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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.
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.
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.
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.
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.
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 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:
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:
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:
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.