Nexo vs. BlockFi 202212 min read

Whether you want to earn interest on cryptocurrencies or apply for secured loans, Nexo and BlockFi are two popular companies you’ve probably heard of. However, the accepted currencies, interest rates, and fees are very different between the two platforms. Available loyalty programs and crypto reward card benefits also vary.

Our analysis of Nexo vs. BlockFi covers both companies’ major differences and pros and cons. If you need help choosing the right cryptocurrency lending platform then you’re at the right place. This guide covers everything you need to know to make the right decision.

Detailed Comparison: Nexo vs. BlockFi

Introducing BlockFi

Blockfi

BlockFi is a digital asset platform allowing users to earn interest on deposits, borrow cryptocurrency assets, and buy or trade cryptocurrencies. Founded in 2017 by Zac Prince and Flori Marquez. The company is headquartered in the United States and is a regulated cryptocurrency platform available in 48 states. Its products and services are available globally and support various fiat currencies exchanged for cryptocurrencies such as Bitcoin and Ethereum.

BlockFi serves over 1million customers, including over 300 institutional clients, and has over $10 billion in assets on the platform. BlockFi accepts 23 cryptocurrencies on its exchange with 4 assets that can be used as collateral on crypto-backed loans.

Pros of BlockFi:

  • Bank-type security measures to protect customer funds
  • Crypto loans with fixed-term contracts and traditional payment options
  • Exchange for users to directly buy, trade, and sell cryptocurrencies
  • Reasonable interest on savings accounts
  • Regulated and reliable lending and credit platform

Cons of BlockFi:

  • Interest accounts are not available to US residents.
  • Lower interest rates on savings accounts compared to the industry
  • Minimum loan amount of $10,000 and initiation fee of 2%.
  • Only 4 assets can be used as collateral to obtain a loan
  • The selection of assets to borrow or earn interest is limited

Introducing Nexo

Nexo

Nexo is a digital asset company focusing on loans and lending products. It allows users to earn interest on crypto deposits and lend against crypto deposits like Ethereum and Bitcoin. It is also a cryptocurrency exchange that allows users to trade multiple cryptocurrency pairs. Available in over 200 countries, Nexo offers some of the best interest rates available for global savings accounts.

Nexo serves over 3.5 million users worldwide, making it the largest cryptocurrency lending platform available today. It has over $12 billion in assets under management and accepts over 30 cryptocurrencies. Additionally, Nexo accepts over 40 fiat currencies and has an exchange to trade over 300 currency pairs.

Pros of Nexo:

  • Competitive interest rates and rewards for depositing funds
  • Flexible loan repayment terms
  • Highly rated platform with over 3.5 million users worldwide
  • Widest choice of cryptocurrencies and 40 fiat currencies
  • Obtain a line of credit in stable currencies or weak fiat currencies

Cons of Nexo:

  • Crypto asset trading is not available in all countries
  • Interest accounts are not available to US residents.
  • A limited selection of cryptocurrencies to use as collateral for cryptocurrency loans
  • You must buy Nexo tokens to get the highest interest rates

Accepted countries and fiat currency

BlockFi and Nexo have regulated cryptocurrency platforms that respect local jurisdictions and other government authorities worldwide. Supported countries include the USA, Europe, UK, Australia, Singapore, Africa, New Zealand, Canada, etc. The only countries not available are those on the UN or US sanctions lists.

It is essential to note that while most countries are accepted, BlockFi only allows fiat deposits in USD. On the other hand, Nexo allows over 40 different fiat currencies. Countries that do not offer fiat ACH deposits cannot deposit USD on BlockFi, and users will only be able to deposit cryptocurrencies. Additionally, due to regulations, Nexo and BlockFi no longer offer cryptocurrency accounts to US residents.

Blockfi vs. Nexo: Savings and Interest Accounts

Both platforms offer generous interest rates on deposits, which are higher than traditional banks. BlockFi interest rates for its popular assets, such as Bitcoin and Ethereum, depend on the value of your wallet. This means that deposits above a certain threshold will pay less interest. For example, the highest commission for Bitcoin is 4.5% APY for deposits below 0.10BTC. Moreover, the highest interest rate for Ethereum is 5% at 1.5ETH.

