This article compares Binance vs BlockFi, which are both cryptocurrency trading platforms, and their unique options.
At a Glance
When comparing Binance vs BlockFi, each platform has different features to offer the user. Binance gives traders many options that encourage new users, such as educational tools about trading and the ability to watch the market. In addition, it offers low fees to traders. Binance has more than 500 currencies. The maximum trading amount on the platform is based on each individual cryptocurrency. Not all transactions are available to U.S. residents.
BlockFi is a platform that is based in the U.S. It gives traders the ability to buy crypto, sell crypto, hold crypto, and earn interest. BlockFi also allows traders to use crypto as collateral for a loan. Their number of crypto offerings does not measure up to Binance, but they do have other nice features to offer.
While both platforms have a wide breadth of features to offer traders, BlockFi comes out the clear winner. First, BlockFi is available in the U.S. Even though Binance has a greater number of crypto offerings, BlockFi offers a savings account and lending.
How the Best Choice Was Determined
When we reviewed the Binance vs BlockFi platforms, it is essential to us that we use facts and actual data to determine which one is the best option and overall best choice. Therefore, we take the time to fully understand and compare many of the various platforms’ features. Therefore, we are sure to verify the complete accuracy of the information we have before we use it to compare the platforms. In addition, we have a deep understanding of all the differences between all of the various functionality options and features of Binance vs BlockFi.
One of the ways we achieve this goal is to gather feedback from traders of all types. We ensure that we know the updated pricing and all service features. We know there is a significant amount of value in the feedback from the users and that feedback is essential when making a decision. We feel it is critical to ensure that no false claims are used in our comparison. We dig deep into every feature to understand the options each platform provides.
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We have outlined here that Binance and BlockFi each have strengths, and it depends on what the trader wants from their platform to determine with is better.
Binance vs BlockFi
Binance Overview
Binance is ideal for the trader that has some knowledge and experience with investing and trading. The Binance platform focuses on the more advanced user with its robust features for placing market orders. They also allow users to stake crypto and access to other transaction types. Unfortunately, not all of the transaction types on Binance are available to residents of the U.S.
Binance is a worldwide crypto exchange that has a large volume of sales. It provides all traders access to over 500 currencies. Each cryptocurrency has a maximum daily trading amount limit for each individual crypto. In addition, Binance mobile app is available on Android and iOS.
Pros:
- Lower trading fees
- Advanced trading and tools
- Large transactions offer a peer-to-peer trading option
Cons:
- Not as transparent with their security measures
- Some traders have a longer process for account verification
BlockFi Overview
The feature that sets BlockFi apart is the account that accrues interest. Traders are able to use their accounts as a savings account. Traders can purchase crypto and hold them in their savings account, where they will earn interest.
BlockFi has some of the highest interest rates, which can be as high as 8.6% compound interest, that you can find in crypto platforms. In addition, traders can have trading accounts that are separate from their savings accounts. They can buy and sell crypto from these accounts. This platform also offers automated trades. BlockFi offers six cryptocurrencies and four stable coins. The cryptos include Ethereum, Bitcoin, Litecoin, Link, Paxos Gold, and Paxos Standard. The stable coins available on BlockFi include the U.S. dollar coin, Tether, Gemini dollar, and Binance US dollar.
Pros:
- The exchanges are commission free
- They offer automated trades
- BlockFi has a platform that is easy and simple to use
Cons:
- BlockFi is not available in all countries
- They do not have FDIC asset insurance
Comparison of Features
Fees
As a trader, you always want to know what fees are charged by the platform. If there is a fee structure, you want to understand it fully. Any fees that you pay are impactful to your bottom line. As a trader, the fees are taken directly from your cash flow. Therefore, it is not uncommon for traders to want the platform fees to be as low as possible.
While the Binance platform has low fees and low cost trading, it does not have the simplest fee structure. Their low fees have allowed Binance to grow and become more accessible to traders than other crypto platforms. It uses a fee structure that is refered to as the maker-taker structure. The result is that the fees on Binance are lower than most of the popular platforms.
