Blockchain.com Review 2022: | NextAdvisor with TIME

Blockchain.com has been around since 2011, making it one of the oldest cryptocurrency exchanges on the market.

The exchange also has 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 40 states, and there is no mention of insurance coverage for your crypto or for US dollar funds on the exchange’s website. A spokesperson for Blockchain.com contacted us after this review was first published to say that the exchange secures fiat balances and offers FDIC insurance for US dollar funds. But this coverage is not mentioned anywhere on the website and this lack of clarity is a major drawback compared to the clear and transparent coverage offered by what we consider the best crypto exchanges.

Most crypto investors – and especially beginners – will be better off choosing another mainstream exchange such as Coinbase, Gemini or eToro. But if you’re considering Blockchain.com, here’s some more information worth considering.

Advantages and Disadvantages of Blockchain.com

Blockchain.com at a glance

• Centralized, although there are some decentralized features, such as the non-custodial wallet
• 120 currency pairs
• Tiered producer/taker model, up to 0.40%
• Keep coins on exchange or move into your own wallet
• No native token
• Fully available in 30 states
• Mobile app
• Limited customer service support

Cryptocurrencies available on Blockchain.com

Blockchain.com says it supports 120 cryptocurrency pairs. However, it is important to note that these pairs include duplicates. For example, there is a pair for Bitcoin and the US 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 trades in three fiat currencies, including US dollars, Euros and British pounds.

Some of the popular cryptocurrencies available include:

• Bitcoin (BTC)
• Ethereum (ETH)
• Litecoin (LTC)
• Bitcoin Cash (BCH)
• Apecoin (APE)
• Polka dot (DOTS)
• Chainlink (LINK)
• Solana (SOL)
• Uniswap (UNI)
• Tether (USDT)

Blockchain.com Fees

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.

Spot trading fees

Blockchain.com uses a tiered producer/taker model for its spot trading fees. In this model, you are either a maker or a taker for the purposes of the trade. Here’s what that means:

• Maker: Sets specific parameters for the trade, indicating a price at which they wish to buy or sell. The order goes “on the books” and contributes to the liquidity of the exchange. When someone on the other side of the trade meets the conditions, the order is executed.
• Taking: This is someone who gets an order executed immediately at the market price.

With the tiered model, the higher the trading volume you have every 30 days, the lower your fee will be. Blockchain.com has its highest fee set at 0.40% for receivers. The highest tax for manufacturers is 0.20%.

Margin trading

Blockchain.com offers margin trading, which allows you to borrow to trade more. The margin trading fee is 0.02%. There is also a recurring margin fee of 0.02% every four hours.

Deposit and withdrawal fees

There are no deposit fees for adding fiat funds to a Blockchain.com account. Additionally, in the US, there is no withdrawal fee for using an ACH transfer to move your funds from your Blochchain.com account to your bank account. However, there is a $10 minimum to withdraw.

Transfer Fees

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 wallet. Charges are based on the network you use. Different networks have different fees and minimum requirements. However, you will be able to see the fees in advance and the Blockchain wallet recommends fees based on the network and current conditions.

Blockchain.com Security

Blockchain.com claims to use a high level of security for both the exchange and the wallet. This includes storing 95% of the funds in offline cold wallets, which provide additional protection against hacks and cyber theft, as these funds are not connected to the internet.

In addition, 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 that you control and own your crypto, and Blockchain.com does not keep track of that information. Blockchain.com also offers a bug bounty program designed to help fix bugs 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 reduce the chances of someone fraudulently withdrawing from your wallet.

However, it is important to note that there is no information on the Blockchain.com website about FDIC insurance for US dollar fiat funds. Additionally, there is no other information available about an insurance program to protect users from theft. Cryptocurrency funds are not covered by SIPC insurance.

Since cryptocurrency is largely unregulated, investors face additional risks compared to the stock market or a regular savings account. However, unlike Blockchain.com, other mainstream cryptocurrency exchanges offer specific insurance coverage for crypto users using their platforms. Although these exchanges may offer higher fees, experts say keeping your investments safe can be a worthwhile expense.

additional details

Blockchain.com does not have some of the same additional products and services that other cryptocurrency exchanges have. For example, you won’t be able to access credit or debit cards, or an NFT marketplace with Blockchain.com. There is an NFT marketplace beta waiting list on the exchange’s website, but no word on when it might go live. However, there are some additional features that may be useful for some traders.

Private key wallet

While you can keep your coins on the exchange, Blockchain.com also offers a non-custodial wallet. Private Key Wallet allows you to buy, sell and exchange cryptocurrencies without much effort. This wallet is available on your phone and gives you control over your cryptocurrency.

Rewards

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 monthly. You are allowed to withdraw crypto from your reward account after seven business days.

It’s worth noting that you’ll need to upgrade to a Gold account to access rewards, which don’t cost money but require you to share a government-issued ID or passport.

Margin trading

If you have enabled margin trading, you can choose to trade with 2X or 5X leverage. It is important to note that margin trading can potentially magnify your losses as well as magnify your gains. Additionally, a margin call may result in the need to adjust your security or risk seeing some of your current security sold. Most casual and novice crypto investors would do well to avoid margin trading, but it is available for those who feel comfortable taking more risk.

Airdrop

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. To receive an Airdrop you must have a Gold account.

Explorer

With Blockchain.com’s Explorer tool, it is possible to see real-time prices and also see what is happening in different areas of the blockchain. You can see when blocks are added to a chain, hashrate and information about how much business is transacted on a particular blockchain. It is also possible to see what conversations are taking place around the crypto world. Although it can be a bit overwhelming for casual or novice investors, it provides an in-depth look into the cryptocurrency environment with lots of data and information.

Customer service

Customer support services are relatively limited. You can use the search function to look for information, and support is split between Wallet and Exchange. However, there is no 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, please submit a request via a form. We submitted a request for additional information but did not receive a response.

Availability

It is 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 are not available include:

• Connecticut
• Delaware
• Georgia
• Hawaii
• Iowa
• Louisiana
• Maine
• Nebraska
• Nevada
• New Jersey
• New York
• North Carolina
• North Dakota
• Oklahoma
• Rhode Island
• South Dakota
• Tennessee
• Texas
• Virginia
• Wyoming

Who is Blockchain.com best for?

Blockchain.com is not best suited for beginners or casual crypto investors, who we believe would be better off with a mainstream exchange such as Coinbase, eToro or Gemini. It may be suitable for more savvy crypto investors and traders who are familiar with complex or higher risk features offered by the platform.

How to open an account with Blockchain.com

You can get started with Blockchain.com by providing an email address, password and country of origin. Later you will need to confirm your email address. If you already have a Blockchain.com wallet, you can link it to your account. However, to increase your trading limit, you need to unlock the Verified Level. You also need the verified level if you want to make deposits in fiat currency. Otherwise, you can only use crypto that you already have to deposit on the exchange.

Blockchain.com compared to other exchanges

Frequently Asked Questions