Nexo and BlockFi are the two most renowned brands in the Crypto lending and loan space. Both platforms enjoy huge success in the crypto industry. From retail investors to blockchain companies, both have a large customer base.
Nexo and Blockify are trustworthy, and each has its advantages. Nexo vs BlockFi – which platform is better for you? We bring you a comprehensive comparison of both platforms by breaking down the elements of their services. Read on to make your informed decision.
Nexo is Credissimo’s subsidiary. Cresissimo is a traditional online finance company established in 2007. Nexo soon became an online crypto lending space known for its easy-to-use interface.
Nexo users could access its interest account services for cryptocurrency holdings from 2018. It also offers loans against crypto assets. Nexo is a licensed and regulated financial institution with its headquarters in the EU.
Nexo’s customer base is more inclined towards retail investors and businesses focused on blockchain.
Minimum Loan: $500
Maximum Interest: 8%
BlockFi is very popular in the cryptocurrency field. It was established in 2017 and was among the first crypto lending brands to launch. BlockFi is licensed and registered in the USA, with New Jersey as its headquarters.
BlockFi allows its customers to gain interest in crypto holdings and take loans with crypto collateral. Moreover, BlockFi has an exchange platform of its own. It makes moving various crypto assets easier for its users.
BlockFi has a majority customer base of retail investors and institutional grade investors.
Minimum Loan: $5,000
Maximum Interest: 8.6%
Now let’s jump into the main question. Nexo vs BlockFi – which platform is better for you? The below comparison of key elements of both platforms will help you choose the best one for yourself.
Overall Customer Experience
Right from creating an account, BlockFi provides an extremely easy-to-use platform for its customers. Interest payments are automatically credited to your account. It has a regularly updated support and FAQ section.
BlockFi’s Customer support is easily accessible through phone and email. The biggest drawback is that BlockFi does not have a mobile app. If you usually make your transactions through your phone, this will be an issue for you.
Nexo makes it convenient for customers with its mobile apps. You can install it on both Android and iOS. The other aspects, such as account creation and detailed support documents, are as easily accessible as that of BlockFi.
You can easily access Nexo’s customer support with their active live chat. Both companies are well equipped with adequate resources for a smooth customer experience.
Interest Account Rates
Comparatively, BlockFi has higher interest rates than Nexo. The highest interest rate currently provided for BlockFi accounts is 8.6%. Nexo customers earn a maximum of 8% discount for their interest accounts.
BlockFi has industry-best interest rates for Bitcoins and Etereum. Nexo has good fiat interest rates on US Dollars and Euros.
The interest accounts of Nexo customers are limited to stable coins. BlockFi users have to wait for 24 hours for fund withdrawal due to security reasons. Meanwhile, with Nexo, you do not have to endure this wait.
Interest Account Fee and Terms
Traditional finance companies generally keep this information under wraps. Nexo and BlockFi are commendable as they keep the information on fees and terms transparent.
The compound interest of BlockFi is paid monthly. For Nexo accounts, the compound interest is paid daily.
There is no requirement for a minimum balance amount at BlockFi. You can start your account with even $1. The same goes for the Nexo balance amount.
Both platforms accept US customers. You can withdraw your assets at any time without any penalties. BlockFi only allows one free withdrawal a month, while Nexo does not have such conditions.
Both companies have set some competitive advantages for themselves to provide you some unique features. While the features each company offers are beneficial, you must assess them according to your financial needs.
BlockFi’s Interest Payment Flex is one of its best features. It allows customers the choice to receive interests in Ethereum, Gemini Dollar, or Bitcoin.
BlockFi also boasts one of the most generous referral programs. It is regularly up-to-date. Moreover, BlockFi enables direct trade among crypto-assets.
Nexo does not provide any referral program for you. However, it offers EUR and GBP fiat accounts of interest, unlike BlockFi. It allows you to earn a high Annual Percentage Yield (APY).
Security and Trust
BlockFi is widely known for its strong backing from institutional capital firms. It is backed by the reputed Gemini Custody for the security of its customer accounts.
Effective security measures such as two-factor authentication are taken up by BlockFi. The company assures that all its balance sheets are lent only to trusted institutions.
Nexo, meanwhile, relies on Credissimo. Lloyd’s of London insures all its crypto assets. Nexo also takes up the two-factor authentication for its customers, like BlockFi.
There are, however, some concerns regarding the overall safety and security of Nexo’s assets. Its parent company, Credissimo, has unethical reports. It raises some eyebrows on Nexo as well. Nexo does not have the same control over their balance sheets as BlockFi.
So, Nexo vs BlockFi – which platform is better for you? Both platforms offer some of the best customer experience and attractive interest rates. It ultimately boils down to the asset on which you wish to gain interest.
BlockFi is the best when it comes to earning interest in Bitcoin, Litecoin, and Ethereum. Meanwhile, Nexo is the best if you favor fiat investments with its 8% APY.
You can take your decision by considering the different comparison aspects in the context of your short-term and long-term financial goals.