BlockFi and Coinbase are well-known cryptocurrency platforms that allow investors in the United States and across the world to buy, sell and trade major cryptocurrencies.
The cryptocurrency industry has grown significantly in recent years, with Blockfi launching its breakthrough crypto financing platform in late 2019. BlockFi is the obvious solution for people who like daily interest returns.
- 1 Blockfi vs Coinbase- An Overview
- 2 What is Blockfi?
- 3 What is Coinbase?
- 4 BlockFi vs Coinbase : Features
- 5 BlockFi vs Coinbase : Ease of use
- 6 BlockFi vs Coinbase : Security
- 7 BlockFi vs Coinbase : Wallets
- 8 BlockFi vs Coinbase: Supported Currencies
- 9 BlockFi vs Coinbase : Fees
- 10 BlockFi vs Coinbase : Access
- 11 BlockFi vs Coinbase : Mobile App
- 12 Final Verdict On BlockFi vs Coinbase
- 13 Frequently Asked Questions
Blockfi vs Coinbase- An Overview
Coinbase began providing consumers with a simple platform for purchasing Bitcoin seven years ago and has since grown to be one of the world’s biggest cryptocurrency exchanges. Coinbase is a more popular alternative for investors when it comes to cryptocurrency diversity.
While Coinbase primarily focuses on bitcoin trading and brokerage, BlockFi provides crypto banking services such as interest-bearing accounts and loans.
|Features||Two-factor authentication, insurance on hot storage, Cold storage, bug bounty program||Two-factor authentication, bug bounty program, Cold Storage|
|Wallet||custodial wallet, AES-256 Encryption||Hot wallet, AES-256 Encryption|
|Commissions||$0 trading fees||1.49% for Coinbase wallet or bank account purchases, Up to 0.50% spread per trade.|
|Supported Fiat Currencies||USD||EUR, USD, GBP|
|Supported Transactions||Buy, Sell, Send, Receive, Withdraw, Exchange||Buy, Sell, Send, Receive, Withdraw, Exchange|
|Maximum Trading Amount||Based on the account size of the user, and historical activity||Based on the payment methods & region|
|Mobile App||Android, iOS||Android, iOS|
What is Blockfi?
BlockFi, which was founded in 2017 by Flori Marquez and Zac Prince in New Jersey, allows customers to use their cryptocurrency as collateral for a loan, earn interest, and, shortly, earn rewards with their Bitcoin rewards credit card.
Before launching, the company was able to raise more than $60 million in capital. Over the last few years, the platform’s popularity has skyrocketed.
It provides a reasonable range of cryptocurrencies in which users may invest, operating as both a wallet and a savings account. Rather than simply exchanging coins, BlockFi functions as an interest-saving account, allowing you to make money on your idle cryptos.
Blockfi is regarded as one of the first sites that allow users to earn interest in their cryptocurrency. BlockFi, like a typical bank, allows customers to borrow money or earn interest on their cryptocurrency holdings.
The company also provides a special Visa card with Bitcoin cashback and the opportunity to buy cryptocurrencies directly and no transaction fees between any of the supported coins.
What is Coinbase?
Coinbase is one of the world’s largest cryptocurrency exchanges, with trading volume only surpassed by Binance, and a strong reputation for industry-leading security.
It operates Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and other digital currency exchanges with fiat currencies in 32 countries, as well as bitcoin transactions and storage in 190 countries.
Brian Armstrong and Fred Ehrsam created the company. The company launched its bitcoin buying and selling services in June 2012.
Coinbase caters mostly to active traders and investors, offering a diverse selection of cryptocurrencies.
Users may manage a variety of accounts, ranging from basic to Coinbase Pro. Depending on the account selected, it caters to both novice and expert traders.
Over the years, the firm has established partnerships with a wide range of mainstream corporations, including Dell, Overstock, and Time Inc, strengthening its position as one of the most trusted organizations in the bitcoin industry.
BlockFi vs Coinbase : Features
Coinbase provides Coinbase Pro, an extra platform with greater capabilities for users. While Coinbase makes buying and trading cryptocurrencies simple for everybody, Coinbase Pro is a platform meant for currency traders who want extensive charting and other tools whereas the Blockfi Interest Account allows customers to earn up to 8.25 percent APY on their crypto or stablecoin investments.
While both BlockFi and Coinbase provide crypto-backed dollar loans, BlockFi easily outperforms the competition. Users of BlockFi may obtain a loan with an interest rate as low as 4.5 percent whereas Coinbase loans generally have interest rates of 8%.
