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BlockFi vs Coinbase: Which is right for you?
BlockFi’s crypto selection (it offers fewer than 12 crypto assets) is nowhere near as large as Coinbase’s. However, it could still be a good option for traders in search of lower fees and interest rewards. Plus, it’s probably a better option for crypto-backed loans. BlockFi’s loans have interest rates as low as 4.5%, while Coinbase’s bitcoin-backed loans require an 8% APY.
But Coinbase is much more suitable for traders in search of a wider variety of cryptocurrencies. It not only offers more than 80 different assets, but it also offers several educational resources (including Coinbase Earn) for traders who want to learn more about cryptocurrencies.
BlockFi and Coinbase’s account features and fees also vary. Keep reading to see which brokerage is best for you.
Is BlockFi right for you?
BlockFi is a US-based crypto exchange providing a variety of crypto services for individuals and institutions both in the US and abroad. The exchange is mainly known for its crypto interest accounts, but it also offers crypto trading, crypto-backed loans, and much more.
On the interest side, you can earn an annual rate of up to 8% for storing cryptocurrencies like bitcoin, ethereum, litecoin, and others. BlockFi pays you the interest rewards at the beginning of every month and uses a tiered structure that determines your rate based on your amount of assets. See more about its interest accounts here.
As for crypto trading, BlockFi’s selection is on the smaller end. It currently offers bitcoin, ethereum, litecoin, and pax gold. And its stablecoins (a stablecoin is an asset whose value is pegged to fiat currencies like USD, gold, or other crypto assets) offering includes US dollar stablecoin (USDC), tether (USDT), gemini dollar (GUSD), and paxos standard (PAX).
BlockFi also lets you fund your account with fiat or crypto transfers and skip out on transaction fees on all crypto exchanges (though you may incur a small spread fee of up to 1%). Plus, any crypto you’ve purchased immediately earns interest on the following day of the exchange.
The company’s crypto-backed loans include interest rates as low as 4.5% and let you use bitcoin, ethereum, and litecoin as collateral for loans. This means you won’t have to completely sell your cryptocurrencies in case of an emergency. BlockFi gives you the loan in USD, gemini dollar (GUSD), or US dollar stablecoin (USDC).
Institutions can also utilize a wide range of services through the BlockFi Prime institutional platform. These include over-the-counter (OTC) trading with 24/7 support, financing solutions ( this includes the lending of cryptocurrencies, US dollars, and stablecoins), corporate treasury solutions, and more.
Is Coinbase right for you?
Founded in 2012, Coinbase is a global cryptocurrency exchange serving millions of users. The platform caters both to individuals and institutions, and it offers a vast suite of services for both client types.
Coinbase and BlockFi both have a shared offering of crypto exchange services, interest perks, crypto loan products, and card rewards. However, Coinbase has a much larger selection of cryptocurrencies.
When it comes to crypto trading, Coinbase gives traders two options: the standard Coinbase account and Coinbase Pro. While the standard account gives you access to things like crypto trading, staking rewards, Coinbase Earn (an educational feature that pays you in crypto rewards for learning about different cryptocurrencies), and digital storage, Coinbase Pro caters to more advanced traders.
In fact, some of Coinbase Pro’s features include $250,0000 FDIC insurance, order books, charting tools, and trading APIs that let you use programmatic trading bots.
Coinbase also offers several products for institutions. These include the Coinbase Prime trading platform, commerce services, offline crypto storage, ventures fundraising for new crypto startups, and much more. You can learn more about Coinbase’s institutional services here.