eToro vs BlockFi – Which Is The Cheapest With Best Features In 2022

BlockFi vs eToro, find out which is the platform you should use.

BlockFi is a cryptocurrency exchange and lending platform where users and holders can earn interest on cryptocurrencies and borrow against their crypto portfolios.

BlockFi is one of the best and top-used brokerage platforms for investing and trading opportunities.

BlockFi stands out among other similar exchanges thanks to low fees and low account minimum. BlockFi also has one of the first cryptocurrency reward credit cards.

The exchange also joined the Forbes list of top 50 Fintech companies.

eToro is one of the biggest brokerage platforms with a commission-free trading app and access to more than 2,000 different assets, cryptocurrencies, currencies, ETFs, commodities, and other financial assets.

So let us compare BlockFi vs eToro and find out which is the best platform for you.

Get your free $250 here if you sign up with BlockFi

Feature Comparison

eToro and BlockFi are fairly different when it comes to trading options and available assets for trading, mostly because eToro offers ETFs, CFDs, cryptos, and other financial assets and BlockFi exclusively deals with cryptocurrency.

Even though eToro is not a cryptocurrency trading platform, features offered by this brokerage network can substitute for some of the top crypto exchanges.

Features are important and can often make a difference between a winning and losing investment strategy, especially for traders and investors who are just beginning to familiarize themselves with financial markets.

Which one of the platforms has better features, eToro or BlockFi?

eToroBlockFi
Copy TraderBlockFi Rewards Credit Card
Social TradingBlockFi Interest Account
eToro News FeedInstant Trading
Popular Investor ProgramCrypto-backed loans
eToro InsightsAutomated Trading

eToro

What is eToro Copy Trader?

eToro has Copy Trader, which is one of the platform’s most praised features. Copy Trader is a powerful addition to the platform available with eToro Open Book, which is a relatively new update.

Open Book provides access to new markets with relevant and crucial data points and market data that traders can use to create effective investment strategies. eToro users can discover, invest in, and discuss new market opportunities, and trade with currencies, commodities, indices, stocks, and more.

eToro users can use Copy Trader to see what real-life people are investing in. The view of trades is available in real-time so users can copy other investors’ trades if deemed potentially successful.

This feature can help traders create more efficient strategies for maximized ROI. This feature is user-friendly and suitable for beginners as you can copy anyone’s trade with a single click.

What is eToro Social Trading?

Social Trading is another one of eToro’s popular features as this brokerage platform represents one of the largest social trading communities in the world. eToro Social Trading allows traders and investors to exchange insights, opinions, and discuss market data.

The community counts over 15 million users and can help you get a grasp of financial markets and important data like sentiment analysis, for example.

What is eToro News Feed?

eToro News Feed acts like a social network for traders and investors, and this is the feature that allows users to connect with their favorite traders. You can use eToro News Feed to follow up with significant events and connect with other members.

If you are a low-risk trader, based on your trading history on eToro, you can qualify for the Popular Investor Program. In case you join the program, eToro lets you collect 2% of Assets Under Management while building your own business in investments. Users are eligible for 2% AUM whenever their trade is copied.

What is eToro Insight feature? 

eToro keeps the platform users informed through eToro Insights. This feature uses alerts and frequent posting of informative blogs to keep the community updated.   

BlockFi

What is BlockFi Rewards Credit Card?

BlockFi Rewards Credit Card is the first cryptocurrency card of its kind ever to be launched. BlockFi premiered the launch in spring 2021, while users could apply when the launch was announced and join the waiting list.

Users who preordered their crypto Rewards Credit Card can earn even more with Bitcoin trades as a part of the preorder amenities.

BlockFi Credit Card is issued by Visa and it rewards users with 1.5% of what they spend on every Bitcoin purchase. The card works in combination with BlockFi Interest Account as the interest you earn on Bitcoin purchases is compounded on your Interest Account.

