Have you taken a look at Celsius Network and Nexo lately? Both platforms provide crypto savings accounts and loans at highly competitive rates.
How? By providing industry-leading products that we can get behind. That said, deciding between these two companies can feel frustrating as they look quite similar on the surface. For example, both companies support many different crypto assets and remain fee-free.
Careful exploration of Celsius Network vs. Nexo reveals some vital differences, however. For starters, Nexo offers BitGo custody insured for up to 100 million USD per wallet. This added level of security appeals to many customers for obvious reasons.
Both platforms have native currencies in addition to their Bitcoin, Ethereum, and other popular cryptocurrency offerings. You'll notice variations in their interfaces and user approach, but each platform incentivizes holding their native currencies by offering favorable rates.
That said, using their native currencies remains entirely optional. When it's all said and done, rates don't prove much higher, so you may wish to avoid these native tokens. Here's everything you need to know about Nexo vs. Celsius Network and which one's right for you.
About Celsius Network
Celsius Network is a US-based crypto-industry leader in savings accounts and lending. The company boasts millions of users and provides some of the most compelling features and rates in the crypto world today.
For example, Celsius Network offers the best interest rate on stablecoins at 11.6 percent annually. It pays interest on a weekly basis and requires little more than 24 hours for a full fund move.
When you opt for payment in the network's native token, you'll receive more funds. That said, you'll need to contact Celsius to see whether or not this native token option applies in your country.
Celsius has collaborated with a third-party exchange to fuel trading. But beware of high fees. Hopefully, as trading moves forward, we'll see a reduction in these expenses.
What is Nexo?
Nexo is a European Union-based crypto loans and savings platform. It allows users to borrow or earn interest on their crypto assets. Developed by a creative, innovative tech team, they have approximately ten years of experience building in the crypto ecosystem.
Nexo offers savings accounts on a broad range of crypto assets. These include savings account in most stablecoins.
Unfortunately, its reputation has gotten sullied in recent years, including delisting from the Bulgarian stock exchange in 2016. Despite these financial hiccups, Nexo continues to perform strongly, appearing undamaged by its parent company's struggles.
Nexo has a user-friendly interface that's easy to get started with using its mobile app. Nexo doesn't have an exchange, so you'll need to handle your trades elsewhere.
As for getting the most out of your coins? If you'd like to earn up to 10 percent per year on your stablecoins, then you'll need to hold Nexo's native token. That said, when the token's value is down, this could lead to significant losses, so be careful with this feature.
Nonetheless, amenities that keep many customers returning to Nexo include getting paid daily interest. You can typically withdraw your cryptos within an hour or less, representing another bonus.
Between the besmirched nature of Credissimo's reputation and the somewhat ambiguous location of Nexo, it does raise concerns, though. Despite these "red flags," we've found their customer service response time to be both prompt and confidence-inducing.
Celsius Network vs. Nexo: Core Features, Pros, and Cons
One of the best ways to compare Celsius Network and Nexo is by taking a closer look at each platform's core features, pros, and cons. You'll find that despite many superficial similarities, each comes with unique advantages and disadvantages.
Core Features, Pros, and Cons of Celsius Network
Let's start by taking an in-depth look at the features offered by Celsius Network. When you choose this platform, you'll enjoy the following basic features:
- No fees to set up, use, or withdraw from the platform
- Weekly compounding interest
- Extensive range of asset classes
Besides these basic amenities, you'll also enjoy advantages such as flexible terms and no fees. Celsius's interest rates prove competitive, especially when it comes to stablecoins. You'll also enjoy compounding interest and the CEL Pay option.
What's the CEL Pay option? It allows users to transfer coins from one Celsius user to another user without any transaction fees.
What about other advantages? You can expect to see interest payments every week. The platform also supports a massive variety of cryptos, making it an excellent choice for those interested in dabbling in altcoins.
What about the cons with Celsius Network? You'll also need to swallow the risk of getting paid in the platform's native token if you want to take full advantage of high-interest rate earning potential.
Core Features, Pros, and Cons of Nexo
How does Nexo compare? In terms of core features, users will benefit from:
- Working with a knowledgable staff backed by Credissimo and audited by Deloitte
- $100 million insurance on custodial assets
- No fees to set up, use, or withdraw from the platform
- Full flexibility (meaning no lockdown periods and the ability to make withdrawals at any time)
- Licensed & regulated financial institution
- Compounded daily interest
- Thirty percent interest with Nexo tokens
As you can see, Nexo comes with plenty of pros. You'll also enjoy its easy-to-use app and website interface, available anywhere Wi-Fi exists.
You'll also appreciate the platform's highly competitive interest rates. Of course, taking full advantage of these means withdrawing in the platform's native token, which has proven risky in the past. Nexo even provides extra support for business accounts.
What about security? Nexo offers military-grade security.
