Blockfi vs Coinbase: Best Place to Earn Interest in 2021?

Cryptocurrencies are the major hype in the world today. However, the practice of buying cryptocurrencies is a carefully crafted process that requires a great platform. Here you will get a closer look at Blockfi vs Coinbase.

Blockfi vs Coinbase

What is a cryptocurrency exchange?

A cryptocurrency exchange is a platform that allows you to trade between cryptocurrencies based on the current market value. In simple words, it enables you to buy and sell your assets online to enjoy a reasonable profit rate. 

The trades made via this platform also involve a transaction fee, similar to the stock market.

How does a cryptocurrency exchange work?

A cryptocurrency exchange works as an intermediate between a buyer and seller to help them trade efficiently. These platforms make money out of the transactions and commission fees. 

They help their customers trade one cryptocurrency for another, standard FIAT cash, or other digital currencies. 

Blockfi vs Coinbase

What is Blockfi?

Blockfi is one of the best cryptocurrency lending platforms. It helps you to put your cryptocurrencies to fair use and gain a reasonable amount. 

Blockfi
Blockfi

Blockfi has the best financial tools, so it is a vital platform for many. It allows loans up to $20K. Furthermore, it also helps you earn interest in your digital assets. This platform mainly acts as a crypto bank.

This exchange supports many important and popular cryptocurrencies, like Bitcoin, litecoin, Ethereum, and pax gold. In addition, Blockfi also supports US dollar-based coins like Paxos Standard (PAX), tether (USDT), Gemini dollar (GUSD), and US dollar stablecoin (USDS). 

Blockfi vs. Coinbase
Blockfi vs. Coinbase

What is Coinbase?

Coinbase is one of the most reliable and most significant cryptocurrency exchange platforms. It has a very high fan-following and is a highly secure and safe platform. In addition, it is their mission to increase economic freedom in the world. 

Furthermore, it provides an insured Coinbase Custodial Wallet for its investors and traders to store funds. Moreover, your backup recovery phrase is encrypted and you can only decrypt it with your password. Therefore, giving you full access to your funds.

The cryptocurrencies supported by Coinbase are Bitcoin, Bitcoin Cash, Stellar Lumens, Litecoins, Dogecoins, and all the ERC-20 tokens like USDC and DAI. 

coinbase
coinbase

Blockfi Products

The platform primarily offers three products:

BlockFi interest account

With a product like Blockfi Interest Account (BIA), the customers’ can earn up to 7% of the annual percentage yield. Moreover, On the first business day of each month, the BlockFi interest account pays compound interest on deposits. Remember that your APY depends on the particular cryptocurrency and the quantity of the asset in your account balance.

Trading account

Blockfi trading account follows a simple policy of fast trades, adequate returns, and a low cost. It helps you sell and exchange various cryptocurrencies at a great price and start earning immediate interest on every transaction. The multiple options available in trading makes this platform very popular. In addition, it offers various services for the market people, people in business, and investment funds. 

Crypto-backed loans

One of the striking features of blockfi is that you do not need to sell your crypto for cash. Instead, they allow you to borrow a side loan while enjoying the hold of cryptos. Moreover, the interest rate on these loans is 4.5% and has its perks of flexibility and penalty-free payment of the loan. 

Blockfi Products
Blockfi Products

Coinbase Products

Commerce

Coinbase Commerce is an enterprise digital payment service that allows all the merchants to accept money in all digital forms such as Bitcoin, Ethereum, etc. Moreover, the payments that are made are directly added to the merchant-controlled wallet. This helps in enhancing the workflow and makes the entire transaction procedure smooth.

Custody

Coinbase custody provides a safe and secure platform for storing digital assets, including cryptocurrencies, multiple signers, withdrawal rates, etc. This enables more investors and hedge funds to join as they are more secure. 

Earn

Coinbase earn is an educational and rewarding product as it allows potential customers to learn about other cryptocurrencies online. They gain access to these videos only after they make crypto. After you know about that particular currency, you’ll be asked to take a small test, and the completion of the same will result in rewarding you with one crypto coin. Furthermore, you can learn more about Coinbase staking from here.

Coinbase Earn Crypto
Coinbase Earn Crypto

Coinbase Pro

The Coinbase Pro platform does not ask for any fees while signing up, and neither are you expected to pay anything while holding your assets in your account for however long you desire. This product allows the customers to buy from one another. In addition, this is mainly used by the customers who have already traded typically and had enough experience. 

Coinbase Pro Interface
Coinbase Pro Interface

USD coin

Coinbase USD coin is a kind of cryptocurrency that is also known as a stablecoin. The value of a USD coin is the same as the USD money, meaning you can always exchange a 1 USD coin for a US $1. In addition, there are some great rewards that the customers receive on coinbase for every USD coin they own. Now, to store your USD coins, wallets are being introduced as well. 

Wallet

Coinbase wallet is a digital wallet and a DApp browser controlled and assessed by only the designated customer. This is the most secure kind of wallet ever to exist. It has advanced safety features, and the key or the platform to enter this wallet is not on an exchange like coinbase but is only available on your mobile phone. 

Coinbase Wallet
Coinbase Wallet

Ventures

Coinbase ventures is a great product that provides financial support to early-stage blockchain and cryptocurrency start-ups. This is a great encouragement for the people working on coinbase for their trading. Now they have a chance to start a meaningful and thoughtful business that coinbase can provide financial help for. 

