Cryptocurrency prices broke records recently, with bitcoin skyrocketing to $41,000.
However, that number won't stay high forever. Crypto investment is a high-volatility market, but one that pays off. So if you're ahead of the game, you'll be looking to invest soon when those numbers start to dwindle.
There's a good number of investment resources and platforms available, but today we're going to be comparing two big names in the industry: Crypto.com vs Nexo.
Long-time investors and newcomers alike keep reading as we breakdown these two platforms and find out which is better.
Crypto Companies—a History
No two crypto platforms are the same. Wallets, trading, lending, and cards are all varying major factors, and more importantly, when and how they started.
Understanding the companies intent when entering the industry will determine what functionalities they offer and why. So before we can accurately assess which investment platform is better, it's time to see who they are and where their goals lie.
Founded in 2016, Crypto.com's goal was to increase the widespread adoption of cryptocurrencies, as well as promote their own crypto token. It was created for everyday people to gain knowledge and opportunity within this industry.
A few highlights include:
- Native CRO token
- Used by millions
- Crypto debit card
Supporting dozens of fiat currencies, as well as over 80 cryptocurrencies, Crypto.com has gained international recognition as an excellent space to begin investing in crypto.
The platform also brings to light the exploration of these different currencies and their functions in the broader system of the industry.
Nexo is an established fintech company with leading financial digital assets. Nexo's goal is to create more avenues for people to grow their crypto wealth.
Before, the only way to capitalize off crypto was to sell it once it had been appreciated, but Nexo allows buyers to borrow against their crypto instead of selling it.
Some notable highlights are:
- Native crypto NEXO Token
- Crypto credit card
- Crypto-backed Loans
Nexo actively looks for solutions for common problems in the industry. Offering solutions for issues like the lack of utility features and access to liquidity assets.
Unlike the aforementioned platform, Nexo's goals lie in taking crypto investment to the next level for those already invested.
Crypto.com: The Good, the Bad, the Ugly
Now that we have an idea of the company, let's dissect the pros and cons. Here are the highlights and low points of Crypto.com that stood out to us:
- Great features
- Fiat balances FDIC ensured
- Cutting-edge technology
- Loads of incentives
- Scalable crypto card
What makes Crypto.com great is it's an all in one crypto service provider. Providing significantly more resources than Nexo, it offers Crypto.com Earn, Pay, Credit, and Exchange.
It uses its native CRO token to act as a utility tool throughout its system. CRO was created so crypto could be used as a form of transactional payment.
Crypto.com also offers fantastic bonuses when it comes to sign-up offers and incentives for investors to stake on their token. For instance, you can earn 20% back when you invest in CRO in the exchange, as well as increased rates.
When you use their MCO Visa debit card, you earn 5% cashback in CRO tokens and receive rebates on Spotify, Netflix, and other companies.
Their card is also scalable. This means you don't have to invest an insane amount to qualify for the crypto card. There's even a free visa card option for those looking to test the waters before committing.
Of course, those that do invest and commit to the card receive better perks.
- High fees
- Not all features are international
- CRO stakes required for perks
- Transfer limits
- Lack of transparency
Let's get the first big con out of the way, and that's fees.
There's a fee for trading, transactions, withdrawals, and cancellations. With trades, fee rates range from 0.04% to .10% for takers and makers. To buy and sell crypto, there's a 2.5% charge, and for crypto-backed loans, charges range from 10%-12%.
There is also an approximate $5 fee per transaction and withdrawal, but this varies based on card level.
And after all of that, if you decide you want to close your account, there's a nifty $50 cancellation fee. All companies have fees, but Crypto.com's are on the verge of becoming pedantic.
Crypto.com does well to include incentives for users. However, the perks are not available unless you have thousands staked in CRO.
To receive the highest rates with Crypto.com Earn, you have to stake at least $10,000 and sign up for a 3 month fixed term lockup. Anything less, and you'll receive the same rates as no CRO staking.
This affects the benefits of the MCO card as well.
