You have a lot riding on this decision, so don’t rush it. Let’s compare BlockFi and Coinbase and find which one of the crypto exchanges best meets your demands.
The cryptocurrency sector has grown significantly in the last few years, with BlockFi’s breakthrough crypto lending platform making its debut in late 2019. Coinbase, which started as a simple way for people to acquire Bitcoin seven years ago and has since evolved into one of the largest cryptocurrency exchanges in the world, is now one of the most popular.
A loan platform and a cryptocurrency exchange are indistinguishable. Not only does BlockFi allow users to earn interest on their assets, but it also allows them to trade between the supported ones. Coinbase has a substantial selection edge, but if you plan to retain crypto for the long term, the two services are more comparable than you might expect.
It was founded in 2017 as a platform for trading, selling, and exchanging cryptocurrencies. The site was founded by Flori Marquez and Zac Prince in New Jersey and has since gained a lot of traction. It serves as both a wallet and a savings account, allowing users to invest in a wide variety of cryptocurrencies. BlockFi is a cryptocurrency interest account that lets you earn interest on your crypto holdings instead of merely trading them.
Coinbase was founded in 2012, two years prior to BlockFi’s inception. They were Fred Ehrsam and Brian Armstrong, who had no official headquarters and founded the group. Coinbase is a cryptocurrency exchange that caters mostly to traders and investors who are looking to make a profit. Coinbase has a variety of account kinds for users to choose from, including basic accounts and Coinbase Pro. As a result, it is suitable for both novice and experienced traders.
Although both Coinbase and BlockFi provide exchange services, each has a slightly different approach to the matter. The Automated Clearing House Network (ACH), debit or credit card, wire transfer, or PayPal can be used to buy and manage cryptos on Coinbase. Investors are drawn to Coinbase because of its 8.6% APY.
When it comes to attracting investors, the BlockFi Interest Account is a standout feature. There, customers can keep their cryptos, which can be utilized to secure crypto-backed loans from the platform. The owner of cryptos can earn interest as high as 9.75%. To earn interest on your purchases using cryptocurrency, the BlockFi Rewards Visa Credit Card is available. Coinbase is mulling the possibility, but no decision has been made.
Coinbase Earn options are also available to users. It’s a tool for learning about cryptocurrencies and how to make smart trades with them. Moreover, it distinguishes Coinbase from BlockFi, which is lacking in educational resources.
Coinbase comes out on top when it comes to the widest variety of currencies. Considering that Coinbase is often seen as a location to trade or keep assets, and BlockFi is generally seen as a platform to borrow, lend or deposit assets for return, this is to be expected in some ways
Coinbase has 32 cryptocurrencies to choose from, whereas BlockFi has six and a few stablecoins to choose from. Any coin can be purchased in little quantities, so you don’t have to buy the whole thing.
| Coinbase | BlockFi |
| 90 coins | 12 coins |
To verify that you are who you claim to be, both platforms employ a variety of approaches. Both platforms advocate two-factor authentication, which may be set up by users. Non-authorized users will have a far more difficult time accessing your account now.
Gemini serves as BlockFi’s custodian, which means that the data is stored in Gemini’s cold storage, where it will remain inaccessible to the internet. Unauthorized individuals will be unable to access the platform as a result, and even if they can, they will be stopped by the cold storage system.
98% of funds at Coinbase are stored in cold storage, while the remaining 2% are retained in hot storage. Although no cash has been reported missing from either site as of yet, a refund mechanism has been established just in case.
Since its founding in 2009, Coinbase has maintained a reputation as the most secure and longest-running exchange in the industry. According to the business, 98% of cryptocurrency funds are housed in cold storage, while only 2% are kept online. The Federal Deposit Insurance Corporation (FDIC) insures cash deposits up to a maximum of $250,000. Coinbase provides private insurance for all other assets maintained online.
A large portion (95%) of BlockFi’s crypto assets are kept in cold wallets, as well. Aron has guaranteed the remaining 5% in hot wallets. Although Coinbase is the market leader in this field, it is safe to presume that its assets are similarly safe. Deposits in a BlockFi account are not covered by the Federal Deposit Insurance Corporation (FDIC) or any other type of insurance.
BlockFi doesn’t charge a fee for transactions, in the strictest sense of the word compared. When the trade price is set, a 1% margin is still charged. Withdrawals are also subject to a cost, though you are entitled to one free withdrawal each month. BlockFi imposes the following fees after you’ve used up your free withdrawals:
Coinbase, on the other hand, charges a fee for every transaction which is better compared to SmartFi crypto price to fee. In most circumstances, the amount of the order and the mode of payment are the determining factors. Fees might be affected by whether you are using the basic Coinbase platform or Coinbase Pro for transactions like Bitcoin loans and other crypto loans.
