In the article below, you can find the comparisons between Coinbase vs Blockchain based on several aspects. They are both user-friendly platforms suitable for beginners. However, they do come with different working mechanisms and features. Because of that, depending on your needs and preferences, either Coinbase or Blockchain will be more suitable for you.
In this article, you can find out about:
– The working mechanisms of Coinbase and Blockchain,
– The available cryptocurrencies on the two platforms,
– The fees of Coinbase and Blockchain,
– The advantages and disadvantages of CoinbasevsBlockchain, and
– The best crypto trading platform, either Coinbase or Blockchain.
Both Coinbase and Blockchain are designed to be as user-friendly as possible. They want to make the world of crypto trading accessible to all people, including total beginners. However, they have taken different approaches and methods for this purpose – see also Coinbase vs Bittrex.
The main difference between Coinbase and Blockchain is that, in Coinbase, the company owns and handles the private keys of the cryptocurrencies on your behalf, whereas in Blockchain you own and handle the private keys by yourself. Whenever you make a transaction on Coinbase, you are actually making a request to the company to execute on your behalf. You can say that Coinbase acts as a middleman between you and the exchange.
Some people may be wondering why someone would give up control and let the company does the job. The reason is convenience. Many people don’t mind giving up control because they don’t care about the complex processes behind the trades. They just want to buy and sell cryptocurrencies with ease and convenience.
On the contrary, Blockchain only facilitates the trades. You have to execute the trades by yourself by interacting with the exchange. Hence, you can have more control and more access to various features. You are also responsible for the security of the private keys. A beginner may find this too overwhelming.
The decision on Coinbase or Blockchain also depends on your preferred transfer methods. For a beginner, Coinbase is indeed much easier to use. The platform provides a number of transfer methods for deposits and withdrawals. You can buy cryptocurrencies by using a bank transfer, credit/debit card, or crypto transfer. You can sell cryptocurrencies and receive the money via bank transfer, PayPal, or crypto transfer.
Well, it is definitely very flexible and adaptable to different people’s needs. But keep in mind that the alternative transfer methods do carry higher fees. Because of this, you may want to avoid using the alternative transfer methods, unless you really have no other choice.
On the other hand, on Blockchain, you can only use crypto transfers for all transactions. Blockchain does not deal with any bank at all. So, in order to trade on Blockchain, you must already have some crypto funds.
This is why you may need to use both Coinbase and Blockchain; you buy some crypto funds first on Coinbase and then transfer it to your Blockchain account to start trading. Vice versa, you may need to use Coinbase as a medium to convert your crypto funds into a local currency.
Coinbase has become one of the largest crypto trading platforms, and it supports the three mainstream cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and LiteCoin (LTC). Thus, it is a great choice for beginners who want to trade only the popular cryptocurrencies and not the more exotic ones.
Similarly, Blockchain is also suitable for people who only want to trade the popular cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH). Unfortunately, Blockchainonly serves those two cryptocurrencies. Unlike some other crypto exchanges, Blockchain does not provide access to the more exotic digital money.
The next thing to consider when choosing between these two crypto trading platforms is their fees. Not only they carry different amounts of fees; they also have different schemes in applying the fees.
Coinbase comes with a set of transaction fees that are pretty high. This is actually a trade-off for the convenience, ease of use, key storage, and security provided by the platform. According to Coinbase, a purchase with a bank transfer has a 1.49% fee, whereas a purchase with a credit/debit card has a 3.99% fee. Fortunately, crypto transfers are free with no additional charges.
On the other hand, Blockchain uses dynamic fees which depend on a number of factors, including transaction confirmation times, network congestion, and size. Sometimes, the fees may become very low, but at other times they become extremely high.
Usually, you will receive higher fees when the network is busy or loaded (such as during sudden rate fluctuations or major world events). You may also get higher fees if your crypto wallet has a history of microdeposits, as your wallet has many inputs from different sources and hence requires more processing time.
Both Coinbase and Blockchain are generally safe and secure, as they have implemented various measures to prevent or defend against attacks. Both platforms have ever been attacked multiple times in the past, but they haven’t been broken. They may shut their services during an attack to find and repair the potential exploit.
Coinbase takes a further step by insuring all transactions and online wallets. It provides up to $250,000 FDIC insurance for an online wallet. This feature gives some peace of mind to many users.
Some people think that Coinbase is risky because the company handles your private keys. On one side, it is a big convenience. You don’t need to worry about security. The company safeguards the private keys for you. On the other side, it also holds a risk of its own. If something goes wrong, the company may just take your private keys and disappear. However, Coinbase has become a large trusted company, so the possibility for this is very low.
On the other hand, with Blockchain, you are responsible for the security of your own private keys. This may be a difficult task, especially for a beginner. People with little security awareness are also at a big risk of getting hacked.
Coinbase vs Blockchain
|- Owns and handles your private keys||- You own and handle your own private keys|
|- Relatively simpler and easier to use||- Relatively more complicated to use|
|- Serves Bitcoin, Ethereum, and LiteCoin||- Serves Bitcoin and Ethereum|
|- Multiple transfer options||- Only allows crypto transfers|
|- 1.49% fee for bank transfers, 3.99% fee for credit/debit cards||- Dynamic fees which depend on confirmation times, network congestion, and size|
So, Coinbase or Blockchain? We recommend you to choose Coinbase because it is much easier and more convenient to use. Coinbase gives you multiple transfer options, and it has clear transaction fees that will allow you to plan and forecast your profits more easily.