The idea behind crypto lending platforms is to offer users a way to access financing without selling off their digital assets. These platforms also allow you to take advantage of savings accounts to earn interest on your idle crypto holdings.
However, every platform has its selling point(s). While some platforms offer tempting benefits such as great rates, others may have a wider variety of additional features like rewards cards or sophisticated trading tools. Hence, choosing between two platforms with competitive features can be challenging.
While Nexo has been operating for a while and has several impressive offers, Crypto.com recently added crypto lending to its suite of services. Their services differ, hence choosing between them will depend on your specific requirements.
In this article, we compare Crypto.com and Nexo based on their features, interest rates, security, and other criteria to help you choose the best fit for you.
Introduction to Crypto.com
Crypto.com is a cryptocurrency trading, payment, earning, and borrowing platform appraised for its role in pushing cryptocurrency into the mainstream. The platform was founded in 2016 and has been recognized internationally as an ideal place to start investing in digital assets.
Crypto.com allows you to manage all your crypto-related needs in one place. It is best described as a one-stop shop for everything crypto, supporting over 250 cryptocurrencies and over 20 fiat currencies. It also provides debit card and wallet services in addition to its full-featured exchange, loans, and savings account.
The platform has a native token, CRO, which users can hold to access a wide range of benefits and best rates. Crypto.com's high-yield interest accounts and unique investor tools are helping over 10 million users make the best from their crypto assets.
Crypto.com Features
Crypto.com has a wide range of individual products and features. Each of these features prioritizes usability and convenience. We'll explore them under this section.
Crypto Trading
The Crypto.com exchange is likely the most popular service available on this platform. It is fully operational with a decent selection of supported tokens and coins, including BTC, ETH, and major stablecoins.
The platform charges transaction fees like other exchanges, but you'll receive a discount if you pay these fees using the CRO token.
Digital Wallet
Crypto.com has a digital wallet used to hold cryptocurrency. However, the wallet is available as a standalone smartphone app separated from the primary app and exchange platform.
As a non-custodial wallet, you have complete control over your private keys. However, you won't be able to use other platform services through the app. You must link your wallet app to your main platform account to transfer funds.
Crypto Lending
You can also lend your idle crypto using Crypto.com in exchange for yields. The platform offers savings accounts, allowing you to earn as much as 14.5% on your crypto deposits.
The accumulated interest is paid directly into your wallet every seven days and will be available for use immediately. Crypto.com makes interest payments in the same currency as the one deposited. For instance, if you deposit BTC, your interest earnings will come in BTC.
Crypto-backed Loans
Crypto.com offers flexible crypto loans through its Crypto Credit feature. The feature allows you to borrow funds from the platform with a 50% loan-to-value (LTV) ratio.
Like other crypto lending platforms, Crypto.com does not require your credit history or extensive checks to offer loans. You only need to deposit crypto collateral worth twice the amount you need to borrow.
The minimum loan amount is $100, while the maximum loan duration is 12 months, although you can repay any amount at any time. Also, interest rates are lower for users who stake the platform's CRO token. Once your loan is approved, the money is sent directly to your crypto wallet.
Crypto.com Token
Cronos (CRO) is the native token of the Crypto.com platform used to provide more value to users. It recently rebranded from Crypto.com Coin to Cronos but maintained its ticker, CRO.
CRO is available for trading on several exchanges and can be used to settle transaction fees. It offers several benefits, including lower fees on transactions. You can access up to a 50% discount on fees when you buy cryptos with the CRO token on Crypto.com.
Also, you can access the best rates on crypto loans and savings accounts if you stake CRO. This can be between 10% to 14% APR. Additionally, you'll be able to access the Crypto.com Syndicate events, a weekly event where you can buy cryptos at discounted prices.
Crypto.com Visa Card
Another service offered by Crypto.com is the Visa debit card. This card makes spending your crypto funds on daily expenses easy.
