BlockFi vs. Coinbase: Which is the best cryptocurrency platform?
BlockFi and Coinbase are two very popular cryptocurrency platforms. They share some similarities but focus on different services. So, in this article, we’re going to compare BlockFi and Coinbase.
Coinbase and BlockFi are both US-based companies, with Coinbase being the first and the only crypto exchange to have gone public in the United States. With both companies being prominent players in the cryptoverse, it is vital for those who are new to the space to understand how the two are different, and for what purpose you should choose one over the other.
Coinbase focuses almost exclusively on exchange and brokerage services, being one of the more seasoned players in this field. Trading assets back and forth is easiest to do on Coinbase with 0.5% fees. For more advanced traders, Coinbase offers Coinbase pro – an advanced,
feature-packed trading platform. As for ease of use and availability, Coinbase accepts a wide range of payment methods for residents of over a hundred countries and offers clearly defined fees, which are about 4% for credit card purchases, and less for other methods of payment.
For comparison, BlockFi does provide exchange services, but has generally higher fees and offers fewer trading features. The only currency accepted for Fiat deposits is the US dollar, using either a wire or ACH transfer, and deposits are instantly converted to stablecoins. You can then use these stablecoins to buy crypto with variable and somewhat hidden fees. If you are not in the US, you will most likely have to deposit crypto assets that you’ve purchased elsewhere. But, Blockfi’s aim is less about being an exchange, and more about being a “crypto bank.” Their focus is on offering crypto interest-bearing accounts and loans against crypto holdings, while basic trading services take a bit of a back seat.
With BlockFi, you will automatically earn interest on any supported crypto that you hold in your account, including Bitcoin. You can also borrow fiat currency against your crypto balance, providing easy access to funds without having to sell your holdings. Coinbase does not offer nearly the range of such services. It only offers crypto-backed loans for select US customers and only accepts BTC as collateral. While Coinbase has announced plans to roll out more crypto-banking services, for now, it is BlockFi that has the clear advantage.
To sum up, if you are making your first steps with crypto or looking to make trades with the crypto assets you already own, Coinbase is probably more suited to your needs. However, if you are looking to hold crypto long-term and earn some interest on it at the same time, BlockFi may be the platform for you.