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Miranda Marquit, MBA, has been writing about money on the internet for more than 15 years. She…
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Blockchain.com has been around since 2011, making it one of the oldest cryptocurrency exchanges on the market.
The exchange also holds the distinction of being the “exclusive digital asset partner” of the Dallas Cowboys in what was reportedly the NFL’s first partnership with a digital currency platform. The exchange touts 37 million users and more than $1 trillion in total transactions.
As with many other leading cryptocurrency exchanges, Blockchain.com uses a maker/taker model for trading currency pairs. However, Blockchain.com is only fully available in 31 states, it doesn’t insure funds held in its accounts, and there is no mention of FDIC insurance for U.S. dollar funds on the exchange’s website. This lack of insurance is a major disadvantage compared to the coverage offered by what we consider to be the best crypto exchanges.
Most crypto investors — and especially beginners — will be better off choosing another mainstream exchange like Coinbase, Gemini, or eToro. But if you are considering Blockchain.com, here’s some more information worth considering.
No matter where you buy it, cryptocurrency is a highly volatile, speculative investment. Only invest in crypto what you’re prepared to lose, and make sure you have other financial priorities in place first: save money in an emergency fund, contribute to retirement savings, and pay off any high-interest debt balances.
Two wallet options, including a non-custodial wallet
Staking and other ways to earn rewards
Airdrop program to receive free crypto coins
Lack of insurance for crypto or U.S. dollars held on the platform
Limited availability in the United States
Trading pairs are limited
Limited customer support
Blockchain.com says it supports 120 cryptocurrency pairs. However, it’s important to note that those pairs include duplicates. For example, there’s a pair for Bitcoin and the U.S. dollar, as well as a pair for Bitcoin and the euro. In terms of total available cryptocurrencies, there are 45+ individual coins on the exchange. Blockchain.com allows for trades with three fiat currencies, including the U.S. dollar, euro and Great Britain pound.
Some of the popular cryptocurrencies available include:
There are different fees associated with Blockchain.com, depending on how much you trade and your various goals. Here are some of the fees you can expect to pay.
Blockchain.com uses a tiered maker/taker model for its spot trading fees. In this model, you’re either a maker or a taker for the purposes of the trade. Here’s what that means:
With the tiered model, the greater your trading volume every 30 days, the lower your fee. Blockchain.com has its highest fee set at 0.40% for takers. The highest fee for makers is 0.20%.
Blockchain.com offers margin trading, which allows you to borrow in order to trade more. The margin trading fee is 0.02%. There’s also a margin recurring fee of 0.02% every four hours.
There are no deposit fees to add fiat funds to a Blockchain.com account. Additionally, in the United States, there’s no withdrawal fee to use an ACH transfer to move your money from your Blochchain.com account to your bank account. There is a $10 minimum to withdraw, however.
Finally, there will be a transfer fee if you move your coins from the exchange to an external wallet. This includes when you transfer using your Blockchain non-custodial wallet. The fees are based on the network you use. Different networks have different fees and minimums. However, you’ll be able to see the fees ahead of time, and the Blockchain wallet recommends fees based on the network and the current conditions.
Blockchain.com claims to use a high degree of security for both the exchange and the wallet. This includes storing 95% of funds in offline cold wallets, which offers extra protection against hacks and cyber theft, since these funds aren’t connected to the internet.
Additionally, a multi-signature validation process is used to prevent unauthorized access to users’ funds. If you use the non-custodial wallet, your private keys mean you control and own your crypto, and Blockchain.com doesn’t keep track of that info. Blockchain.com also offers a bug bounty program that’s designed to help fix flaws in the system.
Blockchain.com supports two-factor authentication if you want to withdraw crypto funds to a wallet. This layer of protection can help you reduce the chances that someone will fraudulently withdraw from your wallet.
However, it’s important to note that there isn’t information on the Blockchain.com website about FDIC insurance for U.S. dollar fiat funds. Additionally, there isn’t an insurance program to protect users from theft. Cryptocurrency funds aren’t covered by SIPC insurance.
