BlockFi vs. Gemini | Side-by-Side Comparison

BlockFi vs. Gemini Overview

BlockFi Overview

BlockFi is one of only a few regulated crypto-lending providers in the United States. The firm was established in 2017 and is based in New Jersey. The corporation estimates that the site’s user assets are worth at least $1.5 billion. Morgan Creek and Valar, two of the world’s most well-known private equity groups, have also invested. Government-registered and regulated crypto-lending platforms are uncommon in the United States. The firm was established in 2017 and is presently based in New Jersey. The organization’s platform has user assets valued at least $1.5 billion. Furthermore, the business has the backing of notable investors such as Morgan Creek, Bain Capital Ventures, and Valar.

As part of a recent agreement with the SEC, the business admitted to failing to register its retail Bitcoin lending product. In February, BlockFi agreed to pay a $50 million penalty to the SEC and another $50 million to 32 states, according to the SEC. As part of the settlement, BlockFi was also ordered to cease providing BlockFi Interest Accounts to customers in the United States. To learn more about the SEC case, we contacted BlockFi, which responded that it is attempting to bring its product into conformity with the guidelines and register with the SEC under the appropriate statutes, after which it intends to relaunch its crypto interest-earning product to US consumers.

Gemini Overview

Regarding Gemini, Cameron and Tyler created the private New York trust business in 2014. Customers can easily purchase, sell, trade, store, and hold digital assets. As the best crypto exchange in 2019 and a trusted digital asset provider, the exchange has developed a good name in the market.

Gemini Earn, Gemini Pay, and Gemini Wallet, among other services, can provide investors with access to a more tightly integrated ecosystem than those offered by rival exchanges. Even yet, retirement-minded investors should remember that purchasing and holding (or HODLing) is the game’s name, and none of these particular attributes are necessary for that.

Cryptocurrencies Available

BlockFi doesn’t provide many cryptocurrencies, yet it does feature some of the most popular ones, including:

• Bitcoin (BTC)
• Tether (USDT)
• Ethereum (ETH)
• U.S. Dollar Coin (USDC)
• Litecoin (LTC)
• Algorand (ALGO)
• Bitcoin Cash (BCH)
• ChainLink (LINK)
• Pax Gold (PAXG)
• DAI (DAI)
• Uniswap (UNI)
• Basic Attention Token (BAT)

Gemini supports over 70 cryptocurrencies including:

• Bitcoin (BTC)
• Dogecoin (DOGE)
• Ethereum (ETH)
• Litecoin (LTC)
• Chainlink (LINK)
• Filecoin (FIL)
• Bitcoin Cash (BCH)
• Polygon (MATIC)
• Uniswap (UNI)
• Dai (DAI)

There are withdrawal fees associated with each cryptocurrency, but these don’t kick in until you’ve made more than ten withdrawals in a calendar month.

You can trade only the smallest amount of each coin on Gemini (the smallest amount of Bitcoin you can trade, for example, is 0.00001 BTC). On its website, Gemini provides a list of cryptocurrencies’ trading minimums that you can refer to.

Fees

When looking for a cryptocurrency investing platform, keep the fees in mind since they may significantly influence your entire experience and the amount of money you earn. BlockFi and Gemini aim to reduce or eliminate costs when making a loan or borrowing money.

The price structure of BlockFi is straightforward. The most important expenditure for investors to be aware of in crypto-backed loans is a 2% origination charge, which is included in all of them. This charge and the genuine interest rate should be included in your overall loan costs.

However, Gemini provides a simple fee structure for depositing funds, buying cryptocurrency, and withdrawing funds back to a bank account. Gemini does not charge any fees for depositing fiat or cryptocurrencies from other platforms.

Gemini imposes a flat fee of 0.5 percent (or 50 basis points) over the current Gemini market price for all buy and sell transactions made via online or mobile trading applications. Aside from the usual blockchain network charge, no further charges are associated with moving digital assets (such as GUSD or Bitcoin) or currency via bank account transfer.

