The two biggest names in cryptocurrency, Coinbase and BlockFi, have been going head-to-head for a while now.
The main difference between these two platforms is that Coinbase is a brokerage service that lets you buy, sell and store cryptocurrency, while BlockFi is a loan provider that offers loans based on the value of your crypto assets.
BlockFi vs. Coinbase
What Are BlockFi vs. Coinbase
BlockFi and Coinbase are both digital asset exchanges, but they have a few key differences. BlockFi was founded by Dave Chapman and Aron Fischer in 2017, while Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam.
See: What is Bitcoin?
BlockFi vs. Coinbase: The Similarities
Both companies offer their own unique services for purchasing and storing cryptocurrencies. With BlockFi, users can get access to over $100 million in loans from other BlockFi users. With Coinbase, users can purchase digital currencies using fiat currency or credit cards. Both companies also allow users to buy bitcoin with bank transfers (ACH).
However, there are some key differences between the two platforms that make each one better suited for some people than others.
BlockFi vs. Coinbase
The two companies have been locked in an ongoing battle to claim the title of “best” crypto-backed lending platform.
This fight has even reached the courts, with BlockFi suing Coinbase over alleged patent infringement.
But which one should you choose? If you’re looking to buy or sell cryptocurrency, our comparison of Coinbase vs. BlockFi will help you decide which platform is right for you.
Coinbase is one of the most popular cryptocurrency exchanges in the world. It provides a simple, secure and safe way to buy, sell, send and receive Bitcoin, Ethereum and Litecoin.
Coinbase is a digital currency exchange headquartered in San Francisco, California. It operates exchanges of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and other digital currencies with fiat currencies in 32 countries, and bitcoin transactions and storage in 190 countries worldwide.
The company also runs an associated merchant processor called Coinbase Commerce.
The company was founded by Brian Armstrong and Fred Ehrsam. In June 2012, the company launched the services to buy and sell bitcoin.
In 2016 Coinbase opened its first office outside the U.S., in London.In 2017 it announced plans to open an office in Tokyo, followed by New York City in 2018.
Factors When Choosing A Cryptocurrency Platform
When choosing a cryptocurrency platform, there are several factors to consider. These include:
Security: The first thing you want to look at when choosing a cryptocurrency platform is security. You may have heard of exchanges being hacked and losing millions of dollars worth of cryptocurrency, so it’s important to do your research and find out what the security measures are for each exchange.
Customer support: There are a lot of different things that can go wrong when using an exchange or wallet, so it’s important that you have access to good customer support. This means being able to get in touch with someone at all times, whether it be through email or live chat.
The best platforms have 24/7 customer support available through multiple channels such as phones, emails and live chats.
Trading pairs: Some platforms offer more trading pairs than others – if you want to trade in multiple cryptocurrencies then this is something worth considering before choosing an exchange or wallet provider.
Fees: Fees vary widely between different platforms so it’s important that you choose one with competitive fees before committing any funds!
Blockfi vs Coinbase – FAQ
What’s the difference between Blockfi and Coinbase?
BlockFi is a lending company that offers loans for crypto assets. It is a direct competitor to Coinbase’s custody product, but its target customers are different.
BlockFi targets institutional investors and high net worth individuals (HNWIs) who want to borrow against their crypto assets.
Coinbase Custody is a custodian service for institutions. So, it’s meant for those who want to store large amounts of bitcoin in an offline vault.
Which one is cheaper?
BlockFi charges interest rates ranging from 6–20% per year on loans depending on the collateral type. They offer competitive rates because they’re not charging fees like other lenders do; instead, they’re offering a lower interest rate while covering costs with higher interest payments from borrowers.
In this way, they can offer higher leverage ratios and more attractive terms than traditional lenders do. For example, some of the most popular collateral types such as BTC, ETH and LTC have 10x leverage ratios available on loans up to $75k (no minimum deposit size).
Coinbase Custody charges 1% annual management fee plus 20 bps per transaction for BTC storage.
What does BlockFi offer exchange services?
