When deciding which bank to choose in the traditional banking system, the questions people ask are similar to those that can guide you when determining which crypto lending platform you should choose.
Some of these questions are: Which services do they offer? How easy is it to access the services? Which bank has higher interest rates? And which platform has a better loan term?
This article will answer questions like these and more regarding Nexo and Hodlnaut.
What is Nexo?
Nexo is a lending platform created in 2018 to provide professional financial services in the digital assets ecosystem.
Nexo has partnered with other reputable blockchain companies like BitGo, Fireblock, Brave, and Terra. The financial institution is also a member of the crypto valley, the Bitcoin Foundation, Crypto UK and Swiss Fintech.
What is Hodlnaut?
Hodlnaut is a financial institution that provides crypto hodlers (holders) with the opportunity to earn interest while holding their cryptocurrency assets. It also provides loan facilities to other corporate organizations.
Like Nexo, Hodlnaut has some partners within and outside the crypto ecosystem. These partners include Crowd Singapore, Nexus mutual, Fireblock and OKCoin. Hodlnaut is also a member of the Singapore Financial Association.
Hodlnaut vs Nexo: Products and Features
Nexo Products and Features
Exchange
Nexo offers crypto exchange services to its users. There are over 200 market pairs for the currencies supported on the Platform.
When you swap your cryptocurrency assets, the new crypto is sent to your savings account, where you can start earning interest immediately. Suppose at least 1% of your portfolio is in the Nexo token; in that case, you are eligible for 0.5% cashback every time you swap in the Platform.
Crypto backed loans
The Nexo platform allows users who have deposited in their savings account to borrow cash or stablecoins using their deposited crypto assets as collateral.
Borrowers get instant approval for loans, and they get their funds within 24 hours.
There are over 40 fiat currencies a borrower can choose from, and if they like, they can choose either USDT or USDC.
Depending on your loyalty tier, the interest rates on loans you will pay can be as low as 0% and as high as 13.9%.
Learn More
Still curious? Compare Nexo Loan Accounts.
Nexo Token
There are several ways users can utilize the Nexo token. When users hold specific amounts of the Nexo token, they can:
- earn higher interest on their savings,
- get 0.5% cashback on the swaps they make,
- pay lower interest rates on loans,
- earn up to 12% APR on the Nexo tokens they hold.
- get up to 5 free withdrawals depending on the amount of Nexo Token in their wallet.
Accounts That Earn Interest
When users deposit funds on their Nexo account, they can earn more with Nexo interest rates that can be up to 36%.
There are 40 coins users can deposit to earn interest on the Nexo platform. Users can start earning interest on supported assets the next day they are deposited. The interest is compounded daily as long as users leave the funds in their accounts.
Learn More
Still curious? Compare Nexo Savings Accounts.
Free Withdrawals
When you withdraw funds from your Nexo account to an external wallet, you could be charged withdrawal fees depending on the chain of the crypto token you want to withdraw. However, users can get at least one free withdrawal and a maximum of 5 free withdrawals depending on their tier level on the Nexo platform.
Supported Crypto Assets
Users can currently deposit about 27 crypto assets as collateral on the Nexo platform, including BTC, LINK, TRX, LINK, ADA, ETH, DOGE, and more.
The Nexo exchange supports about 300 pairs of some 40 cryptocurrency assets such as Nexo token, BTC, BCH, ETH, LINK, and more.
With some 32 coins on the Nexo platform, users can earn interest on their savings. USDT, USDC, AXS, MATIC, FTM, BNB are some of the coins that can be used to earn interest on the Nexo platform.
Nexo Tier System
Nexo loyalty Program
This is a tier system with four levels: Base, Gold, Silver, and Platinum. Each level has different requirements and benefits.
Basically, the more Nexo token you hold, the higher your tier level and the higher the benefits.
Users on the Base, Silver, Gold, and Platinum tiers are required to keep 0%, 1%, 5%, and 10% in portfolio balance respectively.
The tiered system has some benefits too. Users can earn more interest on their cryptocurrencies, fiat currencies, and stablecoins savings with a higher tier level. Going higher on the ladder of the tier system also allows users to get lower interest rates on loans as well.
Additionally, with the Nexo loyalty program, Nexo is able to reward its loyal users with free withdrawals up to 5 times a month depending on the loyalty tier they belong to.
Hodlnaut Product and Features
Accounts That Earn Interest
With a Hodlnaut interest account, users can save their funds and earn interest as high as 12.7%. There is no minimum amount a user can deposit. There is also no lock-in period.
Users who deposit in the interest account can receive weekly payouts from their savings. They can also withdraw the paid interest at any time, and there are no deposit fees in the savings account.
Learn More
Still curious? Compare Hodlnaut Savings Accounts.
Token swap
Hodlnaut users can swap the tokens supported on the platform without any charge. This can save them the fees incurred while using other crypto platforms to achieve this.
