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BlockFi vs Binance: The Pros, Cons and How they Compare

Are you interested in both BlockFi and Biance but not sure which would be the smarter choice for you? See how their savings, broker features, and more compare.


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Cryptocurrency continues to expand and grow in popularity. Many experts believe crypto adoption will gain further steam moving forward in 2021.

Sure, currencies such as Bitcoin saw a wild and turbulent ride in 2020, but these experts feel a bright lining is ahead. Why? Because a full global economic revival isn't coming any time soon.

While this is terrible news for those who stick with old-fashioned fiat currency investments, such is not the case for those dabbling in cryptos.

These experts also believe that fantastic platforms such as BlockFi and Binance will continue to gain even more converts. But how do these two platforms compare? Here's what you need to know about BlockFi vs. Binance.

BlockFi Review 

What is BlockFi? This platform offers institutional-grade financial products for those interested in transacting on crypto markets.

The company's mission remains helping clients get empowered when it comes to earning interest, trading cryptos, and borrowing cash. Over time, BlockFi has earned a reputation as one of the most trusted financial service providers around.

But how does the platform set itself apart from the competition? For starters, its finances are backed by big-names like SoFi and Fidelity. As a result, you'll gain access to the same menu of services found at mega-corporate banks. 

The platform also goes to great lengths to protect users from security issues and breaches. BlockFi complies with all financial regulations within the US.

What's more, it leverages its relationships with these giant institutions to make certain crypto-assets continue to perform at their highest levels. The result? A crypto financial service that comes with peace of mind. 

Promoted

Risk-free and high-yield tool to store your coins

  • Earn up to 12% APR on EURS, USDT, ETH, XRP, and 20+ more coins
  • Weekly compound interest payouts
  • Universal conversion between all crypto, fiat, and stablecoins

Who Is BlockFi Best For?

Which customers will prove most pleased by BlockFi's unique features? Individuals who own Bitcoin and have a thorough understanding of how crypto investments work. If you're a massive fan of cryptos and can't get enough of them, you'll love BlockFi.

The platform is sophisticated and requires a learning curve. But if you eat and breathe crypto news and resources, it will help you take your investments to the next level. 

You'll also enjoy the platform if you've experimented with crypto assets. It'll help you hone your skills and sharpen your understanding of how these markets work.  

If you've developed a healthy curiosity about cryptos, BlockFi could also prove an excellent way to start out. The platform will help you learn everything you need to know to become a crypto pro. 

The Pros and Cons of BlockFi

Now that you've got a better sense of who will thrive on the BlockFi platform, let's take a closer look at its pros and cons. 

The Pros

When it comes to BlockFi rates, they're typically free. This fact represents one of the significant draws of the platform.

You'll also enjoy some of the best interest rates when you opt to go with BlockFi. But the benefits don't stop there. 

BlockFi comes with a handy app that lets you trade, earn interest, and borrow on the go. All from BlockFi's centralized hub.

The Cons

What are the downsides of using BlockFi? First, the platform proves best for individuals with a robust cryptocurrency foundation.

In other words, if you're a beginner looking to baby step into the market, think again. You'll also prove disappointed if you're looking for a relationship with an investment advisor.

Instead, the platform should be reserved for those with a solid comprehension of crypto investment and trading. For those seeking financial advice and guidance, you'll want to stick with another platform better suited to crypto newbies. 

Binance Review

One of the leading trading crypto platforms, Binance supports more than 200 coins for withdrawal and deposit. It accommodates a wide variety of users, from beginners to advanced traders.

It also remains one of the most affordable and convenient ways to transact in cryptos. Binance boasts many customers worldwide and has seen incredible successes over the past couple of years. 

Who Is Binance Best For?

Binance appeals to a broad segment of customers from all backgrounds and experience levels. It's fantastic for those looking for an exchange where they can transact in fiat and cryptocurrencies. 

It's also great for those in search of a secure and reliable P2P trading service. Binance facilitates fiat currency payments and many different transactions based on your preferences. 

Binance also offers credit and debit cards through its partnership with Simplex, and SEPA and wire transfers are widely available. If you're looking for a one-stop-shop, Binance may be right for you. 

The Pros and Cons of Binance

We've discussed what Binance is and who it best serves. But how does this platform stack up when it comes to pros and cons? Here's what you need to know. 