Binance has what is called maker-taker fees. These fees can range anywhere between 0% to 0.10%. Traders are offered a fee discount of 25% if they pay their fees with Binance Coin (BNB). The more BNB that a trader holds means, the lower the fees are going to be. Binance offers a tiered fee structure and charges fees based on the account tier level. There are ten account tiers from VIP 0 to VIP 9. When a trader increases their monthly trading volume, their fees can decrease.
BlockFi is similar to other trading platforms and charges a nominal loan origination fee of 2%. There are also charge a specific withdrawal limits and fees on the interest account that may be of interest to you, especially when you plan to use this platform. However, BlockFi is a unique trading platform and exchange because it does not charge a trading fee. There may be a small spread fee on transactions; however, it is lower than the spread fee charged by other exchanges. In addition, BlockFi does not require a minimum account size to start trading.
BlockFi is the clear winner because of its simple fee structure.
Safety and Security
Security is another key and fundamental factor to consider when determining which crypto exchange platform to use. Both Binance vs BlockFi have robust security measures to protect their platform and their traders.
Binance has not had the best history of stringent security regulations. This company does not have one set location that they determine is home. This gives them the freedom to get around some of the regulations. Binance allows traders to invest on their platform without knowing your customer (KYC) protection or anti-money laundering (AML) restrictions on the traders in their platform. Binance launched an exchange that can be used in the U.S. called Binance US. This version of their platform has more security and follows regulations and compliance. They hired the former U.S. Acting Comptroller of Currency as the CEO of Binance US.
Binance does have security in place, such as multi-factor authentication. They encourage their traders to utilize this extra layer of protection to prevent unauthorized access. They store the majority of their funds in cold storage wallets, which provides thorough protection from hackers. Binance requires manual authorization to authenticate withdrawal requests.
BlockFi is considered one of the best exchanges in the world because of their security. They have regulations and licensing with a lending record that is clean. They have not had any security issues in the history of the organization. BlockFi users a robust risk management practice that includes cold wallet storage, SEC-regulated activities, and CFTC-regulated futures. BlockFi also has a multi-layered data security system to guarantee thorough data protection for their clients. In addition, they institute background checks and manual withdrawal authorizations to ensure they are keeping their traders and money safe.
BlockFi is the winner when it comes to security because it has a stronger and more robust security system.
Offered Cryptocurrencies
When it comes to the volume of currencies that are available on the crypto exchange platform, Binance comes out as the clear winner as it applies to offered cryptocurrencies. It is nearly impossible for other platforms to compete with Binance with the number of crypto assets available. Therefore, when traders are looking for a specific crypto to trade, they should look at Binance first. Binance has hundreds, well over 250, of crypto available for trade.
BlockFi was originally a crypto interest platform. Then they started to offer traders the ability to buy and sell crypto. Binance, on the other hand, became a global crypto exchange that later on offered services like the ability to earn interest on crypto holdings. BlockFi’s main draw is their savings interest account. Traders are able to buy cryptos and keep them in their savings accounts to earn interest on them. BlockFi also allows traders to have a trading account to buy and sell cryptocurrencies. BlockFi offers six cryptocurrencies and four stable coins.
Traders can take crypto loans from both BlockFi and Binance platforms when you use your crypto assets as collateral. These exchanges use the same method to calculate the loan to value (LTV) ratio. The way the ratio is calculated is by taking the LTV (%) = (Loan Amount / Value of Collateral) x 100. The loan amount is the total of interest and principal. LTV also plays a role in the liquidation process. Binance liquidates your collateralized assets when the LTV ratio reaches a specific threshold percentage. For example, BlockFi provides crypto-backed loans to traders for a flat LTV of 50%. The LTV offered by Binance is 60-65%; however, this depends on the cryptocurrency the trader is using as collateral.
Binance is the clear winner in the crypto category because it supports more crypto assets.
Unique Features
Each application has a wide amount of unique features that you may not be able to find in other trading platforms. The primary focus of BlockFi is crypto loans and savings accounts. Binance offers a more comprehensive range of features, from staking and loans to spot trading.
