Get the scoop on BlockFi, their Bitcoin rewards credit card, and how I now use an exchange AND cold storage for my crypto. BlockFi promo link is here and below if you decide to sign up.

Before you consider BlockFi or any exchange for storing crypto, watch my video about Why Move Your Crypto to Cold Storage. You may find you just want to use the bitcoin credit card but store your assets in your own wallet like I do. Or you may like the convenience and ease of use with an app like BlockFi or Coinbase or Binance. This overview is for informational purposes only and to help you decide.

Related post: Why Move Your Crypto to Cold Storage with Trezor Wallet Setup and Transfer from BlockFi

This post was first published 6/25/2021 and a few parts were updated 8/10/2022 and 10/31/2022 as noted below.

As of 2021: With about 56 million users, Coinbase powers the crypto economy. But they don’t pay you interest. If you have at least 5% of your net worth sitting in crypto, this could be material.

6/25/2021: I’ve held cryptocurrency and continually bought more since 2016. Yesterday I moved my assets from Coinbase to BlockFi so I could earn interest. If you’re landing on this post because you’re looking for a BlockFi referral link / promo code, here you go. <– Get $10 in Bitcoin when you sign up with my link.

Get $10 in free Bitcoin when you sign up for BlockFi and start earning interest.

Info on why I transferred my crypto is below. This post is not sponsored or an ad, it’s just what I’m doing and why.

Quick comparison – BlockFi vs. Coinbase:

BlockFi and Coinbase are U.S.-based companies offering crypto exchange services. While BlockFi is privately owned, Coinbase is publicly traded under the NASDAQ ticker symbol $COIN. Although both allow investors to buy and sell cryptocurrencies, BlockFi also functions as a crypto bank.

Coinbase at a Glance:

  • Coinbase has 56 million verified users. The platform has added 13 million new users over the past 3 months alone. And Coinbase’s user base has increased by 64.7% since March 2020.
  • Coinbase is a secure platform that makes it easy to buy, sell, and store cryptocurrency like Bitcoin, Ethereum, and more.

BlockFi At a Glance:

  • A report by the Block also states that BlockFi has over $8 billion in total client balances and more than 125,000 funded accounts as of the end of 2020.
  • “Founded in 2017 by Zac Prince and Flori Marquez, BlockFi quickly became a leading cryptocurrency lending provider. Its products span multiple categories including crypto-collateralized USD loans (Clients can gain liquidity without having to give up their crypto assets by simply depositing their cryptocurrency as collateral and taking loans against that collateral in fiat) and interest-bearing accounts through which investors can earn up to 8.6% APY interest on their crypto holdings.” –BlockFi Gets A $3 Billion Valuation With New $350 Million Series D Funding, Forbes, March 2021

There are currently 18.5 million Bitcoins in circulation. Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.

Sign up for BlockFi and get $10 in free Bitcoin, plus start earning interest on your cryptocurrency at up to 4.5% APY, and earn 7.5% APY on GUSD (Gemini US Dollar, which beats the hell out of your savings account.)

What is the difference between Coinbase and BlockFi?

Unlike Coinbase, which operates as an exchange for both retail and institutional clients, BlockFi is essentially a modern-day crypto bank (without insurance) that pays account holders significantly higher interest than traditional banks.

What I’m passively earning on crypto assets now: BlockFi Interest Rate APY on Bitcoin, Ethereum, Litecoin, Chainlink, and PAX Gold as of June 25, 2021.

Why I moved my crypto assets to BlockFi:

  1. As of this writing I am now earning 5.00% interest APY on my BTC and 4.50% on my Ethereum in BlockFi. In Coinbase I was earning 0.
  2. Coinbase charges you fees to buy crypto. BlockFi does not charge fees to buy crypto.
  3. You can transfer funds from Coinbase or other wallets in as little as thirty minutes (though it could take a couple business days if you move a lot, like over $10,000 worth of a coin).
  4. BlockFi now offers a feature allowing users to seamlessly trade between BTC, ETH, LTC, USDC, PAX, BUSD, and GUSD on the platform.
  5. Your assets are securely stored at a unique wallet address generated by Gemini, a New York trust company licensed by the New York State Department of Financial Services. Gemini is a fiduciary under §100 of the New York Banking Law and held to specific capital reserve requirements and banking compliance standards. Gemini also has digital asset insurance coverage and is SOC 2 Type 1 security compliant on its exchange and custodian platform.
  6. BlockFi has the first Bitcoin rewards credit card. More info below.
    8/10/2022 Update: There’s no more waitlist for this card, you can apply now: First open your BlockFi account here then apply for the Visa credit card. <– Using my link or enter my promo code: b9249e5c for the bonus offer.7/13/2021 Update: I got approved for the BlockFi credit card, yay! There’s a waitlist you can join. You know I love credit card rewards points (check out my YouTube videos on Chase Ultimate Rewards and AmEx Membership Rewards points).

    Let me tell you, this card is badass. First, getting rewarded in cash back or airline miles are both vulnerable to deflation and devalution. I want to be rewarded in crypto. And look at the perks below:

Approved for the BlockFi Credit Card

BlockFi Credit Card Perks:

  • No annual fee or foreign transaction fees.
  • Earn rewards in BTC, ETH, or any other 15+ cryptos.
  • Get up to 10% back at thousands of brands and restaurants.
  • See if you’re pre-approved with no credit impact.
  • Intro bonus: Earn 3.5% Bitcoin rewards on all purchases in the first 90 days of card ownership, up to $100 in Bitcoin

  • 1.5% back on every purchase
  • Up to 10% back at thousands of brands with BlockFi Offers
  • 2% back after $30K of annual spend
  • 0.25% on eligible crypto purchases and trades

You can receive or purchase cryptocurrency on BlockFi using a QR code or crypto address. Once you verify your identity it is very quick and easy. Just don’t have any typos.

Disclaimer: I am not a crypto expert. I know enough to understand it and I believe in it for many reasons. I’ve been long BTC since 2016 and have bought in at many prices. Still going. Long.

I am not a financial advisor either. The EXPERT on cryptoassets is my friend Tyrone Ross. Follow him and listen to his podcasts. Another way to get educated on crypto is from Onramp Invest‘s voice experience and mini podcasts:

1-click enable Onramp Invest’s WealthVoice app on Alexa and hear the latest update hands-free.
(Learn more about how Onramp puts out hands-free updates on, the voice marketing platform for financial professionals.)
Audiogram of Caitlin Cook’s update for Onramp Invest announcing Onramp Academy! Broadcast powered by WealthVoice (Alexa Skill CMS)

I’m simply sharing what I’ve done because there are many people out there in a boat like mine, with a similar knowledge level, who may be looking for this information. Do what works for you. There are no guarantees in this asset class, but there are no guarantees with any investment. If you are IN IT, you might as well be earning some interest ON IT, right?

10/31/2022 update: I moved most of my crypto to cold storage with this Trezor Model T Wallet. Find out how I did it and why in the videos below or read more here: Why Move Your Crypto to Cold Storage (Wallet)

I still use the BlockFi Credit Card for earning BTC rewards. You can use an exchange and cold storage, it’s okay to mix and match as long as you keep track and understand the process.