BlockFi Review: Pros, Cons (up to a $250 Free Bitcoin)

BlockFi is a simple and user-friendly platform that’s ideal for beginners who are interested in cryptocurrency investing, though it’s not without a few risks.

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Best Crypto Bank


  • Earn up to 8.6% APY
  • Bitcoin rewards credit card
  • High level of account security
  • Buy and trade cryptocurrency
Overall Rating

Average review rating 3.5/5 on TrustPilot

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Pros & Cons

As with anything in life, BlockFi has pros and cons. If you’re seriously thinking about earning interest through crypto investment, you’ll need to consider the problem from all angles.


  • No hidden fees.
  • US-based company.
  • BlockFi has plenty set aside in cold storage
  • The staff at BlockFi are the top of the line from across finance and tech.


  • BlockFi allows only one free withdrawal per month.
  • Withdrawing funds with a BlockFi account takes longer than drawing from a standard bank account.

Are you looking for a better way to invest your money? Maybe your money is sitting around now, uninvested.  Maybe you’re dissatisfied with your current rates of increase.

Be smart about your savings and consider investing it in a crypto savings account. BlockFi is leading the industry as a cryptocurrency interest-earning platform, and for a good reason.

Their service is ridiculously easy to use, completely transparent, and backed by leading venture capital firms like Winklevoss Capital and Valar Ventures.

Right now, there’s a lot of hype about BlockFi throughout the world of finance and tech, so we decided we’d deep dive into BlockFi’s industry-changing business model to see why it works, how it works, and if it’s the right place for you to invest your money.

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Quick Summary

Minimum Deposit: $0

Monthly Fees: $0

Promotion: Up to a $250 Bitcoin (BTC) bonus

What Is BlockFi?

BlockFi, or BlockFi Lending LLC, is a software company that deals primarily in interest-earning crypto savings accounts, featuring fee-free trading and loans secured with cryptocurrency. 

A BlockFi account is a kind of bank account backed by Bitcoin rather than by cash. In the traditional bank model, when you deposit your cash in a bank, you’re essentially giving the bank a loan.

In exchange for this loan, the bank pays interest.  BlockFi works the same way, but the loan you’re giving them is in crypto. BlockFi uses “custodians” like Gemini to buy cryptocurrency at your command and then acts like a wallet where your crypto will stay safe. 

Then, BlockFi pays interest on this crypto because it is, at its heart, a loan. Now, don’t worry if this all feels over your head.  We’ll see below how BlockFi earns you money, how they make money, and why the service is quite safe.

What Do They Offer?

BlockFi App

At BlockFi, the governing ideology is this: "The old way of doing things doesn't cut it anymore. With BlockFi, you can use cryptocurrency to earn interest at up to 8.6% APY, borrow cash, and trade currencies."

APY is, for those who are new to the world of interest, annual percentage yield. Essentially, APY reflects the actual amount by which a loan or an interest-earning sum of money increases.

If your account earns 8.6% APY with BlockFi, in other words, your money will increase by 8.6% each year.  BlockFi offers a crypto savings account platform to buy and simultaneously earn interest on cryptocurrency.

The way they can offer this is through their partner investment firms.  When you buy Bitcoin or another cryptocurrency through BlockFi, BlockFi lends this currency to their institutional counterparts.

Their institutional partners then use this borrowed money to hedge their position and earn you more.  This may sound risky, but it’s not. BlockFi has over $100 million in equity funding, meaning they have a great mass of funds set aside in cold storage (i.e., not online; in cash).

Even if your coin is being borrowed, your account will always be liquid.  In addition to earning interest on crypto (up to 8.6% APY), BlockFi offers low-cost loans to further invest in coin and fee-free trading.

Fee Breakdown

One of the ways that BlockFi is unique is that the fees are completely upfront. Crypto trading is totally free on the platform, and the only expenses that occur are through withdrawal.

Currently, BlockFi offers one free crypto and one free Stablecoin withdrawal per month. After that, nominal fees may be assessed.


Amount **


BTC (Tier 1)

0 - 2.5


BTC (Tier 2)

> 2.5



> 0



> 0


BlockFi Bonus Offer

BlockFi offers “the gift of crypto” in many promotional offerings throughout the year. Clients who referred their friends to BlockFi received $25 in Bitcoin and the new user received $50. 

BlockFi regularly offers promotions, which can be viewed here.


Is BlockFi Safe To Use?

Yes! Although the FDIC does not insure BlockFi, it’s still a very safe company backed by many well-known investors. In a recent funding round, BlockFi accrued over $50 million in investment. This money means BlockFi is able to ensure your bank account.

That said, however, the world of cryptocurrency is not 100 percent stable. A crypto savings account has the potential for greater reward, but this comes with greater risk.

How long do BlockFi withdrawals take?

BlockFi withdrawals take a business day. This is an important thing to know about their service: although your cash is liquid, you won’t be able to access it at the drop of a hat.

How often is interest paid?

Monthly. At the beginning of each month, your total interest accrual (BIA) is assessed and added to your dashboard. From this very user-friendly dashboard, you can re-invest, trade, or withdraw.

How does BlockFi make money?

BlockFi makes money through its relationship with hedge funds, its offering of low-cost loans, and its own investments in Bitcoin and other cryptocurrencies.

Is BlockFi insured?

The federal government does not insure BlockFi, but this shouldn’t scare you away. Although your assets are technically at a higher risk than they would be in a bank, you can be confident it’s not going anywhere.

If BlockFi and its customers survived the economically tumultuous 2020, we should be quite confident in its staying power.

How Do I Sign Up For An Account?

If BlockFi seems like the place to start accruing interest on your savings, go to and click the first big blue button you see: “Get Started.” 

  1. Create a profile. Here you’ll enter your email, your legal name, and create a password. This is also where you’ll put your referral code if a friend has recommended you.
  2. Verify your identity. This is where you’ll have to give a bunch of personal information: social security number, date of birth, source of income, email address, and phone number. BlockFi walks you through every step and explains why they’re asking for the information. 
  3. Connect a bank account. Once your identity is verified, simply connect your bank and begin investing, trading, or taking out loans.

It’s that simple! BlockFi has conveniently streamlined its platform. It’s intuitive, and even those without much digital proficiency should find the service effortless to use.

Next Steps

BlockFi is a powerful option in the ever-changing world of interest-earning accounts. If you want to invest your money in a smart way that’s safer than investing in individual stocks but more profitable than a standard bank account, consider BlockFi.

BlockFi is an American company with integrity at its core. Its transparency and fee-free trading make it an industry leader in the world of crypto investing. 

Head to BlockFi now to see your path to smart, hassle-free investing.


Don't just buy crypto - start earning on it. Open an interest account with up to 8.6% APY, trade currencies, or borrow money without selling your assets.

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  • Editor Rating
  • Rated 4.5 stars
  • 80%

  • BlockFi
  • Reviewed by:
  • Published on:
  • Last modified: March 3, 2022

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