Crypto.com versus BlockFi, are there any stark differences between the two? As it turns out, their products are worlds apart. While both services were established at around the same time (2016 and 2017, respectively), one offers far more than the other.
Crypto.com has been one of the fastest-growing exchanges on the planet over the past few years, becoming a crypto-based bank of sorts providing an all-encompassing range of features.
On the other hand, BlockFi is not so much a complete exchange like Crypto.com and focuses much of its marketing on crypto savings and loans. The US-based service was one of the first to offer this service with competitive interest rates.
Nonetheless, let’s explore what each facility offers to clients and the benefits and drawbacks of each.
What is Crypto.com?
Crypto.com is a comprehensive crypto exchange specializing in crypto-related payment, trading, and miscellaneous services. The brand was initially founded under the name ‘Monaco’ in July 2016.
When the exchange was renamed Crypto.com in July 2018, it was reported the brand purchased this elusive domain name for $12 million, with other sources suggesting a lot more.
This event defines the serious intent of the exchange accelerating ‘the world’s transition to cryptocurrency.’ Crypto.com is regularly among the top 10 exchanges processing the most trading volume.
What is BlockFi?
BlockFi is a retail-focused, institutionally-backed crypto lending and earning platform founded in 2017. The brand lends a handful of cryptocurrencies like BTC, ETH, and a few stablecoins, which users put up as collateral.
While the company serves most of the globe, it’s prevalent among US clients, which is understandable since it’s based in New Jersey.
Aside from lending and earning, BlockFi offers a trading account to buy and sell the cryptocurrencies available on their platform. Another product offered by BlockFi is the VISA-branded, BTC-rewarding credit card.
Features comparison between Crypto.com and BlockFi
Before diving into the pros and cons of each service, let’s observe an overview of the main features they provide.
|Headquarters location||Singapore||United States|
|Security measures||Offline cold storage, two-factor authentication, withdrawal protection, insurance||Offline cold storage, two-factor authentication, bug bounty program,|
|Customer service channels||24/7 live support, email, help center||Phone, email, help center|
|Utility token?||Yes, CRO||No|
|Type of trading offered||Simple exchanging, derivatives||Simple exchanging|
|Number of cryptocurrencies offered||13||100+|
|Deposit/withdrawal methods||Crypto, ACH, bank wire, debit/credit card||Crypto, ACH, bank wire (the latter two not available to all US states)|
|Deposit/withdrawal fees||It varies by coin and method||Varies by coin and method (one free withdrawal per month)|
|Maker-taker fees||0.04-0.4% maker/0.1%-0.4% taker||N/A (up to 1% spread per trade)|
|Interest-bearing accounts?||Yes, up to 14.5% APY||Yes, up to 9.5% APY|
|Crypto lending?||Yes, with a 25-50% LTV ratio||Yes, with a 50% LTV ratio|
|Lending interest rates||8-12%||4.5%-9%|
|Minimum loan amount||$100||$10 000|
|VISA card?||Yes, a debit card||Yes, credit card|
Pros and cons of Crypto.com
Let’s delve into the pros and cons of Crypto.com.
- Utility token: Over the past few years, more and more exchanges have jumped onto the trend of having a utility token; Crypto.com is no exception. CRO has been one of the best-performing utility tokens in the markets.
The point of a utility token is increasing liquidity within an exchange and offering incentives to clients. In CRO’s case, clients staking this coin receive several perks.
By having CRO, users get discounts on maker-taker fees, bigger staking rewards, merchant cashback offers, and better interest rates for lending.
- Lower minimum loan amount: Crypto.com’s lowest amount for borrowing is $100, far lower than BlockFi’s $10 000. Therefore, credit with the former is a lot more accessible.
- Better lending interest rates: For earning from saving or lending out your crypto, you can receive up to 14.5% APY (annual percentage yield), slightly higher than the 9% maximum with BlockFi.
- Supports more cryptocurrencies: Of course, the more, the merrier. With Crypto.com, you can find all the popular digital currencies and several obscure altcoins.
- Offers more types of trading: Aside from simple buying and selling of coins, you can also trade on margin with some cryptocurrencies on the platform.
- Less competitive borrowing interest rate: One of the notable drawbacks with Crypto.com here is you’ll be charged up to 12%. With BlockFi, this figure is up to 9%.
- No phone support: Some clients still prefer human contact, despite Crypto.com offering 24/7 live chat and email support.
- High barrier to entry with CRO incentives: Although this utility token provides some perks, you still need to own a CRO worth thousands of dollars. For instance, you need to stake at least 5000 CRO (roughly $3000 presently) to receive maker-taker fee discounts.
Pros and cons of BlockFi
Now it’s time to observe BlockFi’s pros and cons.
- Competitive lending interest rate: BlockFi’s interest rate for lending starts from 4.5% up to 9%, which is quite competitive. Moreover, these figures are lower than Crypto.com’s.
- Strongly regulated in America: As a US-based entity, BlockFi holds operating licenses in nearly all states in the country.
- Offers VISA credit card with rewards: With this card, users can earn 1.5% in BTC with every purchase with no annual fees (subject to pre-approval requirements).
- Limited choice of cryptocurrencies: BlockFi only supports eight coins, which is far less than the 100+ provided by Crypto.com.
- A limited type of trading: With BlockFi, you can only buy and sell cryptocurrencies without any other trading forms like margin.
- Very high minimum loan amount: $10 000 compared to Crypto.com’s $100? The former is out of reach for the average citizen, meaning Crypto.com is more user-friendly.
If we objectively look at the comparison in features between the two, Crypto.com beats BlockFi in several aspects. As mentioned earlier, Crypto.com is a fully-fledged exchange with a wide range of services and products which only a few competitors can truly match.
Truthfully, clients can do much more on Crypto.com than with BlockFi since Crypto.com is an exchange providing many more products.
Where BlockFi beats Crypto.com is with their lower lending rates and the VISA credit card.