5 Key Differences Between BlockFi & Coinbase

Did you know there are over 10,000 cryptocurrencies being traded around the world! The increasing popularity of crypto trading has led to the conception of numerous crypto exchange services—of which two of the most popular are BlockFi and Coinbase. But how do these crypto exchange services differ?

Here’s a look at 5 key differences between BlockFi and Coinbase.  

1. BlockFi isn’t Publicly Traded

Have you ever bought shares in a company? Businesses that issue shares to the public are known as publicly traded companies. Their ownership is divided among everyone that holds a share.

Coinbase is publicly traded on the electronic securities exchange NASDAQ under the ticker name “COIN.” In comparison, BlockFi is a privately held crypto exchange service.

2. BlockFi Provides Crypto Banking Services

Did you know BlockFi also operates as a crypto bank? In other words, it issues accounts that reward savers with interest and sells financial instruments like term deposits.

In contrast, Coinbase doesn’t offer banking services. It focuses solely on helping its clients convert their local currency into cryptocurrency. It also brokers crypto deals between buyers and sellers.

3. BlockFi Doesn’t Charge Exchange Fees

If you’re short of funds to invest in crypto, you’ll love BlockFi! It doesn’t charge any trading fees and offers one free crypto withdrawal per month. In comparison, Coinbase charges a fee determined by the size of the transaction. The lower the transaction volume on Coinbase, the higher the fees charged.

4. BlockFi Supports Far Fewer Cryptocurrencies Than Coinbase

If you’re looking for a crypto exchange service that caters to numerous cryptocurrencies, you’re better off using Coinbase. BlockFi allows users to buy, sell, and trade well-known cryptocurrencies such as Ethereum, Bitcoin, and Solana. In comparison, Coinbase supports trades for over 100 cryptocurrencies.

5. BlockFi Has Higher Market Volatility than Coinbase

Have you ever heard of the financial term “spread?” It’s the difference between the bidding price and the asking price for a security.

For instance, if the bid price of a stock is $99.50 but the asking price is $100, the spread is 50 cents. Spreads are usually indicated as a percentage—so in this case, it’s 50 cents as a percentage of the $100 asking price, making it 0.50%.

BlockFi has a higher spread than Coinbase, which means the difference between the bidding and asking price is greater. In other words, there is greater market volatility—and therefore, higher earning potential—on BlockFi. However, this also means BlockFi is a riskier exchange because high market volatility increases the likelihood of sudden losses.

Now that you know some of the main differences between Coinbase and BlockFi, why stop there? At Urban Crypto we offer a beginner’s guide to Coinbase as well as comprehensive information on getting started with BlockFi. We also provide answers to the most googled Crypto questions and regularly publish crypto news and articles to help our clients decide which wallets and exchanges to invest in.

If you’re eager to learn more about how we help amateur crypto investors make the most of platforms like Coinbase and BlockFi, reach out to us today!

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