BlockFi vs Nexo: Which Crypto Interest Account is Better?

BlockFi vs Nexo: Which Crypto Interest Account is Better?

Daniel Chan

June 13, 2022

Cryptocurrency

BlockFi (read review) and Nexo (read review) are two extremely strong competitor crypto exchanges that offer high APY earnings on different cryptocurrencies, crypto loans, and crypto trading, among other various features.

Both companies were founded in 2017 but in different regions - BlockFi emerged in New Jersey, while London became the heart of Nexo operations.

These two companies are impressive, each in their own right, with BlockFi managing over $15 billion worth of assets while Nexo amassing just over $30 million. However, Nexo tops its competitor with over 2 million users, whereas BlockFi manages only 230,000 users.

But how do you separate the two to determine which platform brings out the most to the crypto table?

Keep reading to find out the key features, security, sign-up bonuses, and compare the different interest rates offered by these companies.

BlockFi vs Nexo: Interest Rate Comparison

Header

BTC

4% APY (First 0.1 BTC)

4% APY 

ETH

4% APY (First 1.5 ETH)

4% APY 

USDT

7.25% APY (First 20,000 USDT)

8% APY

USDC

7.25% APY (First 20,000 USDC)

8% APY

DAI

7.25% APY (First 20,000 DAI)

8% APY

Cell
Header

BTC

4% APY (first 0.1 BTC)

4% APY

ETH

4% APY (First 1.5 ETH)

4% APY

USDT

7.25% APY (First 20,000 USDT)

8% APY

USDC

7.25% APY (First 20,000 USDC)

8% APY

DAI

7.25% APY (First 20,000 DAI)

8% APY

Cell

BlockFi vs Nexo: Comparison Table

None

Cell

Nunber of Coins

23

34

Minimum Deposit

None

None

Withdraw Fee

There’s one free withdrawal each month, while fees are applied on withdrawing specific assets.

Depending on loyalty level, you can receive between 1 and 5 free withdrawals per month.

Pros

- Trading and earning on crypto in one platform

- No hidden fees

- Option to earn interest with flex payment

- Available accounts with high interest rates

- Loyalty members receive even higher rates

- Support for a wide variety of crypto

Cons

- Interest rates are low but vary quite often

- Loan fees are very high, and there’s no insurance against bank failure

- Loyalty members get the best rates

- The native token is expensive to buy

- The exchange doesn’t have transparent fees

Website

BlockFi vs Nexo: Comparison Table

Cell

Number of Coins

23

34

Minimum Deposit

None

None

Withdraw Fee

There’s one free withdrawal each month, while fees are applied on withdrawing specific assets.

Depending on loyalty level, you can receive between 1 and 5 free withdrawals per month.

Pros

- Trading and earning on crypto in one platform

- No hidden fees

- Option to earn interest with flex payment

- Available accounts with high interest rates

- Loyalty members receive even higher rates

- Support for a wide variety of crypto

Cons

- Interest rates are low but vary quite often

- Loan fees are very high, and there’s no insurance against bank failure

- Loyalty members get the best rates

- The native token is expensive to buy

- The exchange doesn’t have transparent fees

Website

Pros
  • Instant trading system and access
  • No required minimum deposits and no hidden fees
  • No requirement to use the native token
  • Excellent customer support
Cons
  • Exchange fees aren’t completely transparent
  • Supports only a handful of cryptocurrencies
Pros
  • A wide range of supported cryptocurrencies to choose from
  • Excellent insurance policy in place
  • High interest rates for loyalty members
  • Fiat interest accounts
Cons
  • Native token is expensive and difficult to trade
  • Exchange fees aren’t completely transparent

BlockFi vs Nexo Features 

Users who register on the BlockFi platform gain access to interest accounts, crypto loans, and can easily trade between the ten cryptocurrencies on offer.

Some cryptocurrencies on the platform decrease in earning potential if you deposit large amounts like Bitcoin and Ethereum. However, users can enjoy earning up to 7.25% on the crypto assets of their choice.

Additionally, BlockFi offers a cashback reward of up to 1.5% on each purchase users make. The platform also employs an automatic trading system that allows users to set automatic bids without too much hassle.

It charges a 2% origination fee for every new loan, but this crypto lending program is available in only 45 US states.

Nexo, compared to BlockFi, has interest accounts that are a bit more complex. The upside to this complexity is that users are able to earn as much as 20% APR on crypto assets, and users can also opt for a daily payout.

The downside is, to gain access to the best rates possible you’ll have to move high up the ranks in Nexo’s loyalty program. Additionally, users who opt to take their crypto earnings in Nexo’s native token receive an additional 2% bonus.

This platform’s lending options include no instalment fees, origination, or prepayment, as users only pay interest for the period they borrowed.

Winner - Nexo

Even though BlockFi operates well in the United States, Nexo gains the edge for offering higher earning yields as well as supporting a wider range of cryptocurrencies.

