Between 2012 and 2020, Bitcoin has gained 193,639.36 percent, and Bitcoin now accounts for $6 billion of daily online transactions.
While these stats are exciting and provide something for investors to chew on, there's now a dizzying array of crypto platforms out there. How do you find the one best suited for your needs and financial objectives?
Keep reading as we take a closer look at BlockFi vs. Coinbase.
A privately-owned, New York-based company, the BlockFi platform was founded in 2017. Among its many strong points is its leadership team. They have decades of combined experience in the traditional financial services world. Many have worked, more specifically, in banking.
The team prides itself on a conservative approach to regulation. One that prepares its consumers for long-term, sustainable growth. BlockFi's CEO and co-founder, Zac Prince, comes with years of leadership experience at multiple successful tech companies.
Before starting BlockFi, Prince headed up business development teams at Orchard Platform. Orchard Platform is a broker-dealer and RIA serving the online lending sector. He also worked at Zibby, an online consumer lender.
Prince co-founded BlockFi with Flori Marquez, VP of Operations, who has experience managing alternative lending products. Today, Marquez handles everything from point of origination to default and litigation.
The company recently raised $50 million in Series C funding. Participating investors included Morgan Creek Digital, Valar Venture, Winklevoss Capital, and more.
Before its most recent fundraising endeavor, BlockFi raised $18.3 million in Series A funding spearheaded by Valar Ventures and support from others such as Winklevoss Capital and Galaxy Digital.
The team will continue to raise additional capital to facilitate rapid growth and continued product development. All told, the company's revenues have multiplied ten times over the past year, placing it on track to reach $100 million in revenue in 2021.
The company's incredible performance has positioned it as a dominant entity in the overarching emerging FinTech sphere.
BlockFi Interest Account
Many crypto HODLers (asset holders) store their funds on exchanges or in cold storage for extended periods. Of course, their cryptos don't "work" for them in this instance.
But BlockFi interest accounts empower individuals and companies to use their crypto-assets more wisely. These individuals and companies can earn interest in cryptos on their assets held by BlockFi.
Who can take advantage of the BlockFi Interest Account? It's available to clients worldwide. However, there are a few exceptions, including those for residents of sanctioned or watchlist countries.
The interest account doesn't require a minimum deposit balance to be eligible to earn interest. In most cases, you can receive funds from withdrawals the same day. But BlockFi reserves up to seven days to process withdrawals.
How much could you earn with an interest account? Upwards of 8.6 percent APY. This interest accrues daily, and you'll pay it off monthly. There are no minimum balance restrictions or hidden fees.
BlockFi Credit Card
BlockFi is currently offering a $250 signup bonus on its forthcoming credit card, the first Bitcoinrewards credit card on the market. The card will launch in early 2021, altering the Bitcoin-earning landscape in several key ways.
It’s the first credit card in the crypto ecosystem to bear the Bitcoin logo prominently. You won't find higher than the 1.5 percent Bitcoin rewards rate, which accrues with every purchase.
You'll earn the $250 signup bonus in Bitcoin returns after spending $3,000 on the card in your first three months. This spending minimum doesn't include the $200 annual fee.
The new BlockFi rewards credit card comes with numerous benefits, including better purchase protections, greater reward rates, and building credit opportunities. If BlockFi delivers on all of its promises with this card, we expect to see it explode in popularity.
For users looking for an easy way to trade between different assets, BlockFi's trading platform makes it easy. Best of all, you can earn compound interest while trading.
What's more, BlockFi offers an unusual, zero-fee trading model. How does the company make money off trades? By selling data on the users' trades to large institutional crypto firms. These firms will, in turn, provide liquidity by acting as market makers at BlockFi.
The company has also added more choices for trading and interest-earning accounts, including the ability to deposit and buy Litecoin and USDC.
BlockFi Security and Safety
The Gemini Trust Company keeps BlockFi crypto deposits safe and is regulated by the New York Department of Financial Services. Gemini holds 95 percent of BlockFi's accounts in cold storage and the rest in hot wallets insured by Aron.
Gemini recently received SOC2 compliance from Deloitte based on their custody solution practices. This compliance marker represents another reason to feel good about placing your crypto-assets with BlockFi.
