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It is safe to say that the financial world has not been the same since the introduction of new technologies such as blockchain and decentralized finance. These groundbreaking capabilities have spawned a variety of innovative platforms, including BlockFi and Nexo.
As an investor, especially someone unfamiliar with cryptos and blockchain technology, it can feel intimidating to choose the best platform for your financial needs. After all, each comes with a compelling list of features.
So where to start? Let's break down and compare two of the top choices in the crypto lending space today, BlockFi vs. Nexo. This way, you'll get a better feel for which platform is right for you.
Founded in 2017, BlockFi is licensed and registered in the United States and headquartered in New Jersey. Led by its CEO Zac Prince, BlockFi has been providing interest account services to users since 2019 and has built a strong reputation.
The company has raised significant capital from notable venture capital firms focused on blockchain tech companies, such as Coinbase and Galaxy Digital. The company's customer base includes both retail and institutional investors.
Now that you've become more familiar with BlockFi's company history as well as its pros and cons, let's take a closer look at Nexo. Nexo is a subsidiary of the traditional online finance lending company Credissimo and was founded in 2007.
Both Nexo and Credissimo are licensed and regulated by the European Union. They have their headquarters and staff in the EU. \
In 2018, Nexo users were given access to Nexo's Initial Coin Offering for the first time. In the process, Nexo raised $52 million. What does Nexo's customer base look like today? It mainly consists of retail investors and blockchain-focused companies. \
Like BlockFi, Nexo has a user-friendly interface with streamlined account creation. They have access to customer support via live chat, and the company also keeps a detailed product support page and FAQ page.
Comparing BlockFi and Nexo
We need to highlight several factors when comparing these two crypto platforms. They include:
Interest account rates
Interest account assets
Interest account fees and terms
Security and safety
By looking at each of these companies in light of the areas listed above, a picture of the superior platform will emerge based on your unique financial needs and assets.
BlockFi vs. Nexo: Customer Experience
Today, BlockFi offers customers an easy-to-use platform that starts from the moment of account creation. Interest payments get instantly credited to each user's account, and BlockFi prides itself on having readily accessible customer support via email and telephone.
BlockFi keeps an up-to-date and robust product support page and FAQs page. That said, the company's biggest downfall at the moment is the lack of a mobile app. If you prefer transacting on your phone or tablet, this marks a significant issue.
Nexo boasts robust mobile applications that you can access on both iOS and Android. Of the two companies, this makes Nexo the more convenient option for many users.
After all, there are more than five billion mobile phone users alone in the world today. This stat represents growth in users of more than 102 million in the past year!
BlockFi vs. Nexo: Interest Account Rates
BlockFi and Nexo both offer competitive interest rates based on their backed assets. That is, the best choice for your current needs will be based on a variety of variables, including the assets on which you wish to receive interest.
BlockFi offers the industry's best interest rates at 6.2% APY on account balances of up to ten Bitcoins (BTC). The company boasts the industry best for account balances of up to 1000 Etereum (ETH) at 4.1% interest.
What about altcoins like the Gemini Dollar (GUSD) and USD Coin (USDC) interest account balances? They enjoy no minimum or maximum restrictions or requirements. That said, the biggest drawback when it comes to BlockFi remains its inability to support fiat currencies.
How does Nexo perform when it comes to interest rates on accounts? The company offers an 8% APY on account balances in the following coins:
You'll also see an 8% APY on these fiat currencies:
These rates apply to account balances up to $2,000,000. But you'll have to wait if you're interested in altcoins like Ripple, Ethereum, and Bitcoin. While the platform has announced interest accounts for these coins, they are not currently supported.
What else do you need to know about Nexo, aside from this short Nexo review? Here's where to start your research.
BlockFi vs. Nexo: Interest Account Assets
In terms of interest account balances, both BlockFi and Nexo receive a half pass. After all, both businesses have only been around for a few years.
Nonetheless, in order to remain relevant in the coming years, both platforms must improve their games. The following is a list of what each platform presently supports.
Both Gemini Dollars (GUSD) and USD Coin (USDC) stablecoins are supported by BlockFi. They list Ethereum (ETH), Bitcoin (BTC), and Litecoin (LTC) as supported crypto assets (LTC).