BlockFi vs Nexo Fees

Although fees aren’t the main source of income for many crypto exchanges, there are some fees that every user should know about, including for both BlockFi and Nexo.

BlockFi is a commission-free type of platform but charges a withdrawal fee depending on the type of crypto you might trade. The platform accrues interest on the very day you make the deposit, and the interest is compounded on a monthly basis.

Nexo, on the other hand, compounds the interest on a daily basis and offers 1 to 5 free withdrawals per month, depending on the loyalty level and/or if you hold its native token.

BlockFi charges an origination fee of 2% on crypto loans and offers one free withdrawal per month but charges fees for other assets:

  • Bitcoin - 0.00075 BTC
  • Ethereum - 0.02 ETH
  • Litecoin - 0.0025 LTC

Nexo’s fees change over time, and they do charge gas fees on withdrawals. There are no hidden fees for crypto loans, though, but free withdrawals vary depending on the loyalty level:

  • Basic - 1 per month
  • Silver - 2 per month
  • Gold - 3 per month
  • Platinum - 5 per month

Winner - Draw

We can’t separate the two because both platforms offer zero-fee for buying, selling, and trading. With that in mind, even though withdrawals are cheaper on Nexo, you’ll have to limit them to a few per month. BlockFi’s one-free withdrawal per month also limits the user’s actions, so there’s no clear winner here.

Number of Cryptocurrencies

BlockFi’s potential is hindered by the fact that this platform supports only 23 cryptocurrencies at the moment. However, the company has stated its openness and work-in-progress to improve its list and start supporting additional cryptocurrencies. 

Nexo, though, supports 34 cryptocurrencies but is unavailable in the following countries: Bulgaria, Cuba, Estonia, Iran, Syria, North Korea, and the states of New York and Vermont.

Winner - Nexo

If you’re looking to earn interest in various cryptocurrencies without switching platforms, then Nexo is the obvious choice here. It supports more cryptocurrencies than BlockFi.

BlockFi vs Nexo Security

The types of precautions taken to ensure the safety of the user’s assets are vital for a company's security and the user’s trust to hold their crypto investments.

Both companies offer 2FA (two-factor authentication) in order to prevent any unauthorised access to your account.

Moreover, BlockFi offers the following security protocols:

  • Allowlisting of Addresses - this option lets you choose where to transfer your cryptocurrencies
  • Cold Storage - offline storage unit for your assets so you won’t suffer losses to a hacking attack
  • PII Verification - a verification feature that ensures you’re the only one using your account
  • Insurance - anti-theft insurance of digital assets as well as $250,000 cash fund insurance per customer

Nexo, on the other hand, offers the following protocols:

  • Login Alerts and Withdrawal Confirmation - nothing can be done without your consent
  • Banking-Type Storage - your assets are being stored in a top-grade Class III vaults
  • Biometric Login - a 4-digit pin is required when you sign up, and it can only be bypassed by facial recognition
  • Insurance - Nexo has a whopping $375 million insurance package on its digital assets

Winner - BlockFi

Even though both platforms employ similar security levels, BlockFi’s insurance package is tailored to each user specifically, which is the reason why we chose this platform as the winner in this area. Moreover, BlockFi is under constant hacking attacks with no memorable breach whatsoever - a quite impressive feat.

Verdict 

Being considered among the best crypto exchange platforms around, it’s hard to separate the two and decide on a clear winner. BlockFi and Nexo are industry-leading in terms of security, and both platforms have a somewhat clear trading and lending practice for users to know exactly what they’re getting into and how much they can benefit.

With that in mind, judging by the fiat and crypto options available for trading, the interest rates, and the number of supported cryptocurrencies, it’s safe to say Nexo is a more suitable choice for those who are looking to maximise their profits by earning from their crypto assets.

Contrastingly, though, BlockFi offers far lower interest rates for crypto loans, so if you’re looking into crypto lending or borrowing, then this is the right platform for you.

Regardless of your choice, you can be confident in the fact that both platforms have a hefty insurance sum and policies in place.

Overall Winner - Nexo

Nexo wins overall due to a wider range of coins, interest rates, fiat and crypto options for trading. BlockFi offers some great features, but they only offer a small range of 23 coins.

Frequently Asked Questions

Is BlockFi trustworthy?

BlockFi is unquestionably a safe, trusted, and secured crypto platform that has been in the business for many years now. They provide great security, with several strategies to protect your account from hackers and breachers.

Can I trust Nexo?

Yes, Nexo is ISO/IEC 27701:2013 certified, which is not an easy certification to earn. Deposits are also kept offline in cold storage, and all customer data is protected with SSL encryptions.

Who owns BlockFi?

Zac Prince is listed as the CEO and Co-Founder of BlockFi.

Still Researching?

If you are still undecided, you can read my full review on BlockFi (here) and Nexo (here) or have a look at my article on the best ways to earn interest on your cryptocurrency.

Marketplacefairness.org provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us. 

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