Cryptocurrency has expanded lot over the years and since then lots of exchange platform has surfaced. Coinbase is definitely one of the biggest exchanges in the world and Blockfi coming on in 2019 with its revolutionary crypto lending platform.
In this post, I am going to do a little review of the both platforms and also show how they both compare. Blockfi offers users the ability to swap between supported assets in addition to earning interest on their holdings. While Coinbase may have a significant advantage on the selection front, it is a closer comparison than you might think if your goal is to hold crypto for the long haul.
Coinbase Overview
Coinbase is undoubtedly one of the biggest crypto exchanges platform in the world, and has a great reputation for industry-leading security. It is considered the best way to buy Bitcoins for Americans.
Coinbase has been operational since 2012 and is said to be one of the oldest crypto exchange platform out there. It is also one of the earliest adopters and providers of various cryptocurrency-related products. They have partnered over the years with reputable companies like Dell, Time Inc and Overstock. A Coinbase listing has become synonymous with an asset seeing a new pump.
To know more about the platform, check this post on our in-depth review of coinbase.
Pros and Cons
Pros
- New users can earn free crypto through coinbase.com/learn
- User friendly design with simple buy/sell buttons and clearly indicated prices
- Large selection of crypto assets and tokens
- Have their own stable coin (USDC)
Cons
- Fees are right in the middle of industry standards
- No ability to earn interest on holdings
- Significant identity verification required
Blockfi Overview
Blockfi is best known for its crypto lending platform. In 2019, Blockfi hit the market and was founded by Zac Prince. Since its beginning, it has been able to raise more than $60 million in funding before it launched.
Blockfi could be said to be one the first platform to allow users earn interest on their crypto. Just like a regular bak, Blockfi lets users take loan or earn interest on their crypto holdings. The platform also offers an exclusive Visa card that offers cashback in Bitcoin, the ability to purchase cryptocurrency directly, and no fee swaps between any of the supported cryptocurrencies.
For more information about Blockfi, check out our in-depth review of the product.
Pros and Cons
Pros
- Integrated exchange with zero fees for swaps of supported assets
- Lenders earn compound interest on deposits
- You can choose the cryptocurrency in which they earn their interest
- Blockfi Visa Card that offers Bitcoin rewards
Cons
- Each withdrawal is charged a flat fee, with the exception of one free withdrawal per month.
- Limited number of cryptocurrency assets available
Blockfi vs Coinbase at a Glance
1. Beginner Friendliness
Even though both platforms are beginner friendly, and they both have apps for users to easily sign up from their phone, Blockfi does not allow users to purchase crypto with their credit card, meanwhile coinbase offers that option making it more user and beginner friendly than Blockfi.
They both have an easy to navigate platform, that means which ever choice you make between them both really depends on your intentions.
2. Trust & Security
Both Coinbase and Blockfi offers good security and neither of them have been successfully hacked, though in 2020, there was a sim card swap incident with Blockfi, but with no funds lost. The both platforms offers 2FA (two-factor authentication), IP logging and hold the majority of users funds in cold storage with Coinbase holding 98% and Blockfi holding 95%.
Coinbase cash deposit are FDIC insured up to $250,000. For Blockfi, the remaining 5% is held in hot wallets insured by Aron, though they offer no FDIC insurance. Blockfi wallets are provided by Gemini Exchange, one of the top American exchanges that is known for its regulatory compliance.
They both have very good security system but since Coinbase has not been hacked since over a decade they have a slight edge.
3. Fees
Comparing fees between Coinbase and Blockfi has to be divided into various areas. For trading fees, Blockfi actually comes out on top as they do not charge any fees for swap, and even with the possibility of up to a 1% spread, that is still less than the maker fees on Coinbase.
When it comes to deposit fees, there are none for both platforms.
For withdrawals, Coinbase only charges the blockchain network fee and nothing additional, while Blockfi gives you one free withdrawal for stablecoins and one free withdrawal for a crypto per calendar month. Otherwise, you may be paying a significant fee for withdrawing various assets on Blockfi, as the fee for Bitcoin is over $30 USD for any withdrawal amount, or $60 USD for Ethereum.
4. Sign-up Process
The sign up process for Coinbase and Blockfi and easy and straight forward, you will have to provide your full details which includes name, address, personal identification (driver’s license, passport) and a photo.
5. Supported Cryptocurrency
Coinbase beats Blockfi hands down in this area. While Blockfi offers just 13 total cryptocurrencies, Coinbase offers over 100 coins and tokens for users to buy and sell. If you are looking for a platform with the most listed coins, then Coinbase is the best selection for you, however Blockfi does offer many of the top Ethereum-based assets such as Uniswap (UNI) and Chainlink (LINK) in addition to Bitcoin and all of the most popular stablecoins.
Conclusions
Trade with Coinbase, Hodl with Blockfi
When you really want to decide on the both and which to choose, your intent is really what matters.
If you are interested in trading cryptocurrency, and also be able to spend your holdings, then Coinbase should be the right choice for you.
If you are interested in earning interest on your crypto holdings for Bitcoin or Ethereum and having a crypto credit card that gets you Bitcoin cashback rewards, then Blockfi might be something to look into.
Both platforms are very secure and user friendly, you cannot go wrong using them.
I hope this review was good enough for you to make a choice.
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