Important Update!
BlockFi no longer exists as a functioning lending service. The company filed for bankruptcy in 2022, largely due to an industry-wide collapse, and ceased operations. This article is kept for historical reference and to explain what happened and what alternatives exist today for earning crypto yield. The most probable solution in 2026 is Nexo. However, there are additional avenues worth exploring, which I outline in this article.
Why BlockFi & Celsius Were Crypto Industry Leaders (Before They Collapsed)
When it comes to earning interest on your crypto, BlockFi and Celsius are probably the two largest players in the space. Nexo is also quite reputable, offering some of the best rates on the market. BlockFi has been operating in the lending space for several years and is one of the first companies to offer crypto lending. BlockFi might actually be the first authorized entity to offer these innovative financial products.
One aspect potential investors need to be aware of when using BlockFi or any of the other platforms mentioned is that KYC is a prerequisite. These companies are legally obliged to maintain documentation for all account holders. This is not exclusive to BlockFi, as previously mentioned. I have been using BlockFi for a couple of years and performed my first withdrawal ever last week.
My First BlockFi Withdrawal: How It Went & What Actually Happened
So, after utilizing the services of BlockFi for quite some time, I recently performed my first withdrawal. I have always known that BlockFi grants account holders one free withdrawal per month. I am glad to say this is still the case, as I withdrew BTC without any fees or additional costs.
I also had to perform a verification process; perhaps because it was my first withdrawal, I am not sure. Apart from that, the process was pretty quick, and I received my BTC not long afterward. Let’s have a look at BlockFi’s current offering for new account registrations.
Two Crypto Bonus Offers That No Longer Exist (BlockFi Promotions Explained)
Firstly, there is the standard bonus that has always been available for new account registrations. A minimum deposit of $100 entitles new account holders to a $10 bonus! This will still be available as a bonus for US residents and in all other countries, even if the current special bonus expires.
In other words, the $10 bonus on a $100 deposit is the standard bonus and is always available, even after other bonuses expire. The second option is the new $40 bonus for non-US residents, which we will address shortly. That said, BlockFi reserves the right to change or remove any bonuses at its discretion.
How The $40 Crypto Bonus Worked At BlockFi (Eligibility Rules Explained)
Currently, newly registered BlockFi accounts outside of the US are eligible for a $40 bonus provided they meet certain criteria. Firstly, the initial deposit must be at least $100. Secondly, the user needs to be referred by another user who is not a US resident. The final qualifying factor is that the deposit must be held in the account holder’s account for at least 30 days.
In essence, a new investor can receive an immediate 40% return on a $100 investment. This is a pretty good opportunity for those wishing to dip their toes into the crypto world. Essentially, a hefty initial bonus helps to mitigate risk significantly.
Why BlockFi and Celsius Were Considered Great Crypto Opportunities (Before the Collapse)
These are the opportunities that noobs and even seasoned crypto enthusiasts should always be on the lookout for. Earning monthly interest on your deposit plus an additional bonus is exactly how you rack up that crypto stack over time. Even when it comes to leveraging the benefits of lending, there is a simple strategy you can use to maximize immediate gains.
A Great Simple Strategy For Growing Your Crypto Portfolio
Let’s say you are new to crypto, or an existing crypto user and investor who has not yet used lending products. Let’s also say you have $ 1,000 that you wish to invest. Instead of utilizing a single service, why not meet the deposit requirements on multiple platforms and receive multiple bonuses? BlockFi will unlock a bonus at $100, while another service, such as Celsius, will reward new users with $50 in BTC for every account funded with $400 or more.
You can literally spread your capital and receive multiple bonuses. This is actually also a wise move, even without the bonuses, as diversification always protects your capital. I diversify as a rule, regardless of benefits and bonuses.
Celsius Had A Great Drawcard
Even though we are, in essence, addressing BlockFi’s $40 bonus for non-US residents, Celsius has a nice perk I find handy. As mentioned, BlockFi will grant you one free withdrawal every 30 days, which really helps when you look at ETH transaction costs, bearing in mind that all ERC20 tokens fall under the same transaction cost as ETH.
Celsius, on the other hand, offers free withdrawals as standard. You can withdraw twice on the same day and pay zero fees. This is extremely attractive, especially if you are looking to generate passive income from these opportunities without having to sacrifice a hefty percentage to withdrawal fees.
What Was BlockFi’s Portfolio Offering? Full Breakdown Of The Crypto Product
Originally, BlockFi only offered interest on BTC, ETH, and a few stablecoins. New additions have since been made, making it a more viable option for those with diversified investment portfolios. Below is a full list of assets currently offered by BlockFi, along with their respective interest rates:
| Assets | Interest (APY) |
|---|---|
| Bitcoin (BTC) | 4.50% |
| Ethereum (ETH) | 5.00% |
| Litecoin (LTC) | 3.50% |
| Uniswap (UNI) | 3.25% |
| Chainlink (LINK) | 2.50% |
| Basic Attention Token (BAT) | 1.00% |
| PAX Gold (PAXG) | 3.25% |
| Tether (USDT) | 9.25% |
| Dai (DAI) | 8.75% |
Stablecoins have recently seen a modest increase in interest-earning capacity, which is great given the current state of the crypto market. Many are probably holding a significant allocation in stablecoins in case the market edges lower. You will also note that many other options are ERC20 tokens, such as UNI, LINK, BAT, and PAXG.
ERC20 Only
Currently, lending platforms only accept deposits on the Ethereum network (ERC20), so even if LINK, for example, is available as a BEP20, users cannot deposit on the BNB Chain. Withdrawals and deposits are only facilitated on the Ethereum chain. This is what makes the free withdrawal so attractive. Obviously, if the coin has its own chain, such as Litecoin, then the native network fees apply.
Final Thoughts
This is a great opportunity for non-US residents to gain $40 in free Bitcoin. An asset that is likely to increase substantially in value over time. Spreading risk across multiple opportunities can further hedge your risk while simultaneously providing additional free BTC! Potential investors are encouraged to perform their own due diligence before making any investments. Thanks for the visit! See you soon!
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