BlockFi vs. Gemini Staking

Staking allows you to be compensated for retaining a certain quantity of digital assets in your crypto wallet at any moment. The stated interest returns range from one percent to one thousand percent for staking. You should be cautious when dealing with cryptocurrencies that promise to provide high-interest rates. Many cryptocurrency ventures have been revealed to be fraudulent and irresponsible, while others with good intentions may struggle to succeed in the market. Because interest is paid in cryptocurrency, the future worth of the cryptocurrency invested is crucial. Earning 20% on a currency with no future is virtually worthless. Because you can only stake PoS-based blockchains, staking is not an option for Bitcoin or other digital currencies that use PoW or other ways to secure their networks.

The underlying blockchain system of Gemini allows cryptocurrency holders to lock their assets in smart contracts to obtain crypto staking incentives. They become network verifiers as a result. Like banks reward consumers with interest in savings, Gemini blockchain networks reward validators for their engagement in the ecosystem, which contributes to creating new blocks on the blockchain. Staking directly on blockchain protocols like Cardano, Ethereum, and PolkaDot is preferred by many users of cryptocurrency exchanges.

BlockFi vs. Gemini Credit Card Option

With the BlockFi Rewards Visa Signature Credit Card, you’ll get 1.5 percent of your purchases back in Bitcoin. Cash back incentives for eligible Bitcoin transactions may also be provided. Every month, a part of your cryptocurrency revenues is sent to your BlockFi account.

The APR, which runs from 14.99 percent to 24.99 percent, does not include annual or international transaction expenses. The card does not have a balance transfer option, and New York residents cannot use it. The BlockFi card may be a good option for people looking for a more restricted approach to crypto investment using credit card rewards points, but bear in mind that its rewards rate is comparable to other cards that provide cash back.

There are more than 60 cryptos now accessible on Gemini that can be rewarded with the Gemini Credit Card. Bitcoin is the most significant performing asset class of the last decade. As far as we know, this is the only credit card that instantly deposits your cryptocurrency rewards. This means that the cryptocurrency you earn is credited to your Gemini account immediately after you swipe it, rather than a month or more later. There is no need to pay trading fees and follow market timing. To earn Bitcoin, Ethereum, or any of your preferred cryptocurrencies, you can simply go about your normal spending habits.

BlockFi vs. Gemini Security

Because cryptocurrency assets are so valuable, you can’t afford to take any risks with the platform’s security. User assets have been lost due to recent security breaches on numerous sites. It is reasonable to expect companies like BlockFi and Gemini to deliver the highest level of security. Furthermore, these organizations manage billions of dollars in assets, making them among the most secure platforms available.

BlockFi’s security mechanisms and protocols protect the safety of user assets and accounts. Two-factor authentication (2FA) and personally identifiable information (PII) verification make it almost hard for anybody else to access your account, guaranteeing that only you have access to your data. For further protection, biometric login, such as Face ID or fingerprint recognition, is now accessible in the BlockFi mobile app. The bulk of a user’s assets is also stored in cold storage.

Because of its security-first strategy, Gemini is an unusually secure exchange. They are intended to safeguard against external threats, human error, and the abuse of insider privileges. Gemini’s security measures are extensive. Gemini operates at the highest level of operational compliance thanks to SOC 1 Type 1 and Type 2 tests, as well as ISO 27001 accreditation. Gemini is the world’s first cryptocurrency custodian and exchange regarding financial operations and security compliance. Gemini provides insurance coverage for its users for theft or a cybersecurity attack.

How to Decide Between BlockFi vs. Gemini?

To finish our comparison of BlockFi vs. Gemini, we developed a simple score system for each evaluation criteria, as shown below. So, what’s our main conclusion?

Score. 3 points for BlockFi and 5 points for Gemini. Gemini is the winner.

Comparison Criteria	Winner
Features & Products	Gemini
Ease of use	Gemini
Available Cryptocurrency	Gemini
Trading Fees	BlockFi
Withdrawal Fees	Gemini
Security	Draw
Customer Support	BlockFi
Minimum Trade Amount	BlockFi
Bonus Offer	Gemini

Staking on either platform allows you to make some money without selling your crypto assets. If you require financing, you should look at BlockFi’s loans. It is possible to purchase, sell, and exchange crypto assets on other platforms that provide the same services and a larger assortment of crypto assets without utilizing these features. BlockFi and Gemini are two of the most reliable cryptocurrency loan services. Both firms provide investors with some of the best interest rates on various crypto assets.

Both systems are advantageous, apart from their high degree of security and safety for their hot wallets. As a cryptocurrency investor, your tastes will significantly determine which of the two top-tier businesses to choose.