BlockFi Vs Nexo

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Cryptocurrencies are used alongside fiat currencies; in some cases, it is solely used, to ensure diversity and versatility in the global market. Investors and borrowers now employ crypto loan platforms for reliable crypto exchange and lending and borrowing services. There are several crypto platforms, from crypto earn platforms to Bitcoin exchange platforms and now the ever-growing lending platforms. Hence, there’s a need to review the crypto platforms that are all over the place.

Crypto Loan Platforms » BlockFi Vs Nexo

Several crypto platforms like BlockFi, Nexo, Kraken, Coinbase, Changelly and Youhodler specialize in crypto exchange, lending and borrowing, trading, and many other crypto-based transactions. Clients can also earn cryptocurrencies through various projects and services offered there. You can check out Kraken exchange, and Changelly review for more information on how they operate.

 

blockfi vs nexo

What is BlockFi?

BlockFi is a crypto-based platform founded in 2017 in the United States that specializes in lending, borrowing, and crypto-wealth generation and management, low-interest rates crypto-backed loans, and competitive crypto deposit rates. The platform generates revenue from loan systems, interest accounts, and a commission as a lending platform. With over a million clients and assets worth more than $10 billion, the platform is a leader in the crypto industry. BlockFi is also known to offer exclusive benefits to high-net-worth clients.

What is Nexo?

Nexo is a crypto-based lending platform founded in 2017 in London. It specializes in crypto staking, lending, borrowing, exchanging, crypto wealth generation, and management. Nexo is a global crypto platform that operates in 200+ markets with over 4 million members. It is one of the best crypto loan websites for intermediate and advanced crypto investors.

 Features

BlockFi is known for its competitive rates of low-interest rates, crypto-backed loans, and crypto deposits. Asides from these, it does not have any spectacular features, but it is an effective platform for crypto trading. It has an automatic trading engine that helps traders too busy to trade and not worry about their absence in the market.

Nexo is known for its bitcoin exchange, crypto-backed loans, crypto trading, and cryptocurrency generation. It is famous for its native token, the Nexo crypto, where you can earn higher interest rates and more rewards. The platform offers clients opportunities to earn daily interest on their cryptocurrencies, plus with its loyalty programs, clients gain more. The loyalty program is designed for intermediate and advanced investors to make more.

Currencies

BlockFi supports cryptocurrencies including BTC, ETH, LTC, DOGE, BCH, LIINK, and DIA, plus four stablecoins, USDC, USDT, and GUSD (Gemini’s native currency). On the other hand, Nexo supports up to 40+ assets, including stablecoins and cryptos. Examples of coins Nexo support includes BTC, ETH, LTC, EOS, USDC, USDT, etc. For deposits, BlockFi only allows USD fiat, while Nexo supports over 40 different fiat currencies.

Security

BlockFi has affiliations with third-party reserves like Gemini, BitGo, and Coinbase, which are responsible for its security. The platform purchases CFTC-regulated futures and SEC-regulated equities and employs multi-factor authentication. On the other hand, Nexo employs the SOC 2 compliance framework for data protection with the AES-256 bit. Both platforms use cold wallet storage, SSL encryption, and IP whitelisting to enhance security further.

Fees

Both platforms charge a spread, the difference between a cryptocurrency’s asking price and bid. There are also withdrawal fees, which vary as BlockFi charges set fees depending on the cryptocurrency. In contrast, Nexo charges network fees for the transaction.

FeesBlockFiNexo
Crypto loans2% Origination Fee, 4.5% – 9.75% APR6.9% – 13.9% APR (depends on Nexo asset)
Buy cryptoApproximately 1% spread fee, additional 1.49% – 3.49% for debit/credit cardsApproximately 2% spread fee
Deposit feesNoneNone
Withdrawal FeesVaries on coinBlockchain network fee only

Interest Rates

Since both platforms offer crypto-backed loans, they have varying loan terms and assets

Loan TermsBlockFiNexo
Loan currencyUSD, GUSD, USDC, PAXUSDT, USDC, 40+ fiat currencies
Origination FeeYesNo
Minimum amountUSD $10,000$50 (stablecoin), $500 (fiat)
Interest rateBased on the crypto asset, and duration:

●       3% for 30-day loans

●       5% for 60-day loans, and

●       9% for loan terms longer than 120 days

 

●       13.9% (baseline),

●       12.9% (silver),

●       8.9% (gold),
6.9% (platinum)

Payment frequencyMonthlyFlexible
Loan-to-value ratio (LTV)20%, 35%, 50%Varies

BlockFi and Nexo platforms allow users to earn cryptocurrencies via savings accounts with high-interest rates. The interest rates vary on the cryptocurrency for BlockFi, while Nexo has a fixed 6% rate on all cryptocurrencies. For stablecoins, the rates vary for both BlockFi and Nexo. BlockFi accepts deposits of USD fiat currency; however, it converts into a cryptocurrency, as the platform does not trade with any fiat currency.

