Cryptocurrency interest accounts make it possible to earn relatively passive income on digital assets like Bitcoin, Ethereum, and stablecoins like USDC and GUSD, and BlockFi vs. Coinbase is a frequent point of comparison.
BlockFi has been regarded as a standard in the cryptocurrency interest accounts industry, while Coinbase enjoys the strongest and most prominent reputation among the cryptocurrency exchanges.
Both platforms dabble in what the other specializes in– BlockFi offers the buying & selling of cryptocurrency, whereas Coinbase offers some modest interest-generating options for digital assets.
All things considered, which platform would be better for you cryptocurrency interest account requirements? This comparison will compare BlockFi and Coinbase. It will include information about security, interest rates, payouts, as well as security.
By this time, you will have a better understanding of BlockFi and Coinbase, as well as the niche for cryptocurrency interest accounts, and which options might be best for you.
Cryptocurrency Interest Account + Basic Exchange
Cryptocurrency Exchange + Basic Crypto Interest Account
ACH, Wire Transfers, Crypto Deposits
Credit Card, Debit Card, Bank Transfer, Crypto Deposits
External Crypto Wallet, Bank Account
PayPal, Bank Transfer, Withdrawal to External Crypto Wallet
Bitcoin, Ethereum, Litecoin, Link + Stablecoins
Bitcoin, Ethereum, Litecoin, and 58 more
Companies Bios: How Do BlockFi and Coinbase Compare?
Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam. The company is based in San Francisco, CA, and is the most popular cryptocurrency exchange in the United States; it has about 56 million registered users and has over $200 billion assets under management.
It recently IPOd on the New York Stock Exchange and has about a $45 billion market cap, trading under $COIN.
BlockFi was founded by Zac Prince and Flori Marquez in 2017. The company received seed investments from ConsenSys Ventures and SoFi in 2018. BlockFi was valued at $3 billion during its last round of funding, which was completed in March 2021.
BlockFi has around 225,000 users and roughly $15 billion in assets under management. Many notable people have invested in the company.
- Winklevoss Capital
- Bain Capital Ventures
- Pomp Investments
- Tiger Global
- CMT Digital
- Kenetic Capital
Feature #1: Crypto Interest Rates: BlockFi vs Coinbase APY?
Let me preface this section by stating that BlockFi is better than Coinbase for most APY. It was created specifically to be a crypto lending and borrowing platform. Coinbase was originally an exchange. However, it seems that Coinbase is becoming more open to the idea of creating its own cryptocurrency interest product. This section will be updated as needed in the future.
BlockFi uses a tiered interest system for bitcoin. Users who have between 0 and 0.25 BTC earn 5% in APY. Those who have between 0.5 and 20 BTC earn 2% APY. And those with more than 20 BTC earn 0.5% APY.
Coinbase doesn’t offer any interest for BTC stored on its platform as of the time of writing.
BlockFi offers 4.5% APY for a user’s first 15 ETH, 2% on a user’s first 1,000 ETH, and 0.5% APY on anything beyond 1,000 ETH.
Coinbase offers ETH2 staking with an interest rate of 6% APY. This requires that users lock their ETH into a smart contractual. Users cannot access any ETH deposited to this contract until ETH moves towards its Proof of Stake model or the smart contract ends. Coinbase also adds functionality to the contract, which allows users to trade staked ETH in exchange for other assets.
BlockFi provides 8.6% APY for USDC, GUSD and PAX and 9.3% APY for USDT.
Coinbase is actually the creator of the stablecoin USDC, but it only offers 0. 15% on USDC. *sad trumpet sound
BlockFi offers 5.5% APY for LTC and 4.5% for LINK.
Coinbase offers staking for Cosmos and Tezos. These rates can vary, but they are usually as high as 7.5% APY.
How Do BlockFi and Coinbase Make Money?
BlockFi borrows funds to make its money.
A BlockFi user can earn up to 5% APY when they deposit Bitcoins to the platform. However, the company charges around 9. 75% for a USD loan.
BlockFi, a cryptocurrency lending platform, is similar to a bank. BlockFi’s loans can be secured by cryptocurrency users have transferred to the platform. It’s typically necessary to maintain a 50% loan-to-value (LTV) ratio to keep a loan in good standing. For example, if you take out a loan of $10,000 with BlockFi, you need to keep at least $20,000 in crypto on the platform to maintain a 50% LTV ratio.
The risk here is that a sudden drop in crypto prices could cause the LTV ratio to drop below 50%, and you would have to deposit more crypto to return the loan to good standing. The company could liquidate your crypto at a low market time if you are unable to do so. This could result in a loss of your cryptocurrency holdings.
