BlockFi Canada Review (Jan 2023): Why We Don’t Like It

December 1, 2022
Reviews

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.

VirgoCX is the favourite among knowledgeable Canadian crypto investors, both for its high level of security and for its ease of use. It also has extremely low trading fees, so if you're looking for a secure, cost-effective way to buy and sell crypto in Canada with a $20 signup bonus (available until January 30, 2023), I can't recommend VirgoCX 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.

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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 VirgoCX, our top crypto exchange choice in Canada. Here are a few reasons I recommend it over BlockFi.

Introducing VirgoCX: Our #1-Rated Crypto Exchange In Canada

#2 In Canada

Trading Fees: 0% up to $200
Security: Best in class
Customer Support: Excellent

Top-notch security + low fees.

★★★★★

Rated 4.5/5

ZenGo is free to use, which means you get the industry's best security for no cost. Sending and receiving crypto to and from ZenGo is also free, and their 24/7 support team answers most queries in 5 minutes or less.

ZenGo’s proprietary keyless technology means that your crypto is protected by two independently created mathematical secret shares: one that lives on your phone, and another that lives in the cloud. This unique setup means that your coins are always 100% secure, and that you’ll never have any trouble accessing them, even if your phone is lost, stolen, or broken, or if ZenGo (the company) were to go bankrupt, commit fraud, or cease operations for any other reason.

As a new ZenGo user, you won't pay any trading fees on trades up to $200. ZenGo supports more than 75 crypto assets, and it takes less than 30 seconds to open your free account.

Overall, ZenGo represents the next generation of crypto: with top-level security inside an easy to use app, ZenGo offers the best of both worlds.

Features

  • Supports 75+ crypto assets
  • 24/7 customer support
  • Extremely well-rated mobile app (4.7/5 on the App Store) 
  • Face scanning technology for even greater security
  • Up to 8% APY in crypto savings 
  • Cancel or speed up your sent transactions with one tap
  • Choose from the 3 network fees modes: economy, regular, and fast (applicable for BTC, ETH, and ERC20)

Cost

  • Account Opening: Free
  • Trading Fees: 0% on trades up to $200

Best For

Crypto investors looking for the most secure trading experience + low fees.

SECURE MY CRYPTO FOR FREE
Sign up by January 30, 2023.

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.

VirgoCX is the favourite among knowledgeable Canadian crypto investors, both for its high level of security and for its ease of use. It also has extremely low trading fees, so if you're looking for a secure, cost-effective way to buy and sell crypto in Canada with a $20 signup bonus (available until January 30, 2023), I can't recommend VirgoCX highly enough.

BlockFi FAQs

How To Withdraw From BlockFi

To withdraw funds from your BlockFi account, you only have to follow these simple steps:

  1. Log in to your BlockFi account.
  2. Click on the “Accounts” tab at the top of the screen.
  3. Choose the cryptocurrency you wish to withdraw.
  4. Click on the “Trade” option.
  5. Exchange the desired amount for Gemini dollars (GUSD).
  6. Click on the “Withdraw” option.
  7. Choose Gemini dollars (GUSD).
  8. 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.

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.

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