Users may use Coinbase’s Coinbase Earn features as well. It is a function that educates consumers about cryptocurrencies and how to execute profitable trades. It also differentiates Coinbase from BlockFi, which is relatively poor in terms of teaching.
Further, BlockFi offers a Rewards Visa Credit Card that accrues interest every time you make a cryptocurrency purchase whereas the Coinbase Card is a Visa Debit card that lets you spend your Coinbase assets wherever Visa is accepted. They also give up to 4% in cryptocurrency incentives for your transaction.
Users must also deposit Bitcoin as security for a loan through Coinbase. Other currencies are not accepted whereas the Users of BlockFi can obtain loans in BTC, ETH, USDC, or GUSD stablecoins.
BlockFi vs Coinbase : Ease of use
In the same way, both are user-friendly, Coinbase is here earlier than that Blockfi so there are more tutorials and FAQ answers there but Blockfi has been more interactive as they have options like live chats, email, and customer support.
Even if consumers of BlockFi encounter problems, they may either live chat with an assistance bot, submit email support complaints, or call an agent during business hours. Coinbase lacks phone assistance and has been known to collapse amid market volatility.
Both Coinbase and Blockfi have quick and straightforward sign-up processes, but they still demand full identification verification. That means you’ll have to supply your name, address, personal identity (driver’s license or passport), and a picture.
BlockFi vs Coinbase : Security
Both platforms follow rigorous regulatory guidelines and employ various verification procedures to verify it is you. Both services urge users to use two-factor authentication. This makes it far more difficult for unauthorized users to access your account.
Cash deposits are also FDIC insured up to a maximum of $250,000. Coinbase insures all other online assets confidentially.
BlockFi similarly keeps the vast majority of its crypto assets in cold storage, with 95 percent of its crypto in cold wallets. The remaining 5% is stored in Aron-insured hot wallets.
💡 BlockFi vs Coinbase Note: 98 percent of the crypto money of Coinbase is stored in cold storage, with only 2 percent kept online.
Whitelisting, also called as allow listing, is a choice users can make to further secure their money.
Both adhere to the account verification and “know your client” (KYC) procedures. They employ bug reward schemes to identify security flaws.
It’s also worth noting that BlockFi deposits are not FDIC or other insurance-backed. Blockfi wallets, on the other hand, are given by Gemini Exchange, one of the top American exchanges recognized for its regulatory compliance.
At this time, no funds have been reported missing from either platform, but they have implemented a refund policy in the event that this occurs.
BlockFi vs Coinbase : Wallets
Coinbase provides a custodial wallet as well as a non-custodial wallet. Coinbase Wallet, through which the customer owns their cryptocurrency.
Coinbase Wallet is a hot wallet, which means it is online, and it is accessible for download on desktop and mobile devices. You do not need to be a Coinbase user to download Coinbase Wallet; it is available to anybody.
💡 BlockFi vs Coinbase Note: Coinbase wallet is a hot wallet. Whereas BlockFi provides a Custodial Wallet.
BlockFi provides a custodial wallet, which is a wallet owned by the crypto platform. The downside of using a custodial wallet is that you will not have total control over your cash. For this reason, some investors choose to transfer their cryptocurrency to their own non-custodial blockchain wallet.
Most coins may be transferred to another wallet via BlockFi. It does not, however, support external transfers for three cryptocurrencies: Dogecoin (DOGE), Algorand (ALGO), and Bitcoin Cash (BCH). That is a significant disadvantage if you want to purchase any of those on BlockFi because you will not have complete control over them.
BlockFi vs Coinbase: Supported Currencies
The crypto-list on BlockFi is restricted. It now supports just 15 coins (At the time of writing this piece). While users may not be able to pick from an infinite number of cryptocurrencies, they can begin collecting interest on the cryptocurrency they possess right now. It also allows users to borrow against their cryptocurrency rather than sell it.
The smallest amount BlockFi may borrow is $10,000. Some of the coins included are BTC, ETH, and LTC.
Coinbase offers over 100 different cryptocurrencies. This list is always being updated. You will get access to not just the most famous coins, but also some unheard coins.
Aside from that, users may earn interest on this site. They may also earn cryptocurrency while learning about the coins. Numerous well-known coins are included, such as DOGE, BAND, and BCH.
Another feature that both platforms have is the ability for customers to purchase fractions of bitcoin on either BlockFi or Coinbase.
