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Nexo vs Ledn: The Pros, Cons and How they Compare | Bitcompare

Nexo and Ledn are leading crypto lending and borrowing platforms that compete to give you the best rates. We break them down to see which is better.


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Pros and cons of Nexo

Pros

  • $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.

Cons

  • 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.

Pros and cons of Ledn

Pros

  • No "utility" tokens
  • Bitcoin focused company
  • Cold-storage and proof-of-reserves
  • No monetization of users' data
  • Two-factor authentication
  • Data stored on private networks blocked from public IPs
  • Bitcoin offered through BitGo Custody
  • Minimal personal information requirements to open an account
  • In-house KYC and AML verification
  • No penalty fees for deposits and withdrawals

Cons

  • New company, two years old as of August 2020
  • Limited choices, offers a standard loan plan
  • No mobile app, only accessible in a web browser
  • Not available to individuals sanctioned by Canada
  • Not open to residents of New York, Connecticut, Washington, and Wyoming
Promoted

Risk-free and high-yield tool to store your coins

  • Earn up to 12% APR on EURS, USDT, ETH, XRP, and 20+ more coins
  • Weekly compound interest payouts
  • Universal conversion between all crypto, fiat, and stablecoins
Types
Platforms
Coins

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?

Nexo supports 17 cryptocurrencies, and it includes BTC, ETH, PAXG, BNB, XLM, NEXO, BCH, EOS, LINK, TRX, USDC, USDT, and much more. When it comes to receiving loans in fiat currencies, Nexo offers loans in 45 fiat currencies.

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.

Frequently asked questions about Ledn

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.

What Services Does Ledn Offer?

When you open a Ledn account, you gain access to a suite of products, permitting you to take the greatest advantage of your digital assets. The platform's savings products provide customers with extra yield. 

Ledn's credit products permit customers to HODL their Bitcoin while still accessing dollars to purchase more crypto holdings.

How Does Ledn Wallet Work?

Ledn Wallet is a segregated wallet address for on-chain, real-time verification, or proof-of-reserves. Ledn offers insurance on user's assets through BitGo Insured Custody. As a result, you can rest assured your assets are safe with Ledn.

How Secure Is Ledn?

What about security? The website relies on multiple layers of protection to keep its users safe.

These include the use of passwords and HTTPS. All data deemed sensitive is encrypted with AES-256 and controlled by a set of strict internal security policies. 

What's more, the platform requires additional two-factor authentication and login actions to verify users' authenticity. Ledn keeps collateral Bitcoin in cold storage offline in vaults rated institutional-grade. These are located throughout Canada.

What Steps Does Ledn Take to Protect User Privacy?

Ledn doesn't monetize or sell any of its customer data to third parties, which is a significant relief for those using this platform. This approach to privacy means a reduced risk of data breaches, which is fantastic, no matter how you slice it.

What data does Ledn require from users? Only what's needed to meet compliance requirements. That said, the company never overreaches beyond requests for absolutely necessary information.

Can I Withdraw Assets at Any Time?

With a Ledn Savings Account, you can withdraw funds without any penalties at any time. You may also pay off your loan without any early payment penalties. 

Withdrawal requests get processed quickly, and the platform strives to have your Bitcoin in your wallet within 24 to 72 hours.

How Does Ledn Store User Data?

They store this data on private networks, blocked from public IPs. You may also request that Ledn delete this data at any time, making it an excellent option from a privacy standpoint.

  • Features
  • Ease of use
  • Security
  • Support
  • Reputation
  • Fees
  • Overall
  • 3
  • 4
  • 5
  • 4
  • 4
  • 4
  • 4
Go to site
  • 3
  • 4
  • 4
  • 4
  • 4
  • 4
  • 3.83
Go to site