Coinbase is an exchange, and it primarily makes its money by charging transaction fees whenever users buy, sell, or trade cryptocurrency in its platform.
To get a better idea of how Coinbase makes money, we recommend browsing its SEC Form S-1, a document required of companies seeking to be listed on a national exchange via IPO. This document provides an abundance of information about Coinbase’s business operations. BlockFi is a privately-held company whose revenue streams are less transparent.
Feature #2: BlockFi vs. Coinbase Payouts and Withdrawals
Interest on BlockFi accrues daily and is paid out monthly. Each month, the company offers one free crypto withdrawal and one free stable coin withdrawal. Each subsequent withdrawal within the same month is subject to fees.
Coinbase’s staking services accrue interest daily. However, customers need to wait an initial period of 35 to 40 days before withdrawing any of that interest. After this period, users can withdraw their interest every three days.
Feature #3: Security: BlockFi vs. Coinbase
95% of BlockFi’s funds are held in cold storage by its parent company, The Gemini Trust Company, which is regulated by the New York Department of Financial Services. The Gemini Trust Company also recently received recognition from Deloitte for its solid crypto storage practices.
Coinbase stores about 98% of its customers’ assets in cold storage as well. BlockFi provides FDIC insurance for any USD funds up to $250,000, a federal protection offered to the vast majority of banks that hold U.S. Dollars.
However, neither BlockFi nor Coinbase offer FDIC insurance on their cryptocurrency assets, which is what you would have to deposit in order to utilize their interest accounts. Although both platforms take great measures to protect user funds they do not guarantee or cover deposits.
Users need to be careful about their security when using these platforms. Hackers can gain access to your account via your log-in details and possibly withdraw your funds. Transactions are usually irreversible because this is crypto.
However, BlockFi and Coinbase do offer additional measures to prevent this from happening, such as 2-factor authentication. 2FA is a standard layer of protection. It requires that users submit a confirmation code via text message or an app before any logging-in or withdrawals can be made.
BlockFi allows you to “whitelist” certain cryptocurrency addresses. This means that your cryptocurrency can only go to these addresses unless you go through a lengthy process of adding new addresses and identifying yourself.
Coinbase offers a vault feature where users can store cryptocurrency they don’t plan on trading in “vaults”. Cryptocurrency placed in a vault can’t be removed for 72 hours after a withdrawal is initiated. This allows users to respond to any unauthorized withdrawal request and to secure their funds, if necessary.
Feature #4: Ease of Use
Both BlockFi, Coinbase are simple enough to use for beginners. These platforms are simple and do not require any crypto knowledge.
Each service has a mobile application that allows users to access their accounts from anywhere.
Both platforms allow fiat to be deposited.
BlockFi will require any fiat deposits to be automatically converted into GUSD, which immediately begins accruing interest at 8.6% APY per year. This service is free. Users can ACH deposit directly from fiat and claim up to a $250 bonus using this link.
Coinbase allows you to deposit fiat, with which you can directly buy USDC with no fee. You can purchase Bitcoin, Ethereum and other cryptocurrency with a transaction charge. Pro tip: use Coinbase Pro (formerly known as GDAX) if you do want to buy other cryptocurrencies- simply make an account on Coinbase, deposit fiat, make an account on Coinbase Pro (it’s free), transfer the fiat, and buy a wider variety of crypto for much lower fees.
Feature #5: Standout Features
BlockFi’s standout feature is its upcoming cryptocurrency credit card. The card will give users 1.5% back in bitcoin on all purchases, although it is still being released.
Coinbase’s standout feature is its companion service Coinbase Pro, which is intended for more experienced cryptocurrency traders. It allows users to access additional cryptocurrency tokens, and offers lower trade fees.
The Court of Public Opinion: BlockFi vs. Coinbase Reddit
Reddit users tend to view BlockFi and Coinbase more as complements than direct competitors.
BlockFi is an exchange that allows users to purchase a few cryptocurrencies and stablecoins. BlockFi was created to allow users to earn interest in cryptocurrency and borrow USD to fund their digital assets.
Coinbase, on the other hand, is primarily a platform that people use to purchase cryptocurrency. Although it offers some staking opportunities, it doesn’t offer enough interest in Bitcoin or other stablecoins for BlockFi- to be competitive.
Many people have asked Reddit for help in deciding whether to use BlockFi or Coinbase. Many people have suggested that they buy crypto on Coinbase, then transfer it to their BlockFi accounts if they don’t intend on selling or trading it soon.
Can You Trust BlockFi and Coinbase?
BlockFi is one of the most trusted names within the cryptocurrency industry.
