Nexo vs. BlockFi – Which Platform is Better? [2022]

Nexo vs. BlockFi – Which Platform is Better? [2022]

I began investing in cryptocurrencies in 2017 and have since used a variety of platforms to accelerate earnings and compound returns. I investigated for hundreds of hours and compared over ten different platforms. This is the area to compare Block Fi with Nexo to determine which platform is superior.

Earning interest on cryptocurrency assets with Nexo is risk-free. What is its relationship to BlockFi?

Both BlockFi and Nexo, two formidable rivals for cryptocurrency interest accounts, allow users to borrow money secured by cryptocurrencies and earn quite high APY on various cryptocurrencies.

Nexo vs. BlockFi. What are they?

BlockFi, a platform for lending cryptocurrency and earning interest, was established in 2017 and is situated in New Jersey. The company has raised approximately $508.7k from its 40+ investors, including Pomp Investments, and is currently valued at $3 billion. 

For its more than 230,000 members, BlockFi manages assets worth more than $15 billion.

Nexo was established in 2017. An exchange, cryptocurrency loans, an interest account, and its native NEXO coin are just a few of its offerings.

By providing comparable APY rates for crypto tokens and fiat currencies like USD and GBP, the European firm adds an exciting new wrinkle to the cryptocurrency interest game. Nexo manages over 2 million users and $30 million worth of assets.

Who brings the most to the table regarding interest in cryptocurrencies, BlockFi or Nexo, both of which are outstanding businesses in their own right?

Look no further if you’re debating whether to use BlockFi or Nexo or whether to use both.

What is NEXO?

Nexo provides a simple and user-friendly app. They have an interest structure with tiers based on customer loyalty (amount of NEXO token you hold). They pay 10% for stable coins (Fiat) and 5% for other cryptocurrencies if you own more than 10% of NEXO in your portfolio (without a cliff). They pay 1% more if you choose the 1-month fixed term package. 

Since I am investing long-term, I have no trouble choosing the higher interest rate. Many people told me positive stories about their experiences with customer support. I’ve personally had correspondence with customer service agents. They responded to me in 1-2 days and resolved the problem. 

The NEXO native token, which Nexo offers, provides up to 12% APY. However, in order to collect 12 percent, you must lock up NEXO for a full year; interest is only paid out after the term. Additionally, Nexo provides a marketplace where you may exchange or trade coins. The exchange’s fees are fairly reasonable.

While you have more freedom with flexible deposits and the interest is paid out and accumulated daily, you obtain the best interest rates with 1-month fixed deposits, which are paid out and compounded monthly.

Depending on your level of loyalty, you are entitled to 1–5 free withdrawals of cryptocurrency each month (percent NEXO in your portfolio). You can obtain the highest Platinum level and five free withdrawals by holding 10% of NEXO. Due to increasing gas prices, the number of free withdrawals was restricted from being unlimited, yet this is still better than most other platforms.

What is BlockFi?

BlockFi is a New York-based business. It is supported by a few well-known VC firms and is fully regulated in the United States. This will be a more compliant option if you live in the United States. However, they were hacked once in May 2020, but they insisted that no money was lost. The app’s functionality is extremely constrained and fairly simple to use. 

They only offer a small range of cryptocurrencies and interest rates below average (4.5 percent for up to 0.1 BTC and lower afterward, 5 percent for up to 1.5 ETH, and lower afterward). Monthly interest payments and compounding are made. Each month, they provide one free cryptocurrency withdrawal.

Recently, BlockFi unveiled its crypto credit card with a 1.5% cashback. In the cryptocurrency industry, this is the first credit card. A $200 annual fee was first announced by the corporation but was later dropped. I thought this was only a marketing ploy to get attention. When compared to other well-known non-crypto credit cards, the card’s benefits are average.

Additionally, Reddit has a public opinion thread comparing BlockFi vs. Nexo, with many users favoring Nexo due to its higher BTC rates.

Should I invest in Nexo? 

Yes. The Nexo price prediction indicates that investing in it will be a wise decision at the current price ranges. But you should always proceed with care. If you invest wisely and frequently follow the NEXO price forecasts throughout time, there shouldn’t be any heartbreaks or need for excessively happy explanations.

Nexo won when I searched for a place to keep my investments for the long term. Celsius was my second option. But Nexo is unquestionably a better location to invest now that the Celsius fiasco has begun (and isn’t yet over). 