The card allows you to add crypto funds and use it to make purchases anywhere Visa cards are accepted. The crypto you add to the card is freely converted to USD at current market rates, and you will also receive certain rewards, including CRO cashback depending on how much of the token you stake.
Read the full review: CRO Visa Card Review: Pros, Cons and How It Compares
Supported Currencies
As earlier stated, Crypto.com supports over 250 cryptocurrencies and over 20 fiat currencies within its platform. You can transact in popular cryptos and stablecoins, including Bitcoin, Ethereum, Litecoin, Dogecoin, Polygon, Cardano, USDC, and many more. You can also withdraw and deposit fiat currencies, including USD, EUR, and GBP.
How Safe is Crypto.com?
Like other similar platforms, Crypto.com observes certain security measures to ensure the safety of users' funds. The platform allows for two-factor authentication and whitelisting to protect users' accounts from unauthorized and criminal activities.
100% of customers' deposits are stored offline in cold storage to avoid hacks and loss of funds. The platform then supports day-to-day trading using the corporate funds in the hot wallet.
While deposits are not protected by FDIC, as with traditional financial institutions, the platform has one of the largest insurance coverage in the crypto industry, reaching up to $750 million. This makes it a leader among other crypto lending platforms regarding insurance protection.
Crypto.com Pros
- Competitive interest rates on loans and savings accounts
- Largest insurance of $750 million
- Wide range of supported currencies
- Visa debit card
- Loads of incentives
Crypto.com Cons
- CRO token stakes are required to access the platform's incentives
- High fees
- Some features are not universally available
Read the in-depth review: Crypto.com Review: Pros and Cons. Is Crypto.com safe?
Introduction to Nexo
Nexo is a fully licensed, regulated, and insured crypto lending platform whose founders have been in the online lending space even before the launch of Bitcoin and blockchain technology. The platform was officially founded in 2018 and currently operates in about 200 jurisdictions.
Nexo provides crypto services in over 40 cryptocurrencies. It offers credit lines, savings accounts, and a crypto exchange. It also has a native token that gives holders various utilities and rewards on the platform, and a card that allows users to make purchases using the value of their held crypto.
The platform currently offers a referral program, where Nexo users and their referrals will both get $25 in Bitcoin. The requirement for getting this reward is that the referred user tops up the equivalent of $100 in any supported cryptocurrency and holds it on Nexo for a minimum of 30 days.
Nexo is a member of several reputable blockchain associations, such as Swiss Fintech. It also partners with Fireblocks, Brave, and BitGo to secure users' confidence.
Nexo Features
As already established, Nexo offers interest accounts, instant crypto loans, an exchange, a native token, and a debit card. This section will explore how these individual products and features work.
Crypto Lending
Nexo encourages users to deposit crypto in their savings accounts in exchange for attractive interest rates of up to 18%. To start earning interest, you can deposit through any of the platform's supported assets or buy crypto with your credit or debit card directly on the platform.
Interest starts adding up the day after you deposit your digital assets and compounds daily as long as you leave the assets in your account. You can also add more assets or withdraw your funds at any time.
Crypto-backed Loans
You can also take out crypto loans on Nexo using any supported cryptocurrency as collateral. Depending on your loyalty tier, the platform's borrowing rates can be as low as 0%.
Nexo has a minimum borrowing amount of $50 and a maximum of $2 million, with bigger loans available on request. Loans are approved automatically with no credit checks, meaning you'll typically receive your requested funds within 24 hours.
The platform's loan structure is flexible as you can repay your debt at anytime, and you do not need to pay fees to borrow cash or stablecoins.
Crypto Trading
Nexo also has a crypto exchange where you can swap cryptocurrencies and send them to your Nexo account to start accruing interest. The exchange is fully functional and allows you to access up to 200 market pairs for the assets supported on the platform.
Also, you can receive as much as 0.5% cashback each time you swap cryptos on the Nexo exchange. However, this depends on your loyalty tier, which is determined by the percentage of your crypto portfolio held in the NEXO token.