Fixed-term deposit
Hodlnaut offers a fixed-term deposit that allows users to deposit their funds with a lock-in period choice between 28 and 180 days. Here, users can deposit any amount of the supported cryptocurrencies. This fixed-term deposit grants access to loans.
Supported Crypto Assets
At present, Hodlnaut supports the following assets: ETH, DAI, BTC, USDC, WBTC, USDT.
Free Withdrawals
There is a free withdrawal for every first withdrawal in the month. However, Hodlnaut will charge withdrawal fees on subsequent withdrawals during the month. These withdrawal fees are based on the coin a user wants to withdraw.
Crypto backed loans
An individual investor can earn interest on his savings on the Hodlnaut platform but cannot take loans. Hodlnaut offers loans to institutions only.
Hodlnaut vs Nexo: Customer Support
Nexo
There is a customer support page on the Nexo website where users can get answers to many questions they have.
Users can gain access to Nexo's customer service by chatting with their support on their website. This support service is available 24 hours every day.
Hodlnaut
Like Nexo, Hodlnaut has a help page on their website where users can find answers to many questions.
Unlike Nexo, though, Hodlnaut does not have a 24/7 support service. If you want to chat with them on their website, you will have to do that during their business hours between 10 AM and 7 PM GMT+8 on Monday to Friday.
Hodlnaut vs Nexo: How to set up an account
Hodlnaut Account
You must to create an account on the Hodlnaut platform, and you can also download the IOS mobile application from the Apple store or Android app on the play store and then create an account using the mobile application.
The signup process will require you to choose if you are registering for a corporate organization or an individual. After that, you will fill in your email and password to complete the signup process.
After creating an account, you will still have to pass KYC to be able to use the features on the website.
Nexo Account
To create a Nexo account, users can click on "." Fill in your email and password and verify your email to complete the signup process.
As with Hodlnaut, Nexo users can also access the create Account feature on the mobile application. The mobile application is available on the play store for android users and the Apple store for IOS users.
Hodlnaut vs Nexo: Security and Insurance
Nexo Platform Security
Nexo users must set Two Factor Authentication using either SMS Verification, Email Verification, or Authenticator App. When users log in, withdraw, and change account settings, this is required.
You can also use your fingerprints and face recognition to access your account when you use the app. This can restrict access to your account from non-authorized people.
There's a setting that allows users to whitelist addresses. This setting will enable funds to be withdrawn to only some selected wallets. So this will not allow any other person to withdraw funds from your account into another wallet.
Hodlnaut platform security
Like Nexo, Hodlnaut runs its platform on cloud infrastructure and encrypts its traffic with SSL encryption.
Users of the platform are also required to use Two Factor Authentication to log in and make withdrawals.
Hodlnaut also allows its users to whitelist some addresses. This allows its users to restrict withdrawals to only known addresses.
Nexo Insurance
Nexo has some partners that provide security in the blockchain space. Altogether, these partners provide $775 million insurance for the digital assets on the Nexo platform.
Hodlnaut Insurance
Unlike Nexo, Hodlnaut has no insurance cover on the funds on its Platform. However, individual users can choose to buy insurance cover through their partner, Nexus Mutual.
Nexo Storage Security
For Nexo to ensure the security of its users' funds, it has partnered with companies like Ledger, Bakkt, and Bitgo.
Nexo claims to provide military-grade class III vaults. They have facilities in place to protect the platform from vulnerabilities and keep their customers' private keys safely.
They adopt level 3 Cryptocurrency Security Standard (CCSS) that requires multiple actors for all critical actions and employs advanced authentication mechanisms.
Hodlnaut Storage Security
Hodlnaut uses a strong industry-standard algorithm for securing users' passwords.
Hodlnaut assigns unique wallet addresses to its users using Fireblock's multiparty computation wallet infrastructure. After funds are received through these secure wallets, they are either moved to cold storage or lent to borrowers.
Hodlnaut carries out a periodic vulnerability assessment and testing on its infrastructure to strengthen its security position.
Conclusion
In the end, choosing either Hodlnaut or Nexo depends on the user's needs. Both Hodlnaut and Nexo allow users to earn interest on their deposits, borrow from the platform, and swap tokens from one crypto to another. However, Nexo has additional products such as the Nexo token and the Nexo card, which provides more opportunities to earn with its utilities mentioned above.
Nexo gives out loans to whoever is verified and has deposited crypto assets. Hodlnaut, on the other hand, only gives loans to institutions. Although both platforms offer interest on savings, Nexo interest rates are much lower than Hodlnaut’s when you don’t stake Nexo tokens.
Nexo has a tier system that brings more benefits to its users. Unlike Hodlnaut users, Nexo users can have access to lower interest rates on loans and earn higher interest on savings when they fulfil some requirements. They also get free withdrawals depending on the user's tier level, which Hodlnaut does not offer.
Both Hodlnaut and Nexo have invested significantly in the security of their platforms. However, it costs more to get insurance cover on Hodlnaut.