When describing it to others, I often say that Nexo is truly a bank. It is rather obvious from Nexo’s actions that they are attempting to be that. A crypto institution has granted Nexo the maximum level of certification and authorization. When US regulators release any particular crypto laws and licensing, they will probably be first in line. Additionally, Nexo has outstanding audits, deposit insurance, and security. 

The intriguing aspect of Nexo is that their interest rates are high for stablecoins and cash (you can maintain a real balance in US dollars, euros, and British pounds on the platform). You may decide to receive interest payments in their native token Nexo for a 2 percent interest bonus, which has performed well and been a good investment. There is also a possibility of having the interest paid in the currency you invest in. 

In my opinion, the closest analogy to a bank that currently exists in the cryptocurrency industry is Nexo. And I use this contrast to highlight the distinction between banks and the cryptocurrency marketplaces.

If you owned US dollars or stablecoins (that are adequately supported) and received interest payments in those units, the interest rate would be 8%, which is a significant amount. From a bank’s locked investment certificate, you might receive 2% or 3%; but, in Nexo, you would earn 8%—more than quadruple, or 4x. 

But the intriguing thing is that Luna, for example, was paying percent 19, over twice Nexo (you could receive a percent 12 if you accepted interest in Nexo token), but percent 8 to percent 12 is not that high in the cryptocurrency market. Everyone assumed that Anchor was an excellent spot for long-term hold and that Luna was quite steady. But the point was, I, like everyone else, believed Luna had it figured out and couldn’t fail. There is an important lesson to be gained from that.

I would also add that if you want to, you can purchase Bitcoin, Ethereum, and several other cryptocurrencies, like some riskier ones like Axie. The benefit of holding Fiat and stablecoins is that you can stop worrying about volatility. I like to refer to this as getting off the crypto market’s volatility rollercoaster. The drawback is that you don’t see the market gains, though. Therefore, presuming the cryptocurrency market has bottomed out (I think BTC will drop to at least $20k), BTC can easily increase by 20% in a matter of days or weeks, and if you hold BTC long enough, it should eventually break the record high of $60k; therefore, a potential gain of 300x is highly appealing. However, just maintaining stability using stablecoins and presenting 8 percent as a reliable storm shelter. And it is just as valuable as cash in the bank. Consequently, each of them has a position in your investing portfolio.

Luna never actually gave any evidence that they were failsafe. Even if it may seem dull, some claim that Nexo violates some of the tenets of the new decentralized economy that cryptocurrency attempts to establish because of how they act like a bank.

But I don’t care as long as the low-risk portion of my wealth is kept somewhere secure and uninteresting. I have invested in juicy, high-risk, high-return projects with my high-risk portion of the portfolio, skimming off the earnings to put into my low-risk holdings.

The last point is that you can be sure Nexo is acting ethically because they promised to pay in full for Celsius and its debt. Nexo is really competent and resourceful.

What are the risks of Nexo?

There are several issues you should consider and be aware of while thinking about leaving your cryptocurrency at Nexo.

  1. Default risk is inevitably on the user’s side.
  2. Risk of Currency
  3. Special Nexo Situation: Risk associated with interest rates, which increases the risk of default
  4. If the scale is large enough, a significant drop in cryptocurrency could trigger an avalanche effect in the smart contracts and further lower market prices.

The FDIC does not insure Nexo. Suppose a bank fails; what happens to the depositor’s assets are protected by an FDIC-insured bank?

Nexo is not a traditional bank, and its default risk is different from that of banks. There is no assurance that the person to whom a bank lends money will be able to repay the principal. 

In this situation, the bank typically takes the borrower’s collateral (such as their home, car, etc.) to pay the debt. The bank might fail if, as in 2007/2008, numerous people experience simultaneous default. The depositors’ assets, or at least a portion of them, would be covered by the FDIC insurance.

Nexo doesn’t make loans to people unless the collateral will cover the debt (LTV 50 percent ). Additionally, because the collateral (real estate from 2007–2008) is significantly more liquid than the collateral used by banks, Nexo can immediately liquefy the assets and pay off the loan.

Most importantly, Nexo has demonstrated that the system is effective! No matter what, Nexo will liquefy the assets to pay off the loans.

Is Nexo as safe as BlockFi?

