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Minority Mindset, LLC is an independent, advertising-supported publisher. We are not an investment advisor. Always do your own due diligence and never blindly listen to a random article on the internet. We do our best to provide financial education with our free videos, articles, tools, and other self-help content. But these are for informational purposes only, they’re not investment advice.

Minority Mindset does not and cannot guarantee the accuracy or applicability of any information regarding your individual circumstances. The examples we provide are hypothetical and we encourage you to get advice from a qualified professional regarding specific investment, tax, legal, and financial issues. Previous market performance does not guarantee future performance.

We want everyone to be able to make educated financial decisions. We do not feature every company or financial product available. However, we’re proud of the financial education and guidance that we provide at no charge.

We’re paid by our brand partners and advertisers. This may influence which products we mention, review, and where they appear on our site. But it does not affect our recommendations or advice.

See more from Cryptocurrency Investing

Coinbase VS BlockFi – Which Should You Choose?

March 28, 2022 by Joseph Wairimu

Joseph Wairimu March 28, 2022

Coinbase vs BlockFi

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Back when I started investing in crypto, there weren't many apps to choose from. Today, there’re tons of different apps that cater to a variety of different investors’ needs. Coinbase & BlockFi emerge as the two largest and have some similarities, both are unique and offer users completely different crypto investing experience.

BlockFi offers users low fees, eight different coins to buy and trade, and is better suited for the long-term investor, while Coinbase caters more to the beginner investor, offering its users better customer service and learning opportunities, but does have higher fees and over 141 coins to invest in.

If you’re on the fence about which option to choose, this article is going to compare both apps in terms of UI, features, and security. In addition, we’ll go over some of the top pros & cons of each option, so you can decide which one is right for you and your crypto holdings.

PlatformFeesPromotionsLink
Block Fi Logo$0 FeesEarn up to $250 in BTC bonus when you sign up and fund your new account.Learn More
0.5% - 4.5% Other fees may apply.Get $5 in Bitcoin when you complete your first trade.
Learn More
0.9% - 2% Other fees may apply.
No promotions at this time.Learn More
0.5% - 3.99% 
$20 of BTC for new users after trading $100 or more within 30 days.
Learn More

Coinbase VS BlockFi: A Quick Overview

Coinbase and BlockFi are both US based digital  cryptocurrency exchanges that allow users to trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and other popular cryptocurrencies. 

Both allow you to purchase crypto assets, store them in a digital wallet, and even earn interest on your crypto holdings. 

Think of them both like a brokerage, but for crypto investments, instead of stocks. Coinbase and BlockFi connect you with all of the top cryptos and altcoins on the planet, like Bitcoin and Ethereum.

CoinbaseBlockFi
Number Of Coins Available50+6
APY RatesUp to 5%Up to 8.6%
SecurityID Verification, Cold Storage, Wallet Security and 2FAID Verification, Cold Storage, Insured Hot Wallet, 2FA
Countries Available In100+100+
FeesUp to 0.50% spread per trade and 1.49% for Coinbase wallet or bank account purchasesUp to 1% spread per trade
Learn More

Coinbase also has its cryptocurrency exchange, GDAX, offering advanced trading features to traders who want more than just a simple broker platform. It also provides custodial wallet services for individuals and institutions so they can keep their coins safe in cold storage.

BlockFi is a cryptocurrency lending platform that allows users to earn interest on their crypto assets by placing them on the platform as collateral. They offer up to 8% APY on USD stablecoins, which makes it an excellent opportunity to earn passive income from your crypto investments.

Coinbase and BlockFi both have strong reputations and excellent customer support. However, there are essential differences between these companies that you should be aware of before choosing one.

Sign Up With Coinbase Today And Get $5 In BTC After Your First Trade

Coinbase VS BlockFi – What Each Offers

When it comes to Coinbase vs. BlockFi cryptos, it’s all about which type of investor you are. Are you the crypto-curious type, the HODLer, or the native professional trader? 

You need to know what your purpose is for investing in crypto. Is it to get rich quick ? Is it to build some long-term capital? Or are you looking to hedge against the volatile economy? It’s best to choose either Coinbase or BlockFi based on the kind of investment you need. What your purpose is for buying crypto, here’s how you can decide which of the two platforms is better for you.

Who Is BlockFi Best For?

With BlockFi, it’s preferable if you’re a long-term investor (which means you plan on holding your investment for the long-term). Even though BlockFi only offers a handful of coins, it gives you a decent compounding interest that’s beneficial in the long-term. 