Crypto.com exhibits a lack of transparency due to its refusal to report on the platform's growth, performance, and other outstanding operations.
All in all, Crypto.com has amazing features but gives the impression that they're only willing to build your value if you're willing to stake thousands into theirs.
The Good, the Bad, the Ugly: Nexo Edition
Next, it's time to see see how Nexo compares. Even though the companies had different visions in mind, the points of comparison are the same. Here's what stood out to us:
- Credit crypto card
- Competitive interest rates
- Zero fees
- Crypto loans
Nexo's goal was to help investors grow their wealth, so their crypto loans are one of their greatest assets.
Investors can use crypto as collateral for loans to build wealth, instead of having to sell their crypto. Allowing users to hold on to their crypto for longer periods, while still able to spend it, offers a lot of benefits.
Especially when it comes to taxes and regulations.
Instead of having a pre-paid card, like the MCO Visa card, Nexo has a Mastercard credit card. Due to their instant credit line feature, users have a credit card linked to their crypto account.
What's key about Nexo's credit and loan abilities is it allow users to have more functionality of their crypto than in the previous company.
If crypto cards are a big deciding factor in what platform you choose, it's worth taking a more in-depth look at the different specifications.
Their fees are also significantly less than Crypto.com's. Nexo has no withdrawal fees, and on average has cheaper fees than Crypto.com. There are no origination fees, prepayment fees, or transaction fees.
Nexo's rates on crypto-backed loans are also 5% less than that of the competitor.
- Cannot purchase in-app
- No exchange
- Focus on NEXO tokens for perks
The biggest con for us was the inability to purchase coins in-app. This is a big downside in terms of capabilities as most platforms offer features of this range and much more.
There's also no exchange available. Other platforms allow investors to exchange their digital currency for other types, or fiat money. But with Nexo, what you invest in is what you're stuck with.
One of the big draws of cryptocurrency is the privacy it provides. Because of its decentralized nature, people can buy and trade without government involvement.
Unfortunately, Nexo requires extensive personal information for their credit lines and loans.
This also makes the platform and token itself more centralized. It's subject to government regulations and company policies at any time.
Nexo has the same vibe as Crypto.com when it comes to perks. Nexo provides bonuses, but only at the expense of investing a high stake into their token and using their token.
This takes money away from any possible bitcoin investment, or other cryptos you have in mind.
Overall, Nexo is unbeatable when it comes to growing wealth and providing usability, but lacks in features and updates.
Yield is a very complex aspect of crypto investment. To get a true understanding of what to expect, try using a crypto calculator.
For the sake of summarizing though, here is our quick comparison between these platforms.
Both companies offer similar results in yield. The average within +/- .5% of each other, so either is excellent for crypto lending.
However, if your planning on high stakes then Crypto.com is better as it increases deposits by 2%, providing the best rates in the industry.
Pros and cons of Crypto.com
- Is a complete crypto platform
- Offers frequent promotions
- Permits you to earn returns on your deposits
- Includes a high-speed exchange with competitive fees
- Offers a crypto-backed rewards card
- High-speed exchange with competitive fees
- Having to stake CRO or MCO to get the most out of your MCO rewards
- A general lack of transparency regarding where funds come from
- A confusing two token system (e.g., CRO and MCO)
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.
Crypto.com: Frequently Asked Questions (FAQs)
Now that you've got a much better concept of what you'll get with Crypto.com, let's take a look at some of the platform's most frequently asked questions (FAQs). These common customer inquiries will provide you with insights into everyday aspects of using the app, card, and more.
Which Cryptocurrencies Are Accepted by Crypto Pay?
At the moment, you only have one option when it comes to Crypto Pay. The platform currently only accepts Crypto.co Coin (CRO).
What Should You Know About Crypto.com DeFi Swap Fees?
Crypto.com's DeFi swap permits users to connect their personal Ethereum wallet for effortless and streamlined ERC-20 token swaps, unlike the app or exchange.
Generally, you'll get charged 0.3 percent fees to liquidity providers for token swapping fees. These fees support the run of smart contracts.
