BlockFi vs. Coinbase: Detailed Comparison on Features, Interest Rates, and Rewards [2021]

BlockFi vs. Coinbase, which is best for crypto trading, is the talk of the town nowadays. Although both platforms work on different business models, they almost offer the same services. So, which one to choose is a tricky question for beginners.

BlockFi Vs. Coinbase: Overview

If you are willing to enter the trading industry, you need to use some platforms like Coinbase or BlockFi. These apps will tell you the currency rate with other stats like moving average, simple moving average, exponential moving average, and others.

BlockFi

BlockFi, founded in 2017, is one of the popular trading platforms around the globe that comes with a mobile app. It also offers the facility of taking a loan to buy your desirable crypto at the time of need with a minimum interest rate.

You can earn interest up to 8.6% APY. Moreover, you can buy and sell your cryptos without worrying about the trading fee. Yes, it is a fee-free platform. Although there are only a few currencies in it, it is a popular platform for trading.

Coinbase

If we could say that Coinbase is one of the most popular trading platforms in the U.S., it won’t be wrong. It allows the users to buy and sell their cryptos within a single click. Apart from this, you can also exchange your cryptocurrencies, and it also supports staking services.

Comparison of BlockFi Vs. Coinbase

In this section, we will cover the difference between BlockFi and Coinbase. We’ll thoroughly discuss the most asked questions like fee structure, wallet, currencies, transaction support, mobile app, and the maximum trading amount. Let’s start.

Fees

You can see a clear difference between the Coinbase vs. BlockFi fees chart. If you choose Coinbase, you need to pay 0.50% charges on the total amount plus additional charges over the location and payment methods.

For example, if you purchase a bitcoin worth $199 with the help of deposited funds, then you need to pay $2.99 flat charges. On the other hand, there will be a 3.99% variable fee if you pay from your debit card. So, choose a payment method wisely when going with a large amount.

Here is the fee chart of Coinbase convenience.

  • $0.99 if the amount is less than or equal to 10$.
  • $1.49 if the amount is between $25 to $50.
  • $2.99 if the amount is between $51 to $200.

It also charges a maker-taker fee. The maker fee will be from 0% to 0.50%, and the taker fee will be from 0.04% to 0.50%. It won’t be more than 0.50%.

In contrast to Coinbase, BlockFi is like a fee-free platform. You won’t find a convenience fee against the trading costs. On the other hand, sending money via wire transfer or ACH is also free of cost.

But there is a +/- 1% variation in the prices of the relative index of asset’s spot. This means that the investors need to pay 1% more than the actual amount. Don’t worry; you will find the fee of BlockFi less than the Coinbase in most cases. As for the pro account of Coinbase, its fee is more.

Coinbase and BlockFi also charge on withdrawals. Coinbase takes 1.49% tax to send money to a Coinbase USD Wallet or bank account. BlockFi again wins the case in case of withdrawal.

You can withdraw one of your Stablecoin for free. Apart from this, it also gives you the facility of withdrawing one free crypto each month.

Currencies

You will always find Coinbase as a winner when it comes to currency variations. Yes, you heard that right. There are almost 66 cryptocurrencies. Out of those 66, 63 are the investor’s favorite in the U.S. Such currencies include BCH, Doge, BAND, BTC, and many more.

On the other hand, BlockFi currently supports only eight cryptocurrencies: USDC, GUSD, BTC, ETH, PAXG, USDT, LTC, and PAX. PAX, GUSD, and PAXG are only available at BlockFi.

When it comes to fiat currencies, Coinbase takes superiority over the BlockFi. Coinbase offers almost 20 fiat currencies like GBP, USD, EUR, and other famous ones. However, you can purchase coins infractions on both platforms.

Security

Both platforms are very secure as they follow all the U.S. exchange laws and standards to give scam-free services to the users. They also follow international industry guidelines, account verification, and know your client (KYC) methods.

On top of these, there are also bounty programs for finding bugs and security weaknesses. The primary custodian of BlockFi is Gemini, which oversees the cases of funds. Being a partner also keeps 95% of total funds in the cold storage. They manage hot wallets through Aron.

In contrast to BlockFi, Coinbase keeps 98% of its total funds in cold storage (offline). They also offer an insurance policy against fraud or theft in hot storage. FDIC (Federal Deposit Insurance Corporation) ensures and protects the cash balances of Coinbase.