However, you’ll have to deal with very minimal withdrawals since it allows only one free withdrawal per month. So, if you’re a frequent crypto trader, who likes to invest based on changing markets, then BlockFi isn’t your cup of tea. BlockFi is mainly a place for lending and borrowing and not so great for exchange.

BlockFi Interest Account

BlockFi allows you to deposit Bitcoin (BTC), Ethereum (ETH), or Gemini Dollar (GUSD) into an interest account that accrues compound interest monthly.

coinbase vs blockfiInterest rates vary by asset and whether your balance is greater than $25,000 or less than $25,000. Crypto deposited into BlockFi Interest Accounts is not available for trading.

Click Here To Get Up to $250 When You Fund A BlockFi Interest Account Today

Who Is Coinbase Best For?

On the other hand, Coinbase is perfect for newbies. Thanks to the 141+ coins it offers, you can experiment with all kinds of cryptos. This also makes it a perfect place to trade crypto. And because of its unlimited monthly withdrawals, Coinbase lets you trade as often as possible. 

Some of the coins offer amazing interests, which are great earning opportunities. They also don’t have hidden fees except for 0.5% on conversions.

Coinbase Earn 

Coinbase Earn offers users the chance to learn about specific cryptocurrencies and earn money for doing so. The program is free to use and does not require you to purchase any asset in order to participate.

coinbase vs blockfi

The amount of money you can earn from each course varies, but some people have reported earning $30 or more for completing a course.

To participate in Coinbase Earn, you must create an account with Coinbase and complete your KYC verification. Once you’re signed up, scroll down on the dashboard and locate Earn. Click View All Earn Opportunities to browse through available courses.

Nonetheless, it’s advisable to read up all fees for both BlockFi and Coinbase before investing in either platform. For instance, except for the major coins like BTC and ETH, Coinbase may invoke some significant costs on other coins. At the same time, novice crypto traders tend to make expensive mistakes when moving their cryptos. So be cautious. 

The bottom line though, is to try using both platforms based on their respective strengths – BlockFi for long-term investments while Coinbase is perfect for frequent crypto traders and newbies who can experiment with coins other than BTC and ETH.

Coinbase Pros

User-friendly Interface

Coinbase has a user-friendly interface that makes it easy for beginners to navigate the platform easily. The exchange provides users with a large amount of information on each cryptocurrency, including short videos describing them. 

Coinbase also has an intuitive dashboard that displays information about the user's account balance and current market prices for cryptocurrencies. 

Additionally, users don't need to use complex wallet addresses when sending or receiving funds on the platform. They can link their accounts and transfer money using email addresses or phone numbers.

Easy To Transact 

You can load your account with a debit/credit card or via a bank transfer quickly and easily. There are only 2-3 fees involved when you buy from Coinbase. These include:

  •  The spread (fee) between the buy and sell price of Bitcoin on Coinbase is typically 1%.
  • Fixed percentage fee (varies depending on the payment method used) when you buy or sell digital currency. This is typically 3.99% if you use a debit/credit card and 1.49% if you use a bank transfer. 

In addition, Coinbase offers very high limits. Limits depend on your account level, which is determined by how much information you have verified. Fully verified US customers may buy up to $50,000 worth of bitcoin daily.

Learn More About Coinbase Here

Wide Range Of Cryptocurrencies

Coinbase offers its users access to a 141+ crypto related assets, wide range of coins and tokens, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and Basic Attention Token (BAT).

Secure

Coinbase uses two-factor authentication (2FA) where customers are required to submit phone numbers for verification purposes when signing up for an account. 

Once you have enabled two-factor authentication, each login will require you to enter both your password and a code from your phone. You can also choose to receive a text message or a voice call to receive the code.

It also has the Google Authenticator code. You can generate one-time passwords on Coinbase's website by linking your Coinbase account to Google Authenticator and scanning the QR code shown on the dashboard of your account.

Coinbase Cons 

High Fees

Fees might be higher than other exchanges as Coinbase primarily targets new users who might not be aware of other cheaper options that offer instant conversion to fiat money equivalent amounts.

It’s access fees are some of the highest in the industry, meaning, you’ll be charged a percentage fee every time you deposit money into your account or make a transaction.

Here’s the basic access and transaction fees for Coinbase:

Sign Up For Coinbase Here

Accepts Mostly US Customers

The downside of Coinbase is that it is a US company that only accepts US customers. This means if you are not located in the United States, you will have trouble finding a local exchange. However, many other exchanges around the world work with other countries as well as the United States, so this should not be a problem for most people.