In general, a variable percentage is roughly 1.49%, but the exact proportion depends on how much money is being taken out. Transaction fees on Coinbase are summarized as follows:
Although Coinbase does not charge a withdrawal fee, it may impose a network fee for transactions. The cost will depend on the type of cryptocurrency you’re withdrawing, as well as the network’s traffic.
Note: One free withdrawal per month is offered by BlockFi, which only accepts one currency. In addition, there are no minimum balances to earn interest. There is a minimum withdrawal amount of 0.003 BTC and 0.056 ETH for each of your wallets. Withdrawing less than this amount could take up to 30 days.
There’s little doubt that the BlockFi rates make it a popular choice for those who frequently purchase and sell BTC, LTC, ETH, LINK, or PAXG.
Coinbase is geared toward newbies and is easy to use. It is as simple as possible to get started and place deals. You can buy cryptocurrencies by selecting the “buy/sell” option, selecting a cryptocurrency from the drop-down menu, and enter the amount you want to buy. This may be more user-friendly than other exchanges that display their order books, which might be difficult to understand for newcomers.
To access the web-based platform on a desktop or laptop, go to Coinbase.com and sign up for an account. Coinbase’s mobile app gives users access to their accounts on the go. Creating a BlockFi account is similarly a quick and simple process.
According to our BlockFi review, its customer service could be an asset in the future. Live chat, email, or phone support are all options for users who have difficulties. There is no phone assistance for Coinbase, and the service has been known to go down during periods of high volatility in the crypto market.
Coinbase’s mobile app is the clear winner over BlockFi’s, which both have apps.
The Coinbase app had 4.7 stars out of 5 based on 1.3 million ratings as of June 2021, when it was ranked as the #12 financial app in the Apple App Store.
Ease of use and a straightforward design are two things that customers appreciate. High fees, a lack of charts and graphs, and the possibility that transactions would be kept on hold for up to 24 hours as a fraud prevention mechanism are some of the items users have voiced their displeasure with.
The BlockFi app earned a rating of 3.1 stars in the Apple App Store as of June 2021, based on 107 reviews.
Despite the positive reviews, several users have expressed concerns about the app’s reliability, inability to verify identities, tendency to log users out, and lack of assistance.
| Coinloan | BlockFi |
| iOS and Android | iOS and Android |
Except for the following countries and inhabitants of the state of New York, anyone can connect to BlockFi.
A large portion of Europe and the United States, as well as 99 other countries across the world, have access to the Coinbase platform through various means.
| Coinbase | BlockFi |
| Hot wallets and cold multi-signature wallets | Not wallets |
Coinbase has a wider assortment of cryptocurrencies than BlockFi. In comparison to Coinbase, which offers a significantly larger selection of cryptocurrencies, BlockFi offers only about a dozen. While BlockFi offers reduced fees and more interest, it may be a better choice if you’re seeking a low-cost alternative.
Coinbase-like loans are also available through BlockFi, which is a similar service. The main distinction is in the prices. As low as 4.5% Annual Percentage Yield (APY) can be found at BlockFi. A rate of interest of up to 8% APY will be offered by Coinbase.
As compared to BlockFi, Coinbase has a little more resources. Coinbase not only offers over 90 different types of assets but also provides a wealth of educational materials. Coinbase acts as a teacher for its users while BlockFi acts as a trading platform for you
There is a lot of overlap between Coinbase and BlockFi’s services. Your decision will be based on your preferences for a crypto platform. More features and coins are available on Coinbase than on any of the other exchanges, making it a better option for long-term users. Despite its youth, BlockFi is a great option for those just getting started with cryptocurrencies. Which one you choose is up to you.
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It's possible to think of BlockFi as a type of cryptocurrency loan or banking service. There are two options for users: depositing Bitcoin and earning interest, or taking out a loan using crypto as collateral. It's possible to purchase, sell, and trade cryptocurrencies on Coinbase, a cryptocurrency exchange platform.
First, customers must sign up for an account with either BlockFi or Coinbase and then verify their identification. After that, users are free to do whatever they want with the platform. You may earn staking incentives for holding various proof-of-stake coins on Coinbase, as well as buying and selling alternative cryptocurrencies. Taking out a loan or even earning interest on deposits could be an option for BlockFi.
It's possible to use BlockFi and Coinbase together. Coinbase might be used for most of a user's trading while a portion of their cryptocurrency is held with BlockFi to generate interest. There are many ways in which consumers can benefit from both platforms, and this is just one example.