Unlike other platforms, Nexo allows its customers to earn interest on fiat. Clients can make up to 10% Annual Percentage Yield (APY) on USD, EUR, and GBP. If a client decides to receive the earnings in Nexo crypto, the native tokens of the platform, they can earn up to 12% APY. However, such an option is not available for customers in the US. Also, due to regulations, interest accounts for both BlockFi and Nexo are not available for customers in the US. The interest rates on both platforms are as follows:

CryptocurrencyBlockFi Interest RatNexo Interest Rate
Bitcoin0.1%, 1%, 4.5%6%
Ethereum0.25%, 1.5%, 5%6%
Solana5%6%
Cardano5.5%6%
Polkadot9.5%13%
Avalanche10%10%
Tether5.5%, 7%, 8%10%
USD Coin5.5%, 7%, 8%10%

Ease of Use

BlockFi and Nexo are easy to use and beginner-friendly while accessible via Android/iOS apps and the web app. BlockFi and Nexo websites have an interface that anyone can easily navigate through. BlockFi gives users a simpler experience for loan applications and crypto trading. On the other hand, Nexo has flexible features and options, especially the exchange option.

Mobile App

Both platforms have mobile apps that are convenient to use on all supported crypto-related apps devices like android, iOS, macOS, etc.

Access

Both platforms have seamless, uncomplicated access for registered clients who have undergone a KYC verification. People who are unregistered and verified cannot visit the websites.

Wallets

BlockFi and Nexo offer wallets to clients interested in generating wealth via crypto transactions for holding crypto assets. BlockFi and Nexo wallets are available for crypto holders, exchanges and traders.

Insurance Coverage

These platforms partner with private insurance firms to ensure their services and protect their clients’ funds. BlockFi partners with Gemini Trust to guarantee its services and secure its customers’ funds. It is a private firm that ensures over $30 billion worth of crypto. Based in New York, it is regulated by the New York Department of Financial Services (NYDFS). The company has an ISO 27001 certification and has completed SOC 1 and SOC 2 Type 2 exams. Gemini only provides insurance for hot wallets and holds BlockFi assets in offline cold storage. However, it doesn’t insure them once they’re deployed. BlockFi has recently had some customer information breaches but no record of stolen funds. On the other hand, Nexo partners with BitGo, Ledger, and Fireblocks for their services,’ insurance, and securing their clients’ funds. The platform has up to $375 million and 3% of its total assets insured.

 BlockFi Pros and Cons

Pros

  • Quick trade execution.
  • Credit card system for rewards.
  • No monthly fee or commission.
  • Considerable minimum deposit requirements.
  • It is available worldwide except in some sanctioned countries.
  • Top-notch services for institutions.
  • It offers impressive customer service.

Cons

  • Lengthy withdrawal processing time.
  • Free withdrawals are limited from interest accounts.
  • It has no loyalty programs.
  • It supports fewer cryptocurrencies.

Nexo Pros and Cons

Pros

  • It has higher interest rates.
  • There is no loan origination fee.
  • It supports more cryptocurrencies.
  • It offers loyalty programs that allow customers to get better borrowing rates and earn more rewards.
  • It has a straightforward withdrawal process.
  • It offers impressive customer service.
  • It is available worldwide except in a few countries.

Cons

  • Nexo crypto is not available in the US.
  • Its rewards card is not as buoyant as BlockFi’s.

Conclusion

This guide looked into the comparison of crypto loan platforms BlockFi and Nexo. We examined their features, currencies, security, fees, interest rates, insurance coverage, and pros and cons. You can determine which is better from this guide and choose the best crypto lending platform.

Rudolph Taylor
Author: Rudolph Taylor
Rudolph Taylor is Editor-in-Chief at Coinlive.io which is located at Wymondham in Norfolk, United Kingdom. His main job is writing about cryptography to keep his readers updated on current trends and industry news in detail. Rudolph has been able to achieve this in the past few years by providing well-structured write-ups.

Frequently Asked Questions

What is the Difference Between BlockFi and Nexo Earn?

BlockFi and Nexo have earning products for their respective clients regarding interest rates on savings accounts and rewards cards. These earnings are targeted toward crypto traders, exchangers, and holders. BlockFi and Nexo have reward cards for crypto traders, exchangers, and holders using the platform. You can get up to 2% back on Nexo crypto, or 0.55 on BTC, and get up to 10 free ATM withdrawals per month with a Nexo card. While for BlockFi, you get up to 1.5% in crypto 3.5% introductory bonus, which translates to $100 worth of BTC. You can also decide which crypto you want for your rewards. BlockFi offers a reward credit card, while Nexo provides a debit card with credits linked to the client's portfolio. Nexo has higher interest rates and more assets than BlockFi and requires lesser fees than BlockFi.

Which is Better: BlockFi or Nexo?

After careful examination of a BlockFi review and a Nexo review, what comes to mind is which is better? They are both reputable platforms with great features, so it may be hard to choose. However, if you are a beginner or relatively new in the crypto industry, BlockFi is an excellent choice. The platform is easy to navigate, and its features are great for trading, which makes it one of the best crypto websites. However, it requires an origination fee, supports few cryptocurrencies, and does not offer much flexibility for investors. For Nexo, it is also easy to navigate and provides higher earning interest rates and considerable loan rates. However, its beginners may struggle to make sense of its loyalty programs. Nevertheless, both platforms are known for their well-roundedness, credibility, and security.

Which Countries Does BlockFi and Nexo Support?

BlockFi is available in 47 states of the United States and all countries except those with sanctions from the US, the EU, and the UK. Such countries are Cuba, Iran, North Korea, Syria, Turkey, Venezuela, and certain African countries. On the other hand, Nexo is available in over 200 countries, and the only places it is unavailable are those with UN and US sanctions.

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