Coinbase vs Binance: Fees

Blockfi Fees

There are low fees that are subjected when there is a change in the market condition. Other than that, there are no blockfi trading fees for transactions made on this exchange. 

The subjected fees are mentioned below:

Blockfi withdrawal fee
Blockfi withdrawal fee

Crypto-backed loan rates

The amount of collateral that you post against your loan decides the amount of USD you can borrow. It also depends on the loan-to-value ratio (LTV) that you secure. This means the amount of USD you want to borrow is divided by the collateral you post. 

The blockfi loan rates are provided below:

Blockfi Loan Rate
Blockfi Loan Rate

Coinbase Fees

Withdrawal Fees

Coinbase is an exchange platform that charges a specific fee when you buy, sell or convert cryptocurrencies. The Coinbase fees are summed up when you place an order and are dependent on multiple factors such as the volatility and liquidity of the market, chosen payment method, and quantity and quality of the order placed. 

In general below is the Coinbase withdrawal fees:

Coinbase Withdrawal fee
Coinbase Withdrawal fee

Coinbase Pro Fees

The maker and a taker fee of the Coinbase Pro differ between 0.04% to 0.5%. Look at the below image to get an idea of their rates:

Coinbase Fees
Coinbase Fees

Coinbase vs BlockFi: Card

Blockfi card

The Blockfi Credit Card works like a cashback card and earns 1.5% rewards on all purchases, which is then converted into Bitcoin monthly in your blockfi account. 

The main features of a blockfi card are:

  • There is no annual fee
  • There is no foreign transaction fee
  • You get to earn 2% in Bitcoin on every purchase of over $50,000 
  • You get to reach 3.5% rewards up to $100 in Bitcoin for the first 90 days. 
BlockFi Card
BlockFi Card

Coinbase Card

Coinbase card provides an easy and smooth way of spending and storing your cryptocurrency, but it is not the cheapest way to do so. The ease of spending your money that this card provides allows you to use it anywhere without needing a fiat currency in your account. 

Although, this is not very beneficial for people who do not require such a card regularly. Moreover, this card is only eligible to those who have cleared level 2 on the coinbase exchange and have a verified account.  

Coinbase Card Review
Coinbase Card

Blockfi vs Coinbase: Safety

Is Blockfi safe?

Blockfi is one of the most profitable cryptocurrency exchanges because this platform has excellent protocols and trading strategies that reduce the risk of intruders. This is said because blockfi has the following features:

  • Most of your funds are stored in cold wallets, meaning offline. 
  • It offers a two-faced authentication use.
  • It also states that if the company goes under any unfortunate means, it will take the responsibility of returning all your funds safely. 

Even though there are measures taken by blockfi to keep their exchange as safe as possible, there is no guarantee when it comes to digital currencies as their value keeps changing in the market. 

Is Coinbase safe?

Coinbase is very well known when it comes to safety. It is known to be one of the safest and most secure crypto exchanges. However, it states that only 2% of the customer’s funds are secured online. The rest all is stored in the offline method in cold wallets. 

This prevents any online breaches that could take place. It also states that if any issues are causes related to their customer’s funds, the insurance company will take responsibility and cover all of the losses faced. 

Blockfi vs Coinbase: Pros and Cons

Pros and Cons of Blockfi

Pros

  • Blockfi does not charge any commission fee for the transactions.
  • The trades you make are instant.
  • It is a very reputed exchange and is US-based.
  • There are no monthly fees or any deposits that you are subjected to pay.
  • This platform is available worldwide, which makes it accessible to a vast audience.
  • Enjoy great interest in your holdings of assets.
  • You can download the app for both iOS and Android devices.

Cons

  • The withdrawal time on Blockfi is very long. In addition, there is a fee imposed after every withdrawal.
  • There are no joint or custodial accounts available. 

Pros and cons of Coinbase

Pros

  • There are over 25 different types of cryptocurrencies available on Coinbase.
  • Coinbase provides a very user-friendly platform that is highly used effectively by a large audience. 
  • High liquidity and high security is the promise of coinbase.
  • It offers various products including, Coinbase wallet, Coinbase Earn, Custody, Ventures, and many more.
  • The app is available for both iOS and android devices.

Cons

  • High fees are imposed when you make any transactions on the platform unless you use coinbase pro. 
  • Even though coinbase states that the privacy of the customer’s account is guaranteed and the accessibility is just with them, it is accused of keeping a check on all the accounts sneakily. 
  • It does not have a strong customer support. 

Blockfi vs Coinbase: Conclusion

Both Blockfi and Coinbase are highly recognized and advanced platforms that perform cryptocurrency exchange and have great features to provide. Both are suitable for beginners and are equally user-friendly. In addition, both platforms offer credit cards, but there is one that overshadows the other.

The one that you should choose is Coinbase. It has 58 cryptocurrencies, allows various modes of payment, has an advanced level called Coinbase pro, has an educational product called coinbase earn, and has perfect security that prevents hackers or intruders from entering illegally. However, if you are interested in earning through interest, then you should prefer Blockfi.

Frequently Asked Questions (FAQ)

Which is better, Blockfi and Coinbase?

It depends on your requirements. If you are looking to trade then Coinbase offers more advanced features. In contrast, if you are interested in earning through interest, then Blockfi is more preferable.

Is Blockfi similar to Coinbase?

No, Blockfi also acts as a crypto banking platform, whereas Coinbase is more focused on the trading process of cryptocurrencies. 

Is a Coinbase wallet free of cost?

Yes, Coinbase does not subject you to pay any fee for getting a coinbase wallet.

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