Crypto WealthBay

Coinbase vs. BlockFi: Which Crypto Exchange is Right for you in 2022

BlockFi and Coinbase are two big Crypto Exchange platforms

Coinbase and Both BlockFi are crypto exchanges with robust security features. These platforms allow you to trade your crypto with peace of mind. However, when you have to choose one of these two options, you need to make an informed decision. For example, Coinbase is an excellent option if you want a diversified crypto environment. This exchange supports an array of crypto assets.

However, if you want to earn Bitcoin as a reward, BlockFi is the option to choose. BlockFi is known as the first crypto exchange that offers interest to its users on held cryptos. In addition, BlockFi also allows its users to take a loan or lend their cryptos to earn handsome interest.

For a more extensive comparison between Coinbase and BlockFi, continue reading.

Coinbase Trading Platform

Coinbase Cryptocurrency Exchange

Coinbase is among the biggest and most trusted cryptocurrency exchanges around the globe. It holds a reputation for offering leading security to the stored cryptos. Buying or selling cryptos with Coinbase is a hassle-free procedure. Since U.S. authorities regulate Coinbase, it is the best option for U.S. citizens.

Besides, Coinbase is among the oldest cryptocurrency exchanges that are still operating. It offers the best possible security to the crypto funds held by the customers. Some prominent safety features include Two-factor authentication (2FA) and Address Whitelisting. 98% of the crypto assets are stored in cold storage for extensive security. The remainder amount is insured.

Coinbase allows you to trade a wide range of cryptocurrencies through its platform. This is a great feature for both experienced and novice traders. With over 103M+ verified users and availability in 100+ countries, Coinbase is a trusted name in the industry.

Notable Features

  • Owns a stablecoin (USDC)
  • Large selection of cryptocurrencies

Key Features

  • Minimum account set up threshold
  • Supports USD, EUR, and GBP
  • Beginner-friendly

Pros

  • Ability to earn crypto
  • Supports over 181 cryptocurrencies
  • Protected by insurance

Cons

  • Complex fee structure
  • Doesn't offer interest-bearing crypto accounts

BlockFi Trading Platform

BlockFi, which was launched in 2019, is a leading and famous lending platform. It collected over $60 million worth of funds before its launch. This clearly suggests that BlockFi doesn't have to deal with credibility issues.

With BlockFi, you can earn a good amount of interest on your held cryptos. This exchange also offers its Visa card, which allows you to earn cashback in Bitcoin. You can directly purchase or swap supported cryptos via BlockFi.

For security reasons, BlockFi doesn't hold the cryptos with itself. On the contrary, this platform uses the services of the custodians for the best possible protection of held cryptos. Gemini is the primary custodian of BlockFi's cryptos.

Notable Features

  • Secure storage
  • Easy to manage portfolio

Key Features

  • No trading fees for trading cryptos or stablecoins
  • Highly responsive customer service
  • Earn interest with no minimum balance requirement

Pros

  • No minimum threshold for account set up
  • Ability to earn cryptos through rewards
  • Use crypto assets as collateral and take loans

Cons

  • Limited supported cryptocurrencies
  • Takes longer to withdraw

Coinbase vs. BlockFi

Here, we will draw a comparison between the key factors of BlockFi and Coinbase, which can affect your decision.

1. Coinbase vs. BlockFi: Fees

Although BlockFi doesn't charge transaction fees, it isn't free to use. In fact, this platform charges a margin of almost 1% when you set a trade price. If the liquidity of a cryptocurrency is low, buying or selling such an asset can cost more.

Furthermore, BlockFi also charges withdrawal fees. This is one of the most prominent drawbacks of this crypto exchange. On the contrary, Coinbase charges specific fees on every trade involving buying or selling of cryptocurrency. The fee structure for a simple trading option is different from an advance trading option.

2. Coinbase vs. BlockFi: User Experience

Coinbase is a great choice for beginners. The reason for this preference is Coinbase's massive knowledge base including tutorials and tips. Especially, the web-based version and mobile app are highly rated for their user-friendly layout and interface. For most users, the trading platform offered by Coinbase is easy-to-use and intuitive.  

BlockFi also comes with a platform that is beginner-friendly and easy to use. First-time users find it easy to navigate through various features and areas of the platform. Apart from user experience, BlockFi offers industry-leading customer support. You can contact the support team via live chat, phone, or email. But Coinbase disappoints its customer with its slow and least responsive phone service.

3. Coinbase vs. BlockFi: Mobile Apps

The Coinbase app greets its users with a clean and simple dashboard. Investors can take the advantage of automatic price alerts while using this app. In addition, it also gives an insight into the portfolio value. BlockFi app is also easy to use but more features are available to advanced users. Both Coinbase and BlockFi apps are compatible with Android and iOS devices.  

You can use these trading apps to access your account and easily trade crypto. As a BlockFi user, you can apply for a loan or access your BIA account while using the app. However, you won't find advanced charting options via trading apps of these platforms. Instead, these apps offer a straightforward way to buy or sell cryptos while on the go.

4. Coinbase vs. BlockFi: Technical Charting

Since beginners mostly use the Coinbase platform, it offers less advanced trading charts. It offers basic knowledge about the market. Similarly, BlockFi comes with easy-to-read technical charting. You can easily analyze the upward or downward trend of a cryptocurrency.

Final Verdict

To conclude, Coinbase is a better option for most crypto investors. The first reason is the ability to trade a vast array of cryptocurrencies. BlockFi isn't even close with just 8 cryptocurrencies available for trade. In addition, Coinbase also offers an intuitive interface and educational content. If you are living outside the U.S., BlockFi can be a preferred choice for earning interest on your held cryptos.

Risk Disclosure: Any investments come with an inherent risk, where you could end up making less money than what you put in. Before investing your hard-earned cash, be sure to speak with licensed professional financial advisor first. Always remember that past performance is not an indication of future returns.

Disclaimer:  This website's owners may be compensated for suggesting certain businesses, goods, and services. While we do everything possible to verify that all of our content is accurate, the information we provide may not be impartial or unbiased, and it does not constitute financial advice.

Related News

Sorry, we couldn't find any posts. Please try a different search.