One of the largest crypto companies worldwide, Coinbase supports more than 100 countries and boasts in excess of 30 million customers globally. It offers a wide array of services, including the ability to sell and buy Bitcoins through a bank account, debit card, or credit card.
What about their rates? They're definitely competitive and fair.
Brian Armstrong and Fred Ehrsam founded Coinbase in 2012 as part of Ycombinator. This history makes Coinbase one of the oldest exchanges in the crypto industry.
Initially, Coinbase only offered Bitcoin brokerage services, but they've since expanded in many different areas. A fully regulated and licensed company, Coinbase has raised more than $540 million from leading investors such as The NYSE, Rabbit Capital, and Andreesen Horowitz.
That said, the company is lacking when it comes to customer service. Despite complaints about customer service, many newbies choose Coinbase for their first foray into cryptos.
Why? Because of its industry reputation, extensive marketing, and user-friendly interface.
Coinbase Interest Account
Coinbase, like BlockFi, lets you earn interest on your assets. With Coinbase, yields on cryptos range between four percent and eight percent or more. That means superior yields as opposed to traditional savings accounts.
Thousands of Coinbase Wallet users have deposited millions of dollars and earned interest rates of six percent or more. Best of all, when you loan your crypto, you can use the app to watch your interest grow in real-time.
Is making a withdrawal as simple as with BlockFi? You can cash out by withdrawing the coins from the smart contract back to your Wallet. Available to users around the world, the Coinbase Wallet app makes earning interest with the platform a breeze.
Coinbase Card is a Visa debit card that lets you spend any asset in your portfolio while earning rewards on purchases. Because it isn't a credit card, it works like more traditional crypto debit cards.
You can use the card anywhere that Visa is accepted and earn four percent in rewards every time you use it for purchases. Best of all, you don't have to worry about any annual fees or sign up fees.
Before you can get a Coinbase Card, you must download the Coinbase Card app for iOS or Android. Once you've completed the instructions to apply for a card, you'll receive immediate access to your virtual Coinbase Card. A physical copy will be sent to your address.
What are the benefits of the Coinbase Card? You can use it worldwide, paying with a contactless PIN. You can also withdraw funds using any ATM in the world.
Coinbase Card comes with plenty of flexibility. For example, you get to select which crypto wallet you'd like funds to be withdrawn from. It only takes a few seconds to switch between Ethereum, Bitcoin, and more.
What's one of the things we most appreciate about Coinbase? The company places an essential emphasis on ease-of-use. This philosophy impacts every aspect of the customer experience, from interest-yielding accounts to buying and selling cryptos via their exchange.
Coinbase boasts a variety of features that make it the preferred choice of consumers. They make buying and selling cryptocurrencies streamlined by permitting you to keep track of everything in one spot.
You can schedule recurring buys, which allow you to invest in cryptos at your own pace through daily, weekly, or monthly buys. Their exchange mobile app helps you stay on top of the markets.
Coinbase Security and Safety
Coinbase provides peace of mind for its customers through rigorous safety standards. When you invest your crypto-assets with the company, rest assured your funds are vault-protected with time-delayed withdrawals.
You'll also be happy to know that their cryptos are stored on servers covered by the company's insurance policy. The insurance policy pays out to cover any customer funds lost as a result of a security breach.
Pros and cons of Coinbase
- Most trusted brand in crypto
- Top-tier team and investors
- One of the pioneers of the industry
- Never successfully hacked
- Interoperable suite of crypto products
- It offers a great user interface for beginners
- It offers access to over 30 cryptocurrencies
- Can be more expensive than other options
- The site crashes at times of high volatility
- There is a lack of timely support
- Transactions can be delayed for up to 3 days
- Most local payment methods are not supported
Pros and cons of BlockFi
- 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
- 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
Compare with Coinbase and BlockFi alternatives
Similar Savings Accounts and Loans
BlockFi vs. Coinbase: The Takeaway
What's the final word when it comes to BlockFi vs. Coinbase? Both companies carry solid reputations and take the security of the funds they hold seriously. That said, there are some significant differences between BlockFi and Coinbase.
For example, if you're after a Bitcoin rewards credit card, BlockFi's your only current answer. If you're more interested in Visa backing, then go with the Coinbase Card. This rewards debit card will let you rack up plenty of points.
Are you interested in comparing more crypto platforms like our BlockFi vs. Coinbase review? Check out our comprehensive list of leading platforms.