All interest is earned instantly with every purchase, which is a unique opportunity to earn more while buying Bitcoin. Anyone can apply, but all applications are subject to credit approval.

What is BlockFi Interest Account?

BlockFi lets users earn interest on the cryptocurrency they hold in their accounts. You can earn while just holding your cryptocurrency, and all the compounded interest will be added to your Interest Account.

There are no minimum requirements for earning interest on your funds, so you can hold as little or as many cryptos as you like. There are no hidden fees involved, and holders can earn compound interest between 3% and 8.6%.

The interest rate varies, which is why there is a range in compound interest, and these variations depend on the type of cryptocurrency you are holding and the changing market prices. Interest is applied daily but is compounded and added to your account once a month.

This feature also has the Interest Pay Flex. You can use this feature to choose a currency in which you want to be paid when withdrawing the interest you earned.

For US users, BlockFi shares a 1099 tax statement at the end of each year, while users from other countries are responsible for taxing their interests independently. 

BlockFi Instant Trading

BlockFi enables instant trading for all account owners, which means that users can buy, sell and trade dozens of different assets in seconds.

All assets are available and accessible in one place, which means that you can easily manage and oversee your holdings and funds. With instant trading, users can own crypto in less than a minute and have their holdings fully available in a single secure wallet.

BlockFi Crypto-backed Loans

Unlike many similar cryptocurrency exchanges, BlockFi also offers cryptocurrency-based loans. You don’t need to sell your cryptocurrency holdings to get more trading funds – you can get a loan with the Crypto-backed loans feature.

The minimum amount to apply for a loan is $10,000 (USD). A loan is approved based on the value of your holdings, while lending parameters may vary based on your country of residence.

BlockFi Automated Trading

BlockFi Automated Trading is a feature that allows users who have funds on their Interest Account to set up recurring trades. You can schedule your trades for daily, weekly, and monthly action, including buy and sell positions.

This feature enables easy trading for traders and investors who don’t have enough time to spend trading but would like to increase the value of their portfolios and grow their funds.

Get your free $250 here if you sign up with BlockFi

Service Comparison

eToro

eToro CFDs

eToro CFDs service works similarly to Stake Fractional Shares feature. eToro CFDs allow users to buy fractional shares, however, this service also offers leverage for trading and open sell short positions.

With this service, you can own a fraction of shares that otherwise wouldn’t be accessible to all traders. eToro also offers zero commissions for numerous assets and financial derivatives, while the zero-fee policy doesn’t apply to stock CFDs.  

eToro Crypto

eToro Crypto service enables users to trade and invest in some of the top cryptocurrencies, which includes Bitcoin, Ethereum, and sixteen additional top-traded cryptos with major market caps.

You can buy fractions of cryptocurrencies available on the platform, while you can also access Crypto Portfolios that are managed by Investment Committee on eToro.

eToro Copy Portfolios

eToro Copy Portfolios service is similar to the platform’s feature Copy Trade as it allows users to copy different investment portfolios made by the top traders in the community. You can copy other trader’s investments in real-time, and choose between three different types of portfolios:

Partner Copy Portfolios

eToro’s partners also have portfolios within the Copy Portfolio service, which means that users can choose to copy trades from major investment companies and other eToro partners such as Tipranks, which is a company for stock analyst software.

Top Trader Copy Portfolios

This option offers preplanned investment strategies that users can copy from top traders on eToro. Top traders on eToro have exceptional ROI stats and are usually following winning strategies that you can use for your investments and trading options.

Market Copy Portfolios

eToro Market Copy Portfolios offer CFDs on commodities, stocks, indices, and ETFs. Thanks to its smart functions, this type of Copy Portfolio uses algorithms for periodic adjustments, allocation of funds, assets, parameters, and rebalancing.

This service is monitored by eToro Investment Committee, while the Committee is managed by Barclays.  

eToro 0% Commission Stocks

European traders can invest in stocks on eToro with 0% commission in case they don’t add leverage to buy positions. If applicable to your case, eToro will also neutralize Stamp Duty taxes and allow traders from Ireland to save 1% and 0.5% for UK traders.

