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BlockFi vs Luno: The Pros, Cons and How they Compare | Bitcompare

BlockFi and Luno are leading crypto brokers that compete to give you the experiences and rates. We break them down to see which is better for you.


  • Features
  • Ease of use
  • Security
  • Support
  • Reputation
  • Fees
  • Overall
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  • 4
  • 4.33
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  • 3.83
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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 Luno

Pros

  • Active in the world of cryptocurrency since 2013, Luno is a trustworthy and reliable place to trade cryptocurrencies.
  • Being one of the easiest to use exchanges today, Luno scores high on usability and is perfect for beginners.
  • Luno offers multi-language customer support and supports local payment methods, resulting in the best possible user experience.
  • They have adopted a deep-freeze storage strategy offering a high level of internal security.

Cons

  • Luno has country-based restrictions. As of now, Luno is available only in Australia, Europe, Indonesia, Malaysia, Nigeria, Singapore, South Africa, Uganda, United Kingdom, and Zambia.
  • Compared to the leading cryptocurrency exchanges, Luno supports a limited number of cryptocurrencies.
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
Types
Platforms
Coins

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 Luno

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.

What are the current fees on Luno?

The fees charged by Luno varies by the type of service. Luno charges deposit fees on certain deposit methods. They also charge a transaction fee from takers and withdrawal fees for withdrawing crypto to external addresses. 

Luno charges trading fees only from the takers, and it is between 0.03%-0.1%. The fees depend on your trading volume in the last 30 days. When it comes to Luno's Instant Buy/Sell service, the fees vary by the amount of cryptocurrency you want to purchase, the type of cryptocurrency, and the fiat currency you are using for the purchase.

What is the minimum deposit for Luno?

The minimum deposit is $10 on Luno

Is Luno safe to use?

Luno has never been hacked, however, it’s worth noting that it could always get hacked and you need to be very cautious to not fall victim to phishing or other hacking attacks.

How long does it take to withdraw money from Luno?

It generally takes up to two business days to withdraw funds from Luno.

How to Start Trading With Luno?

Working with Luno is easy. All you need to do is download the app and sign up for your free Luno wallet. Once you’ve set up your profile, choose your preferred payment method like bank transfer or credit card to add money to the wallet. Once you have added funds, you can start buying, storing, or sending the crypto assets using Luno.

How Protected is My Private Key with Luno?

To protect your private keys, Luno stores them in a physical bank vault secured with stringent access control mechanisms like fingerprint and retina scans. The keys are stored in several vaults across many continents. The entire system is built in a way that you have to access the keys from multiple vaults and put them together before you could use them to extract the Bitcoin.

Does Luno have an API?

Yes, Luno has an API that can be leveraged to access present and historic Bitcoin and Ethereum market data, submit and view orders, buy, sell, send, and receive Bitcoin and Ethereum and generate receiving addresses.

How to Verify Identity with Luno?

First, you need to confirm your mobile number and your basic personal details. Then you need to submit a photo or a scanned image of your government-issued ID. You also need to file a selfie photo, not more than 24 hours old. The final step is to enter your residential address and select your employment status.

Can a Foreign Resident Open Account in Luno?

Yes. To open a Luno account as a foreign national, you will have to furnish documents related to proof of identity, proof of residency, proof of bank account with residential address, and proof of residential address.

How secure is Luno?

Luno has taken all necessary steps to ensure the security of the exchange and user funds. They have an authentication strategy in place, and it involves passwords stored in hashed form and the 2FA or two-factor authentication model. Entire communication happens over SSL-secured HTTP channels, whereas the wallets are stored using PGP encryption. All personal information is encrypted and securely stored.

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