Note: BlockFi filed for Chapter 11 bankruptcy on November 28, 2022. We strongly recommend against using their services.
BlockFi is a crypto-asset lending firm based in New York that provides loans in US dollars against Bitcoin and other cryptocurrency assets. It has a few unique features not found on other platforms, such as its BlockFi Interest Accounts and BlockFi Bitcoin Rewards Credit Cards. However, because BlockFi only supports a limited number of cryptocurrencies, I'm hesitant to recommend it as a top crypto exchange for Canadians looking to buy, sell, and trade different types of cryptocurrency.
The best crypto exchange in Canada is Kraken, both for its high level of security and for its extremely low fees. Kraken charges 10-20x less than other Canadian exchanges, so if you're looking for a secure, cost-effective way to buy and sell crypto in Canada, I can't recommend Kraken highly enough.
What Is BlockFi?
BlockFi is a crypto-asset lending company based in New York City. It offers loans in the form of dollars against Bitcoin and other cryptocurrency assets, as well as the ability to take cryptocurrencies with a higher interest rate than usual.
The firm was established in 2017 to mimic banks in the cryptocurrency industry, with the eventual goal of providing cryptocurrency-denominated credit cards. Starting in January 2018, it began lending fiat cash against cryptocurrency collateral.
BlockFi Features
1. High Interest Rates On Your Crypto Holdings
With a BlockFi Interest Account, you may earn up to 8.6% in compounding interest on your cryptocurrency holdings. There are no hidden fees or minimum balance requirements to worry about with the account either.
The interest rate varies by currency type and fluctuates with market values. Interest shall be accrued to your account daily and will be added to your account every month, so you'll earn interest on your interest each month.
2. BlockFi Bitcoin Rewards Credit Card
BlockFi is the first firm to offer a Visa credit card that gives 1.5% back in Bitcoin on purchases, making it one of the first Bitcoin rewards credit cards around in the world today.
The BlockFi card earns you rewards in the form of Bitcoin, and these rewards will be added to your BlockFi Interest Account and will begin earning interest immediately.
3. Recurring Purchases Feature
When you have fiat funds in your BlockFi Interest Account, you may set up recurring purchases similarly to how you would when using Coinberry's Autopilot feature.
With this feature, BlockFi can help you make automated cryptocurrency purchases on a daily, weekly, or monthly basis so that your account value and interest earnings will increase even if you don't spend much time actively trading.
Cryptocurrencies On BlockFi
BlockFi currently supports 10 cryptocurrencies, 6 of which are altcoins and 4 of which are stablecoins. Here's the full list of crypto tokens BlockFi currently supports:
| Bitcoin (BTC) | Paxos Standard (PAX) |
| Ethereum (ETH) | PAX Gold (PAXG) |
| Litecoin (LTC) | Chainlink (LINK) |
| USD Coin (USDC) | Tether (USDT) |
| Gemini Dollar (GUSD) | Binance USD (BUSD) |
BlockFi Fees
For trading on their exchange, BlockFi does not charge transaction fees. However. you'll pay withdrawal costs once you exceed the free withdrawal you're given every month, and you'll also have to pay origination fees and interest on cryptocurrency-backed loans you borrow through the platform.
Our Recommendation
Despite its high-interest earning rates and interesting features, there's one big drawback that doesn't allow me to fully recommend BlockFi as a top crypto exchange option for Canadians, and that would be its limited range of supported cryptocurrencies.
Having only 6 altcoins and 4 stablecoins to choose from, BlockFi falls short of the range of supported crypto we've seen from other top crypto exchange platforms. This won't be a problem if you're only interested in coins like Bitcoin and Ethereum, but if you're interested in less common tokens, you're going to have to look elsewhere.
For these reasons, I suggest looking at Kraken, our top crypto exchange choice in Canada. Here are a few reasons I recommend it over BlockFi.
Introducing Kraken: Our #1-Rated Crypto Exchange In Canada
Solid Option
|
Total Fees: ~3.2% |
★★★★ Rated 4.0/5 |
VirgoCX doesn't charge any trading fees, deposit fees or withdrawal fees—yet its extremely high spreads make it one of the more expensive crypto exchanges in Canada. Those spreads are generally around 3.2%, which means you pay 20x the fees as you would trading with Kraken, which is absurd.
Aside from the high fees, though, VirgoCX is a great exchange. Its trading platform and mobile app are intuitive and easy to use (even for beginners), it supports 50+ cryptocurrencies, and it offers 24/7 customer support via live chat and email, plus an extensive FAQ section on its site.
VirgoCX covers the first $6 in mining fees on crypto withdrawals, which means you generally won't pay anything to withdraw crypto. For security, VirgoCX maintains a 95% cold storage policy and requires 2-factor authentication on all accounts.
As a new VirgoCX user, you'll receive a $20 bonus upon funding your account with $100 or more.
If working with an easy to use platform is important to you, VirgoCX is a solid choice.
Features
- Supports 50+ cryptocurrencies
- Free fiat deposits and withdrawals
- Free deposits and withdrawals on most cryptocurrencies
- 24/7 support available via live chat and email
- User-friendly for both beginners and more advanced traders
- 95% cold storage policy
- Regulated by FINTRAC
Cost
- Trading Fees: 0%
- Spreads: 2% – 3.5%
- Fiat Deposit Fee: 0%
- Fiat Withdrawal Fee: 0%
Signup Bonus
$20 when you deposit $100
Best For
Crypto investors who choose not to sign up with Kraken.
In Summary
BlockFi is a crypto-asset lending firm based in New York City that offers loans denominated in US dollars against Bitcoin and other cryptocurrency assets. It has some interesting features that are seldom seen in other platforms, such as its BlockFi Interest Accounts and BlockFi Bitcoin Rewards Credit Cards. However, the fact remains that BlockFi only supports a limited number of cryptocurrencies, so it's simply not our top recommendation for Canadians looking to buy or sell different kinds of cryptocurrency.
The best crypto exchange in Canada is Kraken, both for its high level of security and for its extremely low fees. Kraken charges 10-20x less than other Canadian exchanges, so if you're looking for a secure, cost-effective way to buy and sell crypto in Canada, I can't recommend Kraken highly enough.
BlockFi FAQs
How To Withdraw From BlockFi
To withdraw funds from your BlockFi account, you only have to follow these simple steps:
- Log in to your BlockFi account.
- Click on the “Accounts” tab at the top of the screen.
- Choose the cryptocurrency you wish to withdraw.
- Click on the “Trade” option.
- Exchange the desired amount for Gemini dollars (GUSD).
- Click on the “Withdraw” option.
- Choose Gemini dollars (GUSD).
- Select your Bank Account as the desired destination.
Is BlockFi Safe?
No, BlockFi is not a secure cryptocurrency exchange to use. It filed for Chapter 11 bankruptcy on November 28, 2022, and is currently insolvent. We strongly recommend against using BlockFi. Instead, we recommend other exchanges we've reviewed, including VirgoCX, Bitbuy or CoinSmart. Even the more expensive options like Newton, Shakepay, and Wealthsimpre Crypto are better choices.
BlockFi Referral Code
Unfortunately, there are no BlockFi referral codes available at this time. For some promotion codes that do work, check out our list of the top promo codes in Canada.
Does BlockFi Report To The CRA?
Yes, BlockFi reports every large transaction to the Canada Revenue Agency (CRA). BlockFi may also report your cryptocurrency gains, so it's best to keep track of every transaction you make.