Both are home to significant venture capital firms. Coinbase was the first cryptocurrency unicorn valued at over $1B to go public.
BlockFi’s security practices have earned it a stamp of approval from Deloitte and the New York Department of Financial Services.
Coinbase offers users up to $250,000 in FDIC insurance on any USD funds that they store on the platform. The company also says that it holds less than 2% of its customers’ funds online with the rest being placed in cold storage.
Coinbase says that it maintains insurance for the cryptocurrency that it holds online as well. The company will either keep your cryptocurrency offline, where hackers won’t be able to reach it, or they will make sure that your cryptocurrency is online and insured. This makes Coinbase extremely trustworthy.
BlockFi vs. Coinbase: Which is the Better Crypto Interest Account?
BlockFi offers better cryptocurrency interest accounts than Coinbase. It offers higher interest on Bitcoin and Ethereum as well as stablecoins such USDC and GUSD. There are also a number of other altcoins.
To be fair, Coinbase doesn’t actually offer cryptocurrency lending or interest accounts platforms. BlockFi, however, is a better choice for this particular use case. Coinbase has some features that enable depositors to make passive income from their deposits.
We think that Coinbase might offer higher interest rates for cryptocurrency in the future. However, this is only our educated guess. Coinbase is a more robust trading platform than BlockFi, with a greater variety of cryptocurrency and industry-leading security measures.
Most people will benefit from using both Coinbase and BlockFi rather than just one or the other- Coinbase Pro to buy the cryptocurrency (as described above) and then BlocKFi for its interest account.
BlockFi, Coinbase offer sign-up bonuses:
- BlockFi’s sign-up bonuses are staggered by deposit amount: as low as $25 will get you $15 in BTC, and $20,000+ gets $250.
- Coinbase offers a flat $10 when you buy or sell $100 on the platform.
New Non-Custodial Telegram Trading Bot Bitbot Raises $300k In First 72 Hours Of Presale
New York, USA, January 24th, 2024, Chainwire Within 72 hours of its presale launch on the 17th of January, Bitbot raised an incredible $300,000. Bitbot aims to lead the market for Telegram trading bots, a rapidly growing segment of the trading app market that has seen a considerable $7 billion in lifetime trading volume. Telegram…
New York, USA, January 24th, 2024, Chainwire
Within 72 hours of its presale launch on the 17th of January, Bitbot raised an incredible $300,000.
Bitbot aims to lead the market for Telegram trading bots, a rapidly growing segment of the trading app market that has seen a considerable $7 billion in lifetime trading volume.
Telegram trading bots let traders manage a cryptocurrency trading portfolio within Telegram’s app. In practice, this means those investors with heavy telegram usage, which of the 800 million active Telegram users is substantial, no longer need to operate across two applications to manage their trades: an exchange and the Telegram app. Furthermore, Telegram trading bots offer all of the automated trading features seen in exchange apps, bringing the best of two worlds together into one seamless package.
Bitbot’s Technical Product Advisor, Andrew Jacobs, commented: “As we experience a pivotal point in Web3’s evolution, I’m happy to announce Bitbot’s launch. Our mission is to equip retail traders with powerful institution-grade tools in a simple and intuitive trading interface that is backed by robust security. We have a great team and I am looking forward to driving the product’s evolution and meeting the Bitbot community on our regular AMAs, which will be announced on our social channels throughout the presale.”
The Bitbot team is looking to act quickly with a comparatively small $4.3 million raise target, predicting a rapid presale, with prices starting at $0.0100 and ending at $0.0200, potentially offering 100% gains for the early investors prior to the project listing. An additional incentive is the attractive proposition that Bitbot token holders will receive 50% of the company’s profits distributed as a percentage of their holdings once it launches this year.
Bitbot (BITBOT) is available to buy on the official site.
Bitbot’s Push for Mass Market Adoption
Telegram trading bots enhance convenience by enabling users to execute the entire trading process within Telegram, the preferred messaging platform for crypto, bypassing the frequently convoluted user experience associated with exchanges.
Whilst trading volumes on Telegram trading bots have been impressive, it’s obvious that there is still a majority share left in the pie currently dominated by traditional cryptocurrency exchanges. Even Bitspay, consistently ranked among the top 70 exchanges on CMC, has a volume similar to that of all the Telegram trading bots combined. The sheer scale of the opportunity becomes evident in terms of the potential market share, and it’s this kind of potential that’s driving the product and development team and Bitbot to deliver a product suitable for mass adoption.
This is arguably one of the issues with Bitbot’s competitors. Telegram trading bots can be stubbornly complex, with many relying on user commands to operate them. Furthermore, a number of security issues have plagued even the biggest players in the market, leaving a sour taste for some but a potentially very sweet upside for the Bitbot brand.