BlockFi is really three products all on one platform. First, they offer an interest account that allows traders and investors to deposit crypto in this account where it can accrue interest. This is an easy to use platform that gives high returns and payment flexibility. Second, BlockFi has a trading account where you can begin to trade immediately with a lost cost. From the start, you can trade ten cryptos and earn interest right away. Third, they allow you to borrow money at a rate of 4.5%. The loan amounts begin at $10,000. Finally, you can use your crypto assets as collateral. BlockFi is a wealth management platform similar to a bank account. You are able to buy cryptos, save them in your savings account, and then they can earn interest. You are also able to use your crypto assets as collateral to get a loan.
Binance offers many features, including spot trading. This allows you to invest in more than 250 cryptocurrencies by buying and selling them on the Binance platform. Binance allows margin trading with up to 6x leverage. This platform supports the trading of crypto futures and options called derivatives trading. They have their own crypto staking platform called Binance Earn. On this platform, you can stake your cryptos and earn interest rates between 4.90 to 21.60%.
Binance has its own Visa card, which allows you to spend your cryptocurrency anywhere you would like. You use it just as you would a debit card, except you are using your crypto to pay for items. You can receive low interest loans from Binance. They allow you to borrow several cryptocurrencies with a competitive loan to ratio. The terms are flexible, and there is no early repayment penalty. With Binance swap, you can trade immediately and pool tokens for rewards. They have their own crypto wallet called Binance pay that gives you the ability to pay and receive crypto without fees.
Binance wins in this category because it is a full crypto exchange. It has a major focus on the trading and investing of crypto.
Interest Rates and Payouts
While both Binance and BlockFi offer interest savings accounts, they have different rates, lock-in terms, and payouts. Their savings accounts provide you a place where you can store crypt, and it earns interest. Typically, interest is paid on the first day of every month. The rate typically varies based on a few variables. You will see the terms annualized interest rate (AIR) and annual percentage yield (APR) used in reference to these accounts. The AIR is like a typical interest rate given by banks. APR uses the account interest rate and the rate that it compounds.
BlockFi uses cryptocurrency and tier to determine their API. They have three tiers for lending BTC and ETH and two tiers for the other crypto. These tiers dictate that APY that is used. They do not have restrictions of lock-up periods. You can withdraw your funds at any time. You will have one free, stable coin and one free crypto withdrawal. They pay compounding interest on the first day of each month.
Binance has two savings options available. One is a locked savings, and the other is a flexible savings. Flexible savings has more flexible lock-in periods. The APY on flexible savings is low. The AIR is higher with locked savings. This is because they do not have lock-up periods for flexible savings. The period ranges from 14 days to 60 days, depending on the specific crypto.
BlockFi is the clear winner in this category.
Binance vs BlockFi: The Winner
Best Overall
The choice between Binance vs BlockFi maybe difficult because of all the various services and features that Binance offers. It is challenging for BlockFi to measure up to the comprehensive list of features. However, when looking at the lending and savings accounts aspects of the platform, BlockFi is the better way to go. BlockFi is available in the U.S., well regulated, and insured. Binance is banned in the U.K., U.S., and Canada. BlockFi offers a more secure infrastructure to give its users and traders an extra layer of protection. In addition, they have a much simpler fee structure along with a better APY. For those interested in a savings account and potential lending capabilities, BlockFi stands far ahead of Binance. Overall, when looking at everything the platforms offer, their fees, and interest rates, BlockFi is the clear choice.
Best for the Experienced Trader
While BlockFi has many interesting features that appeal to traders and investors of all levels, it is best for an experienced trader. They do not have the same learning tools as Binance. Someone that already has some experience will do better in the BlockFi platform. There is a slight learning curve with the platform. It is sophisticated, but that makes it challenging for some people to use. On the BlockFi platform, investors can take their cryptocurrencies to the next level.
Now that you have all the information about Binance vs BlockFi, there is no better time than right now to get started. It is much easier to create an account on BlockFi than you probably realize. There is nothing stopping you now.
If you want to create a BlockFi account, you should go to the BlockFi website and click on Get Started. This gets you one step closer to creating your account. First, you must provide your name, email address and create a secure password. BlockFi has mandatory Know Your Customer (KYC) requirements. This means that you must verify your identity before you can use any services on the platform. Once you follow all the steps for verification, you are ready to fund your account and get started.
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