Nexo allows users to earn interest on Bitcoin and Ethereum at a fixed interest rate of 6% APY for any amount. Therefore, customers who deposit Bitcoin or Ethereum on Nexo will have a higher return than on BlockFi. APY on stablecoins in currencies like USDT, USDC, and DAI is on average 2% higher than that of BlockFi. In general, investors will receive a higher interest rate for more currencies accepted on Nexo than on BlockFi. Additionally, Nexo customers can earn an additional 2% interest to earn interest on Nexo tokens.

Blockfi vs. Nexo: Crypto Lending

crypto lending

BlockFi and Nexo platforms offer secure cryptocurrency loans, allowing users to deposit crypto assets and borrow a portion of the balance. These loans are “over-collateralized,” which means that users can only borrow a percentage of the total balance while the collateral provided secures the loan.

BlockFi crypto loans have simple terms but not much selection of crypto assets that a user can borrow. Users can deposit Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Paxos Gold (PAXG). You can borrow up to 50% of the collateral value at loan time, with lower loan-to-value (LTV) amounts offering better rates. Interest rates change for each asset. For example, Bitcoin fees are 7.9% APY and 9.75% APR for 35% and 50% LVR, respectively. There is also a 2% upfront fee and a 12-month term, which is a drawback for users who want to borrow any amount.

In contrast, Nexo offers a unique approach to securing crypto loans, allowing users to open a “line of credit” against their holdings. Users will be credited with cash or stablecoins using their cryptocurrencies with commissions starting at 0% in April and paying interest on borrowed funds that are withdrawn from the Nexo platform. There is also a 0% origination tax. Interest rates vary by loyalty tier, with users with a large share of NEXO tokens and a smaller LTV having access to the best rates. Interest rates on Nexo loans for each level are:

  • Base (without NEXO token): 13.9%.
  • Silver (1% of NEXO token portfolio): 12.9%.
  • Gold (5% of NEXO token portfolio): 8.9% (1.9% if LTV is less than or equal to 20%).
  • Platinum (10% of NEXO token portfolio): 6.9% (0% if LTV is less than or equal to 20%)

When we compare loans supported by BlockFi and Nexo cryptocurrencies side by side, Nexo loans are a superior product for several reasons. There are 0% start-up fees, flexible payment terms, a wider selection of fiat currencies and cryptocurrencies, and generally lower interest rates on loans. Additionally, the minimum loan amount of $10,000 on BlockFi compared to $50 (stablecoin) and $500 (fiat) makes Nexo cheaper to get a loan.

Blockfi versus Nexo: Ease of Use

Buying, selling, depositing, and applying for cryptocurrency loans should be a simple and secure process for users of these platforms. Although BlockFi and Nexo offer an intuitive interface on web and mobile apps, they approach it in a slightly different format. BlockFi offers an easier user experience when borrowing and buying cryptocurrencies, while Nexo offers more flexibility and options for all features, especially when researching exchange options.

BlockFi vs. Nexo: User Experience

When applying for a secure cryptocurrency loan on BlockFi, users must create a BlockFi account, select an accepted collateral currency, choose loan terms, and deposit the cryptocurrency into BlockFi’s secure storage wallet. The loan will then be deposited in the user’s account (if using USD) or in stablecoin in the crypto wallet. Interest payments are made in cryptocurrencies or USD.

To simply deposit interest to earn interest, after creating a BlockFi account, users can choose the cryptocurrency they wish to deposit and transfer from their digital wallet to the BlockFi wallet. Users will follow similar steps to buy or trade cryptocurrencies on the platform. After creating a BlockFi account, funds can be deposited into the platform (USD or cryptocurrency), and users can select the cryptocurrency they wish to trade or buy.

Users must first register for a Nexo account to apply for a secured cryptocurrency loan on Nexo. After signing up, you can apply for a crypto loan by selecting the asset you prefer to use as collateral, fulfilling the loan conditions, and depositing crypto funds. Once funds are deposited, they can be withdrawn from the platform for use. There are over 40 fiat currencies to choose from for your cryptocurrency loan and a selection of stablecoins.

To deposit interest on the Nexo platform to earn interest, users will need to register for a Nexo account, select the cryptocurrencies they wish to deposit, and transfer the cryptocurrency from their digital wallet to the platform. Nexo pays higher interest when you earn interest on their native NEXO token.

Users can deposit fiat currency (or 40 accepted) and select the cryptocurrencies they wish to purchase to buy or trade cryptocurrencies on the Nexo platform. Users can deposit accepted or fiat currencies to trade cryptocurrencies, select the trading pair they wish to trade, and complete the order form.

