Both Nexo and BlockFi are good crypto lending and loan platforms. But which one is better? Let’s take a closer look at both of them in this Nexo vs. Blockfi article.
Nexo vs Blockfi: Overview
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BlockFi is a digital asset platform that users can use to earn interest on deposits, borrow against crypto holdings, and buy or sell crypto. It offers products and services around the world, allowing an exchange of fiat currencies for cryptocurrencies, including Bitcoin and Ethereum. On its exchange, BlockFi supports 23 cryptocurrencies as well as four assets that can be used as collateral for crypto-backed loans.
Nexo is also a digital asset company that offers borrowing and lending services. Crypto deposits, such as Ethereum and Bitcoin, can earn interest, as well as be lent against them. Users can also trade various cryptocurrency pairs on the platform. It manages over $12 billion in assets and supports over 30 cryptocurrencies. Additionally, Nexo supports over 40 fiat currencies and has an exchange for trading over 300 crypto pairs.
Savings & Interest Accounts
The comparison table below shows the annual rates on BlockFi and Nexo.
|CRYPTOCURRENCY||NEXO INTEREST RATE||BLOCKFI INTEREST RATE|
|Bitcoin||6%||0.1%, 1%, 4.5%|
|Ethereum||6%||0.25%, 1.5%, 5%|
|Tether||10%||5.5%, 7%, 8%|
|USD Coin||10%||5.5%, 7%, 8%|
Nexo vs. BlockFi – Which One is Better for Offering Earning Interest?
Nexo delivers bigger yields on deposited crypto. The only thing that Nexo offers higher yields on medium-term fixed deposits. Nexo’s rates are about the same as BlockFi and Celsius. So even though you can earn more per year on deposits through Nexo, you’ll earn about the same as with BlockFi or Celsius.
Likely, you will not want to keep all of your cryptos in term deposits or hold big amounts of Nexo tokens in your portfolio. Having different accounts will allow you to make flexible deposits. It will also allow you to sell during those bubble times. In addition, you will be able to take advantage of all of the other promotions that offer crypto investing. It is important to know that Celsius has the best promotions for moving funds.
The bottom line here is that you will earn a little more with Nexo than BlockFi. But, this is only if you keep your crypto in the platform for at least one month and hold Nexo tokens in your Nexo wallet. If you don’t do that, you’ll wind up with the same profit as you would with BlockFi. It’s really up to you to decide what you want to do.
Nexo vs BlockFi – Which One has Lower Fees?
Nexo has fewer fees. But only by a little. These crypto trading platforms offer about the same crypto-backed to loan rates. If you use BlockFi’s lowest collateral level, it is less. Other than that, both crypto trading platforms charge the same. And that charge is approximately 7% per year.
This is the charge on crypto-backed loans. At the same time, Nexo does not have loan origination fees, and BlockFi five does have loan origination fees. The BlockFi loan origination fee is 2%. And you do get back a tiny amount of interest fees after you pay off the loan. That’s good to know. So, there’s not a huge difference between the two. There is not much to consider.
Nexo also does not have any withdrawal fees. The only transaction fee that BlockFi has is a network transaction fee when you withdraw funds. Typically, the fee is just $10. So, there’s not a major difference between the two. We are talking small amounts of money here.
Which Has The Better Signup Bonus Offers – Nexo or BlockFi?
BlockFi wins out when it comes to sign-up bonuses. Nexo does not offer any sign-up bonus to date. However, BlockFi always has a promotion going. The bonuses with the promotion range from $20 to $250 for new users. All you have to do is sign up for BlockFi’s bonus.
You don’t even need a code to do this. If Nexo starts to have its own bonus, it will be new news for this crypto platform. They do not even have to refer to a friend program. Only time will tell what they will do in the future.
Nexo vs BlockFi -Which One is More Trustworthy?
In the category of trustworthiness, BlockFi wins out. However, they win by only a little. It is a slim margin. Both crypto trading platforms have excellent CEOs, leadership, great teams, good partnerships, and solid investments from venture capital groups. And if something does go wrong, both companies are very well insured.
BlockFi wins out in the trustworthy category because Nexo continues to have an increasing number of complaints. Their customer service is dubious. On paper, Nexo looks great. But, their customer service and quality product have failed. The good news here is that Nexo is trying to improve itself. Only time will tell what the improvement is. They are working on it at this time.
BlockFi is a reputable, reliable platform that offers competitive interest rates on cryptocurrency loans. The negative aspect of BlockFi is the loan origination fee, which can be as much as 6 percent. Nexo is a much better option for users who want to earn high-interest rates on their crypto holdings and get the best rates for cryptocurrency loans.
For more information to help you make a decision on whether BlockFi is right for you, see our article comparing BlockFi’s interest rates, supported coins, and ease of use with those of Celsius.