other differences between BlockFi’s interest-earning products and “staking” services offered by certain other exchanges are worth noting. Staking is a method of collecting rewards on certain cryptocurrencies by utilizing them to assist in the verification of transactions on a blockchain network. Staking, on the other hand, is not accessible for Bitcoin and frequently forces you to lock up your cryptocurrency for a specific length of time. You may earn interest on Bitcoin (and other cryptocurrencies) with BlockFi, and you don’t have to lock up your crypto to do so; withdrawals are possible at any moment.

Available cryptocurrencies

A limited number of prominent cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin, and Chainlink, are available to users on BlockFi, with the majority of them being Bitcoin (BTC) (LINK). There are currently only 13 cryptocurrencies supported by BlockFi, though the company does occasionally add new ones. The whole list is as follows:

  • Basic Attention Token (BAT)
  • Binance USD (BUSD)
  • Bitcoin (BTC)
  • Dai (DAI)
  • Chainlink (LINK)
  • Ethereum (ETH)
  • Gemini USD (GUSD)
  • Litecoin (LTC)
  • PAX Gold (PAXG)
  • Paxos (PAX)
  • Tether (USDT)
  • Uniswap (UNI)
  • USD Coin (USDC)

Some of the most popular cryptocurrencies, including as Cardano (ADA), Solana (SOL), Polkadot (DOT), and Avalanche (AVAX), are not now supported by BlockFi.

Working of BlockFi

Interest Account of BlockFi

Tokens you’ve deposited or acquired on the exchange are held in this interest-bearing account. It functions in a similar way to regular savings or investment account. One significant distinction is that money placed in a bank account is insured against bank failure up to a specific extent by the Federal Deposit Insurance Corporation (FDIC). Similarly, SIPC insurance would safeguard any money in a brokerage account. These safeguards are not available if you deposit your money in a BlockFi Interest Account. You can only withdraw one cryptocurrency and one stable coin each month. After that, each withdrawal will incur a charge. Automatic transfers to any bank account are possible. A commercial or corporate account can also be created. It works in the same way as a personal BlockFi Interest Account, except it’s in the name of the company. It necessitates more paperwork and a longer verification procedure. Following your application, a member of BlockFi’s compliance team will contact you to assist you with the remainder of the registration process.

Trading with BlockFi

Purchase cryptocurrencies on BlockFi’s exchange with funds from your BlockFi Interest Account. Your daily trading restrictions will be determined by the size and activity of your account. Simply connect into your BlockFi account, enter the purchase or sell amount and currencies, then confirm the transaction. You may make a one-time deal or set it up to renew on a daily, weekly, or monthly basis. When you buy cryptocurrency on the exchange, it will immediately be transferred to your Interest Account and begin earning interest.

Loans backed by cryptocurrency

To fund large expenditures, refinance debt, or make a down payment on a property, use a BlockFi loan as a personal loan. You must back the loan with crypto assets with a loan-to-value (LTV) ratio of at least 50%. (meaning your collateral is worth at least half of what you owe). You can borrow in USD, GUSD, or USDC, with Bitcoin, Ethereum, or Litecoin as collateral. To get your loan, you’ll have to pay a 2% origination charge and interest rates ranging from 4.5 percent to 9.75 percent, depending on your LTV.

Overview of Fees

BlockFi’s fee schedule differs somewhat from that of many other exchanges, which typically impose simple maker/taker fees for each transaction. While BlockFi does not charge trading fees, it does charge withdrawal fees and has restrictions on the amount of money that may be withdrawn. You may be eligible for one free withdrawal per month if you hold specific assets. Others, on the other hand, will charge you a fee for each withdrawal you make.

Is BlockFi a safe option?

Binance Review 2022

BlockFi has a number of security measures to assist consumers keep their funds safe. The Gemini Trust Company holds all crypto assets, with the majority of them being held in offline cold storage. Users may also add an extra degree of security to their crypto withdrawals by enabling two-factor authentication (2FA) and whitelisting.

Here are just a handful of BlockFi’s security features:

  • Users can build a “allow list” of approved wallet addresses, which allows them to designate which wallet addresses are allowed to withdraw cryptocurrency.
  • BlockFi uses the Google Authenticator app for two-factor authentication (2FA). This makes account logins more secure.
  • Advanced algorithms are used by this exchange to identify irregularities in customer accounts, particularly around withdrawals. A “PII Verification,” which requires updating user identity data before being allowed to withdraw funds, might be triggered by unusual account activity.
  • Users of the BlockFi mobile app can activate biometric access (such as Face ID) to further safeguard the app.

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