BlockFi vs Coinbase: What’s the Final Verdict?

Jump to page contents

BlockFi vs Coinbase: What’s the Final Verdict?

The advent of cryptocurrency has brought about quite a number of financial and technological innovations that are shaping the financial investment sector. One of those innovations is cryptocurrency exchange platforms. Crypto exchange platforms combine both financial and technological features to enable you to trade and invest in any digital currency of your choice. These crypto exchanges have terms and conditions that you must familiarize yourself with before using them. We are here to tackle the burning question: BlockFi vs Coinbase: who comes out on top?

So, two of the top crypto exchanges in the crypto space today are BlockFi and Coinbase. While these two have the general similarity of being a crypto exchange platform, they also have their differences. BlockFi, apart from being a platform where you can trade your crypto coin also offers crypto-backed loans and interest accounts. Coinbase on the other hand in addition to its cryptocurrency trading features also offers staking features.

To be able to differentiate between BlockFi vs Coinbase, let’s take a look at some features available on both crypto platforms.

BlockFiCoinbase
 TransactionsNo charge transaction fees on your crypto trades. You pay withdrawal fees if you withdraw more than once a month from your account and originating fees on your crypto-backed loans. On Coinbase, you are charged a transaction fee of 0.50%, 3.99% on credit card purchases, and a 1.49% fee on Coinbase wallet or bank account purchases.
 Withdrawal LimitsBlockFi has a withdrawal limit of $5,000 for every wired withdrawalCoinbase has a withdrawal limit of $50,000 per day
 Minimum balanceYou do not require a minimum account balance on your account and there is also a minimum deposit of $0Coinbase requires an account minimum of $10.
 Deposit BonusYou get to earn a special bonus on your first deposit. The bonus depends on how much you deposit. You also get a $10 bonus when you sign up for an account.You get a $10 sign-up bonus when you open a coinbase account.
 Account TypesTwo types: personal cryptocurrency interest account and business cryptocurrency interest account.You can open an individual investment account and institutional investment account on Coinbase.
 User-friendlinessEasy-to-use trading UI that has an inbuilt calculator for calculating your trade positions.Coinbase is very easy to use for beginners. It has a self instructive interface that is not complex for a beginner
 Trading LimitsLimit of $1.2 million per day or its equivalent in cryptocurrencyThere are no trading limits on coinbase
 FeaturesDigital asset insurance that will protect your digital assets. There is also a cold storage feature that protects your crypto assets.Coinbase has an advanced cryptocurrency trading platform known as Coinbase Pro for crypto investors and also a wallet for retail investors. Coinbase also has its own U.S dollar stable coin.
Customer Service RatingBlockFi has a 3.8 customer service rating from 222 reviews on Trustpilot. There are quite a number of complaints about the slow response from their customer service team.Coinbase has a customer service rating of 1.6 from over 5,000 reviews on Trustpilot. Coinbase ranks 476th among crypto sites. It takes 48 – 72 hours to get a response to your complaint email.
 Other Perks3% to 6% interest on your cryptocurrency holding; option to borrow rather than sell your crypto when you need cash with an interest rate as low as 4.5%; reward credit cards with up to 1.5% cashback on your Bitcoin purchase, and you can also set up automatic trading for your interest account if you do not have time to actively trade.Some of the perks you enjoy on Coinbase include insurance of your crypto asset; a simple user interface; several options of altcoins and cryptocurrencies you can trade on the platform.

Should You Go With Coinbase?

Coinbase is a crypto exchange platform where you can trade different types of cryptocurrencies. Coinbase currently has over 90 digital currencies that you can trade and invest in. You have access to the trade top coins like Bitcoin, Ethereum, and Litecoin. Let’s start our BlockFi vs Coinbase investigation.

This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.
This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.
This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.

The first step to use this platform is to create an account using your government-issued ID and some KYC requirements. Then you’ll choose a payment method through which you can credit your Coinbase account. You can use options like Apple Pay, PayPal, or wired transfer. Once you do all these, you are set to start trading on your Coinbase account.

To trade, you start by clicking on the Buy/Sell button on the top right-hand corner. Then you specify whether it’s a one-off trade, daily, weekly, or monthly. Then you enter the amount you want to buy and choose the coin you want to buy and your payment method. The Coinbase wallet provides you with the extra security you need to protect your digital assets. The private keys for your wallet are stored directly on your mobile phone rather than a centralized exchange. It is distinct from the Coinbase app and can be accessed even if you don’t have a Coinbase account.

