![]() ![]() Coinbase and BlockFi use 2FA, a password, and device confirmation. The Federal Deposit Insurance Corporation (FDIC) insures Coinbase cash balances.īoth crypto platforms offer a hot wallet. In comparison, Coinbase stores 98% of account funds offline in cold storage and holds an insurance policy that protects funds in hot storage against theft or fraud. As part of their partnership, Gemini keeps an overwhelming majority of the crypto holdings in cold storage and insures their hot wallets through Aron. BlockFi uses Gemini as a primary custodian, meaning Gemini handles and oversees the funds. They use bug bounty programs to find security weaknesses. Both follow know your client (KYC) and account verification methods. These U.S.-based exchanges operate under strict regulatory standards and meet or exceed industry guidelines. However, on both platforms, users can purchase coin fractions. Coinbase accepts cash deposits and over 20 fiat currencies, including USD, EUR, and GBP. Instead, it turns your wire or bank transfer into the stablecoin, GUSD. BlockFi also doesn’t support fiat currencies. Of these coins, you can’t purchase PAX, PAXG, or GUSD on Coinbase. In contrast, BlockFi only supports eight: BTC, ETH, LTC, PAXG, USDC, USDT, GUSD, and PAX. The coins include many popular options, such as DOGE, BAND, and BCH. Coinbase supports 150 cryptocurrencies, most of those for purchase by U.S.-based investors. When it comes to selection, Coinbase is the clear winner. Furthermore, both BlockFi and Coinbase support institutional or business users. There’s no annual fee, users earn up to 4% in rewards on every purchase, and "can spend crypto everywhere Visa debit cards are accepted," according to Coinbase.Ĭoinbase also offers a native coin, USD Coin (USDC), and users can earn rewards of 0.15% APY for holding it. Like BlockFi, Coinbase is rolling out a Visa Coinbase debit card. On the other hand, Coinbase concentrates on educating investors and letting them earn crypto by watching videos and taking short courses about various currencies. BlockFi is also rolling out a BlockFi Rewards Visa Signature Credit Card, offering 1.5% back in Bitcoin on every purchase and no yearly fees. All loans incur a 2% origination fee, and interest rates range from 4.5% to 9.75%. The borrowing amount depends on the amount of posted collateral and the loan-to-value (LTV) ratio. Other BlockFi products include consumer and business loans. The interest-earning accounts are the top reason why investors select BlockFi. BlockFi converts fiat currency into Gemini Dollars (GUSD) and deposits it into the BlockFi Interest Account (BIA), where it earns 9.5% annual percentage yield (APY) until investors use the currency to purchase cryptocurrencies. BlockFi users send funds via wire transfer or ACH. These trades exchange fiat funds for altcoins. On Coinbase, investors can use Automated Clearing House Network (ACH), wire transfer, or PayPal to purchase crypto. While both Coinbase and BlockFi offer exchange services, they take a different approach. Limits vary based on your payment method and region Two-step verification, FDIC-insured USD balances up to $250,000, bug bounty program, platform insurance against theft, and cold storageĪES-256 encryption, whitelisting, and multi-signature walletsīuy, sell, exchange, send, withdraw, and receiveīased on the user’s account size and historical activity, and varies by customer Two-factor authentication (2FA), cold storage, insurance on hot storage, and a bug bounty program Up to 0.50% spread per trade and 1.49% for Coinbase wallet or bank account purchases Plus, we considered unique features, products, and more to uncover how the platforms differ, making it easier for you to select the right exchange for your needs. We evaluated both exchanges based on the overall cost of investing, supported currencies, and security. For new investors wanting to diversify their investments, Coinbase edges out BlockFi. Although we appreciate the less expensive BlockFi exchange, investors are limited to eight currencies versus the 141 that Coinbase supports. ![]() Yet, both emphasize security and are suitable for beginners. The companies differ significantly in the cost of investing, the number of supported cryptocurrencies, and the products offered. In comparison, Coinbase focuses on crypto exchange and brokerage services. ![]() It offers loan services and interest-bearing accounts. ![]() While BlockFi is privately owned, Coinbase is publicly traded under the ticker symbol “COIN.” Although both allow investors to buy and sell cryptocurrencies, BlockFi also functions as a crypto bank. BlockFi and Coinbase are U.S.-based companies offering crypto exchange services. ![]()
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