BlockFi vs. Nexo 2023: Which Should You Choose?
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BlockFi and Nexo are two of the best cryptocurrency interest websites that allow users to borrow funds or earn interest on crypto deposits. But which one offers the best rates and is suitable for beginners? In this BlockFi vs. Nexo comparison, we will provide a summary of each platform, as well as compare the services offered, pros and cons, supported cryptocurrencies, fees and how safe each platform is to make an informed decision.
Important: BlockFi has filed for Chapter 11 bankruptcy and can not be used. Therefore, Nexo wins this comparison by default. For a list of the full crypto bankruptcies, read this article next.
BlockFi vs Nexo: Quick Overview
This comparison will start with BlockFi followed by Nexo. If you want to read a detailed overview of BlockFi or Nexo, click on the exchange review links for more information.
| BlockFi | Nexo | |
|---|---|---|
| Website | ||
| Promotion | Get up to $250 Bonus in Bitcoin | Get $25 in Bitcoin when you top-up or buy >$100 |
| Fiat Currency | USD | USD, EUR, and GBP |
| Supported Cryptocurrency | 13 | 72 |
| Live Chat Support | Yes | Yes |
| Mobile App | Yes | Yes |
| Overall Rating | HedgewithCrypto Score  3.7/5     | HedgewithCrypto Score 4.7/5 |
| Review | Read our full BlockFi review | Read our full Nexo review |
In-Depth Comparison: BlockFi vs. Nexo
BlockFi Overview
BlockFi is a digital asset platform that allows users to earn interest on deposits, borrow against crypto holdings, and buy or exchange crypto. Founded in 2017 by Zac Prince and Flori Marquez, the company is based in the U.S. and is a regulated crypto platform, available in 48 states. Its products and services are available around the globe, supporting several fiat currencies that can be exchanged for cryptocurrencies, such as Bitcoin and Ethereum.
BlockFi services over 1 million customers including over 300 institutional clients and carries over $10 billion in assets on the platform. BlockFi supports 23 cryptocurrencies on its exchange with 4 assets that can be used for collateral on crypto-backed loans.
- Regulated and trusted lending and borrowing platform
- Crypto-loans with fixed term arrangements and traditional payment options
- Reasonable interest rates within savings accounts
- Exchange for users to buy, trade and sell crypto directly
- Bank-like security measures to protect customer funds
- Interest accounts no longer available to U.S. residents
- Selection of assets to borrow or earn interest is limited
- Lower interest rates in saving account compared to industry
- Only 4 assets that can be used as collateral to obtain a loan
- $10,000 minimum amount for loans and 2% origination fee
Nexo Overview
Nexo is also a digital asset company that focuses on borrowing and lending products. It allows users to earn interest on crypto deposits and borrow against crypto deposits, such as Ethereum and Bitcoin. It is also a cryptocurrency exchange that allows users to trade various cryptocurrency pairs. Available in over 200 countries around the globe, Nexo offers some of the best interest rates available on crypto savings accounts globally.
Nexo services over 3.5 million users globally making it the largest crypto lending platform available today. It has over $12 billion in assets under management and supports over 30 cryptocurrencies. Moreover, Nexo supports over 40 fiat currencies and has an exchange to trade over 300 crypto trading pairs (30+ crypto plus fiat currencies).
- Highly-regarded platform with over 3.5 million users worldwide
- Greater selection of cryptocurrencies and 40 fiat currencies
- Competitive interest rates and rewards for depositing funds
- Obtain a line of credit in stablecoins or fiat currency with low minimums
- Flexible repayment terms for loans
- Limited selection of crypto to use as collateral on crypto loans
- Must buy Nexo tokens to earn the highest interest rates
- Interest accounts are no longer available to U.S. residents
- Exchange to swap crypto assets is not available in all countries
Supported Countries & Fiat Currency
BlockFi and Nexo are both regulated cryptocurrency platforms that comply with local jurisdictions and other government authorities around the world. Accepted countries include the United States, Europe, UK, Australia, Singapore, Africa, New Zealand, Canada and many others. The only countries not available are those on U.N. or U.S. sanctions lists.