Yes, it is as safe as BlockFi. The difference between the two is that BlockFi has more regulators. This doesn’t imply BlockFi is in any way safer; remember, BlockFi has been hacked once, and Nexo has no such records. Even with the numerous regulators, it didn’t stop the hack in the BlockFi platform.

Is withdrawal free on Nexo?

You will be eligible for up to five monthly free crypto withdrawals, depending on your Loyalty tier. Important: If your free withdrawals have been used up, you must pay the transaction charge, which is subtracted from the withdrawal amount.

The system will factor in the appropriate withdrawal fee if you are attempting to withdraw the minimal amount and have no remaining free withdrawals. As a result, the associated cost, otherwise covered by Nexo, will result in a higher minimum withdrawal amount, as indicated by the on-screen message. 

You are permitted an infinite number of fee-free FiatX withdrawals, crypto and FiatX transfers into your Nexo Wallet, and credit line withdrawals under the Nexo ZeroFees policy. Nexo levies no origination, foreign exchange, or exchange fees for credit lines.

How much does Nexo pay for gas?

One of the few businesses, Nexo, provides blockchain transactions with no fees. We have saved our users millions of dollars in gas fees over the last two years by paying this price for all cryptocurrency withdrawals. Thus, they contributed to the development of the inclusive, rapidly-evolving digital asset world in which we all now live and work.

Gas costs are required for all withdrawals in order for the network to execute your transaction and add it to the blockchain. This fee is paid to miners as a reward for protecting the network and is based on a number of network-related variables. Nexo does not and is not permitted to collect gas fees as an outsider to this procedure. 

The Ethereum network, which hosts decentralized finance (DeFi) protocols and is the most widely used blockchain, has seen gas fees climb to record highs during the past few weeks, while Bitcoin transactions have increased to their greatest level in the last three years.

Specifically, the launch of the Nexo Exchange and the NEXO Token’s ascension beyond $1.5 per token to a market cap of just under $900 billion corresponded with a series of product updates under our Nexonomics project which is why the BTC rally and spiking gas costs were also timed. As a result, demand for all of the services we offer—borrowing, earning, and now swapping—rose to an all-time high, and transaction volumes naturally followed this pattern.

Adding free crypto withdrawals to our loyalty program helps us retain the viability of our business strategy in light of increasing gas costs, which strengthens our financial stability and provides us the autonomy to ensure the growth and protection of our client’s assets.

Does Nexo charge fees for buying crypto? 

Yes, you can buy crypto using a debit/credit card, but you want to know if there are charge fees for buying crypto. On the Nexo Exchange, you may instantly buy cryptocurrency using your Visa and Mastercard debit or credit card. Thanks to this functionality’s ease of use and speed, you may take advantage of this bull run and enjoy cryptocurrency purchases on the go. Additionally, it’s wonderful to utilize if you need a few extra NEXO Tokens.

Charges for using cards

The amount you choose to “Pay With” will incur standard fees: 3.49 percent for non-EU nations and 1.49 percent for the EU. 

You can see the Processing Fee before finalizing the purchase on the confirmation page.

The USD Amount displayed on the Order Confirmation page is the amount that Nexo will charge to your card; there are no other costs or charges.

Important: Your card issuer may impose additional costs for online card purchases and currency conversions depending on their policy. These fees are separate from the Nexo fee and are not under their control. 

Also, According to Nexo, there is a minimal fee to start a cryptocurrency savings account. Unlike a conventional savings account, Nexo does not impose any kind of account maintenance fees, and users are free to withdraw their money in Fiat or cryptocurrencies whenever they choose without incurring any costs. The user only has to pay a brokerage fee when transferring from their exchange wallet to their Nexo account because it covers the transaction expenses associated with the user account. Additionally, these fees are variable and based on the broker chosen. For a user to begin receiving interest, there is no set minimum quantity of cryptocurrencies that must be deposited into their account.

Can Nexo be trusted? 

Nexo is a well-known, reliable, and legal crypto lending and savings provider. It is governed and authorized in more than 200 nations, and the custodian, BitGo, has offered $100 million in theft insurance.

How about we hear from a few people on this matter, the public opinion if you wish?

The ideal solution for Bitcoin hodlers is provided by Nexo! 

~Karen 

The only platform with no costs, the only location to store cryptocurrency, and the only place to make money. 

~Vijay 

Everything about Nexo has been great, from the first-rate service to the reasonable prices and the variety of methods to earn while protecting my cryptocurrency. 

