August 29, 2021 12:00 PM PT

BlockFi Fees

Read more about BlockFi
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Interested in taking advantage of BlockFi's interest accounts or crypto-backed loans? Before you take the leap, understand the fees they charge.

BlockFi's main feature, crypto interest accounts, offers up to 7.5% APY.

But are their fees going to eat away at your returns?

Before you sign up for a BlockFi account, review all the fees you can expect to pay. Plus, learn how this popular crypto platform makes money.

What is BlockFi?

Founded in 2017, BlockFi is a New York-based company that offers crypto services, including:

  • High interest earning accounts
  • Crypto-backed loans
  • Crypto rewards Visa card
  • Crypto trading for popular cryptocurrencies like Bitcoin

If you open a BlockFi Interest Account (BIA) you can earn up to 7.5% interest on your cryptocurrency if you deposit it with BlockFi.

As of February 14, 2022, BlockFi Interest Accounts are not available in the United States. BlockFi is in the process of registering a new product, BlockFi Yield.

BlockFi's crypto-backed loans allow investors to take cash loans using their crypto as collateral. And their BlockFi Rewards Visa Signature Credit Card offers 1.5% bitcoin back on every purchase.

Ready to review the BlockFi's fees? See what they charge and how they compare to popular alternatives like Coinbase below.

Or simply visit the top crypto platforms:
StarStarStarStarStarEmpty Star Gemini (Most secure; 40+ cryptocurrencies)
StarStarStarStarEmpty StarEmpty Star BlockFi (Competitive rates; 10+ cryptocurrencies)

Does BlockFi Have Fees?

The good news for traders is BlockFi operates a commission-free exchange. That means, aside from their spread, which appears to range from 0.7% - 1.5%, you don't pay to buy or sell crypto.

BlockFi does charge Withdrawal Fees[1], which depend on the coin. The first cryptocurrency and stablecoin withdrawal per month are free. After that, rates look like this:

CryptocurrencyWithdrawal LimitWithdrawal Fee
Bitcoin100 BTC / 7-day period0.00075 BTC
Ethereum5,000 ETH / 7-day period0.02 ETH
Litecoin10,000 LTC / 7-day period0.0025 LTC
Chainlink65,000 LINK / 7-day period0.95 LINK
USD Coin1,000,000 / 7-day period$10.00 USD
Gemini Dollar1,000,000 / 7-day period$10.00 USD
Tether1,000,000 / 7-day period$10.00 USD
Uniswap5,500 UNI / 7-day period1 UNI
Basic Attention Token2,000,000 BAT / 7-day period35 BAT

As for their Crypto-backed Loans, they incur an Origination Fee of 2%.[2] However, there are no penalties for prepayment earlier than your loan term.

Take a look at how they compare to Coinbase, a popular competitor:

Though they have fewer options, you could save money by trading on BlockFi over Coinbase as long as you restrict yourself to the coins they support.

And remember, you don't have to limit yourself to just one trading platform.

How Does BlockFi Make Money?

BlockFi does make some money from the spread they charge on trades, as well as withdrawal and loan origination fees.

However, much of their business involves lending out user-deposited funds to institutional and corporate borrowers at higher rates than they themselves borrowed it for. These include:

  • Traders and investment funds
  • Over the counter (OTC) market makers
  • Businesses that need cryptocurrency to provide liquidity

Investments held in interest accounts or used as collateral for their crypto-backed loans can be lent out to the borrowers listed above. Their higher interest payments allow BlockFi to profit from the transaction.

BlockFi keeps a share of the payments and uses the rest to pay back the users whose deposits first made the loans possible.

BlockFi makes money in other ways as well, including:

  • Crypto mining
  • Premiums on investments into other trusts
  • Sponsorship fees

What cryptos does BlockFi support?

These 13 cryptocurrencies and stablecoins are available for earning interest:

  • Bitcoin, Ethereum, Litecoin, Chainlink, USD Coin, Gemini Dollar, PAX, PAX Gold, Tether, Binance Dollar, DAI, Uniswap, Basic Attention Token

Meanwhile, these 8 cryptocurrencies are offered for trade:

  • Bitcoin, Ethereum, Uniswap, Litecoin, Chainlink, Basic Attention Token, PAX Gold, Dai

BlockFi Features

After you've reviewed BlockFi's fees, let's talk about what you're paying for. These are the main services BlockFi has to offer.

BlockFi Interest Accounts:
You hold cryptocurrency, deposit it with BlockFi, and earn interest. It's that simple. Interest is paid in tiered rates, decreasing as deposit size reaches certain thresholds. Those thresholds depend on the coin in question.