The Pros

What do customers love about Binance? They rave about the speed of transactions.

Because of the platform's technology, most transactions take place at breakneck speed. The platform can process 1.4 million orders in a blink or two of the eye!

The platform also boasts 0.1 percent transaction fees. These fees drop even further when use Binance's native token, BNB. 

Binance is also renowned for high liquidity, excellent customer service, and a fantastic reputation. Especially when it comes to security. The company continues to innovate and push the envelope, which means peace of mind for your finances. 

The Cons

What are the downsides when it comes to using Binance? For starters, the platform doesn't support transactions in the following states:

  • New York
  • Connecticut
  • Alaska
  • Alabama
  • Hawaii
  • Georgia
  • Florida
  • North Carolina
  • Louisiana
  • Vermont
  • Idaho
  • Texas
  • Washington

While the company continues to make regulatory progress in preparing to trade in these 13 states, look for other options if you're a resident. 

What else should you know about the cons of Binance? The American version of the platform (known as Binance US) only offers seven cryptos for trading at the moment.

Pros and cons of BlockFi

Pros

  • Insured wallets by AON and stored by Gemini which is regulated in NYC, United States
  • Created by reputable team with highly regarded US based investors
  • Competitive interest rates with flexible, transparent terms
  • No need to use or stake native currencies to get higher interest rates
  • Monthly compounding interest
  • No requirements for minimum withdrawal
  • No monthly fees
  • A single free withdrawal per month
  • No minimum amount on savings accounts
  • Accepts USA citizens
  • Facilitation of earning interest, trading, and borrowing from a centralized hub using the BlockFi app
  • Bitcoin rewards credit card

Cons

  • One free withdrawal per month with a 0.0025 BTC withdrawal fee after that
  • Complaints of withdrawals taking up to seven days
  • Only three collateral options
  • Loan terms that are limited to 12 months
  • Only one option to receive a loan in (USD)
  • High minimum loan amounts starting at $5,000
  • Low loan-to-value (LTV) ratios of 50 percent

Pros and cons of Binance

Pros

  • One of the most trusted brands in crypto
  • Best-in-class features with everything an advanced trader could want
  • Significant advantages when using the native Binance tokens BNB such as decreased trading fees
  • Very fast, easy to use interface
  • Binance offers extremely low transaction fees, particularly when using with their native BNB tokens
  • Assets are insured in case of security breaches. Except for breaches from personal security issues

Cons

  • Can be overwhelming for people who are new to crypto or trading
  • Much of its functionality is being disrupted by decentralised options like Uniswap
  • The platform doesn’t support most traditional payment methods
  • Currently, Binance US does not offer services in New York, Alaska, Alabama, Connecticut, Georgia, Florida, Hawaii, Louisiana, North Carolina, Idaho, Vermont, Washington, and Texas due to missing regulatory requirements
  • Binance does not give comprehensive daily market analysis

Frequently asked questions about BlockFi

We’ve compiled some answers to questions we often get. Should you have any other questions, feel free to reach out below in the comments.

How often does BlockFi pay interest?

BlockFi pays interest once a month, compounding on your previous month‘s interest.

Can I earn interest on fiat currency with BlockFi?

BlockFi doesn’t pay interest on fiat currencies, however, they do offer up to 8.6% APR on GUSD. GUSD is a stablecoin backed by US Dollars. This means that for every GUSD, it is backed by one USD. This is a great option for people who want the stability of a fiat currency like USD, but the savings interest rates of crypto currency.

Where is BlockFi based?

BlockFi is based in NYC, New York, United States. It’s team is based their and most of their investors and advisors are based in the United States.

Will applying for a BlockFi account hurt my credit score?

Absolutely not. BlockFi won't do a credit check on you because your loan is based on collateral. It won't effect your credit score at all.

Who can I contact if something goes wrong?

BlockFi offer real-time chat and email at support@blockfi.com. You can also call them on 646.779.9688

Can I earn interest in GBP or Euros with BlockFi

BlockFi only offers interest in GUSD, Bitcoin and Ethereum. They are, however, exploring other currencies in the near future.

Which countries does BlockFi support?

