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
Best In Canada
|
Total Fees: ~0.16% |
★★★★★ Rated 4.9/5 |
Based in the U.S. and regulated by FINTRAC in Canada, Kraken is undoubtedly the best crypto exchange in Canada. Founded in San Francisco back in 2011, Kraken outperforms the smaller Canadian crypto exchanges due to its significantly lower fees, better customer support, and superior overall trading experience.
For starters, Kraken's fees are far lower than any Canadian exchange, with most users paying 0.16% per transaction (fees decrease down to 0% if you trade high volumes). Kraken's spreads are also absurdly low, typically around $0.10 per Bitcoin, which is 0.0003%. Compare that with the other Canadian exchanges—which routinely charge up to 2% in commissions plus an additional 2% or more in spreads—and it's easy to see why Kraken is such a popular exchange.
Kraken also has better customer support than any other Canadian exchange, and is the only exchange in Canada offering telephone support (available in English, French and Spanish). It supports 100+ cryptocurrencies and has a world-class trading platform and mobile app that's powerful yet easy to use.
If that wasn't enough, Kraken's trading platform is far more professional and robust than its Canadian peers, offering features like NFT trading, staking and support for a wide range of fiat currencies including CAD, USD, EUR, and more.
Overall, Kraken is the best fit for most Canadian crypto investors because it has lower fees, better support and a better trading platform overall. If you're looking to start trading crypto in Canada, we strongly recommend Kraken.
Features
- Extremely low trading commissions (0.16%)
- Extremely low spreads (0.0003%)
- Trade 100+ cryptocurrencies
- Stake 100+ cryptocurrencies
- Simple, intuitive user interface
- Kraken Crypto Watch allows you to keep track of the crypto market
- NFT trading inside the Kraken app
- 24/7 customer support via phone, email and live chat
- Plenty of free educational resources available to users
- 95% cold storage policy
- Regulated by FINTRAC
Cost
- Trading Fees: 0.16% (spot trades cost 0.26%)
- Spreads: 0.0003%
- Fiat Deposit Fee: 0%
- Fiat Withdrawal Fee: $10 CAD
Best For
Canadian cryptocurrency investors looking to trade with the industry's lowest fees.
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.
