With about 56 million users, Coinbase powers the crypto economy. But they don’t pay you interest. If you have at least 5% of your net worth sitting in crypto, this could be material. Any money left on the table is a waste, really.
I’ve held cryptocurrency and continually bought more since 2017. I have been a Coinbase basic bitch all these years. Yesterday I moved my assets from Coinbase to BlockFi. If you’re landing on this post because you’re looking for a BlockFi referral link / promo code, here you go. <– Get $10 in Bitcoin when you sign up with my link.
Info on why I transferred my crypto is below. This post is not sponsored or an ad, it’s just what I’m doing and why.
Quick comparison – BlockFi vs. Coinbase:
BlockFi and Coinbase are U.S.-based companies offering crypto exchange services. While BlockFi is privately owned, Coinbase is publicly traded under the NASDAQ ticker symbol $COIN. Although both allow investors to buy and sell cryptocurrencies, BlockFi also functions as a crypto bank.
Coinbase at a Glance:
- Coinbase has 56 million verified users. The platform has added 13 million new users over the past 3 months alone. And Coinbase’s user base has increased by 64.7% since March 2020.
- Coinbase is a secure platform that makes it easy to buy, sell, and store cryptocurrency like Bitcoin, Ethereum, and more.
BlockFi At a Glance:
- A report by the Block also states that BlockFi has over $8 billion in total client balances and more than 125,000 funded accounts as of the end of 2020.
- “Founded in 2017 by Zac Prince and Flori Marquez, BlockFi quickly became a leading cryptocurrency lending provider. Its products span multiple categories including crypto-collateralized USD loans (Clients can gain liquidity without having to give up their crypto assets by simply depositing their cryptocurrency as collateral and taking loans against that collateral in fiat) and interest-bearing accounts through which investors can earn up to 8.6% APY interest on their crypto holdings.” –BlockFi Gets A $3 Billion Valuation With New $350 Million Series D Funding, Forbes, March 2021
Sign up for BlockFi and get $10 in free Bitcoin, plus start earning interest on your cryptocurrency at up to 4.5% APY, and earn 7.5% APY on GUSD (Gemini US Dollar, which beats the hell out of your savings account.)
What is the difference between Coinbase and BlockFi?
Unlike Coinbase, which operates as an exchange for both retail and institutional clients, BlockFi is essentially a modern-day crypto bank (without insurance) that pays account holders significantly higher interest than traditional banks.
Why I moved my crypto assets to BlockFi:
- As of this writing I am now earning 5.00% interest APY on my BTC and 4.50% on my Ethereum in BlockFi. In Coinbase I was earning 0.
- Coinbase charges you fees to buy crypto. BlockFi does not charge fees to buy crypto.
- You can transfer funds from Coinbase or other wallets in as little as thirty minutes (though it could take a couple business days if you move a lot, like over $10,000 worth of a coin).
- BlockFi now offers a feature allowing users to seamlessly trade between BTC, ETH, LTC, USDC, PAX, BUSD, and GUSD on the platform.
- Your assets are securely stored at a unique wallet address generated by Gemini, a New York trust company licensed by the New York State Department of Financial Services. Gemini is a fiduciary under §100 of the New York Banking Law and held to specific capital reserve requirements and banking compliance standards. Gemini also has digital asset insurance coverage and is SOC 2 Type 1 security compliant on its exchange and custodian platform.
- BlockFi is offering the first Bitcoin rewards credit card.
7/13/2021 Update: I got approved for the BlockFi credit card, yay! There’s a waitlist you can join. You know I love credit card rewards points (check out my YouTube videos on Chase Ultimate Rewards and AmEx Membership Rewards points).
Let me tell you, this card is badass. First, getting rewarded in cash back or airline miles are both vulnerable to deflation and devalution. I want to be rewarded in crypto. And look at the early perks (see below the next image):
Join the waitlist for the BlockFi credit card with my link and we’ll both start earning bitcoin soon.
BlockFi Bitcoin Credit Card Perks:
- Intro bonus: Earn 3.5% Bitcoin rewards on all purchases in the first 90 days of card ownership, up to $100 in Bitcoin
- 2% extra APY on your average daily USD-backed stablecoin balance, paid in Bitcoin, up to $2000.
- 25% back in Bitcoin on all eligible trades, up to a maximum of $500 in Bitcoin each month
- Earn 2% back in Bitcoin on every dollar over $50,000 of annual spend
- $30 in Bitcoin for every client referral, on top of the base Refer-a-Friend program
- No international transaction fees
Disclaimer: I am not a crypto expert by any means. I know enough to understand it and I believe in it for many reasons. I’ve been long BTC for five years.
I am not a financial advisor. The EXPERT on all of this is my friend Tyrone Ross, CEO at Onramp Invest. Follow him and listen to his podcasts. Another way to get the scoop from Tyrone and his team who really know it all: this is cool:
1-click enable Onramp Invest’s WealthVoice app on Alexa and hear the latest update hands-free.
(Learn more about how Onramp puts out hands-free updates on WealthVoice.ai, the voice marketing platform for financial professionals.)
I’m simply sharing what I’ve done because there are many people out there in a boat like mine, with a similar knowledge level, who may be looking for this information. Do what works for you. There are no guarantees in this asset class, but there are no guarantees with any investment. If you are IN IT, you might as well be earning some interest ON IT, right?