Bitbot takes both of these issues head-on. Firstly, it gets rid of the need for complex commands by offering an intuitive in-app interface that will be immediately recognisable to exchange users.
Secondly, it offers non-custodial trading, meaning users can integrate Bitbot with their cold wallets and eliminate the uncomfortable need to give up their private keys for the bot’s powerful automated trading features to kick in. This is supported by the brand’s partnership with secure custody technology developer Knightsafe, and is thus far an unprecedented offering in the Telegram trading bot market, a truly unique and innovative approach focusing on institutional-grade asset security.
The bot offers a myriad of advanced features that will appeal to both beginner and advanced traders, from copy trading to automated sniping.
Tokenomics and Presale Roadmap
As per the project’s whitepaper, the Bitbot presale will run through Q1 and see the project list on exchanges in Q2 (unless the presale sells out early, which is possible at the current trajectory).
Allocation details include 30% reserved for the presale, 20% for the development team, 14% earmarked for marketing, 3% for liquidity, 2.3% available to the community (comprising rewards and airdrops), and 10% allocated to a treasury.
The 20% designated for the development team will undergo a 1-year vesting period, ensuring long-term commitment from the team.
Bitbot’s Impressive Journey In the Crypto Market
Unibot and Banana Gun, competing trading bots, swiftly gained prominence, with Unibot’s token price passing $230 in just three months of launch. Investors in Unibot’s presale reportedly saw gains of around 200x, according to a recent CoinDesk article.
Bitbot hopes to follow in their footsteps and its impressive raise has been aided by its community, which rapidly grew over 90K followers on X and over 5100 members on its Telegram within a week of the presale’s announcement. The project is now already in Stage 2, with the token priced at $0.011 and only 9,200,000 tokens left before the price increases by 5% for Stage 3.
Bitbot hopes to attract presale investors on the heels of the recent Bitcoin ETF acceptance and increased trading activity in the cryptocurrency market. This has drawn a significant social following and been picked up by notable crypto publications like Invezz who have already listed Bitbot among their top cryptos for 2024.
Bitbot is a new Telegram trading bot that aims to put institutional-grade trading tools in the hands of retail users, to enable them to trade using a variety of advanced features including sniping and copy trading.
Audited by Solid Proof, Bitbot focuses on security and follows the motto, “your keys, your assets.” To this end the project has partnered with Knightsafe to deliver the world’s first non-custodial telegram trading bot, mitigating against counterparty risk and reinforcing this with anti-MEV and anti-rug technology.
For more information and to buy Bitbot (BITBOT) users can visit Bitbot’s website.
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Ethereum Classic, Blur, and Rebel Satoshi: experts share their price predictions for early 2024
Experts are bullish on Blur (BLUR) in 2024, predicting a surge for the DeFi coin price to 2.3500 by the end of the first quarter. Price predictions for Ethereum Classic (ETC) inspire hope among investors. Top ICO experts advise investors to get in on Rebel Satoshi ($RBLZ) for the best ROI. According to crypto market experts, the…
- Experts are bullish on Blur (BLUR) in 2024, predicting a surge for the DeFi coin price to 2.3500 by the end of the first quarter.
- Price predictions for Ethereum Classic (ETC) inspire hope among investors.
- Top ICO experts advise investors to get in on Rebel Satoshi ($RBLZ) for the best ROI.
According to crypto market experts, the recent Bull Run suggests that investors in top crypto coins may find success in a few projects, such as Rebel Satoshi, as well as certain top DeFi projects, such as Blur and Ethereum Classic.
Let’s look at what sets $RBLZ apart from the crowd of altcoins, like BLUR, ETC, as one of the best cryptos to buy in early 2024.
Analysts predict a significant uptick for BLUR
As of December 18, OKX’s NFT platform outperformed the 24-hour trading volume of Blur, a well-known NFT marketplace. However, two weeks later, the Blur marketplace has recovered, accruing more volume to claim second spot among the NFT marketplaces in terms of volume.
Following these developments, the value of BLUR has risen. The value of Blur on December 18 was $0.4324. Since then, the BLUR token price has risen to $0.6664 on January 19, indicating a 54.12% increase. Experts are pleased with these developments and have predicted that the price will rise further to $2.3500 by the end of the first quarter.
On the contrary, in their price forecasts, some other BLUR analysts have cited price volatility as the reason why BLUR will decline in value to $0.1600 by the end of the first quarter.
