In this post, we will be taking a closer look at Coinbase and BlockFi. When it comes to these two options, which one is best for you? There are a few important points you should keep in mind.
At a Glance: Coinbase and BlockFi
Both Coinbase and BlockFi are great options for cryptocurrency exchanges, but there are a lot of differences between the number of products offered, the various cryptocurrencies they support, and the cost of investing. Even though both platforms are suitable for beginners and prioritize security, it is important to think about which is best for your needs.
Ultimately, one is not necessarily better than the other, but they are suitable for very different investors. If you would like to figure out which platform is best for your needs, there are a few important points to keep in mind. What do you need to know?
If you would like to learn more about the differences between Coinbase and BlockFi, there are several factors to consider. Keep reading below, and figure out which one is best for your cryptocurrency trading style.
A Comparison of Coinbase and BlockFi
If you would like to figure out which option is best for your needs, it is important to consider the benefits and drawbacks of each option. A few important points to keep in mind include:
An Overview of Coinbase
Coinbase is a user-friendly cryptocurrency exchange. It is one of the oldest options available, and it is suitable for beginners. A lot of people get started on Coinbase because there are a lot of features available, many people stick with it even as they become more experienced. If you want to withdraw money from Coinbase, you will use PayPal. There are also opportunities for you to earn additional cryptocurrency by using Coinbase.
One of the problems with Coinbase is that the fee structure is very complicated. You should expect to pay a commission of 0.50 percent per trade, but if you decide to use a credit card, the fees are significantly higher. One of the major benefits of Coinbase is that you have access to more than 120 cryptocurrencies. The security measures provided by Coinbase are very strong, and there are a number of protocols in place to make sure you protect your assets. The maximum transfer limit on Coinbase is $25,000 if you use ACH transfers.
Because Coinbase is one of the most popular options available, many people continue to stick with it. There are lots of advanced features that you can customize to meet your needs, and a platform is continuously evaluating new cryptocurrency options that it can add to the exchange.
Pros and Cons of Coinbase
Before you decide if Coinbase is right for you, it is important to take a look at the benefits and drawbacks. Some of the top benefits of using this platform include:
- You can trade more than 120 cryptocurrency options, which means you can customize your cryptocurrency portfolio to meet your needs.
- The user interface is very easy for beginners to navigate. Even if you have never executed a single transaction before, you can navigate the platform quickly.
- Your assets are FDIC-insured up to $250,000.
- Coinbase is available in more than 100 countries all over the world.
Even though these benefits are nice, it is important to take a look at a few of the drawbacks as well. Some of the biggest drawbacks of using this platform include:
- If you use the mobile application, it can be very difficult for you to figure out what is going on. A lot of the features are not in the same place on the mobile platform as they are on a desktop computer.
- If you need to access customer service agents, it can be a significant challenge. You may have to wait a long time to get your questions answered.
- Coinbase has a very complicated fee structure. It can be hard for you to figure out what fees apply to what transactions. Furthermore, if you want clarification on the fee structure, it may take a while for you to hear back.
Even though Coinbase is one of the most popular platforms available, make sure you weigh the benefits and drawbacks carefully before you decide if it is right for you.
An Overview of BlockFi
If you are looking for a crypto-currency platform that is great for beginners, you may want to look at BlockFi. On the platform, your fees are approximately one percent per trade, but there is a sliding scale available, so your fees might be lower.
On this platform, you can trade eight different types of cryptocurrency. The platform is continuously evaluating its options, so you should take a look at the website if you would like to learn more. You also have insurance on all hot storage options, but many assets are stored in cold storage, which gives you a better degree of security. You can also take advantage of two-factor authentication, which gives you additional security protection.
On the platform, you can send, withdraw, receive, exchange, buy, and sell cryptocurrency. The transaction limit is based on your historical activity and the size of your account. There is also a mobile app that is available on Android and iOS platforms, which makes it easier for you to manage your assets.
Pros and Cons of BlockFi
It is also important for you to consider the benefits and drawbacks of this platform. Some of the biggest benefits of using BlockFi include:
- There are a lot of transactions where you do not have to pay any fees at all. This can make the platform a lot more affordable, particularly for beginners.
- You can earn interest on the assets you have through this platform, and there is no minimum balance you need to maintain in order for you to do so.
- You get access to very responsive customer service agents. It should not take very long for you to get an answer to your questions.
- The user interface is very easy to navigate. If you are a beginner, it should not be very hard for you to figure out how the platform works.
