In this article, you will get some information about BlockFi and Coinbase. Cryptocurrency is becoming ever more popular every day. Bitcoin, the leading cryptocurrency, is up over 15,000% within the last 5 years. Since the launch of Bitcoin in 2009, many other cryptocurrencies have inherent existence. In fact, as of early 2021, there have been over 4,000 different cryptocurrencies available.
As cryptocurrency continues to rise in popularity, the demand for secure cryptocurrency trading and holding platforms is skyrocketing. Today, with many platforms to settle on, investors could also be confused about which one is best.
In this article, we’ll be reviewing BlockFi vs Coinbase. This deep dive will cover the pros and cons of every platform also because of the various features offered.
BlockFi vs Coinbase: the fundamentals
BlockFi, launched in 2017, is maybe a crypto management platform that functions sort of as a bank for cryptocurrency. Crypto held in BlockFi can earn the maximum amount like 8.6% APY as against traditional banks paying but half a percent. Members of BlockFi also can buy and sell various cryptocurrencies without fees, use their cryptocurrency as collateral for a loan, and soon, earn more with a Bitcoin rewards credit card. BlockFi is seeking to simplify the globe of cryptocurrency with faster trades and a highly secure platform.
Coinbase was launched in 2012 and is that the leading cryptocurrency trading platform within the USA. With over 30 different cryptocurrencies available on the platform, Coinbase is usually considered a pioneer of the industry. additionally to purchasing and selling crypto, Coinbase also offers users the power to earn interest on assets of about 4–8%, to securely store assets, and to form payments with their cryptocurrency.
Both platforms offer members secure storage, competitive interest rates, and therefore the ability to trade cryptocurrencies. The key differences between the 2 platforms are their fee structures for trades and a couple of other features like BlockFi’s offering of receiving a loan.
BlockFi vs Coinbase: Summary:
- Both platforms offer the trade of cryptocurrency, though Coinbase offers quite 30 cryptocurrencies while BlockFi has just 6.
- They both offer high security for member’s assets.
- They both offer an easy-to-use mobile app.
- BlockFi and Coinbase both offer members the power to require out a loan and use their cryptocurrency as collateral.
- Coinbase offers a debit rewards card, while BlockFi is soon launching a Bitcoin rewards credit card.
- BlockFi trading has no fees while Coinbase charges members various fees counting on the transaction size.
- Both platforms let users earn interest on their assets held within the platforms.
- Coinbase also offers advanced members the power to use Coinbase Pro, which has advanced charting and allows users multiple order types.
What is BlockFi?
BlockFi is a complete cryptocurrency management company that gives members the power to trade crypto, earn assets on their holdings, and various other banking functionalities. With an ever-increasing demand for cryptocurrency, the necessity for a secure platform that’s simple and simple to know is at the top of most cryptocurrency trader’s minds.
Launched in 2017, BlockFi has quickly gained popularity because of its impressive offerings and low fees. Though it doesn’t have nearly as many cryptocurrencies available as Coinbase, BlockFi does offer some unique features that are highly popular.
BlockFi contains a number of impressive features. one among which is that the ability to buy and sell cryptocurrency with no fees. While other crypto management platforms offer low fees, BlockFi is totally free. this is often appealing to investors who are starting to enter the world of cryptocurrency and need to find out more.
In addition to buying and selling cryptocurrency free of charge, members also can earn high-interest rates on their holdings. Storing cryptocurrency has been a source of confusion for several investors. Between hot and cold wallets, investors have sought out an easy solution. BlockFi, with its secure platform, has created just the answer. In fact, users also can earn up to eight.6% APY by storing cryptocurrency within the platform. This interest is accrued daily and paid out monthly. Cryptocurrency traders want to simply spend or store their assets during a wallet. But now, they will actually earn interest on their holdings.
BlockFi also offers members a singular ability to receive a loan using their cryptocurrency as collateral. they are doing require a 50% loan to value ratio (LTV). this suggests that a user eager to receive a loan of $10,000 would need to maintain $20,000 worth of crypto in their account. With a loan from BlockFi, members can pay 4.5% in interest. for several investors who don’t want to sell their cryptocurrency, this is often an excellent option.