Here's a look at their interest rates at time of writing:

CryptocurrencyAmountInterest (Paid Monthly)
Bitcoin (Tier 1)0 - 0.10 BTC3.5% APY
Bitcoin (Tier 2)> 0.10 - 0.35 BTC2% APY
Bitcoin (Tier 3)> 0.35 BTC2% APY
Ethereum (Tier 1)0 - 1.5 ETH3.5% APY
Ethereum (Tier 2)> 1.5 - 5 ETH2% APY
Ethereum (Tier 3)> 5 ETH2% APY
Litecoin (Tier 1)0 - 20 LTC2% APY
Litecoin (Tier 2)> 20 - 1001% APY
Litecoin (Tier 3)> 100 LTC0.10% APY
USD Coin (Tier 1)0 - 20,000 USDC7.5% APY
USD Coin (Tier 2)> 20,000 - 2 Million USDC6% APY
Gemini Dollar (Tier 1)0 - 20,000 GUSD7.5% APY
Gemini Dollar (Tier 2)> 20,000 - 2 Million GUSD6% APY

If you have crypto and want to put it to use without the expense of capital gains taxes, you might consider crypto-backed loans.

Crypto-backed Loans:
Borrow USD, GUSD, and USDC with your crypto as collateral.

Loan interest rates are tiered and depend on LTV (loan-to-value) ratio. Acceptable LTVs range from 20% - 50%.

The LTV represents the value of your loan as a percentage of the value of your collateral. For example, a $200 loan with $1,000 of collateral would have an LTV of 20%.

LTV (loan-to-value ratio)Interest Rate
50% LTV9.75%
35% LTV7.9%
20% LTV*4.5%

*Available only for BTC-backed loans valued up to $20k USD.

New loans incur a 2% origination fee regardless of the LTV.

You should receive your loan the same day you make your deposit, and there are no penalties for prepayment.

International borrowers receive slightly different rates. The international interest rate also includes the origination fee.

LTV (loan-to-value ratio)Interest Rate
50% LTV12.5%
35% LTV10.44%
20% LTV*6.73%

*Available only for BTC-backed loans valued up to $20k.

Rewards Credit Card:
BlockFi offers the Rewards Credit Card in partnership with Visa. Shoppers can earn 1.5% back in crypto on purchases. BlockFi is offering 2% back on any spending over $30,000 annually.

The card works with Apple Pay and Google Pay.

In addition to their desktop site, BlockFi also offers a mobile app, available on the App Store or Google Play Store.

How Trustworthy is BlockFi?

There is inherent risk in lending out and trading crypto that has nothing to do with theft. BlockFi's business only works if they can keep your assets safe, and they use strict measures to do so.

BlockFi's primary custodian is Gemini, licensed and regulated by NYDFS (New York Department of Financial Services). Gemini is known for prioritizing security and regulatory compliance. They also keep the majority of their crypto in cold storage.

BlockFi's institutional borrowers must take over-collateralized loans just like users of crypto-backed loans. BlockFi's automated risk management system monitors open positions 24/7 in case they need to close a position at short notice.

BlockFi manages reserve balances to ensure users can withdraw their crypto when needed.

BlockFi's other security measures include:[3]

  • Two-Factor Authentication: Authenticator app
  • Address Allowlisting: To prevent unwanted withdrawals
  • PII Verification: To ensure it's you using your account
  • Cold Storage: The majority of crypto is stored offline
  • Insurance: Cash funds held by Gemini are FDIC insured for up to $250,000 per customer. Digital assets are insured against theft as long as the user isn't determined to be at blame.

Can you lose money on BlockFi?
Yes, it's possible to lose money on BlockFi. They do a lot to keep client funds safe, including using Gemini as their primary custodian requiring over-collateralized loans, but there is a chance of losing the money you deposit.

As BlockFi stated, "As of March 31, 2021, no borrowers showed signs of default on payment and, to date, BlockFi has never incurred a lending loss on any of its loans." However, they are sure to remind users that, "This is not a risk-free product and loss of principal is possible."

Bottom Line

BlockFi can afford to charge fewer fees than many of their competitors. This is because most of their money is made by lending out your crypto to institutional borrowers at higher rates.

For interest earners, as long as you're making infrequent withdrawals (less than two a month), BlockFi's services are essentially free.

As for trading, BlockFi doesn't have the cheapest exchange, but compared to many popular options, trading there is cheaper since all you're paying is the spread. All in all, BlockFi's fees are very reasonable.



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Jeremy Harshman is a protector of art and writing at CreditDonkey, a crypto comparison and reviews website. Write to Jeremy Harshman at Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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