Service Comparison Table

eToroBlockFi
eToro CFDsPartner Program
eToro CryptoReferral Program
eToro Copy PortfoliosBlockFi Prime
eToro 0% Commission StocksInvestment Products
eToro Demo  Corporate Treasury Solutions
 BlockFi Digital Markets

All investments involve a certain level of risk, even if that risk can be minimal. Still, powerful services can help traders mitigate these risks and get the most out of their investments.

How are services available on eToro and Stake different and which trading platform is better?

Pros and Cons Table

eToro Pros and Cons

ProsCons
Trade, buy, and sell crypto, stocks, CFDs, ETFs, forexUS traders can’t trade equity and forex
Social tradingOnly one base fiat currency
A great number of useful features and servicesInactivity fee charged after a year
Low fees 
Option to copy successful trades with Copy trading 
A great number of payment methods 

BlockFi Pros and Cons

ProsCons
A great number of financial services and featuresWithdrawal fees may vary from crypto to crypto
Crypto loansLoan rate volatility
Instant tradingLimited free withdrawals
Low entry level for minimal trades 
Individual and business solutions 
OTC trading and trading execution 

BlockFi

Partner Program

BlockFi is creating more than an exchange with numerous advanced solutions and investors while the company is also creating a network of affiliate agents who are a part of the BlockFi Partner Program. You can become a partner affiliate by applying for the program.

Partners earn interest for their involvement in presenting financial tools that BlockFi has to potential users. You need to create an account and fill out an application for BlockFi Partner Program to apply.  

Referral Program

Referral Program allows users to refer their friends and family and recommend BlockFi. BlockFi referrals are rewarded with $10 in BTC for every person that creates an account with their referral code and spends at least $100. The person that registers and spends $100 will also be paid $10 in BTC.

BlockFi Prime

BlockFi Prime is a service specifically tailored for institutional investors. BlockFi Prime is an integrated platform and is one of the premium products of the BlockFi company.

The platform allows investors to easily access, manage and trade cryptocurrency. BlockFi prime offers sophisticated tools and financial products that can meet the requirements and investment objectives of institutional investors. The platform also offers lending services.

Investment Products

BlockFi also has Trusts within their investment product offer for institutional investors. BlockFi investment products are:

  1. Bitcoin Trust
  2. Litecoin Trust
  3. Ethereum Trust

BlockFi Trusts allow institutional investors to invest in cryptocurrency without actually holding or owning crypto assets.

Institutional investors can instead own shares of Trusts, choosing between one of the three available. Transaction costs of owning shares in crypto trusts are statistically lower for institutional investors in comparison to directly buying and owning cryptocurrency.

Corporate Treasury Solutions

BlockFi offers Corporate Treasury Solutions for companies that would like to leverage cryptocurrency as reserve assets. That way, they can generate yield and create liquidity to help companies keep up with the current level of competitiveness in the financial sector.

Corporate Treasury Solutions also include Interest Account for businesses. Interest Accounts for businesses allow companies to earn interest on USD-pegged stablecoins and other cryptocurrencies. Corporate Treasury Solutions also include loans, OTC, and execution of trades, as well as BlockFi Trusts.

BlockFi Digital Markets

BlockFi Digital Markets is a service that allows market makers, businesses, and investments funds to transgress the gap between cryptocurrency markets and traditional financial institutions.

Digital Markets offers OTC trading and execution of trades, lending, corporate treasury solutions, financial backing, and innovative investment products.  

How do I open an account?

eToro lets you choose between different options before opening an account on this brokerage platform. If you decide to sign up with eToro, you can choose between:

  1. Demo Account
  2. Live Account
  3. eToro Professional Account
  4. Islamic Account
  5. Corporate Account
  6. eToro Club VIP
  7. eToro US Opening Account

BlockFi, users need to provide an email address along with their legal name. You will need to verify your email address and your identity to start trading.

eToro

To open an account on eToro, you will need to visit the official website and choose to join the platform. You will need to fill out an electronic form with required personal data mandatory for opening an account.

