Bitcompare/Coinbase vs Nexo/

Coinbase vs Nexo

Coinbase are now competing with crypto savings accounts from companies like Nexo. We take a closer look at them to see who comes out on top.

Coinbase offer a suite of products for the crypto industry, including easy-to-use wallets, debit cards and now an interest-based savings account for Bitcoin.

Coinbase are legendary in the industry for helping to make crypto mainstream with simple, secure products. Now that they’ve recently created a savings account, we thought it could be interesting to compare them with a leader in the space: Nexo.

Nexo offer crypto savings accounts, loans, and soon, a debit card. They have a simple, secure savings product that definitely gives Coinbase a run for its money.

We’ve compared both products in detail, so you don’t have to.

Important to note

  • Nexo's wallets are insured up to 100 mill USD
  • Nexo offers no fees
  • Coinbase's interest rates are not competitive

What is it?

Coinbase is a leading cryptocurrency platform with a variety of products that operate in the blockchain industry. Coinbase recently launched USDC Rewards, which allows users to earn interest on the USDC stablecoin.
Nexo is a crypto loans and savings platform that allows you to borrow or earn interest on your crypto assets. It's developed by a fintech team who have been building similar products for the last 10 years. They offer savings accounts on a large range of crypto assets including most stablecoins.

Core features

  • Earn passive interest on USDC stablecoin
  • Solid apps and website
  • 100 million USD insurance on custodial assets
  • Licensed & regulated financial institution
  • No fees. Add and withdraw at any time
  • Compounded interest paid out daily
  • No fees

Pros

  • Great brand and reputation
  • Easy to use product with solid web and app experience
  • Trusted by some of the world's largest financial institutions
  • Nexo offers BitGo Custody which carries $100 million USD in insurance protections
  • Additional credit is automatically and instantly available upon appreciation of your crypto’s value. No credit checks.
  • No minimum repayments, no hidden fees
  • Interest compounds and is paid out daily

Cons

  • Uncompetitive interest rates
  • Limited to only USDC stablecoin
  • Minimum amount is 1,000 USD
  • Maximum amount is 2,000,000 USD
  • Interest rates aren't as competitive as <a href="http://blockfi.mxuy67.net/c/1962959/684369/10568">BlockFi</a> and <a href="https://celsius.network/get-the-app/?_branch_match_id=557642475980710654">Celsius Network</a> in many cases

What is unique about it?

Coinbase were the first to introduce the industry's most user friendly and secure wallet and exchange services. They have always excelled at making this often difficult to use and intimidating industry much more accessible to the mainstream.
Nexo's most unique characteristic is that it supports more than 45 fiat currencies and many cryptocurrencies. In addition to this, the team have been working together in the fintech industry for more than 10 years.

How safe is it?

While Coinbase doesn't offer insured wallets, they do have one of the best reputations in the industry. They're yet to be successfully hacked and they offer institutional grade custody for very reputable clients
Nexo offers two-factor authentication in their app. They also offer third-party custody from Bitgo. BitGo investors include Goldman Sachs and the platform is SOC 2 Type 2 certified. BitGo Custody carries $100 million USD in insurance protection.

Find out more?

Coinbase vs Nexo: The verdict

Unfortunately Coinbase simply don’t compete with Nexo. Nexo is easier to use, they offer 100 million USD insurance on each wallet and their interest rates are significantly higher. Coinbase’s initial product in this space is a bit of a shock as it’s just not competitive. You can view a breakdown of our comparisons here.

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