BlockFi Canada Review - Is It legit? Is it Safe?
Yes, BlockFi Canada is one of Canada's best cryptocurrency exchange platforms. It offers multiple financial services to Canadian clients, including crypto wallet, trading, and portfolio-backed loan lending services.
With BlockFi, you get access to low-interest rates on loans, fast trades with no commission, and no hidden fees to worry about.
It also provides access to various assets to trade and earns passive income through interest. In addition, the platform offers a referral program through which you can earn up to $10 in BTC for each client that signs up using your referral code and deposits $100 in their account.
BlockFi has multiple positive reviews from clients, signaling their satisfaction with its operation, thus a go-to crypto exchange platform for traders.
Is BlockFi Available in Canada?
BlockFi has a firm base of clients in Canada and is completely authorized to operate there. The company runs under the U.S federal and state laws and is fully compliant with the local regulations on a crypto exchange.
To get started, you are only required to fill in the requested details on their websites, such as your real name and address. You also need to complete a verification process to trade, which requires you to have an Identity Card.
The crypto exchange platform has outstanding customer service, which you can always reach out to for any inquiries. The main ways of contacting them are:
Through email: press@blockfi.com
By phone: 646-779-9688
Through their website
Is BlockFi Canada Safe?
BlockFi Canada is safe and upholds various precautions to safeguard customers' investments. The company places clients’ funds ahead of employee or equity funds if there is a loss. Secondly, most clients' money is stored offline as a security measure.
Moreover, Gemini, BlockFi’s custodian, is regulated by the New York State Department of Financial Services and is SOC 2 security compliant.
In addition, the exchange platform allows you to restrict withdrawals to specific addresses or to ban them entirely through a security self-service feature, Allowlisting. This is an additional security measure to protect your account from theft.
Since kick-starting its operations in 2017, BlockFi has not experienced any newsworthy security concerns, thanks to the laid down standards. Various tests have been carried out on their system and found no technical vulnerabilities whatsoever. It is thus a safe crypto exchange option for beginner and expert traders.
BlockFi Canada - General Information
BlockFi Canada offers a 1% spread that varies with market conditions. It provides no leverage; thus, users can only trade with the funds available in their accounts. Users can, however, make deposits in U.S dollars with no minimum limit.
What’s more, the platform runs a lending service that allows you to borrow crypto whenever your balance is not enough. The loan is backed by your existing account’s portfolio— your crypto assets as collateral.
However, when taking a loan, you need to keep in mind that you could lose your collateral in the event of a crypto price fall. In case the price of the borrowed cryptocurrency drops, you may no longer have enough account value to support the loan, which could lead to confiscation of the collateral.
In addition, BlockFi has a recurring purchases feature, which allows users to make automated cryptocurrency purchases in the preferred frequency ( daily, weekly or monthly). This feature is much helpful to less active traders in ensuring that interest earnings and account value constantly grow, even under minimal involvement.
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💰 Account currency:
Cryptos, USD
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🚀 Minimum deposit:
No
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⚖️ Leverage:
No
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💱 Spread:
Market
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🔧 Instruments:
Cryptos, USD
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💹 Margin Call / Stop Out:
No
BlockFi Canada Pros and Cons
BlockFi has a bunch of upsides, and the reviews on Trustpilot give a clear snapshot of various users' experiences with the company. With four out of five-star ratings across more than 226 reviews, most users are clearly satisfied with what the platform offers.
Most customers are pleased with the platform's customer support in solving various account issues, interest rates, and trade execution simplicity. There are mixed reactions towards holding funds for a day during withdrawal, where a good number are okay with the extra security step while others find it inconvenient.
On the downside, the assets available for trade are limited as only 13 types of coins are on the platform. Moreover, deposits in the BlockFi Interest Account are not backed up against bank failure.
This table summarizes some of the key advantages and disadvantages you should look out for in your involvement with the BlockFi cryptocurrency exchange platform.
👍 Pros
• No minimum deposits
• Quick fee-free trades and withdrawals
• Regulated by international and local authorities
• Fiat loan services
• Investors can earn interest on crypto.
👎 Cons
• BIA assets are not insured against bank failure
• Limited digital assets
BlockFi Canada - Fees
BlockFi does not charge transaction fees for trades made on the platform's exchange, and there are no commissions on deposit. It allows clients to make one crypto and regular coin withdrawal for free every month, and clients are charged withdrawal fees for subsequent withdrawals within the same month based on the currency type.
The table below summarizes the withdrawal charges for some of the key markets on the platform.
BlockFi fees Review
Photo: BlockFi fees
BlockFi Canada Interest Rates
BlockFi has set various currency-based interest rates that allow clients to earn from their invested assets (staking). By depositing crypto to the BlockFi Interest Account (BIA), you can earn up to 8% interest on the total investment, compounded monthly. However, the interest rates are subject to change per the ever-shifting market conditions.
The assets you commit are invested in other third-party blockchain projects. Once you deposit your desired amount, the funds are expertly allocated to a given investment, ridding you from having to decide on the most profitable projects to invest in.
