There are endless possibilities when it comes to investing in cryptocurrency. In this innovative industry, there are many different options to choose from when choosing a cryptocurrency services provider. Today we are going to evaluate two major companies in the space, BlockFi, and eToro. BlockFi and eToro both offer unique opportunities to capitalize on your cryptocurrency assets. So lets get right into it.
Why Get Involved In Cryptocurrency?
Cryptocurrency is hot right now. Back in 2008, we all had that one friend or coworker who was telling everyone to buy Bitcoin now before it is too late. Now it has grown to a multi-trillion dollar market with thousands of various altcoins inspired by it.
Although some may feel like Bitcoin hitting $50,000 marks means too late to get started, that’s far from the truth. Now is a better time than ever to get involved in cryptocurrency.
With the volatility in markets across the world, it is more important now more than ever to diversify your portfolio. While we are not suggesting investing all your money in Bitcoin tomorrow, we are going to review a few key options to help you get involved.
Who Is eToro?
eToro is a social trading platform that allows users to interact with each other’s portfolios and copy patterns from user to user. eToro has a social platform just like Facebook, where users can interact with each other, make posts, and comment on them.
The process known as copy trading is exactly what it sounds like. Popular users with backgrounds in economics and finance post their trading practices as guides for regular users. Users are able to see the return rate of each user and can split their assets between multiple traders if desired.
eToro’s social media platform is innovative and creates a community of innovators interested in economics, cryptocurrency, and trading. The copy trading platform enables users to set it and forget it regarding their investing strategies. Unlike other trading platforms, the copy trading platform allows users to copy real-life strategies of famous investors without spending excessive amounts of time studying their techniques.
Who Is BlockFi?
BlockFi is a cryptocurrency holding provider that offers interest for storing crypto in their accounts. In addition, the provider lets users in select countries take loans against their cryptocurrency asset portfolios.
Unlike other wallets (or savings accounts in the US that offer negative interest), BlockFi offers up to 8.6% APY on assets stored in BlockFi. Regardless of market volatility, you will be receiving compound interest on your stored assets. BlockFi also offers crypto-backed loans are a convenient approach to the issue of liquidity of cryptocurrency. Many people who have significant holdings in cryptocurrency have a hard time spending them in a fiat-dominated society.
As cryptocurrency becomes more readily available and accepted by society, its overall liquidity will improve. Until that time, crypto-backed loans offered by BlockFi are an excellent way for someone to access their liquidity without selling their portfolio, with loans starting at 4.5% APY.
Recently BlockFi has announced a new product they plan to offer in 2021, a cryptocurrency credit card. While you will not be spending your cryptocurrency directly at places you swipe, the credit card is supposed to serve as a way to spend fiat money and make crypto interest (cashback) on purchases. Currently, the BlockFi credit card is not ready, but you can sign up for the waitlist for more information as it becomes available.
Coins Available On eToro
Traders can build a portfolio of 16 of the most popular cryptocurrencies, including:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- Stellar Lumens (XLM)
- Cardano (ADA)
Coins Available on BlockFi
While there are far fewer options to trade on BlockFi, there’s still plenty of options available:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoins (LTC)
- Tether (USDT)
eToro’s fees are pretty straightforward. With no commission fees or hidden fees, eToro charges a fee based on the spread. If you are unfamiliar, spread is a fee collected based on the difference between the buy and sell price at the time of trade. In times of volatility, the spread percentage may vary.
BlockFi only charges fees on withdrawal from their platform. As of the publication of this article, their fees are as follows:
- BTC has a 100BTC withdrawal limit per 7 days and charges a fee of 0.00075 BTC
- ETH has a 5,000ETH withdrawal limit per 7 days and charges a fee of 0.02ETH
- Link has a 65,000LINK withdrawal limit per 7 days and charges a fee of 0.95LINK
- LTC has a 10,000LTC withdrawal limit per 7 days and charges a fee of 0.0025LTC
- Stablecoins have a 1,000,000 withdrawal limit per 7 days and charges a $10 fee
- PAX has a 500PAXG withdrawal limit per 7 days and charges a fee of 0.015PAXG
Benefits to Both Exchanges
Thanks to the broad variety of options in the cryptocurrency sphere, a user can benefit from both eToro and BlockFi. For individuals who have a significant asset portfolio in one of the large-cap currencies can benefit greatly from storing their money in a BlockFi interest-earning account.
For those trying to use the liquidity of their cryptocurrency assets, BlockFi is the perfect pick for you. Those trying to trade and earn more crypto will significantly benefit from leveraging an eToro account.
In conclusion, we think there are great benefits to both platforms. While we do suggest any readers check out both platforms in detail on their own, we have drawn the following conclusions.
Users looking to capitalize on their crypto assets currently being held in a wallet should transfer some funds to an interest-earning BlockFi Account. Users who want liquidity backed by their portfolio should consider applying for a Crypto-Backed loan.
Finally, for those looking for ways to earn more money, learn from popular traders, or just want to get more involved in the crypto market, eToro is the option for you.
Disclaimer: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.