~Christopher Epstein 

Thanks to @nexo, my crypto journey has advanced significantly. You won’t regret taking advantage of the extensive variety offered by Nexo goods. 

@chelsea21mike 

I just recently joined Nexo, and I love it! Get interest on your assets. Borrow against it without using any of your cryptocurrency. No question! 

@Brn2wise 

Such a simple way to generate passive income while storing your cryptocurrency. I have been using the platform for some time and tell my friends and family about it. Regards, Nexo! 

~Alex H 

Most likely, my best investment over the past 12 months has been Nexo. Seriously. Additionally, I make a fantastic 6 percent on my Bitcoin and different percentages on other coins. 

@ClintWhitney 

I learned how cryptocurrency operates from Nexo, as well as how to use it to my advantage. Thanks to Nexo, I have my own home and a steady financial situation. 

~Jonathan Fynes 

With Nexo, cryptocurrency aficionados may have fast cash access while still maintaining ownership of their coins. 

@osonwanne 

It is reassuring to know that Nexo’s support staff is always available to assist new users like myself. 

~Jon Minerich 

Huge props to Nexo! You can borrow money from them without having to sell any of your possessions. Furthermore, the interest rate is among the finest. 

~Sergio 

Had it not been for Nexo, I had no idea where, to begin with Crypto. I doubt I would have participated. Everything is extremely simple using their platform!

@lilacfilms 

provides excellent ROI and enables me to comfortably and understandably earn on all of my cryptocurrency accounts. 

~Ryan Christopher 

When I deposited my money, I made a costly error, but the Nexo team went above and beyond to get my tokens back to me! 

~Danny 

Which is better for crypto loans, Nexos or Block Fi?

Nexo is a platform for Defi crypto loans. Michael Arrington founded this multi-functional loan platform in 2017. It also includes collateralized loans and LTV in addition to bitcoin loans. Over 2 million cryptocurrency investors make up Nexo’s sizable customer base, and it provides loans in about 45 different fiat currencies.

The lender offers an LTV ratio that runs from 20% to 50% of the collateral and lends between $50 and $2 million. Users are not required to repay the loan in installments or monthly payments because Nexo offers a flexible borrowing and repayment mechanism. You are able to pay in full or in installments at your speed.

You are free to decide when and how to pay back your loan, whether in FiatX, cryptocurrency, or a combination of both.

You can use any combination of BTC, ETH, LTC, Stablecoins, XLM, BNB, BCH, EOS, LINK, TRX, DOT, ADA, DOGE, UNI, AXS, MATIC, SOL, AVAX, FTM, ATOM, GALA, SUSHI, CRV, AAVE, NEAR, APE, NEXO (at the moment, only interest payments are acceptable in NEXO tokens). The instant possibilities are in crypto. 

Please be aware that payments made in crypto assets—except for USDT, USDC, USDP, TUSD, DAI, and FiatX—are subject to additional fees because of exchange commissions. You may pay back in FiatX using EURx, USDx, or GBPx.

Remember that the transfer must always originate from a bank account that bears your name. After receiving the funds, processing can take up to 24 hours. The time required for transfers might range from one to three business days, depending on your bank and payment method. Nexo has no control over how long this lasts. 

BlockFi is a 2017 startup cryptocurrency ecosystem built for experienced traders. Its main objective is to bring conventional financial services into the world of cryptocurrencies. BlockFi offers more than just crypto exchange services; it also enables users to obtain a portion of their money without liquidating their positions or selling their bitcoin. It offers interest rates ranging from 4.5 to 9.75 percent.

You can use BlockFi to borrow up to 50% of the cryptocurrency you currently have in BTC, ETH, or LTC.

There are, nevertheless, some hazards. Cryptocurrency assets are very erratic. As a result, it has a propensity to decline too much or lose its worth. You must increase your deposited collateral as quickly as possible in this circumstance.

A FINAL WORD

The following is a general comparison of the two platforms. I hope this can aid in your search for the ideal app and enable you to begin earning cryptocurrency interest as well:  

NEXOBLOCKFI
Ease to Use 4.54.5
Security44.5
Robustness4.22
Portfolio4.53
Crypto Earn4.54
Fees43
Welcome Bonus42
Platform Token4N/A
Customer Service54.5
Crypto Loan43
Overall63