Nexo vs Blockfi: In-Dept Comparison

Whenever cryptocurrencies are now mentioned, the first thing that comes to mind is buying/trading them. After all, statistics show that there are more than 100,000 crypto millionaires. Naturally, with the crypto expansion, many people are looking to dive into this world and try to earn a profit.

However, buying and selling crypto is not the only use of these digital assets. Interestingly enough, you can also borrow/lend them. That is exactly what we are going to discuss in this article as we are about to compare two highly reputable crypto lenders – Nexo and Blockfi. We are going to take a look at their standout features, pros and cons, and ultimately, use the information to determine which crypto lender comes out on top.

Introducing the Platforms

Nexo

Nexo is a rather new crypto lender on the market as it was founded in 2018. Since then, the company has strived to bring professional financial services which is why it manages a network of over 2 million users in around 200 countries. It holds several licenses across the US and throughout the world, meaning that those that are looking to lend or borrow crypto can rest assured knowing that they will be completing these services at a secure platform.

Not only can you access its official website and trade crypto on your desktop device, but Nexo also developed a mobile app that is fully optimized for use on iOS and Android devices. Depending on your smartphone, you can download it for free on Apple Stor or Google Play Store.

There are over 40 available fiat currencies at Nexo and thanks to this platform, you can earn up to 12% in annual interest. There are a total of 18 cryptocurrencies that this lender will allow you to borrow or lend, including the likes of Bitcoin, Tether, Bitcoin Cash, USD Coin, Ripple, Ethereum, EOS, Litecoin, and Dogecoin.

Unlike many other platforms where the fees may vary, Nexo has fixed fees, or as the platform itself suggests – what you pay is what you get. Its interface is also easy to use and the number of swaps is not limited. However, just like any other fundamental in life, Nexo has its pros and cons and we are more than happy to list them.

Pros

  • Easy-to-use interface
  • Fast transactions
  • Low and fixed fees
  • Insured and audited crypto lender

Cons

  • Numerous limitations on withdrawals
  • Risk of loss while lending is present

Blockfi

On the other hand, we have Blockfi, a crypto lender that is well-known for providing traders with flexible lending solutions. An interesting fact about it is that it is the first company to launch a so-called Bitcoin rewards credit card which allows holders to earn 1.5% cashbacks with the said cryptocurrency. The best part about it is that the funds are directly transferred to the Interest Account, which means that you will earn interest on it right away.

What’s even more important is that Blockfi is a US-based crypto lender that is regulated by the New York State Department of Financial Services, meaning that if you decide to register and trade here, you can rest assured knowing that you are on a secure and verified platform.

Thanks to its automatic trading system, you can set your recurring trade order on a daily, weekly, or monthly basis and thus, earn interest without actually spending a lot of time on Blockfi. That way, you will be able to grow your portfolio.

Additionally, you can borrow funds against your crypto assets with low interest rates of 4.5%. That way, instead of selling assets when needing cash, you can save money in taxes by borrowing. Just like Nexo, Blockfi is an exchange that has its advantages and disadvantages, which are listed below.

Pros

  • A regulated crypto lender based in the US
  • Fast trades
  • Rewarding Interest Account
  • Automatic trading

Cons

  • Limited free withdrawals
  • No custodial accounts

Nexo vs Blockfi: The Face-Off

In terms of the number of available cryptocurrencies, both crypto lenders are levelled. They offer users lending services with the world’s most popular cryptocurrencies but also feature less-known digital assets that have a lot of potential.

Both operators offer lending services at pretty low rates, which means that they are levelled in this field as well. In terms of their rewards program, both platforms allow their customers to earn cashbacks, however, Nexo takes the small lead here due to the fact that it offers rewards on the most commonly traded cryptocurrency – Bitcoin.

Thanks to the Automatic Trading system by Blockfi, you will be far more flexible with your lending experience than with Nexo. The aforementioned system will automatically lend cryptocurrencies for you and will help you grow your account, which is a massive feature.

The fact that Blockfi is regulated by the New York State Department of Financial Services provides it with a small lead, but then again, Nexo offers a mobile app that allows you to trade at any time and place, just as long as you are connected to the Internet.

Standout Features

Both crypto lenders are decent and reputable and both lenders have a few standout features. Let’s start with Nexo. Its first standout feature is the mobile app which allows you to gain market access from your smartphone at any time and place, just as long as you are connected to the Internet.

Next up, the Bitcoin rewards card deserves massive praises and here’s why. Most exchanges/crypto lenders are trying to promote the least traded cryptocurrencies to boost them. That is not the case with Nexo. This lender has the opposite approach as it rewards lenders with a cashback on the most commonly used digital asset. The Nexo Card will provide you with additional cashbacks, doesn’t have any monthly or annual fees and is accepted by over 40 million merchants worldwide. Finally, you can also lend cash or stablecoins backed by your digital assets at 6.9% APR.

As for Blockfi, this crypto lender does have its own standout features as well. One of those is the Automatic trading system through which you can set recurring trades via your Interest Account. That way, you can automatically lend crypto and allow your account to grow in value.

The Blockfi Rewards Card will provide you with frequent cashbacks, depending on the trading volume. Moreover, the fact that this lender platform is regulated means that you can rest assured knowing that trading here is safe, reliable and secure.

Finally, Blockfi also has a loaning system through which you can borrow cash or crypto at extremely low fees.

Conclusion

There’s no denying the fact that these two platforms are extremely similar when it comes to trading crypto. Both of them support similar cryptocurrencies, both platforms offer lending options at low rates, both of them are fairly simple to use and both are used by numerous traders from all around the world. There are a few slight differences between these two, though.

  • You should use Nexo if:
  • Want to be provided with fast transactions
  • Experience low and fixed fees
  • Lend or borrow a variety of cryptocurrencies
  • Earn cashback on Bitcoin transactions
  • You should use Blockfi if:
  • You want to be flexible with your lending options
  • Care about collecting interest on your account
  • Lend/borrow at a safe and regulated lending platform
  • Gain massive market access
Michael Hughes