Bitcompare/Coinbase vs BlockFi/

Coinbase vs BlockFi

Coinbase and BlockFi are leaders in their respective fields. Now that Coinbase offer a savings account, we decided to compare their offerings and see which comes out on top.

Coinbase have been credited with offering the first Bitcoin wallet and buying solutions for the mainstream market.

They created a very simple product that was both easy to use and secure. They have since created a suite of products for the crypto industry and recently entered the fray of crypto savings accounts.

BlockFi were one of the first to offer crypto savings accounts and are considered the leaders in the space. They’re both great companies with great teams and backers.

We wanted to take a closer look and see how they compete with crypto savings accounts.

Important to note

  • Coinbase has very uncompetitive interest rates
  • BlockFi have recently decreased fees and increase interest rates
  • BlockFi offers interest on a variety of assets, including Bitcoin

What is it?

Coinbase is a leading cryptocurrency platform with a variety of products that operate in the blockchain industry. Coinbase recently launched USDC Rewards, which allows users to earn interest on the USDC stablecoin.
BlockFi is a leading saving and lending platform for the crypto industry. It was founded 2 years ago and they offer some of the industry's most competitive interest rates and terms.

Core features

  • Earn passive interest on USDC stablecoin
  • Solid apps and website
  • Competitive savings interest rates on BTC, ETH and GUSD
  • Insured, third-party custody from Gemini Custody
  • Easy to use website

Pros

  • Great brand and reputation
  • Easy to use product with solid web and app experience
  • Trusted by some of the world's largest financial institutions
  • No minimum amount on savings accounts
  • Insured wallets by AON and stored by Gemini which is regulated in New York, US
  • No need to stake native tokens in order to receive higher interest rates

Cons

  • Uncompetitive interest rates
  • Limited to only USDC stablecoin
  • No mobile app
  • It can take up to 7 days to withdraw assets
  • Withdrawal fees of 0.0025BTC
  • Monthly compounding instead of daily or weekly

What is unique about it?

Coinbase were the first to introduce the industry's most user friendly and secure wallet and exchange services. They have always excelled at making this often difficult to use and intimidating industry much more accessible to the mainstream.
BlockFi were one of the first to introduce crypto savings accounts and loans. They found instant success with a good product that offered very competitive interest rates.

How safe is it?

While Coinbase doesn't offer insured wallets, they do have one of the best reputations in the industry. They're yet to be successfully hacked and they offer institutional grade custody for very reputable clients
BlockFi offers security measures like two-factor authentication on their site. In addition to this, all their wallets are provided by Gemini Custody which is regulated in the US and provides insurance on all wallets.

Find out more?

Coinbase vs BlockFi: The verdict

While Coinbase are highly respected within the industry, we can’t help but be disappointed with their first savings account product. Not only are their interest rates not competitive, their products are becoming increasingly bloated and complicated to use.

There is absolutely no question that BlockFi should be your choice if you’re looking to earn some interest on your cryptocurrencies. They offer secure wallets that are insured up to 100 million USD, their products are easy to use and their interest rates are significantly higher.

BlockFi is definitely our choice over Coinbase.

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