The cost of investment, the number of cryptocurrencies supported, and the items supplied vary widely between the companies. However, both emphasize safety and are acceptable for novices.
We like that BlockFi is less expensive than Coinbase, but investors can only trade in eight currencies instead of the 141 supported by Coinbase. New investors looking to diversify their portfolios should go with Coinbase over BlockFi, according to CoinDesk.
To compare the two exchanges, we looked at the total investment cost, the currencies they support, and the level of security. The distinctive features, products, and more of the exchanges were also considered to help you choose the best one for your needs.
Features of Coinbase vs. BlockFi
BlockFi is a different kind of exchange service than Coinbase. Coinbase allows investors to buy cryptocurrency through ACH, wire transfer, or PayPal. Alternate currencies are traded for fiat money in these transactions.
Payments are sent by bank transfer or ACH by BlockFi users. As soon as an investor deposits fiat money into the BlockFi Interest Account (BIA), the currency is converted to GUSD and earns an annual yield (APY) of 9.5%.
BlockFi's interest-bearing accounts are a primary factor in investors' decisions to use the company. Business and consumer loans are two more BlockFi options. An individual's ability to obtain credit is determined by the quantity of security posted and the loan-to-value (LTV) ratio.
All loans are subject to 2% origination fees, and rates of interest range from 4.5% to 9.75%. 4 There will be no annual fees for BlockFi's BlockFi Rewards Visa Signature Credit Card, which offers 1.5% back in Bitcoin on all purchases.
Coinbase, on the other hand, focuses on teaching investors and allowing them to earn cryptocurrency by watching a video and taking short courses about different currencies. Like BlockFi, Coinbase is introducing a Visa Debit Card for the platform. "Can spend bitcoin anyplace Visa debit cards are accepted," says Coinbase. There is no annual fee, and customers earn up to 4% rewards on every purchase.
Coinbase vs. BlockFi: Currencies
Coinbase has a far wider range of products than the competition. Customers can purchase most of the 150 cryptocurrencies supported by Coinbase in the United States. Doge, Band, and Bitcoin Cash are just some of the prominent coins included in the collection.
As a result, BlockFi only accepts ETH, BTC and LTC; USDC; PAXG, USDT; PAX and GUSD. You can only buy on Coinbase PAXG, PAX, and GUSD. Fiat currencies aren't supported by BlockFi either. Rather, it converts your funds into the GUSD stable coin. With Coinbase, you can deposit in any major fiat currency, such as the US dollar, euro, and pound. Users can, however, buy coins in smaller amounts on both platforms.
Coinbase vs. BlockFi: Security
Strong regulations exist for these US-based exchanges, and they meet or surpass industry norms. Both companies use KYC (Know Your Customer) and account verification processes.
To uncover security flaws, they use bug bounty programs. Gemini is BlockFi's principal custodian, which means that Gemini is in charge of and monitors the funds. As part of their cooperation with Aron, Gemini stores most of its crypto investments in cold storage and insures its hot wallets through Aron.
Coinbase, on the other hand, maintains an insurance policy to guard against the theft or fraud of 98% of account money in cold storage. Coinbase's cash balances are protected by the Federal Deposit Insurance Corporation (FDIC).
Hot wallets are available on both crypto platforms. Coinbase and BlockFi use two-factor authentication (2FA), including password and device verification. Allow listing, also
known as allowing listing, is a way for users to safeguard their money further. However, investors on either platform do not have access to their private keys. Unlike Coinbase, Gemini, the custodian of BlockFi's private keys, manages your keys.
Coinbase vs. BlockFi: Access
Investors in 49 of the 50 states can use Coinbase, excluding Hawaii. Canada, the United Kingdom, Singapore, and 39 European countries have access to it. Certain coins may be off-limits to New Yorkers.
To date, BlockFi has been available in every state of the United States and international sites that the United States has not sanctioned. However, only 45 states allow traders to transact in major cryptocurrencies.
For New Yorkers, the BlockFi Interest Account and USDT stablecoin trading pair aren't available, while the USDT stablecoin trading pair is only available to non-US citizens. Additionally, the availability of BlockFi solutions differs from state to state.
When ACH or wire transfers aren't an option, BlockFi offers to send USD to Gemini or Coinbase and then fund your BlockFi accounts with GUSD (Gemini's stable coin) or USDC (Coinbase's stable coin) to avoid the fees associated with those methods.
BlockFi vs. Coinbase: Ease of Use Compared
Coinbase has a reputation for being a good option for new customers. This is partly because it has a substantial knowledge base, including a wealth of tutorials and advice. Mobile apps are praised for their ease of use. Most users will find the site straightforward to use and intuitive.
In addition to being user-friendly, BlockFi is also a good choice for those just getting started with cryptocurrency. Both the phone applications and the website are user-friendly for first-time investors. When it comes to crypto education, BlockFi provides information on how to buy a car, pay cryptocurrency taxes, and comprehend loan terms.
BlockFi, on the other hand, provides excellent customer service. Customers can contact the company via live chat, email, or phone, and most emails are responded to within 24 hours. When it comes to phone support, Coinbase has a reputation for being slow and unreliable.