It is important to note that while most countries are supported, BlockFi only allows USD fiat deposits, while Nexo allows over 40 different fiat currencies. Countries that do not offer fiat ACH deposits cannot deposit USD into BlockFi, and users will only be able to deposit cryptocurrency. Moreover, Nexo and BlockFi no longer offer crypto interest accounts to U.S. residents due to regulations.
BlockFi vs. Nexo: Savings & Interest Accounts
BlockFi and Nexo offer generous interest rates on deposited cryptocurrencies that are higher than traditional banking. The interest rates on BlockFi for its popular assets such as Bitcoin and Ethereum depend on the amount within the wallet. This means that deposits above a certain threshold will pay less in interest. For example, the highest rate for Bitcoin is 4.5% APY on deposits less than 0.10BTC. Similarly, the highest interest rate for Ethereum is 5% up to 1.5ETH.
The comparison table below shows the annual rates on BlockFi and Nexo.
| Cryptocurrency | BlockFi Interest Rate | Nexo Interest Rate |
|---|---|---|
| Bitcoin | 0.1%, 1%, 4.5% | 6% |
| Ethereum | 0.25%, 1.5%, 5% | 6% |
| Solana | 5% | 6% |
| Cardano | 5.5% | 6% |
| Polkadot | 9.5% | 13% |
| Avalanche | 10% | 10% |
| Tether | 5.5%, 7%, 8% | 10% |
| USD Coin | 5.5%, 7%, 8% | 10% |
Nexo allows users to earn interest on Bitcoin and Ethereum with a flat interest rate of 6% APY for any amount. Therefore, customers that deposit Bitcoin or Ethereum to Nexo will earn a higher yield compared to BlockFi. Even when it comes to stablecoins, the APY on coins such as USDT, USDC and DAI are on average 2% higher than the rates offered by BlockFi. Overall, investors will earn a higher annual interest rate for the majority of supported coins on Nexo compared to BlockFi. Furthermore, Nexo customers can gain an additional 2% on the interest rate for earning the interest in Nexo tokens.
BlockFi vs. Nexo: Crypto Loans
BlockFi and Nexo platforms offer crypto-backed loans, allowing users to deposit crypto assets and borrow against a portion of the balance. These loans are “over-collateralized,” meaning that users can only borrow a percentage of the total balance, while the deposited collateral secures the loan.
BlockFi crypto loans have simple terms but a limited selection of crypto assets that can be borrowed against. Users can deposit Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Paxos Gold (PAXG). Loans can be obtained up to 50% of the value of the collateral at the time of the loan, with lower Loan-to-Value (LTV) amounts offering better rates. The interest rates change for each asset. For example, Bitcoin rates are 7.9% APY and 9.75% APR for 35% and 50% LVR's respectively. There is also an up-front 2% origination fee and 12 months in duration which is a disadvantage for users that want to borrow any amounts.
| Loan Terms | BlockFi | Nexo |
|---|---|---|
| Collateral assets | BTC, ETH, LTC, PAXG | BTC, ETH, USDT & 33 others |
| Loan currency | USD, GUSD, USDC, PAX | USDT, USDC, 40+ fiat currencies |
| Loan-to-value ratio | 20%, 35%, 50% | Varies |
| Minimum amount | USD $10,000 | $50 (stablecoin), $500 (fiat) |
| Interest rate | Depends on crypto asset | 13.9% (baseline), 12.9% (silver), 8.9% (gold), 6.9% (platinum) |
| Payment frequency | Monthly | Flexible |
| Origination fee | Yes | No |
In contrast, Nexo offers a unique approach to collateralized crypto loans by permitting users to open a “credit line” against their holdings. Users to have credit available in cash or stablecoins using your crypto with rates starting from 0% APR and paying interest on borrowed funds that are withdrawn from the Nexo platform. There is also 0% origination fees. Interest rates vary by loyalty level, with users holding a large portion of NEXO tokens and a lower LTV getting access to the best rates. The Nexo loan interest rates for each tier are:
- Base (No NEXO tokens): 13.9%.