To get started, connect your Defi Swap with your Crypto.com Defi Wallet. When transferring crypto in the Ethereum network, you must pay gas fees.
Choose between average, fast, and super transaction confirmation speeds. Remember that average and super-fast speeds respectively represent low and very high transaction fees.
Which Wallets Are Compatible With Crypto Pay?
You've got incredible flexibility when it comes to Crypto.com. You may use any wallet that both holds and sends Crypto.com Coin (CRO) with Crypto Pay.
Frequently asked questions about Nexo
We’ve compiled some answers to questions we often get. Should you have any other questions, feel free to reach out below in the comments.
How Does It Work?
As their slogan suggests, Nexo supports you to bank on crypto. Lending with this platform, you can earn 12% interest that compounds and pays out daily. If you borrow on the platform, you will have a starting APR of 5.9%.
On top of all this, you make your deposits and withdrawals whenever you like without limits. And for automatic approvals, there are no credit checks. The platform supports over 40 fiat currencies in over 200 countries of supported transaction locale.
How to Borrow Cash With Nexo?
You can instantly borrow fiat from Nexo by using crypto as collateral. As mentioned earlier, they support over 40+ currencies, and you can spend it how you like with your method of choice or with a Nexo card.
Once again, to borrow, login to your account. Select supported crypto and "Top Up". Send your crypto to the address and you're set. It's the same process as lending crypto.
Behind the deposit, you will see your credit line, which you can use instantly. You can transfer to a bank or use it with your Nexo card. With the Instant Crypto Credit Line, you can make use of a variety of crypto to back your loan. This ensures that you are less vulnerable to crypto volatility
Nexo provides a 50% discount on the final amount. If your outstanding balance is within the loan limit, you don't need to make monthly payments. Once you fully repay the loan, you can withdraw your assets from the wallet. You can also choose to start a new line of credit with the collateral.
When it comes to loan limits, it's determined by the market value of your assets used as collateral. If your assets increase in value, the Nexo Oracle (Nexo AI) will increase your loan limit automatically.
How to Use Your Crypto On Nexo?
Before you can deposit your digital assets, you have to confirm your personal details. Without verification, you will not be able to borrow or lend fiat or crypto. You will also be able to see the interest rates.
Start by logging in or creating an account on Nexo. After this, choose the crypto that you prefer and "Top Up". Send your digital assets to the secure address and you're all set.
Nexo will display your balance and how much you can earn. You have the ability to withdraw whenever you like without fees and penalties. When you deposit your crypto, you will also see your open credit line.
Is the Nexo debit card available yet?
The Nexo Card is not available to most people just yet. It’s something they’ve been working on for a couple of years now. Some of the features include 2% cash back. What’s best about this is that you can even choose whether you receive it as Bitcoin or Nexo tokens.
What fiat currencies and crypto coins and tokens Nexo support?
How can I deposit funds to Nexo?
Depositing funds to Nexo is quite simple. Select one of the supported cryptocurrencies and it will generate a private deposit address. Copy it & paste the copied address to the "withdraw address" option of the wallet or exchange that you are using to transfer funds to Nexo and click on the withdraw/send button. That's it as soon you will receive the funds in your Nexo wallet/account after the number of network confirmations is reached.
Crypto.com vs Nexo...so Which Is Better?
After comparing Crypto.com vs Nexo, the question that resonates isn't which one is better, it's which one is best for you. These companies offer stark differences that could be wonderful, or awful depending on the person.
Crypto.com is great for beginners. The platform is plentiful in amenities, smart trading, and amazing resources to get people involved and started on their platform.
Nexo is perfect for serious investors that are looking to add value to their crypto and plan to hold serious money in their accounts. An excellent platform for those wanting to explore more of the industry, and push boundaries.
We hope this article was helpful. As always, here at Bitcompare, we strive to educate fellow crypto-goers. If you have any questions don't hesitate to contact us. For more comparisons, check out our blog and explore our site!