Nexo Token
Nexo's proprietary token, NEXO, is used within the platform to unlock several benefits. If you hold Nexo tokens, you'll receive better interest rates on your savings and pay lower rates on loans.
The Nexo token also allows you to get five free withdrawals per month and receive cashback when you swap cryptocurrencies on the platform's exchange. You'll also be eligible to receive daily interest of up to 12% on their tokens.
The token has four loyalty levels: Base, Silver, Gold, and Platinum. Each of the tiers requires you to hold a different percentage of your portfolio in NEXO: 0%, 1%, 5%, and 10%, respectively. The higher you go in the token's tiers, the more benefits you'll enjoy.
Nexo Card
Nexo also has a card that allows users to spend cryptocurrencies on daily purchases. Users do not need to sell cryptocurrencies whenever they need cash, and more than 40 million merchants accept the card worldwide.
However, unlike Crypto.com, which requires you to fund the card, Nexo supplies the cash you need to make purchases, and you pay back with crypto. It has no monthly fees, and you can even receive cashback when using the card.
The cashback rate depends on the coin you choose to receive your rewards in. If you choose to get your rewards in BTC, you'll receive 0.5% cashback and up to 2% if you choose NEXO.
Read the full review: Nexo Card Review: The Best Crypto Card Available?
Supported Cryptocurrencies
Nexo supports transactions in over 30 cryptocurrencies. They include, but are not limited to; BTC, ETH, NEXO, XRP, USDT, and USDC.
How Safe is Nexo?
Nexo applies all necessary safety measures to secure users' funds deposited on the platform. All its assets are kept in cold wallets offline, and it provides insurance cover of $775 million on custodial assets.
You must also enable two-factor authentication (2FA) before withdrawing funds or making any changes to your account. The 2FA can be done through email, SMS, or authenticator apps.
Also, Nexo complies with all relevant laws and keeps professional legal counsel in all its 200 jurisdictions. The platform's legal and compliance teams ensure that every aspect of the company's activities or operations complies with all local and global requirements.
Nexo lends funds only on a strictly overcollateralized basis. This means you should not worry much about the effect of declining market conditions on your assets.
Nexo holds over 40 licenses globally, and it's one of the few institutions with a real-time attestation of its finances provided by Armanino LLP.
Nexo Pros
- Quick loan approval
- Partners with other organizations to guarantee safety
- High interest on deposits in savings accounts
- Offers some of the lowest borrowing rates in the market
- Up to five free withdrawals monthly
- Supports borrowing in crypto and fiat
- Cashback when swapping tokens or using the platform's debit card
- Up to $775 million in insurance
Nexo Cons
- Interest rates depend on the amount of NEXO you hold in your portfolio
- The platform's rates change occasionally
Read the in-depth review: Nexo Review: The Good, Bad and Whether it's Safe
Compare with the best alternatives
| Platform | Interest Rates (APY) | |
|---|---|---|
| Nexo | Up to 7% on BTC Up to 12% on Stablecoins ... 36 more coins | |
| OKX | Up to 5% on BTC Up to 0.08% on Stablecoins ... 196 more coins | |
| YouHodler | Up to 3.05% on BTC Up to 8.33% on Stablecoins ... 56 more coins |
Crypto.com vs. Nexo: The Takeaway
We have attempted to explore the features and products of Crypto.com and Nexo, itemizing their selling points and downsides. But the question remains, which is best for you?
Both platforms offer crypto lending and exchange services. They also have debit cards and native tokens that offer additional benefits. However, their rates and benefits differ.
Nexo offers higher interest rates and lower borrowing rates than Crypto.com, while Crypto.com supports more assets than Nexo. Crypto.com exchange is also more extensive than Nexo's exchange.
Therefore, if you seek to add value to your crypto assets or borrow with low-interest rates, may be an ideal option. However, if you are just getting into cryptocurrency investment and need a place to begin, offers several beginner-friendly features to get you started.