When it comes to Nexo, The largest flaw is that no crypto assets are supported. What about the stablecoins that are supported? USDT, USDC, TUSD, DAI, and PAX are among them.
You'll also have access to fiat interest accounts in EUR and GBP. As you can see, when it comes to interest account assets, there is no clear victor. Nexo has made some announcements about crypto assets, but we'll have to wait and see if they're backed up by existing interest account products.
BlockFi vs. Nexo: Interest Account Fees and Terms
Both BlockFi and Nexo offer attractive interest rates based on the assets they support. However, the greatest option for your current needs will depend on a number of factors, including the assets you wish to generate income on.
BlockFi has the finest interest rates in the business, with a 6.2% annual percentage yield (APY) on account balances of up to ten Bitcoins (BTC). At 4.1%, the company leads the industry for interest account balances of up to 1000 Ethereum (ETH).
What about interest account balances in altcoins like the Gemini Dollar (GUSD) and USD Coin (USDC)? You won't be subjected to any restrictions or requirements, either minimal or maximum. However, the most significant disadvantage of BlockFi is its inability to support fiat currencies.
How does Nexo stack up when it comes to interest account rates? The company offers an 8% APY on account balances in the following coins:
You'll also see an 8% APY on these fiat currencies:
These rates apply to balances of up to $2,000,000 in your account. If you're interested in altcoins like Ripple, Ethereum, or Bitcoin, you'll have to wait. Although interest accounts for these coins have been advertised by the platform, they are not currently supported.
What else do you need to know about Nexo, apart from this short Nexo review? Here's where to start your research.
BlockFi vs. Nexo: Special Features
By providing unique services to their clients, the greatest FinTech organizations gain a competitive advantage. These aspects may differ significantly, and the benefits should be weighed against your own financial demands.
However, BlockFi has a tool called Interest Payment Flex that allows users to pick whether they want their interest payments credited in Bitcoin, Ethereum, or Gemini Dollar. This strategy works well for a specific segment of the investor population.
They also have a lucrative referral program that is constantly updated and worth investigating more. Last but not least, the platform allows users to exchange crypto-assets directly.
What about Nexo? You won't be able to take advantage of a referral program. However, the platform offers high-yield GBP and EUR fiat interest accounts.
BlockFi vs. Nexo: Security and Safety
Consumers are concerned about security and safety. After all, many hacking events occurred in 2019, validating the risk that crypto and blockchain technology could be hacked.
When it comes to keeping your assets safe and secure, how does each organization stack up? BlockFi, unlike many other companies, has never held an Initial Coin Offering (ICO).
The company is registered in the United States and has received significant institutional investment from venture capital firms such as Coinbase and Galaxy Digital. It entrusts the maintenance and security of customer accounts and balances to the insured custodian Gemini Custody.
Two-factor authentication is one of the security features. BlockFi states that its asset balance sheets are exclusively lent to reputable organizations and businesses.
Nexo relies on the credibility of its parent firm, Credissimo, which has been in business since the late 2000s. Credissimo's financial records are audited by Deloitte, and Nexo states that customers' crypto assets are insured by Lloyd's of London to the tune of $10,000,000.
Nexo, like BlockFi, provides account holders with two-step authentication.
However, there are certain concerns about the overall security of assets in Nexo. To begin, the business held an Initial Coin Offering (ICO) to raise funds. There have also been hard-to-ignore reports detailing Credissmio's unethical behaviour.
Has Nexo been harmed as a result of these unethical practices? It's difficult to say.
Nexo does not have the same level of asset balance sheet control as BlockFi. For all of these reasons, when it comes to security and safety, BLockFi is the clear victor.
Apart from this brief BlockFi evaluation, here's what more you should know about this company.
Compare with Nexo and BlockFi alternatives
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BlockFi, Nexo, and Your Assets
As you can see, there is a lot to consider when deciding between BlockFi and Nexo. You'll need to consider your short- and long-term asset goals, as well as the amount of risk you're willing to face.
Are you ready to learn more about platforms like BlockFi and Nexo in order to determine which one is best for your present financial needs? We've got your back. Visit Bitcompare for a quick look at the leading DeFi and CeFi platforms.