- Silver (1% of portfolio in NEXO tokens): 12.9%.
- Gold (5% of portfolio in NEXO tokens): 8.9% (1.9% if LTV is below or equal to 20%)
- Platinum (10% of portfolio in NEXO tokens): 6.9% (0% if LTV is below or equal to 20%)
When comparing the crypto-backed loans from BlockFi and Nexo side by side, Nexo loans is a superior product for various reason. There are 0% origination fees, flexible repayment terms, wider selection of fiat and cryptocurrencies, and the loan interest rates are lower across the board. Moreover, the minimum loan amount of $10,000 on BlockFi compared to $50 (stablecoin) and $500 (fiat) makes the Nexo product more accessible to take out a loan.
BlockFi vs. Nexo: Ease of Use
Buying, selling, depositing and applying for crypto-backed loans should be a safe and simple process for users on these platforms. While both BlockFi and Nexo offer an easy-to-use interface on both the web and mobile apps, they both approach it in a slightly different format. Overall, BlockFi offers a simpler user experience when applying for loans and buying crypto, while Nexo offers more flexibility and options for all features, especially when looking for exchange options.
BlockFi vs. Nexo: User Experience
When applying for a crypto-backed loan on BlockFi, users will need to create an account with BlockFi, select a supported cryptocurrency as collateral, choose their loan terms, and deposit the crypto into BlockFi’s secure storage wallet. The loan will then deposit into a user’s bank account (if using USD), or stablecoin into their crypto wallet. Interest payments are made via cryptocurrency or USD.
Reviewing crypto loan details on BlockFiTo simply deposit crypto for earning interest, after creating a BlockFi account, users can choose which crypto you want to deposit and execute a transfer from their digital wallet to the BlockFi wallet. To buy or exchange crypto on the platform, users will follow similar steps. After creating a BlockFi account, funds can be deposited onto the platform (either USD or cryptocurrency) and users can select which crypto they wish to trade or purchase.
To apply for a crypto-backed loan on Nexo, users will first need to sign up for a Nexo account. After signing up, they can apply for a crypto loan by selecting what asset they prefer to use as collateral, completing the loan terms and depositing crypto funds. Once the funds are deposited, they can withdraw from the platform for use. There are over 40 fiat currencies to choose from for your crypto loan, as well as a selection of stablecoins.
Related: What are examples of stablecoins?
Obtaining an instant crypto credit line with Nexo.To deposit crypto into the Nexo platform to earn interest, users will need to sign up for a Nexo account, select which crypto you want to deposit and transfer the cryptocurrency from your digital wallet to the platform. Nexo pays higher interest rates when receiving interest in its native NEXO token.
To buy or trade crypto on the Nexo platform, users can deposit fiat currency (or 40 supported) and select which crypto they want to purchase. To trade crypto, users can deposit supported cryptocurrency or fiat currency, select which trading pair they wish to trade and complete the order form.
BlockFi vs. Nexo: Supported Assets
While both BlockFi and Nexo offer access to Bitcoin and Ethereum, there are thousands of other cryptocurrencies on the market today. Unfortunately, both of these platforms offer few cryptocurrencies to choose from in the overall market. That being said, both platforms allow users to do a lot with the crypto they do support, including paying interest on deposits, borrowing against crypto, and exchanging one crypto for another.
Screenshot of BlockFi coins to earn interest.BlockFi currency supports 23 digital assets on its platform that can be purchased with fiat or other digital coins. This includes the major cryptocurrencies such as Bitcoin, Ethereum, Litecoin, LINK and XRP, as well as some large cap altcoins, including Solana (SOL) and Avalanche (AVAX).
Nexo supports 32 cryptocurrencies today, including Bitcoin, Ethereum, Tether, and its own native token, NEXO. It also supports some of the most popular altcoins, including Polygon (MATIC) and Polkadot (DOT). In short, the selection of cryptocurrencies to use as collateral, obtain a loan in or earn interest on is far greater on the Nexo platform compared to BlockFi which is quite limited.