On the other hand, there are a few drawbacks you need to consider with this platform as well. They include:
- If you want to withdraw something from your account, it can take a long time for it to happen. You may have to wait longer if you use BlockFi than other platforms.
- You can only trade eight different types of cryptocurrency, which means that you might not be able to diversify your portfolio as much as you would like.
- The withdrawal fees and limits on beginner accounts are generally pretty low because the limits are based on your historical activity and the size of your account.
Make sure you weigh the benefits and drawbacks carefully before you decide if it is the right option for you.
Coinbase and BlockFi: The Currencies
It can also be helpful to take a closer look at a few specific features. For example, you might be interested in different currencies you can trade on the platform. When you are comparing this specific feature, it is obvious that Coinbase is the winner. On Coinbase, you have access to more than 120 different types of cryptocurrency, and the number is continuously growing because it is one of the biggest platforms in the world. You can also trade a wide variety of popular cryptocurrency options. The options extend significantly beyond Bitcoin and Ethereum. For example, you can even trade niche cryptocurrencies, including BCH, DOGE, and BAND.
If you decide to go with BlockFi, you have access to a handful of different cryptocurrency options. Unfortunately, this platform only supports 8 different cryptocurrency options. They include PAX, GUSD, USDT, USDC, LTC, ETH, BTC, and LTC. Some of these coins you might not be able to access on Coinbase, but there are a lot of cryptocurrency options available on Coinbase that you cannot access on BlockFi.
Furthermore, BlockFi does not support Fiat currencies. This can be a significant roadblock if you are looking for a way to get started in the cryptocurrency world. Therefore, if you want access to the biggest variety available, you might be more interested in Coinbase.
Coinbase and BlockFi: The Security
The security features on both platforms are very strong. Both of these are exchanges that are based in the United States, so they are subject to very strict regulatory standards. There are stringent account verification methods that you will need to go through, and there are also bounty programs that help them identify weaknesses that they can patch before they are subjected to a cyberattack.
Furthermore, BlockFi uses Gemini as a support system, so Gemini is responsible for handling and overseeing a significant percentage of the funds. Fortunately, Gemini has a very strong insurance program available that you can use to protect your assets. In addition, a majority of the assets are kept in cold storage, which means that your assets are protected.
Coinbase also has very strong security measures. Approximately 98 percent of all funds are held offline in cold storage, which means that your assets should be safe. There is also an insurance policy that will protect your funds against fraud or theft. Unfortunately, the insurance policy does not extend to unauthorized use, so you might leave yourself vulnerable if someone has access to your cryptocurrency wallet. Both systems are insured by the FDIC up to a specific limit.
Coinbase and BlockFi: The Fees
Before you decide which platform to use, it is also important to take a look at the fees you might incur. Coinbase has a very complicated fee structure. You might have a difficult time understanding it. Even though you should expect to be subjected to a 0.50 percent commission on all of your trades, there are additional fees you might be charged depending on your payment method or location. There is also a convenience fee that they might charge you.
As an example, if you purchase $199 of Bitcoin, you will be subjected to a fee of $2.99. Then, if you decide to pay using a debit card or a credit card, you may be subjected to another fee because of your payment method. It can be very difficult for you to figure out exactly which fees you have to pay.
If you decide to use BlockFi, you might not have to pay any fee at all. There are no convenience fees added to their trading costs. It is free for you to send money using wire transfer or ACH transactions, but you should still be expected to pay a commission on your trades. Most of the fees are one percent, but you need to take a closer look at your specific fee schedule. You will be subjected to a fee if you convert your cryptocurrency assets back into dollars.
Coinbase vs BlockFi: The Winner
Overall, Coinbase is the best platform to choose. Most people are going to be happier on Coinbase because they have access to more cryptocurrency options in more locations. Furthermore, transactions tend to happen more quickly, so it is more convenient.
Coinbase Is the Best Overall, but BlockFi Has its Merits
There are a few people who might be happier using BlockFi. It is the ideal platform for beginners because it has a much lower fee schedule when compared to Coinbase. You only have access to eight cryptocurrency options, but it can be a great way to get started. Then, if you decide this investing method is for you, you might want to transition to a more robust trading platform, such as Coinbase.
Sign Up for a Crypto Exchange Today on Coinbase or BlockFi
If you would like to learn more about either of these platforms, you should consider creating an account. If you want to create an account on Coinbase, you can learn more here. If you want to create an account on BlockFi, you can do so here.
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