BlockFi is additionally soon launching a Bitcoin rewards credit card, which actually offers Bitcoin as a reward. Members will earn 1.5% rewards in Bitcoin on every purchase. they’re offering a $250 sign-up incentive for people who spend $3000 within the first 3 months. the card will have a $200 annual fee.
Customer support can make an enormous difference for members. The customer support edge for BlockFi vs Coinbase definitely goes to BlockFi. Members can live chat with a bot, submit email inquiries, and talk directly with an agent on the phone on Monday through Friday.
One of the most questions on cryptocurrency is that the level of security users can expect. BlockFi houses 95% of accounts in cold wallets, with the remaining accounts in hot wallets insured by Aron. (A cold wallet may be a storage device that’s not connected to the web. you’ll consider it as a thumb drive. Hot wallets are connected to the web .)
What is Coinbase?
Coinbase is that the leading cryptocurrency platform within the USA not only thanks to the very fact that it’s been around since 2012, but also because it’s never been successfully hacked. The platform allows members to shop for and sell a powerful number of cryptocurrencies also as earn interest on their holdings.
Coinbase lures many cryptocurrency traders with its recognizable name and diary. With the longest history of cryptocurrency management platforms, Coinbase is well-established and offers members a secure place to trade and hold their assets.
The platform appeals to beginners with its simple app but also advanced crypto traders with its free platform Coinbase Pro. it’s free therein users can check in for free of charge, though members can pay trading fees per transaction in both Coinbase and Coinbase Pro. The difference between Coinbase and Coinbase Pro is that they cater to different members. Coinbase is meant to be simple and straightforward to use, while Coinbase Pro is formed for more advanced traders with its advanced charting and multiple order types.
Like BlockFi, Coinbase allows members to shop for and sell cryptocurrency. While BlockFi offers trades with no fees, Coinbase does charge transaction fees, though they’re fairly competitive among market rates. Learn more about Coinbase’s fee structure. one of the most draws to Coinbase is that the vast number of cryptocurrencies on the platform. They currently offer 32 different cryptocurrencies to trade.
Their platform features a debit card that permits members to earn rewards from their purchases. The Coinbase card may be a Visa debit card that gives 4% in rewards whenever the card is used. there’s no signup or annual fee. the card is often used anywhere Visa is accepted and users can spend any of the assets within the account.
Coinbase also offers members the power to earn interest in their holdings. Members can earn about 4–8% interest annually.
Like BlockFi, Coinbase also gives its members the power to receive a loan backed by Bitcoin as collateral. Coinbase requires a 30% LTV and a maximum loan of up to $100,000. They charge 8% APR, but they permit members to postpone repayment of the principal for 1 year.
Coinbase does offer customer support, though they are doing not have a phone number to succeed in a live agent. To contact Coinbase and work with a representative, members must send an email through their support form. They also make company updates on their Twitter account.
Security is of utmost importance for Coinbase. Members can rest easy knowing that each asset held online is privately insured by the corporate. Coinbase has also stated that but 2% of assets are held online, while the remainder is held in cold storage. Cash positions held within the platform are FDIC insured up to $250,000.
BlockFi vs Coinbase: Final Thoughts
Choosing to use BlockFi vs Coinbase will depend upon the goals of the investor. If you’re checking out an area with advanced trading and a plethora of cryptocurrencies, Coinbase might be your best bet. If you’re trying to find commission-free trades, however, then BlockFi could also be better fitted to your needs.
Both platforms are secure and offer users a secure place to shop for, sell, and store cryptocurrency. Signing up for an account is quick and straightforward with both platforms. They also both offer annual interest on assets held within the platforms.
Since both platforms are relatively young, to not mention that Cryptocurrency is comparatively young, they’re going to likely undergo many upgrades and enhance their offerings as time goes on. With possible rewards credit cards and potential cryptocurrency ETFs within the future, these are two platforms that investors should watch closely.
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