BlockFi vs Coinbase : Fees
BlockFi charges up to 1% spread per trade. In addition, after using up their one free monthly stablecoin and crypto withdrawal, customers must pay a withdrawal charge.
The withdrawal cost is determined by the coin being withdrawn. There are also restrictions on how many times you may withdraw in a seven-day period. Withdrawal fees are levied once an investor’s one free monthly withdrawal has been exhausted.
It should be noted that not all cryptocurrencies qualify for free monthly withdrawals. BlockFi does not offer free withdrawals for the following crypto coins: ETH, LINK, PAXG, UNI, and BAT.
The basic Coinbase exchange costs a 0.50 percent spread plus a fixed fee. Fees are significantly cheaper when using Coinbase’s enhanced trading tool, where fees are calculated based on your 30-day trading volume.
BlockFi may impose a spread of up to 1% for every trade. The standard Coinbase exchange fee is 0.50% plus a flat fee.
Coinbase charges a maker-taker fee. Trades that are immediately filled by an existing order are charged a taker fee, whereas trades that are not immediately completed are charged a maker fee.
Coinbase does not have a documented fee structure for basic trades and instead states that costs are determined after placing an order. Additional fees may be levied depending on the payment type you select. There are no extra costs if you pay via ACH bank transfer.
Coinbase does not impose a withdrawal fee, however, withdrawals are subject to a network fee. The network charge is determined by the cryptocurrency you are withdrawing and how busy the network is.
BlockFi vs Coinbase : Access
Except in nations and states sanctioned by the UK, US, or EU, BlockFi is open to all merchants worldwide. While everyone in the United States can use the site, some cryptocurrencies are not available in all states.
It’s worth stating that the BlockFi Interest Account is not yet available to residents of the United States. Furthermore, US-based traders are unable to use USDT.
Further, BlockFi isn’t operational in countries like Iran, Iraq, North Korea, Sudan, Syria, etc.
Coinbase is available in over 100 countries, including 49 US states. Residents of Hawaii are not permitted to trade on the site. Certain coins are also unavailable to New York citizens.
BlockFi vs Coinbase : Mobile App
To appeal to mobile device users, BlockFi provides an Android and an iOS mobile app. All functionalities available on the online platform are also supported by the applications.
The Android app has somewhat higher ratings than the iOS version. Users of BlockFi may view their interest accounts and even apply for crypto-backed loans directly from their phones.
When it comes to smartphone applications, Coinbase and BlockFi are identical. This exchange includes both Android and iOS mobile apps for consumers on the go. Unlike BlockFi, the Coinbase iOS app has a higher user rating.
Users on both sites may quickly access their accounts in order to buy and trade any cryptocurrency asset. The mobile apps are simple and allow users to do basic trading activities (buying and selling) on their phones.
Final Verdict On BlockFi vs Coinbase
When comparing BlockFi vs Coinbase, neither platform can be beaten because they are both extremely safe and user-friendly. If you want to trade several cryptocurrencies or stakes while still being able to spend your holdings using a Visa Debit card, Coinbase is the place to go.
When it comes to choosing between Coinbase and Blockfi, it all boils down to your intentions. Further, Crypto traders looking to access a diverse range of coins can find a home on the Coinbase trading platform. They will undoubtedly enjoy the ability to pick from over 100 cryptocurrencies while making a deal. And, believe it or not, the cryptocurrency in your Coinbase wallet earns interest as well.
If you want to earn interest on your Bitcoin or Ethereum holdings and have a crypto credit card that gives you Bitcoin cashback benefits, Blockfi is worth looking into.
Further, When it comes to costs, though, BlockFi takes the lead. It is simple to pay a spread of about 1% for each transaction. Especially since you will begin collecting interest immediately after acquiring an asset.
Frequently Asked Questions
BlockFi is a FinCEN-registered money service company, which should be sufficient proof that the exchange is genuine.
Over the weekend, a number of well-known cryptocurrency companies revealed that their customer data had been compromised. HubSpot, a company that maintains customers’ names, phone numbers, and email addresses for marketing reasons, was responsible for a data breach that affected Circle, BlockFi, Pantera Capital, NYDIG, and other companies.
Brian Armstrong is the owner of Coinbase.
We advise you to make an initial $50 deposit into your Exchange USD wallet in order to authenticate your bank account.
For the Coinbase rewards card, the business collaborates with MetaBank. Direct deposit is already available in some well-known online finance applications.