BlockFi Credit Card vs. Nexo Debit Card
BlockFi and Nexo offer a crypto card, which offers crypto rewards to users. Both offer cash back rewards and no hidden fees, and both are partnered with VISA. The BlockFi card is a rewards credit card in contrast to the Nexo card which is a debit card linked to a line of credit. Both offer comparable rewards, but they each operate a bit differently. Deciding which card is better depends on the individual. The BlockFi credit card offers greater flexibility for making every day or bigger purchases, whereas the Nexo Card gives better cash-back rewards.
The BlockFi VISA card is a standard credit card offering that earns 1.5% back in crypto for every purchase and the crypto is deposited directly into your BlockFi interest-bearing account. Users can choose which crypto they want to earn rewards in. The card also offers no foreign transaction fees, no annual fee and the standard perks offered to Visa Signature cardholders.
Nexo debit card.The Nexo VISA debit card is directly linked to our Nexo credit account and functions similar to a crypto loan. The amount of spending power available is dependent on the amount of collateral deposited on the Nexo platform and the credit line terms selected. Like the BlockFi credit card, the Nexo VISA debit card charges no hidden fees, and users can earn 2% in crypto on every purchase. Rewards are paid in NEXO which can be swapped for Bitcoin. It can also connect to Apple and Google Pay and offers virtual cards for secure online purchases.
BlockFi vs. Nexo: Fees
Fees are an important consideration when comparing crypto platforms. Both BlofkFi and Nexo offer multiple services and charge various fees for these features. Here’s a breakdown to compare the fees on each platform.
| Feature | BlockFi Fees | Nexo Fees |
|---|---|---|
| Crypto loans | 2% Origination Fee, 4.5% - 9.75% APR | 6.9% - 13.9% APR (depends on NEXO holdings) |
| Buy crypto | ~1% spread fee, additional 1.49% - 3.49% for debit/credit cards | ~2% spread fee |
| Deposit fees | None | None |
| Withdrawal Fees | Varies on coin | Blockchain network fee only |
While the crypto purchase and exchange fees are not explicitly listed, both platforms charge a spread, which is the difference between the bid and ask price of a cryptocurrency. Withdrawal fees also vary with BlockFi charging set fees by crypto and Nexo claiming to only charge network fees for the transaction. However, does offer 1 free crypto withdrawal per month to basic users.
BlockFi vs. Nexo: Customer Support
BlockFi and Nexo both provide thorough information through their help centers, including comprehensive user guides, platform FAQs and general help information. Both also offer a chat bot to assist in finding information, as well as live support from human customer service representatives.
Both companies also offer email support and a ticketing system that allows customers to open help tickets. BlockFi offers phone support during business hours, but Nexo does not. This gives BlockFi the edge when it comes to customer support, especially for timely issues that require immediate assistance.
BlockFi vs. Nexo: Security
BlockFi and Nexo offer top-notch security for customer funds and personal data. Both offer protection via two-factor authentication (2FA), KYC requirements and withdrawal protections. Both platforms protect the funds using crypto cold storage vaults, have crime insurance via third-party partners and over-collateralize loans to ensure funds are always available to depositors.
In terms of data protection, BlockFi does not provide many details on how it handles user data but has outlined its current security initiatives around data protection. Nexo follows the SOC 2 compliance framework for data protection, and provides AES-256 bit and SSL encryption across its platform.
Overall, both companies offer high levels of security, in addition to partnering with industry-leading third-party custodians to secure user assets and insurance against theft.
Final Verdict
BlockFi is a reputable and reliable platform that is a great platform that offers decent rates on crypto loans. The negatives with BlockFi are the loan origination fee and limited to borrowing against 4 different cryptocurrencies which do not offer flexibility for investors. On the other hand, Nexo is a better option for users that want to earn high-interest rates on crypto holdings and get the best rates for crypto loans.
For more information to help make a decision on whether BlockFi is suitable, check out our BlockFi vs Celsius article which compares the interest rates, supported coins and ease of use.
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