The crypto world has continued to trend, especially in 2022, ignoring the bad run some of these assets are experiencing. Two years back, crypto traders enjoyed the bullish trend, and the trend is thanks to traders being able to access the different digital assets. You can also thank the exchange platforms that have made accessibility possible.
Exchange platforms faced different troubles when they first launched and during the boom of cryptos. In 2014, for instance, Mt Gox, the largest crypto exchange, closed its website and suspended all its exchange services and training. But this hasn’t stopped more crypto exchange platforms from popping up. Exchange platforms like BlockFi and Binance emerged three years later. Now, they are referred to as some of the top dogs in the game. But how different are they?
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Main Difference Between BlockFi and Binance
| BlockFi | Binance |
| BlockFi started as purely a crypto interest platform but started offering crypto trading services later. | Binance started as a Global Crypto exchange which later morphed into offering various services such as crypto holdings. |
| BlockFi supports six main cryptocurrencies. They are LINK (LIKK), Bitcoin (BTC), Paxos Gold (PAXG), Paxos Standard (PAX), Ethereum (ETH), and Litecoin (LTC). | Binance lists more than 250 cryptocurrencies. Both the popular cryptocurrencies and the stable coins such as USDT exist on Binance. |
| The interest rates have understandable terms. For example, it needs no additional requirements for the minimum withdrawal, a credit card is a reward by bitcoin, and they are no monthly fees. | Binance provides advanced features. |
| Only three collateral options exist on the platform | The interface is fast and easy |
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Features and Capabilities of BlockFi Vs. Binance
BlockFi
BlockFi offers a non-bank lending service by leveraging a good infrastructure that works well with multiple blockchains to deliver the best-in-class client service and support. In addition, the exchange platform will expand the products and services. For example, Gemini Trust Company, LLC (the company that owns the platform) plans to expand its products and services based on the cravings of its users and the needs of the retail clients.
The company also claims your account will generate more interest and unlimited 1.5% refunds in Bitcoin for purchase with no transaction or annual fees. In addition, users can earn between 3% to 8.6% compound interest on all crypto assets, depending on the types of currency and market value fluctuation.
BlockFi’s annual percentage yield depends on two main factors:
- Tier
- Cryptocurrency
BlockFi also supports the lending of 10 cryptocurrencies. There are three different tiers for ETH and BTC and two tiers for the other cryptos.
Binance
Binance has a mix of finances and digital technology. It provides access to over 500 cryptocurrencies while prioritizing and upholding liquidity and security, making it a safe and efficient crypto exchanging platform for everyone. Binance is the largest in terms of market capitalization, thanks to the fact that it has acquired seven companies, with Swipe.io being the latest.
Back in 2019, the company started offering futures contracts, thus, leveraging as high as 120 to 125 times the value of the contracts. The platform also lends USD that’s backed with cryptocurrency collateral. In addition, Binance has no lock-up period, thus the flexibility of saving on the platform.
With the brand’s spot trading, users can invest in more than 250 crypto assets by trading them from the built-in marketplace. It also offers margin trading. In addition, it supports the buying and selling of crypto futures and options.
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Reasons to Choose BlockFi
BlockFi lend users at 4.5% APR. The amount users can borrow starts at $10000. You can get loans by using your digital assets, in this case, your cryptos, as collateral. The platform’s interest account allows users to deposit their cryptocurrency assets in their savings interest accounts. BlockFi is also easy to use. The trading account is one other reason why you should try it. With this functionality, you can trade up to ten crypto assets and earn instant interest.
BlockFi is a safe and secured crypto exchange platform. It is also regulated and has a mandatory KYC requirement. It also implements best-in-class, sophisticated security protocols to offer users seamless and hassle-free crypto trading and investment experience.
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Reasons to Choose Binance
Binance appeals to all types of traders from all parts of the world, experience levels, and backgrounds. It is great for those in search of an exchange platform where they’ll be able to transact in fiat and cryptocurrencies.
It is also ideal for crypto traders who prefer a safe and secured P2P trading premium service. It also facilitates many different transactions based on the users’ preferences. It also aids the facilitation of fiat currencies.
The speed of transactions is great. Thanks to Binance’s technologically-powered platform, most of the transactions carried out on it happen at jaw-dropping speed.
Binance is also safe and secured. But it has a mandatory KYC requirement, and it isn’t regulated. It still deploys a sophisticated security protocol to deliver a hassle-free and, more importantly, a safe experience to the users.
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Similarities Between BlockFi Vs. Binance
Both BlockFi and Binance are safe and secured. While Binance isn’t regulated, BlockFi, on the other is regulated – it takes nothing away from the fact that it is investing in any of the two. Many users use both exchanges to invest and trade, though it all depends on their exact needs and the coins, they are investing in. Where Binance can attract experienced investors, BlockFi, on the other hand, has an ideal spot for traders who prefer the simplistic approach to trading.
BlockFi Vs. Binance – The Alternatives
- CoinLoan
- Nexo
- Kraken
- Etoro
- Coinbase
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Final Verdict
Binance and BlockFi can be quite difficult when you consider the wide range of services Binance offers its users. But if we stick to lending and savings accounts, BlockFi would be the best pick.
BlockFi edges it for so many reasons. First, it is regulated, unlike Binance. It is also insured in the United States. Binance, on the other hand, is prohibited in Canada, the U.K., and the United States. And even though the company (Binance) has partnered with another crypto exchange platform known as Binance.US, it is still not fully functional in all the states in the U.S.
BlockFi is unarguably better for opening savings accounts and lending money as well. But if what you want is an exchange platform that focuses more on cryptoanalysis and trading, then Binance will be the ideal option.
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FAQs
How can I choose the best cryptocurrency exchange platform for me?
First, evaluate your goals and your knowledge level in the cryptocurrency world. As a beginner, you’re bound to have different objectives than experienced and advanced users. Even if you’ve got goals, it might be quite hard surfing through lots of exchanges and finding the ideal one for you. You need not worry; this article makes the job relatively easy.
What are the cons of BlockFi and Binance?
BlockFi
- It isn’t friendly if you don’t have a robust crypto foundation. As a beginner, BlockFi won’t be the ideal option for you.
Binance
- The Binance platform doesn’t support transactions in some parts of the United States.
- The U.S. version only offers seven cryptos for trading.