You will also be offered to sign up with Google or Facebook. Once you submit the form, you will be presented with a KYC process and asked to provide proof of identity and proof of residency.

Once you complete the KYC, you will need to fill out a questionnaire so that eToro could evaluate the best options for your account based on your experience, professional status, knowledge of financial markets and capital, levels of risk, goals, and similar information.  

BlockFi

To open an account with BlockFi, users need to enter a valid email address and verify their email. To start using all the services and features that BlockFi has at its disposal, you need to verify your identity.

The information you need to submit will vary depending on whether you are signing up as an individual or a business. The info will also vary based on your location.

US users need to provide social security numbers and their legal addresses and international users have to submit a government-issued ID together with a photo of themselves holding their ID.

How to trade?

eToro

To trade on eToro, you will be asked for a minimum deposit of $50 after successfully registering with this brokerage platform.

Before you start investing with your funds, you can try eToro Demo Account to get familiar with the platform, features, services, and trading in general. You can also use the Copy Trade feature to copy successful traders on eToro. 

BlockFi

There are no minimum requirements for depositing your funds on BlockFi, however, the minimum trade for cash-to-crypto is $20 and $1.50 for crypto to crypto.

Once you have verified your account, you can start trading immediately. You can buy and sell crypto instantly or set up recurring trades for daily, weekly, and monthly automated trades.

Fees comparison

PlatformeToroBlockFi
Brokerage Fees$0None
Withdrawal Fee$5Depends on the crypto
Deposit Fee$0 (for USD)$10 minimum (wire)
Inactivity fee$10 (1 year inactive)$0

eToro

eToro won’t charge you for signing up and using a Demo Account. New users are awarded $100 to test trade on the Demo. eToro takes 0.5% for forex trading on every deposit and FX rates may also apply to non-USD deposits. The minimum amount to withdraw is $30.    

BlockFi

BlockFi withdrawal fees may vary from crypto to crypto as mining fees will apply based on the cryptocurrency you are withdrawing.

Users can have one stablecoin and one crypto withdrawal for free. Interest rates for loans also vary based on the loan-to-value differences. Interest rates on loans may go from 4.5% to 9.75%. 

Are these platforms regulated?

eToro

eToro was established and founded in 2007 as a low-risk brokerage social trading platform when it comes to trading CFDs and forex.

To make low-risk trading possible, eToro is regulated in one tier-2 jurisdiction and two tier-1 jurisdictions. eToro is regulated and authorized by Financial Conduct Authority, CySEC, and ASIC.

BlockFi

BlockFi was founded in 2017 as a cryptocurrency exchange with US and international operations, offering a wide range of financial products for businesses and individuals, including crypto loans.

The exchange is registered with the US Department of Treasury Financial Crimes Enforcement Network (FinCEN) as a money service business.  

Conclusion

Our recommendation is for you to start with BlockFi. BlockFi is a well-known brand with most of the features that you would need. It’s interface is simple and easy to use.

Get up to $250 worth of free BTC if you sign up with BlockFi

Who is BlockFi best for?

Thanks to automation and a wide range of financial services and features, BlockFi is an excellent platform for beginners.

BlockFi is also perfect for intermediate traders and investors, as well as for businesses and institutional investors thanks to a great number of financial products that are specifically tailored for these demographics. 

Who is eToro best for?

eToro is a great platform for both beginners and more experienced traders. Beginner traders can get a grasp of what trading on eToro looks like by taking a turn with $100 on a Free Demo Account.

More experienced traders and investors can become eligible for joining eToro Popular Investor Program and earn commissions. Copy-trading also makes it easier for newbie traders to grow more familiar with financial markets and winning investment strategies.

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