BlockFi vs. Nexo: Supported Features

BlockFi vs. Nexo: Features

While BlockFi and Nexo offer access to Bitcoin and Ethereum, thousands of other cryptocurrencies are on the market. Unfortunately, both platforms offer few cryptocurrencies to choose from in the general market. That being said, both platforms allow users to do much with the cryptocurrencies they support, including paying interest on deposits, borrowing against cryptocurrencies, and trading one cryptocurrency against another.

BlockFi Coin supports 23 digital assets on its platform that can be purchased with fiat or other digital currencies. These include top currencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), LINK, and XRP, as well as some large-cap altcoins such as Solana (SOL) and Avalanche (AVAX).

Nexo currently accepts 32 cryptocurrencies, including Bitcoin, Ethereum, Tether, and its own native token, NEXO. Also, it supports some of the most popular altcoins, including Polygon (MATIC) and Polkadot (DOT). In short, the selection of cryptocurrencies to use as a guarantee, getting a loan, or earning interest is much broader on the Nexo platform than BlockFi.

BlockFi Credit Card vs. Nexo Debit Card

BlockFi vs. Nexo: Crypto Card

BlockFi and Nexo both offer a crypto card, which offers crypto rewards to users. Both offer cash prizes, no hidden fees, and are VISA cards. The BlockFi card is a premium credit card. But, the Nexo card is a debit card linked to a line of credit. Both offer comparable rewards, but each works a little differently. The decision on which card to go for is the best depends on the individual. The BlockFi credit card gives you more flexibility to make every day or larger purchases, while the Nexo card offers better cash rewards.

The BlockFi VISA Card is a standard credit card offer that earns 1.5% in cryptocurrency with every purchase, and the cryptocurrency is deposited directly into your interest-bearing BlockFi account. Users can choose in which currency they wish to earn rewards. The card also offers no foreign transaction fees, annual fees, and standard benefits for Visa Signature cardholders.

Nexo links its VISA debit card directly to a Nexo credit account and works the same way as a crypto loan. The amount of purchasing power available depends on the amount of collateral posted on the Nexo platform and the terms of the credit line chosen. Like the BlockFi credit card, the Nexo VISA debit card does not charge any hidden fees, and users can earn 2% in cryptocurrencies with every purchase. You can exchange rewards in NEXO for Bitcoins. It can also connect to Apple and Google Pay and offers virtual cards for secure online purchases.

BlockFi vs. Nexo: Fees

BlockFi vs. Nexo: Fees

Fees are a significant issue when comparing crypto platforms. Both BlockFi and Nexo offer various services and charge various fees for these features. 

Both platforms charge a spread, which is the difference between the buying and selling price of a cryptocurrency. Withdrawal fees also vary as BlockFi charges a flat fee for the cryptocurrency, and Nexo says it only charges network fees for the transaction. However, it offers 1 free cryptocurrency withdrawal per month for basic users.

BlockFi vs. Nexo: Customer Service

BlockFi and Nexo provide comprehensive information through their Help Centers, including comprehensive user guides, platform FAQs, and general help information. Both also offer a chatbot to help find information and live support from customer service representatives.

Both companies also offer email support and a ticket system that allows customers to open support tickets. BlockFi provides phone support during business hours, but Nexo does not. This gives BlockFi the edge regarding customer support, especially for unique issues requiring immediate assistance.

BlockFi vs. Nexo: Security

BlockFi and Nexo provide maximum security for customer funds and personal data. Both offer two-factor authentication (2FA) protection, KYC requirements, and withdrawal protections. Both platforms protect funds using cold storage cryptocurrencies, have third-party partner crime insurance, and guarantee excess loans to ensure funds are always available to depositors.

In terms of data protection, BlockFi doesn’t go into too much detail about how it handles user data, but it does highlight its current data security initiatives. Nexo follows the SOC 2 compliance framework for data protection and offers AES-256-bit and SSL encryption on its platform.

In general, both companies offer high levels of security and partner with industry-leading third-party custodians to protect users’ assets and insurance against theft.

The Final Verdict

BlockFi is a reputable and reliable platform, which is an excellent platform that offers decent rates on cryptocurrency loans. The disadvantages of BlockFi are the loan initiation fees, limited to lending against 4 different cryptocurrencies, which does not provide flexibility for investors. On the other hand, Nexo is a better option for users who want to get high cryptocurrency interest rates and the best cryptocurrency rates.