ETC surges after the dissolving of ETHW Dev team
Recent news reports from the Ethereum Classic ecosystem claim that the Ethereum Proof of Work’s main development team was dissolved on December 19 to transition to community governance. This has translated to a proposal for a similar action for Ethereum Classic.
The value of ETC on December 19 was $19.71. In the two weeks since then, the DeFi coin price has risen to $24.75 on January 19, indicating a 25.57% increase in ETC’s valuation.
Regarding the ETC price prediction, experts on Ethereum Classic have expressed satisfaction over these developments and have predicted that the value of ETC will see a further rise to $40.00 by the end of March.
Conversely, some other analysts of Ethereum Classic have cited the lack of partnerships in the Ethereum Classic ecosystem as the reason why ETC could decline in value to $15.50 by the end of March.
Rebel Satoshi (RBLZ) continues to rise in presale
Rebel Satoshi has distinguished itself as an interesting investment option among a sea of cryptocurrency meme currencies. This meme coin, inspired by Satoshi Nakamoto and Guy Fawkes, has piqued investors’ interest even in the pre-sale stage. Rebel Satoshi’s native token, $RBLZ, aims to usher in a new era of decentralization. Its goal is to create a community that allows underdogs to collectively oppose centralized systems.
Rebel Satoshi‘s native coin, $RBLZ, has set presale records as the Early Bird Round 1 and Rebels Round 2 sold out completely in 10 and 15 days, respectively. Additionally, in the just finished Citizens Round 3, $RBLZ traded for $0.020. Over 120 million $RBLZ tokens have been sold thus far, with the Monarchs Round 4 of the Rebel Satoshi presale currently underway, seeing $RBLZ valued at $0.022.
This pricing provides a 120% ROI for those who bought $RBLZ at the $0.010 Early Bird Round price. When $RBLZ reaches its listing price of $0.025 in February, it will reward early investors with a 150% ROI.
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BIS unveils 2024 strategy: focus on CBDCs and tokenization
BIS’s 2024 Strategy Unveiled: CBDCs and Tokenization Key Focus. Project Promissa to digitize Promissory Notes using blockchain tech. Project Aurum advances CBDC privacy in retail payments with HKMA. The Bank for International Settlements (BIS) is set to make significant strides in digital currency research, emphasizing central bank digital currencies (CBDCs) and tokenization in its 2024…
- BIS’s 2024 Strategy Unveiled: CBDCs and Tokenization Key Focus.
- Project Promissa to digitize Promissory Notes using blockchain tech.
- Project Aurum advances CBDC privacy in retail payments with HKMA.
The Bank for International Settlements (BIS) is set to make significant strides in digital currency research, emphasizing central bank digital currencies (CBDCs) and tokenization in its 2024 strategy.
The BIS Innovation Hub has outlined a comprehensive program, featuring six new projects, exploring cybersecurity, financial crime, CBDCs, and green finance. Among the key initiatives are the second phase of Project Aurum and the launch of a blockchain-based tokenization project, Project Promissa.
Project Promissa: revolutionizing financial instruments with tokenization
Project Promissa, a collaborative effort involving BIS, the Swiss National Bank, and the World Bank, aims to usher in a new era for financial instruments. Focusing on digitizing promissory notes, a traditional yet paper-based financial commitment, the project leverages blockchain technology to enhance transparency and simplify management.
This proof-of-concept platform is set to revolutionize the handling of promissory notes by digitizing them, aligning with the BIS’s commitment to exploring innovative solutions in the realm of tokenization. The initiative is anticipated to conclude its proof-of-concept phase by early 2025.
Project Aurum: advancing CBDC privacy in retail payments
Building on the success of its wholesale interbank system and retail CBDC prototype in 2022, Project Aurum, conducted jointly by BIS and the Hong Kong Monetary Authority (HKMA), progresses into its next phase.
The project explores the privacy aspects of retail payments using CBDCs. With the HKMA’s achievements in developing a robust foundation for Aurum, the research now delves deeper into understanding the intricacies of privacy in retail CBDC payments. This initiative aligns with the broader BIS strategy, highlighting the pivotal role of CBDCs in the evolving landscape of digital currencies.
BIS’ additional initiatives
Alongside tokenization and CBDC-focused projects, BIS introduces four other initiatives – Project Leap, Project Symbiosis, Project Hertha, and Project NGFS Data Directory 2.0 – addressing cybersecurity, green finance, and financial crime.
These projects underscore BIS’s commitment to a multifaceted approach to shaping the future of financial technology. Additionally, the continued focus on projects like Mandala, Pyxtrail, and Cambridge showcases BIS’s dedication to innovation, automation, and experimentation across diverse aspects of the financial industry.
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