The BlockFi Interest Account isn't available to sanctioned or watchlist countries. It's also not available in New York, Connecticut, Washington, and Wyoming. BlockFi is available everywhere else.

Does BlockFi have Two-Factor Authentication?

Yes, BlockFi offers Two-Factor Authentication. It won't be set up by default, however, you can easily switch it on in the settings. If singing up with BlockFi, we highly recommend setting this up.

How often does BlockFi's interest compound?

BlockFi's savings accounts offer monthly compounded interest. If you withdraw within a given month, you will not receive the interest earned during that month.

Does BlockFi have an app?

Not yet, however, they tell us it's in the works and will be available in the coming months.

Is there a maximum amount I can deposit to BlockFi

No, BlockFi doesn't have any maximum deposits.

Does BlockFi have minimum deposits?

No, BlockFi don't have any minimum deposits.

Will I lose my interest for a given month if I withdraw?

No. BlockFi now offers to pay your interest on a pro-rata basis if you withdraw during a month in which you're earning interest.

How long does it take to withdraw funds?

It can take up to 7 days to withdraw funds, however, in practice it's usually in one business day

What is the duration of a BlockFi loan?

They are 12 months, however, there is no prepayment penalty.

Frequently asked questions about Binance

We’ve compiled some answers to questions we often get. Should you have any other questions, feel free to reach out below in the comments.

Which cryptocurrencies does Binance support?
What products does Binance offer?

Binance offers the following products:

  • Binance JEX
  • Binance P2P trading
  • Binance Crypto Loans
  • Binance OTC
  • Binance Savings
  • Binance Staking
  • Binance Chain and Binance Coin (BNB)
  • Binance USD (BUSD) and Binance GBP stablecoin
  • Binance Charity
  • Binance Labs
  • Trust Wallet
  • Binance Cloud
  • Binance Card
  • Binance Jersey
  • Binance US and other localized versions of Binance exchange
Is Binance insured?

Yes, Binance is insured against security breaches through the Secure Asset Fund for Users (SAFU). Binance began contributing 10% of all trading fees received to this fund in July 2018 in order to offer insurance in the event of security breaches.

Does Binance have a storage wallet?

Binance has a stand-alone wallet called the Binance Trust Wallet, that allows users to store cryptocurrency outside of Binance.

How effective is Binance’s customer support?

Binance support staff is receptive and willing to provide detailed advice to traders in need. Help tickets are submitted via the web site’s online form, and answers are sent back via email.

Does Binance have an app?

Yes, the Binance app is available on both iOS and Android.

How much Are Binance transaction fees?

Binance charges a transaction fee of 0.1% for all trades. It also offers a 50% discount on fees for trades made using Binance Coin.

What payment methods are accepted on Binance?

Binance supports the following payment methods:

Bank transfer

Credit or 

Debit card

Cash

What countries can make payments with a bank card on Binance?

Bank card payment is supported in the following companies:

  • Austria 
  • Belgium 
  • Bulgaria 
  • Croatia
  • Czech Republic 
  • Denmark
  • Estonia
  • Finland 
  • France 
  • Germany 
  • Greece
  • Hungary 
  • Iceland
  • Ireland 
  • Italy
  • Latvia
  • Liechtenstein 
  • Lithuania
  • Luxembourg
  • Malta
  • Netherlands 
  • Norway 
  • Poland
  • Portugal
  • Republic of Cyprus 
  • Romania 
  • Russia
  • Slovakia 
  • Slovenia 
  • Spain
  • Sweden 
  • UK
  • Ukraine

BlockFi vs. Binance

As you can see, BlockFi and Binance both come with compelling reasons to consider them. If you already have a decent working knowledge of cryptos and investing, you'll love the freedom and functionality of BlockFi. But if you're after some of the lowest fees in the industry and lightning-fast transaction speeds, consider Binance. 

Are you interested in learning more about various types of crypto coins? Check out our comprehensive listings of alt coins, native tokes, and other cryptos. 

  • Features
  • Ease of use
  • Security
  • Support
  • Reputation
  • Fees
  • Overall
  • 4
  • 5
  • 4
  • 4
  • 5
  • 4
  • 4.33
Go to site
  • 5
  • 4
  • 3
  • 3
  • 4
  • 4
  • 3.83
Go to site