The Coinbase app is compatible with Android and iOS devices. Compared to a number of top crypto exchange platforms, Coinbase provides you with reliable security for your digital assets. 98% of customer funds are stored offline to protect your investments from theft or loss. Coinbase is regulated by the laws and regulations of each jurisdiction it is available. It is also registered as a money services business with FinCEN.

5/5

As with any asset, the value of Digital Currencies can go up or down and there can be a substantial risk that you lose money buying, selling, holding, or investing in digital currencies.

ProsCons
Low minimum balance required to fund your account;Higher fees than other cryptocurrencies;
Insured digital assets;Debit cards are available in limited countries;
More than 50 cryptocurrencies available;Only 6 coins available for staking and all at a high cost;
Beginner-friendly interface.Expensive products and services.

Should You Go With BlockFi?

BlockFi is a cryptocurrency management platform that lets you leverage your crypto assets and put them to fair use. BlockFi offers you the opportunity to earn up to 8% annually on your crypto holdings. You can also borrow cash and trade different cryptocurrencies. It is popularly referred to as a cryptocurrency bank.

You can sign up for a BlockFi account on your iOS and Android devices by downloading a BlockFi app or visiting the BlockFi website. You will then enter your personal information and complete the KYC requirements. Once this is done, you can then proceed to make deposits into your account via a cryptocurrency or stablecoin bank transfer. You can start earning interest on your deposit or use it as collateral for when you borrow.

BlockFi is one of the few retail-focused crypto-interest-earning platforms that is regulated in the US. The short waiting period during a transaction provides you with the necessary security on your account. This makes your account less prone to hackers. Blockfi also has advanced security protocols such as additional confirmations of return wallet addresses, photographic evidence, and PII Confirmations. BlockFi wallet offers you the opportunity to earn interest on your crypto earnings.

ProsCons
Instant trades;APY and loan rate volatility;
No commission fees;No joint or custodial account;
No monthly fees or minimum deposits;Savings aren’t protected against bank failure;
Advanced security protocolsLimited free withdrawals from interest accounts.

Let’s have a look at the major differences between these two platforms. These differences will guide you in making your choice, depending on the kind of platform you want.

FeaturesBlockFiCoinbase
Minimum balance requirementBlockFi does not have a minimum balance requirementThe minimum requirement on a Coinbase account is $2.
Interest on holdingsYou can enjoy up to 7% interest on deposits into your BlockFi accountThere are no interests on deposits paid into your Coinbase account
Deposit feesBlockFi charges a minimum $10 fee on incoming wired transfers depending on the amountCoinbase charges a flat rate of $10 on any deposit
Withdrawal feeBlockFi offers one free cryptocurrency withdrawal and one free stable coin withdrawal in a month. A fee is charged on subsequent withdrawals depending on the type of currency.Coinbase charges a 1% fee to convert and withdraw your crypto to fiat. There is also a $25 charge on wire transfer withdrawals
Cryptocurrencies availableBlockFi supports 6 cryptocurrencies and 4 stable coinsCoinbase supports more than 90 cryptocurrencies
FeaturesBlockFi provides crypto trading services alongside interest accounts, crypto-backed loans, and some other servicesCoinbase offers mainly crypto services, Bitcoin backed loan services and staking services
Interest rateBlockFi interest rates are as low as 4.5%The interest rate on Coinbase’s Bitcoin backed loans require an 8% APY
AccessibilityBlockFi is only available in 8 countries around the worldCoinbase is available in 66 countries around the world

Any Alternatives To Coinbase and BlockFi?

While we were reviewing BlockFi vs Coinbase, it was obvious that these two platforms have their similarities and differences, however, they are also two of the best crypto exchange platforms around. Before deciding on which to use, there is some information you must digest so you can get a full customer experience. However, there are other crypto exchange platforms you can use that also offer quality and reliable crypto trading services. These alternatives include Binance, eToro and Kraken.

Binance

Binance is known as the largest crypto exchange platform in the world in terms of daily trading and cryptocurrencies available on the platform. Although it is banned in the U.S, it has a wider reach than BlockFi and Coinbase combined. Binance is easy to use with crypto beginners having little or no problem with the UI. The perks of using the Binance platform include:

  • No trading fee is using P2P;
  • Multiple payment methods, including fiat currency;
  • Escrow services;

eToro

eToro is a financial trading platform that also offerswireaccounts crypto trading services. It is regarded as a leading social trading platform with an array of tools that can help your crypto trading. You can trade up to 18 different cryptocurrencies on eToro and there is also the copy trading feature for beginners in the crypto space. Some of the perks of using eToro for your crypto trading include:

  • User-friendly website and app interface;
  • Low fees and commission;
  • Social trading;
  • High cyber security standards.
5/5

This ad promotes cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK., no EU consumer protection. Investments are subject to market risk, including the loss of principal.

