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*Note: BlockFi filed for Chapter 11 bankruptcy on November 28, 2022. Prior to the filing, the crypto platform paused withdrawals in response to the FTX collapse. BlockFi tweeted that it plans to recover all obligations that FTX and other counterparties owe them. The company has paused platform activity, so users can’t invest at this time. 

Overall rating

Is BlockFi right for you?

Founded in 2017 by Zac Prince and Flori Marquez, BlockFi says it launched with the mission of offering credit and banking services to markets that had little access to savings accounts and similar products.

This led to its offering of crypto-backed loans and other crypto asset services. Plus, the crypto platform also provides a vast selection of trading services for institutions and individuals. But BlockFi recently filed for bankruptcy, so you should search elsewhere if you’re looking to invest in cryptocurrencies.

BlockFi vs. Coinbase

BlockFi has Coinbase beat when it comes to trading fees. It offers commission-free trades, with small spread rates that can range up to 1%. You can also get 0% trading fees at Coinbase, but this is only available through its Coinbase One subscription (which charges monthly fees).

However, Coinbase’s investment selection and product offerings are unbeatable compared to that of BlockFi. BlockFi offers under 50 cryptocurrencies, while Coinbase offers nearly 200.

BlockFi vs. Abra

BlockFi and Abra both offer crypto-backed loans, and low trading fees. But Abra has the best cryptocurrency selection. It offers more than 75 cryptocurrencies, with the option to earn up to 10% interest on certain cryptocurrencies.

Ways to invest with BlockFi

Cryptocurrency trading

You don’t need to meet a minimum account size to start trading crypto assets at BlockFi. Plus, trading is generally fee-free (excluding a small spread fee on transactions).

BlockFi’s cryptocurrency selection includes bitcoin, ethereum, litecoin, dogecoin, pax gold, and more. It also offers several US dollar-based stablecoins, including US dollar stablecoin (USDC), tether (USDT), gemini dollar (GUSD), and paxos standard (PAX).

While its trading services are best for self-directed, or hands-on, traders, you can also utilize its recurring trades feature to automate your crypto trades on a schedule you choose.

BlockFi also offers a rewards credit card that lets investors earn 1.5% cash back in bitcoin on purchases.

Crypto-backed loans

If you were to encounter a personal emergency where you needed cash, you might consider selling some of your crypto assets. BlockFi’s crypto-backed loans, however, let you borrow against your cryptocurrencies without selling them.

Interest rates are as low as 4.5%, and the loans include three notable perks:

• Same-day funding: BlockFi says it funds you the same day you sign up for the loan and offer crypto collateral
• Penalty-free prepayment: This means you can pay off your loan as soon as you want without any penalties
• Flexibility: You can borrow up to 50% of the value of your assets, with the option to invest in other cryptocurrencies

Here’s how it works: You give BlockFi your crypto assets as collateral (acceptable assets include bitcoin, ethereum, and litecoin), and it gives you a loan in USD, gemini dollar (GUSD) stablecoin, or US dollar stablecoin (USDC).

Institutional trading

BlockFi offers several services for investment funds, market makers, businesses, and other institutional clients. These include financing (loans in cryptocurrencies, stablecoins, and US dollars), over-the-counter (OTC) trading with 24/7 support, corporate treasury solutions, and trust investments in bitcoin, ethereum, and litecoin.

You can utilize these services through the BlockFi Prime institutional trading platform.

Is BlockFi trustworthy?

BlockFi currently has a D+ rating with the Better Business Bureau.

Besides noting BlockFi’s length of time in business, the bureau cites a couple reasons for its rating. For one, BlockFi received 24 complaints, and BlockFi also failed to respond to the two complaints filed against them. Other factors the BBB commonly reports on include type of business, customer complaint history, government actions, and advertising issues.

In July 2021, the New Jersey Bureau of Securities also issued a Cease and Desist order that barred BlockFi from offering its interest-bearing crypto accounts to new clients. The order claimed that the crypto securities offered for BlockFi’s interest accounts aren’t registered with the bureau.

BlockFi has closed 14 complaints in the last 12 months, according to the BBB. And as mentioned earlier, BlockFi has filed for Chapter 11 bankruptcy. It has paused all platform activity at this time.

BlockFi — Frequently asked questions (FAQ)