BlockFi is a company that offers exchange services for crypto-assets and fiat. The company was founded by Zac Prince and Brett Richey in 2018. BlockFi is licensed as a money transmitter, and has been operating since 2018.
The company offers loans of up to $10 million, with interest rates ranging from 6% to 18%, depending on the loan amount. Loans can be used for any purpose such as debt consolidation, home improvement projects or consumer spending.
BlockFi has also partnered with Earn to offer customers the ability to earn interest on their crypto assets by staking them on the Earn platform. Earn is a lending platform that allows users to earn interest by holding their cryptocurrency in an account on the platform.
This partnership allows BlockFi customers who hold their crypto assets at BlockFi to earn interest on them through this partnership with Earn.
Is It True That Coinbase Is A Regulated Company?
Coinbase is a regulated company, but only in some cases. The cryptocurrency exchange was founded in 2012 and has since become one of the largest businesses in its field.
It offers users the ability to buy, sell and store cryptocurrencies including Bitcoin, Ethereum and Litecoin.
The company has been growing rapidly, with over 20 million registered users worldwide and an estimated $150 billion worth of cryptocurrencies under its control. In addition to its own exchange platform, Coinbase also operates GDAX, which is an institutional trading platform for high-volume traders.
Coinbase was founded by Fred Ehrsam and Brian Armstrong who have both been involved in Bitcoin since 2011. Both men were involved in creating companies that were designed to facilitate transactions involving digital currencies such as Bitpay and OpenCoin (now Ripple Labs).
These companies were designed to make it easier for merchants to accept bitcoin payments by allowing them to convert their bitcoin into fiat currency before depositing it into their bank accounts.
Much of the work that these two men did helped pave the way for Coinbase’s own success as an exchange platform where individuals could sell their bitcoins directly for cash or use them as payment methods at online stores like Overstock or Expedia (although these two companies no longer accept bitcoin payments).
Is It True That Blockfi Does Not Charge Transaction Fees?
“BlockFi is the first lender to offer a savings account that pays you interest on your crypto balances. We offer the highest rates in the market and are available to customers nationwide.”
BlockFi offers loans from $5,000 to $50,000 against Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC). The company claims that it offers up to a 10 percent annualized return on investment (ROI).
Yes, BlockFi does not charge any transaction fees. However, there are some terms and conditions attached to the loan. If you fail to meet these terms, your loan may be canceled or you could be charged late fees.
Is Having FDIC Insurance Important In A Crypto Platform?
The answer is, yes. It’s a good thing to have.
What is the FDIC? It’s an acronym for the Federal Deposit Insurance Corporation. Is it important to have this type of insurance on your crypto platform? Well, let’s talk about it and you can decide for yourself.
What Is The FDIC And Why Should You Care?
The FDIC is an independent agency of the United States government that protects you against bank failures by insuring deposits up to $250,000 per depositor at each FDIC-insured bank.
The purpose of the FDIC is to maintain stability in the banking system by providing deposit insurance and by regulating depository institutions in order to ensure that they are not artificially overleveraged.
Why Would Anyone Want To Use A Crypto Platform With No FDIC Insurance?
One reason why people might want their crypto platform without FDIC insurance is because they don’t feel like using banks anymore and prefer using cryptocurrencies instead. Another reason would be if they didn’t feel like paying taxes on their cryptocurrency earnings (which can be quite hefty depending on how much money you make).
BlockFi vs. Coinbase – Wrap Up
BlockFi is a peer-to-peer platform that allows users to borrow or lend bitcoin, while Coinbase is a digital asset exchange.
Coinbase was founded in 2012 by Brian Armstrong. Both companies offer their own cryptocurrency wallets and trading platforms.
BlockFi has more than $1 billion in debt issuance outstanding, while Coinbase has less than $50 million.
BlockFi offers lower interest rates on loans of up to $1 million, compared with 20 percent for Coinbase’s loans.
BlockFi also offers cheaper fees for buying crypto with fiat currency; for example, BlockFi charges 0.25 percent for its buy crypto service compared with Coinbase’s 1 percent charge for buying crypto from its exchange platform in fiat currency (U.S. dollars).