Since cryptocurrency is largely unregulated, investors face additional risks compared to the stock market or a regular savings account. But unlike Blockchain.com, other mainstream cryptocurrency exchanges offer specific insurance coverage for crypto users who use their platforms. While these exchanges might offer higher fees, experts say it can be a worthwhile expense to keep your investments safe.
Blockchain.com doesn’t have some of the same additional products and services that other cryptocurrency exchanges have. For example, you won’t get access to credit or debit cards, or an NFT marketplace with Blockchain.com. There is a NFT marketplace beta wait list on the exchange’s site, but no word on when it might go live. However, there are some extra features that can be useful to some traders.
While you can keep your coins on the exchange, Blockchain.com also offers a non-custodial wallet. The Private Key Wallet allows you to buy, sell and swap cryptocurrencies without a lot of effort. This wallet is available on your phone and puts you in control of your crypto.
Blockchain.com offers a rewards program, which is basically a way to stake your cryptocurrency. Depending on the cryptocurrency, you can earn up to 11% when you keep the coins in your rewards account. Interest on coins accrues daily and is paid out monthly. You’re allowed to withdraw crypto from your rewards account after seven business days.
It’s worth noting you’ll need to upgrade to a Gold account to access rewards, which doesn’t cost money but does require sharing a government-issued ID or passport.
If you have enabled margin trading, you can choose to trade at 2X or 5X leverage. It’s important to note that margin trading can potentially magnify your losses as well as magnify your gains. Additionally, a margin call can result in the need to adjust your collateral or risk seeing some of your current collateral sold. Most casual and beginner crypto investors would be wise to steer clear of margin trading, but it is available for those who feel comfortable taking on more risk.
Blockchain.com occasionally distributes crypto coins to wallets worldwide in what is known as an airdrop. An airdrop is designed to let you try out a new coin and test how it works. In order to receive an Airdrop, you must have a Gold account.
With Blockchain.com’s Explorer tool, it’s possible to see real-time prices and also see what’s going on in various areas of the blockchain. You can see when blocks are added to a chain, the hashrate and information about how much business is being transacted on a specific blockchain. It’s also possible to see what conversations are going on around the crypto world. While it can be a bit overwhelming to casual or beginner investor, it does provide an in-depthlook into the cryptocurrency environment with lots of data and information.
Customer support services are relatively limited. You can use the search function to look for information, and support is divided by Wallet and Exchange. However, there isn’t a way to call a phone number or use live chat. Instead, if you can’t find what you’re looking for in the support articles, you need to submit a request through a form. We submitted a request for additional information but didn’t hear back.
It’s important to note that Blockchain.com has limited availability in the United States. You can only use the exchange in 30 states. The states that aren’t available include:
Blockchain.com isn’t the best fit for beginner or casual crypto investors, who we think would be better off with a mainstream exchange like Coinbase, eToro, or Gemini. It may be suitable for more knowledgeable crypto investors and traders who are familiar with complex or higher-risk features offered by the platform.
You can get started with Blockchain.com by providing an email address, password and country of origin. Later, you’ll need to verify your email address. If you already have a Blockchain.com wallet, you can connect it to your account. In order to increase your trading limit, however, you need to unlock the Verified Level. You also need the Verified Level if you want to make fiat currency deposits. Otherwise, you can only use crypto you already have to deposit on the exchange.
You can withdraw crypto from Blockchain.com by going to the withdraw tab and sending the crypto to the appropriate wallet address. If you have a Blockchain.com wallet that’s already connected, this process is fairly simply, allowing to simply designate that wallet. Otherwise, you will need your wallet address to send the crypto. You will also need to enter your two-factor authentication to withdraw.
Blockchain.com is registered with NMLS Consumer Access. However, even though it is considered relatively safe, it doesn’t mention FDIC insurance for U.S. dollar fiat funds held on its site. It’s important to note that no crypto assets are covered by FDIC insurance or SIPC insurance. So, while Blockchain.com has been around since 2011, there is no guarantee of your funds if the company does fail.
Blockchain.com can store your crypto on its exchange, where it holds your funds. However, there is also a Private Key Wallet that is non-custodial. When you use the non-custodial wallet, Blockchain.com doesn’t have access to your wallet and doesn’t track your funds.
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