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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 favourable rates.
However, the use of each country's currency is entirely optional. At the end of the day, the rates aren't much higher, so you may want to avoid these native tokens. Here's everything you need to know about Nexo vs. Celsius Network and which one is right for you.
About Celsius Network
Celsius Network is a US-based crypto industry leader for savings accounts and loans. The company boasts millions of users and offers some of the most compelling features and pricing in the crypto world today.
For example, Celsius Network offers one of the best interest rate on stablecoins at up to 10.63% APY annually. It pays interest weekly and requires little more than 24 hours for a full fund move.
If you choose to pay in the network's native tokens, you get more money. That means you need to contact Celsius to see if this native token option applies in your country or not.
Celsius has partnered with a third-party exchange to promote the trade. But beware of high fees. Hopefully, as trading moves forward, we will see a reduction in these costs.
What is Nexo?
Nexo is a European Union-based crypto lending and savings platform. It allows users to borrow or earn interest on their crypto assets. Developed by a creative, innovative tech team, they have about ten years of experience in building the crypto ecosystem.
Nexo offers savings accounts on a wide range of crypto assets. This includes savings accounts in most stablecoins.
Nexo boasts Credissimo as its parent company, and this is touted as an added layer of consumer security. A traditional financial platform, Credissimo, is also EU-based.
Unfortunately, its reputation has taken a hit in recent years, including delisting from the Bulgarian Stock Exchange in 2016. Despite this financial hiccup, Nexo continues to perform strongly and seems unaffected by the parent company's troubles.
Nexo has a user-friendly interface that is easy to get started with its mobile app. Nexo doesn't have an exchange, so you'll have to take your trades elsewhere.
How to get the most out of your coins? If you want to earn up to 12% per year on your stablecoins, then you need to hold Nexo's native token. That said, if the value of the token is down, it could lead to significant losses, so be careful with this feature.
Nonetheless, among the conveniences that keep many customers returning to Nexo are the daily interest payments. You can usually withdraw your cryptos within an hour or less, which is another bonus.
Between the sullied nature of Credissimo's reputation and Nexo's somewhat ambiguous location, however, there are concerns. Despite these "red flags," we've found the customer service response time to be both prompt and confidence-inspiring.
Celsius Network vs. Nexo: Core Features, Pros, and Cons
One of the best ways to compare Celsius Network and Nexo is to take a closer look at the core features, pros and cons of the two platforms. You will find that despite many superficial similarities, both platforms have unique advantages and disadvantages.
Core Features, Pros, and Cons of Celsius Network
Let's first take a detailed look at the features of Celsius Network. If you choose to use this platform, you will benefit from the following basic features:
No fees to set up, use, or withdraw from the platform
Weekly compounding interest
Extensive range of asset classes
In addition to these basic amenities, you'll also enjoy benefits like flexible terms and no fees. Celsius' interest rates prove to be competitive, especially when it comes to stablecoins. You also benefit from compound interest and the CEL Pay option.
What is the CEL Pay option? It allows users to transfer coins from one Celsius user to another without incurring transaction fees.
What about other benefits? You can expect to receive interest payments every week. The platform also supports a massive variety of cryptos, making it an excellent choice for those looking into dabbling in altcoins.
What are the disadvantages of Celsius Network? You also have to swallow the risk of getting paid in the platform native tokens 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 knowledgeable 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
17% 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.
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Which Is Better, Nexo or Celsius Network?
What is the most unique feature when it comes to Celsius Network? The platform offers its own cryptocurrency called CEL tokens. The company offers more competitive interest rates on both savings accounts and loans when using this native token.
What are the most exciting features of Nexo? It supports more than 45 fiat currencies and many cryptocurrencies. In addition, the Nexo team has many FinTech veterans.
Nexo offers a native token that is used to pay dividends to holders. Just be careful when looking for these high yields. Some users have gotten burned in the past by falling token prices.
Perhaps Nexo's best feature is its wallets, which are fully insured in a cold storage facility. By making security one of its top 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 choice.
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 think Nexo remains the clear winner.
While the parent company has experienced recent scandals, Nexo's continued emphasis on audits and the highest security protocols make it an excellent choice. In a crypto world where hacking attacks occur regularly, Nexo remains the best choice, especially for investors sweating over lost dollars.
Ready to learn more about the wide world of crypto platforms? Check out our listing of leading DeFi and CeFi platforms that offer lending, debit and credit cards, and loan services in altcoins.