The hot wallet facility is available on both platforms. You can use the device confirmation option, 2-factor authentication, and a unique password for securing your account to the fullest. For further account protection, the registered users can also choose to allow the listing option.

The investors won’t have 1% control over the private keys on both platforms when it comes to the private keys. Coinbase officially manages all your keys, whereas Blocki uses the services of Gemini as their official custodian.

Wallet

BlockFi offers Hot wallets for its users. Their wallet is one of the most secure wallets in the trading world, backed with Aron technology. So, if you want to enter the crypto trading world, then starting with BlockFi would be a good option.

On the other hand, Cloudbase has two types of wallets. The first one is Hot Wallets, and the Second is Cold Multi-Signature Wallets. They use the FDIC-insured system for extra protection. So, there is no need to worry about their wallet’s security system.

Transactions Supported

BlockFi supports the buy and sell services of the cryptocurrencies that they have in their system. Although there is no insurance on the deposited amount, it is one of the most trusted platforms in the U.S. You can’t convert your one crypt to another in the BlockFi.

Coinbase is superior to BlockFi because it also offers conversions of cryptocurrencies. Yes, you can buy, sell and convert your one crypto to another in the Coinbase wallets. Therefore, most people use Coinbase in the U.S. Region.

Max. Trading Amount

If you are a verified customer in the Coinbase database, you can make up to $25000 transactions per day. Yes, you heard that right. Due to such a large amount of trading, it is a popular trading platform around the globe.

When it comes to BlockFi, you can make even $1.2 worth of transactions per day. But as it allows only the buy and sells of cryptos, it is less popular than that of Coinbase. So, choose according to your needs.

Mobile App

Both platforms have the support of android and iOS apps for their users. Yes, they take care of their users by providing them user-friendly apps. You can also use apps to trade cryptos from any part of the world.

As both companies are facilitating the beginners’ traders, therefore, there is no advance information. You can’t find profit or loss charts, EMA, SMA, and other things. The apps of these platforms have a user-friendly U.I. that allows sellers to buy and sell their cryptos quickly.

On top of this, there is another good news for BlockFi users. They can also apply for loans from the app. If you don’t have money in your account and want to buy crypto, apply for a loan and return later.

Pros and Cons of BlockFi

BlockFi is one of the prominent cryptocurrency trading platforms that gives loans to its users. Here are some of its pros and cons.

Pros

  • It is a Fee-Free Trading Platform
  • There is a high rate of interest on all crypto holdings.
  • You can even take a loan for buying cryptos

Cons

  • There is a vague statement on crypto lending.
  • You can’t get insurance on your account deposits.
  • It offers a limited number of currencies.

Pros and Cons of Coinbase

Coinbase, unlike BlockFi, offers a wide range of currencies. Some of its pros and cons are mentioned below.

Pros

  • You can ensure your deposits against a colossal loss.
  • It has support for more than 30 different currencies.
  • There are almost 66 supported cryptocurrencies in it.
  • You can also set automatic staking from your account.

Cons

  • There is a much higher trading fee for Coinbase.
  • No customer support facility on call
  • High-interest rates on crypto-loans.

Frequently Asked Questions (FAQs)

Is BlockFi like Coinbase?

Yes, BlockFi is just like Coinbase. You can buy and sell cryptocurrencies from it with ease. But you can’t exchange cryptos in it.

Can I trust BlockFi?

Yes, you can trust BlockFi as it is one of the most popular trading apps in the U.S. It offers the buy and sells of cryptocurrencies.

Is my money safe in BlockFi?

Yes, BlockFi uses the Gemini Services with Aron technology. You can consider it 100% safe and secure for your usage.

Can you lose money on BlockFi?

In terms of account hacking, you can’t lose your money as it uses Aron Technology. When it comes to trading, you can lose money according to your investment in different coins.

Can I buy crypto on BlockFi?

Yes, you can buy and sell crypto on your BlockFi account. But you can’t exchange cryptos. If you want to buy, sell and exchange, then Coinbase is best.

Final Comments: BlockFi vs. Coinbase

BlockFi vs. Coinbase, which one is perfect, is an endless debate. We have presented you with all their pros and cons along with their detailed features. Now, it’s up to you which one you want to select. According to us, both platforms are at their peak in the U.S.

So, are you using any of these platforms? Let us know in the comments section which one you are using and why.