BlockFi Pros

Monthly Interest

BlockFi Interest Account (BIA) pays out monthly interest on cryptocurrency assets stored on the platform and allows users to earn compound interest on their holdings.

Clients are able to deposit BTC or ETH into their BlockFi Interest Account (BIA) and receive interest in BTC or ETH based on the balance held in their BIA at the end of each month. 

There are no deposit limits, meaning you can keep your entire portfolio with BlockFi if you would like to do so. Their clients come from all over the world and they have been featured in well-respected publications such as Forbes, Bloomberg, CNBC, & Yahoo Finance.

Click Here To Sign Up For BlockFi

Excellent User Interface

Their website has an excellent user interface (UI), making it easy for users to sign up for an account, deposit funds, apply for a loan, withdraw funds, and more without any technical knowledge of how cryptocurrency works.

Offers Credit Card For Cryptocurrency Purchases

BlockFi is one of the few platforms offering a credit card for cryptocurrency purchases. The BlockFi Rewards Credit Card offers unlimited 1.5% cash back in Bitcoin on every purchase and no annual fee or foreign transaction fees.

Backed By Industry’s Biggest Names 

The crypto-backed loan product is backed by the leading crypto asset accounting firm BPM, LLP. The company also works with Gemini Trust Company LLC, a New York State trust company, for banking services and custody of cash reserves.

Learn More About BlockFi Here

BlockFi Cons

Lack Of Many Withdrawal Options

The lack of withdrawal options can be a disadvantage to some people as they are not able to withdraw their funds in fiat currency. The only withdrawal option available to them is a cryptocurrency, which will take time for the transaction to complete.

Interest Account Is No Longer Available To US Citizens

Due to legal issues from the SEC, the interest account that many investors were eyeing for is no longer offered for US citizens.

In replace of that, BlockFi is exploring new options that allow users to earn interest on their crypto investments as an SEC approved security.

How They Compare – Comparison Between Coinbase VS BlockFi

Both are giants in the crypto lending and borrowing space. We’ll take a look at all their features side-by-side so that you can see the key similarities and differences between these two platforms and decide which one is best for your needs.

CoinbaseBlockFi
Number Of Coins Available50+6
APY RatesUp to 5%Up to 8.6%
SecurityID Verification, Cold Storage, Wallet Security and 2FAID Verification, Cold Storage, Insured Hot Wallet, 2FA
Countries Available In100+100+
FeesUp to 0.50% spread per trade and 1.49% for Coinbase wallet or bank account purchasesUp to 1% spread per trade
Learn More

Which One Should You Choose? – Coinbase VS BlockFi

All in all, your preference will depend on the investing style you admire. If cost isn't a factor to you, then feel free to use either one: they’ll both help you earn in 2022.

Therefore, if you’re looking for lower fees with better, low minimums, then Coinbase is your go-to for cryptocurrency. It’s such a perfect option for long-term investors. 

On the other hand, if you prefer trading more coin options, and an impressive user interface is your cup of tea, then BlockFi is exactly what you need.

What about security? Well, both Coinbase and BlockFi guarantee safety and both platforms hold your funds in cold storages, with third-party insurances. So it means you don’t have to worry about losing your funds. 

Keep Reading:

  • BlockFi Review 2022 – How To Use BlockFi For Beginners
  • Can You Use More Than One Investing App?
  • Coinbase Review 2022 – Everything You Need To Know

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Written by Joseph Wairimu.

Joseph is a writer and copywriter, and his main focus recently has been simplifying blockchain technology to those new to it.

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Advertiser Disclosure

Our promise to you.

Minority Mindset, LLC is an independent, advertising-supported publisher. We are not an investment advisor. Always do your own due diligence and never blindly listen to a random article on the internet. We do our best to provide financial education with our free videos, articles, tools, and other self-help content. But these are for informational purposes only, they’re not investment advice.

Minority Mindset does not and cannot guarantee the accuracy or applicability of any information regarding your individual circumstances. The examples we provide are hypothetical and we encourage you to get advice from a qualified professional regarding specific investment, tax, legal, and financial issues. Previous market performance does not guarantee future performance.

We want everyone to be able to make educated financial decisions. We do not feature every company or financial product available. However, we’re proud of the financial education and guidance that we provide at no charge.

We’re paid by our brand partners and advertisers. This may influence which products we mention, review, and where they appear on our site. But it does not affect our recommendations or advice.

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