The company guarantees the safety of the deposit, which is technically not withdrawn from your account but frozen. You can unfreeze the deposit before the end of the month, in which case you will not receive the total interest payments, as you will incur a ‘penalty.’
The table below shows the interest rates as per the January 2023 BIA rates update:
Photo: The interest rates
In addition to BlockFi Interest Account rates, the other interests on the platform are the crypto-backed loan rates. These are the interests you pay whenever you borrow a loan. You pay a 2% origination fee on receiving the loan and a 4.5% to 9.7% interest rate depending on your loan-to-value ratio.
It is worth mentioning that loan eligibility depends on the assets in your account and follows a minimum of 50% loan-to-value ratio. This means that your collateral has to be at least 50% of the loan you receive.
BlockFi Canada - Supported Coins
With BlockFi Canada, you get access to six major cryptocurrencies (e.g., Ethereum and Bitcoin), four stable coins, including USDC and Gemini— the currency of its custodian. Below is an elaborate list of the supported coins.
Bitcoin (BTC)
Paxos Gold (PAXG)
Paxos Standard (PAX)
U.S Dollar Coin (USDC)
Binance USD (BUSD)
Tether (USDT)
Gemini dollar (GUSD)
LINK
How to withdraw from BlockFi Canada
To withdraw money from your BlockFi wallet,
Log in to your BlockFi account dashboard
Head to the "interest Account" tab at the top of the screen
Choose the cryptocurrency you wish to withdraw
Click on the “trade” option
Exchange the preferred amount for Gemini Dollars (GUSD)
Click “withdraw”
Choose Gemini dollars as the withdrawal currency type
Select your bank account as the preferred withdrawal destination.
Please note that all crypto withdrawal requests are briefly held for security clearance and processed on the consequent business day. In addition, requests made before 5 PM EST are processed the following day, while those made after 5 PM EST are processed within two days.
Summary. Is BlockFi Canada a Good Exchange?
BlockFi Canada is a great exchange option for Canadian residents, given its diversified trading assets and income options. Although the platform does not offer a large variety of coins to invest in, the major ones are readily available and have favorable trading conditions. In addition, the platform conforms with the local trading rules and regulations, thus a safe investment haven for traders.
Top 5 BlockFi Reviews
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Comment
I am 100% confident in the reliability of BlockFI. I have been cooperating with it since it was founded in 2017. For all the time, there have never been any security problems, and hackers have not encroached on the platform, since there are no technical vulnerabilities here. I did not find any design flaws, the terminal is typical, but this does not affect its functionality in any way. I travel a lot, so I really appreciate the possibilities for mobile trading. I use the referral program for additional earnings, but I have not reached any investment decisions, although I heard from friends that the rates are profitable.
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Comment
This cryptocurrency exchange is full of newbies and I understand why. This platform has made the conditions as comfortable as possible for those who are just starting their way in the financial markets. I liked the simplified registration and verification, the intuitive terminal, and the high-quality customer service. Support is available 24/7, and there are several channels to communicate with the support team. Technical support is sensible, and all issues are resolved promptly.
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Comment
This crypto exchange has favorable trading conditions, but I came here not for trading or the exchange, but for investing. I learned from a friend that you can earn more money by staking with a freeze of a deposit than by bank deposits. Depending on the type of asset, they pay up to 8% per annum. You can withdraw your money at any time, but you need to understand that in this case, the total amount of payments will be reduced. Interest is paid monthly, and you don't have to wait long. Of the minuses, there are limits for withdrawing funds from the platform and commissions for withdrawing profit.
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Comment
If you are counting on Blockfi, you are clearly in vain! This is a great way to drain money, nothing more. At one time, I hoped for this company, and went bankrupt ...
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Comment
I recently started trading on the crypto market, but my experience is still minimal. For six months, I managed to test 3 exchanges, including BlockF. I stopped on this platform because there are no restrictions on trading strategies, and commissions for trading and exchanging digital currencies are zero. Even beginners will feel comfortable on this site - the registration and verification process takes a minimum of time, and there are no problems. Dealing with the terminal will not be a problem either, since it is simple and straightforward in terms of functionality. My verdict: this exchange is excellent, and you can trust it.
FAQs
Is BlockFi Visa Credit Card available in Canada?
The card is not available for Canadian clients at the moment. Clients can, however, withdraw funds through the local banks with a free withdrawal each month.
Why can't I use a Credit Card to buy cryptocurrency in Canada?
One of the main reasons most banks in Canada do not permit the purchase of cryptocurrency using credit cards is the risk factor involved.
Due to the price volatility of crypto, most banks require customers to use existing funds to invest in crypto. Buyers can use debit cards or e-transfers to buy crypto.
What stablecoin does BlockFi in Canada offer?
BlockFi Canada gives several Stablecoins, including USDC, USDP(PAX), and GUSD. A Stablecoin is a cryptocurrency whose value is attached to another asset. For BlockFi’s Stablecoins, the investment is the U.S Dollar.
Which Canadian bank is the most crypto-friendly?
Toronto Dominion Bank is an excellent option for crypto investors. The bank permits the purchase of crypto using debit and credit cards and e-Transfers.
Team that worked on the article
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).