These features include cold storage in Class III vaults through BitGo, a SOC2 Type 2 certified cryptocurrency custodian. (We'll return to this later.)
Like its parent company, Nexo goes through a regular and extensive auditing process. Its security management systems are ISO/IEC compliant. What's more, the company receives inspections and checks from CISQ, a member of the world's largest management system certification provider, IQNet.
How about the disadvantages of Nexo? For starters, you can't purchase cryptocurrencies using the app. You can't exchange via the app, and you must rely on Nexo tokens for high-yield rates.
Celsius Network vs. Nexo: Safety and Security
As you can see, both platforms come with some impressive core features and advantages. But how do they compare in terms of security and safety protocols? Let's take a closer look.
Once upon a time, Celsius Network’s wallets were stored and insured by BitGo, like Nexo's. Each wallet got insured for upwards of $100 million by the reputable insurance company Lloyd's of London.
Unfortunately, such is no longer the case. When using Celsius Network as a custodian, you must remain aware of this update. Otherwise, you could end up with a false sense of security.
How does Celsius Network keep client funds safe today? Through standard security features such as two-factor authentication.
How does Nexo fit into the mix? It offers two-factor authentication. You'll also enjoy third-party custody through BitGo as mentioned earlier. BitGo investors include Goldman Sachs, and the platform's SOC 2 Type 2 certification provides the ultimate in fund safety and security.
BitGo Custody's $100 million in insurance protection means peace of mind for those investing in the platform.
Pros and cons of Celsius Network
- No Minimum Deposits or Balance
- No fees
- Competitive interest rates, particularly on Stablecoins
- Fee-free, instant payments via CELPay
- Weekly Rewards. Each Monday, you'll earn interest.
- Large variety of supported cryptocurrencies
- You can two options for earning your crypto interest. You can either earn the same coin as you had deposited or earn in CEL, Celsius' native coin. Earning is CEL will earn an additional 5-30% interest.
- No web app
- Need to be paid in native currency in order to earn higher interest rates
- Know Your Customer (KYC) is required if you're looking to earn interest. This means you'll need to submit your ID and SSN.
- Interest rates can fluctuate quite a lot
- You'll only be able to use one withdrawal address for each crypto. If you wish to change, there will a 24-hour hold on your account.
- United States users will not be able to take advantage of earning in CEL.
Pros and cons of Nexo
- $375 million insurance and custodied with Ledger Vault
- Easy to use app and website.
- Support for business accounts.
- Nexo’s information security management systems are ISO/IEC 27001:2013 compliant after extensive audits, inspections, and checks by CISQ, a member of IQNet and the world’s largest provider of management system certification.
- Full flexibility — no lock-in periods, withdraw at any time.
- No withdrawal, transaction, or platform fees.
- Earn 30% extra interest when earning with Nexo tokens.
- High levels of asset liquidity.
- Free Nexo card for daily transactions.
- Over 4 billion processed and 1+ million clients.
- No hidden fees.
- No credit score checks.
- Guaranteed approval.
- Nexo's crypto brokerage service offers 75+ crypto & fiat pairs. It also offers zero price fluctuations when user places an order.
- Nexo mandates holding NEXO tokens to receive the best loan and savings rates.
- The $375 million insurance is cumulative for all clients, and it only applies to assets that are kept in cold Ledger Vault wallets.
- Even though Nexo does not mention re-hypothecation anywhere, it seems like it's applicable.
- In some cases, lender interest rates are higher than borrower rates.
Compare with Celsius Network and Nexo alternatives
Similar Savings Accounts and Loans
Which Is Better, Nexo or Celsius Network?
What's the most unique characteristic when it comes to Celsius Network? The platform offers a native cryptocurrency called the CEL token. The company offers more competitive interest rates for both savings accounts and loans when using this native token.
What about Nexo's most exciting features? It supports more than 45 fiat currencies and many cryptocurrencies. In addition, the Nexo team boasts many FinTech veterans.
Nexo offers a native token used to pay out dividends to holders. Just be careful when seeking out these high-yield rates. Some users have gotten burned in the past by sinking token prices.
Perhaps Nexo's best characteristic is its wallets, which are fully insured in cold storage. By making security among its highest priorities, Nexo has set itself apart in the crypto world. For investors who stay up at night worrying about their money, it remains the better pick.
Crypto Your Way
Whether you're a newbie or looking to expand your crypto horizons, you'll find plenty of compelling reasons to consider these two platforms. But when it comes to Celsius Network vs. Nexo, we believe Nexo remains the clear winner.
While its parent company has seen recent scandals, Nexo's continued emphasis on audits and the highest security protocols make it an excellent choice. In a crypto world where hacking happens regularly, it remains the best choice, particularly for investors who sweat bullets over dollars lost.
Are you ready to learn more about the wide world of crypto platforms? Check out our listing of the leading DeFi and CeFi platforms offering lending, debit and credit cards, and loan services in altcoins.