Kraken

Kraken is a popular crypto trading platform known for its secure transactions. They are one of the largest by trade volume in the U.S. Apart from crypto trading, Kraken also offers futures trading, staking, and margin accounts. Kraken is available in over 176 countries around the world with over 72 different cryptocurrencies for you to trade on the platform. Some of the perks you enjoy on Kraken include:

  • High security measures;
  • Reasonable deposit and withdrawal fees;
  • Variety of cryptocurrency to trade;
  • 24/7 customer service options

BlockFi vs Coinbase: Our Conclusion

With similar features and services, there are definitely distinguishing features that make these platforms desirable by crypto enthusiasts. Both exchanges are quite popular among crypto investors. Each platform is user-friendly and suitable for beginners in the crypto space. Both platforms launched their crypto credit and debit card services. In terms of variety, Coinbase offers more cryptocurrencies than BlockFi. It also has various payment methods and a Pro app that caters to advanced crypto traders. While BlockFi offers lower fees and commissions, Coinbase offers more cryptocurrency options you can trade. Both are reliable platforms to trade and invest in your cryptocurrency. All you need to do is research their features and choose the one that best suits your needs.

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar Guides

Latest Guides

Cryptocurrency,Decentralised,DeFi

10 Best DeFi Projects To Invest In 2021

In this article, we look at what is DeFi, why you should invest in DeFi and which are the best DeFi projects to invest in! Introduction to DeFi We’ve always had third-party control in every facet of life, from health to governance, finance, and relationships, amongst others. Though it was largely successful, it was clouded […]

18 October, 2021
Cryptocurrency

How Does Crypto Lending Work? Full Updated Guide

Since its inception, the crypto market has been growing in leaps and bounds. With hundreds of features, thousands of tokens, millions of investors, and billions of dollars, it is clear that the problems of decentralization, anonymity and cross-border payment it solves are seen as valuable. These questions have quickly arised: what is crypto lending, and […]

13 October, 2021
Cryptocurrency,DogeCoin

How Many Dogecoins Are There?

Dogecoin is a digital currency that started as a form of satire of the cryptocurrency market. It was created by Billy Markus, an IBM software engineer, and Jackson Palmer, an Adobe software engineer. The aim was to create a digital currency with peer-to-peer features that could reach a wider demographic than Bitcoin, which is the […]

8 October, 2021
Coinbase,Crypto Wallets,Cryptocurrency,Exchange Platforms

BlockFi vs Coinbase: What’s the Final Verdict?

The advent of cryptocurrency has brought about quite a number of financial and technological innovations that are shaping the financial investment sector. One of those innovations is cryptocurrency exchange platforms. Crypto exchange platforms combine both financial and technological features to enable you to trade and invest in any digital currency of your choice. These crypto […]

30 September, 2021
Cryptocurrency

Best Crypto Credit Cards List

What Are Crypto Credit Cards? Cryptocurrency has taken the world by storm and it has revolutionalized the financial sector and further laid an argument for cryptocurrency as the future global currency. There are now several things you can do with cryptocurrencies. You can trade, invest and exchange for goods and services. Another innovation that cryptocurrency […]

24 September, 2021
Altcoins,Litecoin

All you need to know about Litecoin ATMs

Litecoin has the reputation for being the second cryptocurrency that was created after Bitcoin, so it makes sense that Litecoin ATMs are on the rise. It can be used as a medium for payment anywhere around the world without any interference from a third party. Litecoin has $11 billion and a maximum supply of 84 […]

1 September, 2021
eToro

Comprehensive Guide For eToro UK Users

eToro is a fintech start-up and is considered among the first pioneers of social trading. It was founded in 2007 in Tel Aviv, Israel. It is headquartered in Greater London, United Kingdom, with offices in Limassol, Cyprus, Sydney, and New Jersey in the US. The fact that it’s headquartered in London makes it appealing to […]

26 August, 2021
Crypto Mining,Cryptocurrency

Make your Own Cryptocurrency

Cryptocurrency is a decentralized digital currency that is not issued by a central financial authority. Cryptocurrencies are also used as a form of exchange for products, services, and also fiat currencies. The majority of these cryptocurrencies are created by tech and financial companies to serve specific purposes. For example, the Ethereum technology is used for […]

19 August, 2021