BlockFi is not only a cryptocurrency exchange, but also a money lender. It is one of the few exchanges located in the United States, and it has some interesting systems that allow investors to earn interest while transitioning from traditional financial operations to the crypto market.

This encrypted trading platform provides typical functions of modern exchanges such as Coinbase and Binance, but you can earn up to 9% APY in interest, borrow cash and trade currencies.

It has almost no lows, and it is one of the best platforms for long-term investors who have just entered the cryptocurrency world. 

This is what you will learn in this BlockFi review.

Feel free to click on the link above to jump to a specific section. Before buying cryptocurrency on BlockFi, you can also scroll through to learn everything you need to know.

BlockFi is largely known as a user-friendly platform. The user interface seamlessly integrates its encrypted exchange function with the functions of the traditional money lending system.

Even those who have never used a cryptocurrency exchange should be able to make their first investment within half an hour of opening an account. 

However, BlockFi does not have many in-depth beginner resources that platforms such as Voyager and Coinbase have. Therefore, new users may need to trial and error to figure out each feature.

In addition, the addition of traditional lending functions makes the interface a bit confusing, but this is not something new users cannot figure out in a reasonable time. It increases the versatility of the platform. 

In addition, BlockFi recently created a mobile application to bring all its features into a simple mobile format. So far, BlockFi has done an excellent job of converting the controls and menu layouts of its original PC site into a mobile interface, and some users claim that it is easier to use than the original PC version. 

One of the low points of BlockFi is that it does not support more than 8 coins. It doesn't even support fiat-to-cryptocurrency transactions, but we will discuss in detail later. 

Currently, these 8 coins are your only choice for using BlockFi. 

This list may expand in the future, but BlockFi is more willing to focus on fully supporting these 8 coins instead of actively adopting as many coins as possible.

Therefore, if you have invested in crypto for a while or plan to have a very diversified investment portfolio on the platform, you may need to consider limited options. 

With a few exceptions, BlockFi is available worldwide, but only some services are available outside of the United States. 

For encrypted transactions, BlockFi can be used in 47 states. This does not include: 

It is also not available in any country sanctioned by the United States, the United Kingdom, or Canada. The list fluctuates based on diplomatic conditions. If BlockFi is not available in your country/region, it may be due to sanctions in one of the three listed countries/regions. 

For its traditional legal loan service, BlockFi is available worldwide. However, it cannot be used in New York or any country currently sanctioned by the United States, the United Kingdom, or Canada. 

BlockFi is currently working to obtain the licenses required to open its services to all 50 states and is expected to expand internationally at some point in the future. 

BlockFi's account setup process is very similar to other platforms, if you choose to try, you can bring your existing account into the mobile app.

However, before we start, BlockFi has an evolving recommendation system that you may want to take advantage of. 

If you have friends who also use BlockFi, or may be willing to try it after you create an account, please check if they have a referral link, or if you are willing to accept your referral link after you complete the process.

If you use the recommendation system, BlockFi will reward two users with free cryptocurrency, and the payment can be as low as $10 or as high as $50. The referral bonus will take effect after the new user deposits a certain amount in his account, which often fluctuates. 

Click the "Get Started" button on the BlockFi website and you will see a standard basic information pop-up window. 

In the pop-up window, you must provide your name, email, and preferred password before you can proceed with the registration process.

If you got a referral code from an existing BlockFi user before registering, you also need to add the referral code.

If you plan to use the site and recommend others to get your bonus, you will do so after you start investing. 

This step is a standard email verification process. Just go to your email, click on the link provided, and your email will be verified before you return to the setup process. It may take some time to receive the email. 

Next, you only need to choose whether you are an individual or on behalf of a company. Most people will want to choose "individual". 

You will receive two back-to-back pop-up windows. First, the system will ask you which country you live in. Then, you will be asked to provide a street address. 

Another two-step pop-up window will appear, asking for your phone number and date of birth. Obtaining these details correctly is very important because they will be used to verify your identity. 

Choose financing method. You will get a long list of items to choose from to add funds to your account.

Please keep in mind that fiat currency will be converted into the platform's stable currency. When prompted by a pop-up window, please provide your social security number to the website. 

Now you will complete a simple authentication process. You need appropriate documents issued by the government to perform this step. Therefore, please prepare your ID and other relevant identification documents. 

After completing these steps, you can recharge your account and start investing immediately. 

BlockFi's token selection may be limited, but it has several features that make it stand out. The following are our favorite features. 

The table below shows the interest rates you can earn with cryptocurrencies and stablecoins. Interest is compounded daily and paid at the beginning of each month.

BlockFi's trading experience is extremely smooth and easy to understand. You only need to click "Transaction", select the goods you want to buy or sell, select the receiving method you want, and then confirm your transaction.

You have to pay for gas like anywhere else, and you have to do some research in advance to make the right purchase decision.

However, you can earn compound interest through multiple orders, which is superimposed on the daily interest earned on the coins you hold.

If you are sure that you want to buy the same cryptocurrency repeatedly at a given time, you can even set up a repeat transaction. This allows you to choose the type, quantity, and delivery schedule, and BlockFi will automatically purchase orders on your behalf every day, week, or month.

This system is very effective if you want to invest the excess of your salary on every payday. 

Between the simple transaction process and the opportunity to earn more than pay, BlockFi's trading experience is among the best in the cryptocurrency field. 

BlockFi has a unique way of handling fees. First, you can withdraw money for free once a month. After that, our fee schedule will apply to every withdrawal you make during the rest of the month.

If you are good at holding, this is to your advantage. You can also get a free stablecoin withdrawal once a month, which can be used to consolidate all the income you sell into one easy-to-convert coin before converting it to fiat currency. 

The following are the withdrawal fees for subsequent withdrawals. Keep in mind that these rates may vary based on the market value of the relevant coin. 

In addition to the gas cost of all forms of cryptocurrency, there are no transaction fees. 

As we all know, BlockFi is a safe platform, and users don't have to worry about using it. However, before you start diving, you should understand some key points. 

First, BlockFi uses the hosting company Gemini to handle its finances. This includes the contents of your wallet. Gemini has taken appropriate safety precautions and stored 95% of its assets in cold storage.

Otherwise, it is called an offline server, and it cannot be hacked unless someone has physical access to the server. The remaining 5% are kept in a properly protected hot wallet, but can be used for fast transactions. 

This property protects the funds of its users, but if anything happens, BlockFi will not be insured by FDIC or SIPC. Although your funds or the funds of other users are unlikely to be compromised, they will not be protected even if they are protected.

This may cause significant losses in the event of a large-scale cyber attack, but BlockFi is currently working to obtain insurance to eliminate the problem. 

However, despite BlockFi's efforts, the platform still carried out worrying attacks on them. In 2020, criminals stole an employee's mobile phone and gained access to the entire platform.

Fortunately, no assets or funds were lost, but this was a major mistake and reduced trust in platform management. 

BlockFi does have a built-in wallet like other major platforms, and it is a necessary part of the platform's interest plan.

BlockFi's wallet does not provide any other noteworthy features. However, it can protect your funds well and help you track the amount of money you have earned or invested since joining the platform. 

BlockFi does not currently provide a professional version with advanced features. All users can access many features available in their country or state without having to pay monthly account fees or use different applications. 

However, BlockFi does provide PC, iOS and Android versions, allowing you to enjoy a smooth large-screen experience on your PC, and you can also use the application anytime, anywhere through the mobile platform. 

BlockFi is mainly for beginners. It does not have many advanced tracking and research features that intermediate and expert investors need, and it has a limited selection of coins.

However, its easy-to-use interface, centralized coin selection, and multiple profitable programs make it an excellent way for beginners to invest with minimal risk or startup costs. 

Higher-level investors may also want to hold a certain amount of cryptocurrency through BlockFi to take advantage of interest plans, while they create diversified short-term investment portfolios on other platforms. 

Yes, BlockFi is legal and registered as a money service company ("MSB") with the Financial Crime Enforcement Network ("FinCEN") of the U.S. Department of the Treasury. Your funds in BlockFi are handled by Gemini Trust, a New York trust company under the supervision of the New York State Department of Financial Services. BlockFi was established in 2017 and has grown exponentially, becoming the most popular and best cryptocurrency exchange on the market So one is now.

Yes, you may lose money on BlockFi. As with any other investment, there is a risk of losing money. BlockFi is not a bank or brokerage account, which means it is not FDIC or SIPC insurance. If BlockFi fails, you may lose money.

Yes, you can withdraw funds from BlockFi at any time because there are no restrictions or lock-up periods. Remember, you can only make one free crypto withdrawal and one free stable currency withdrawal every calendar month. In addition to this, you will pay a fee for each withdrawal, and the fee varies by currency.

BlockFi makes money by lending coins to hedge funds, exchanges, institutional traders, and issuing asset-backed loans to retail customers.

Yes, BlockFi reports your income to the IRS by sending your 1099 information.

As one of the only local crypto exchanges in the United States and one of the only exchanges that provide both legal loans and accrued interest, BlockFi is a bridge between traditional financiers and the crypto world.

Unfortunately, its limited options and lack of in-depth tools make it less useful for expert investors. 

Despite these shortcomings, BlockFi is still a stable platform and is constantly committed to improvement, and it provides a large number of incentives to attract potential skeptics to doubt the cryptocurrency trend. 

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