Last updated on March 22nd, 2022
There are many ways that you can earn interest on your cryptocurrencies.
2 of the platforms that you can use include Hodlnaut and Nexo.
How are they different and which should you choose? Here’s what you need to know:
Contents
- 1 The difference between Hodlnaut and Nexo
- 2 Founder
- 3 Number of cryptocurrencies
- 4 Buying cryptocurrency
- 5 Exchanging cryptocurrencies
- 6 Interest rates
- 7 Nexo has a loyalty program
- 8 How you earn your rewards
- 9 Borrowers of both platforms
- 10 Deposits
- 11 No lock-in period
- 12 Withdrawal fees
- 13 Taking loans
- 14 Platform
- 15 Security
- 16 Verdict
- 17 Conclusion
- 18 👉🏻 Referral Deals
The difference between Hodlnaut and Nexo
Hodlnaut offers higher interest rates if you choose to earn in-kind, while Nexo gives you higher rates if you choose to earn in NEXO tokens. Nexo offers a larger number of currencies than Hodlnaut, and they allow you to make at least one free withdrawal.
Here is an in-depth comparison between these 2 platforms:
Founder
Hodlnaut was started by 2 entrepreneurs from Singapore in 2019 to allow investors to earn interest on their crypto.
Meanwhile, Nexo was founded in 2018 and its headquarters is in London.
Number of cryptocurrencies
Here are the different cryptocurrencies that you can deposit into either account:
Hodlnaut only allows you to deposit 6 coins
Hodlnaut’s offerings are quite limited as you can only deposit 6 coins into the platform.
These are the 6 currencies you can use:
Nexo allows you to earn on 21 cryptocurrencies
You can earn interest on Nexo with 21 different currencies:
This gives you slightly more variety on the currencies compared to Hodlnaut, including:
Buying cryptocurrency
You are unable to purchase crypto on Hodlnaut’s platform. Moreover, you can’t deposit any fiat currencies into Hodlnaut.
Meanwhile, you are able to buy crypto directly on Nexo. However, the only crypto that you can buy is NEXO, which is Nexo’s native token.
You are able to buy NEXO via a variety of currencies, both fiat or crypto. However, there are some currencies like SGD which are not supported.
Exchanging cryptocurrencies
Once you’ve transferred cryptocurrencies to Nexo, you can use their exchange to trade them for other currencies.
This can be done on Nexo’s app.
Hodlnaut also offers a token swap service on their app.
Furthermore, all token swaps are free! This makes it quite convenient to swap your assets around.
Interest rates
The main thing you’ll be interested in are the interest rates that either account offers you.
Hodlnaut allows you to earn your interest in-kind. Meanwhile, Nexo allows you to earn interest in 2 ways:
- In-Kind (i.e. the token that you’ve deposited)
- Earning in Nexo’s native token (NEXO)
If you choose to earn in NEXO, you are able to earn an extra 2% interest. Here are the rates of the common currencies on the platform:
| Hodlnaut APY | Nexo APY (In-Kind) | Nexo APY (NEXO) | |
|---|---|---|---|
| BTC | 6.2% | 6.0% | 8.0% |
| ETH | 6.7% | 6.0% | 8.0% |
| USDT | 10.5% | 10.0% | 12.0% |
| USDC | 10.5% | 10.0% | 12.0% |
| DAI | 10.5% | 10.0% | 12.0% |
APY stands for annual percentage yield. This takes into effect the compounding interest that you earn on your crypto.
When comparing the in-kind interest rates, Hodlnaut offers higher interest rates. However, if you choose to earn in NEXO, the interest rates are higher for Nexo!
Nexo also allows you to earn interest on fiat currencies
Apart from crypto, Nexo also allows you to earn interest on your fiat currencies.
You are able to earn up to 12% APY! However, you would have to earn your interest in the form of NEXO to receive this high interest rate.
If you wish to earn in-kind, you will still get a 10% interest rate. This is still really high!
There are 3 currencies that you can earn from:
- USD
- GBP
- EUR
However, I can’t find the USD option in my account. I only have the option to deposit either GBP or EUR.
This could be because I am from Singapore.
High interest rates means high risks
While the high interest rate seems really attractive for your fiat currency, I would suggest against leaving all of your money with Nexo.
This is because the reason why Nexo can offer such a high interest rate is due to the people whom they are lending to.
You are able to take a loan from Nexo without having much requirements. The only thing that you need to provide is collateral, in case you default.
As such, there is a higher chance that a lender may default from their payment! This is why Nexo offers such high interest rates on your money.
If you are aware of the risks involved, then you can place some of your money inside Nexo.
However, I strongly recommend not to treat Nexo like a savings account and leave all of your money inside!
Nexo has a loyalty program
Nexo has a loyalty program, which gives you perks depending on the amount of NEXO that you own.
How you earn your rewards
For Hodlnaut, the interest is accrued at the end of every day. However, it will only be credited to your account every Monday.
However for Nexo, your interest is paid out daily. With this daily compounding effect, you are able to receive even higher returns!
You will need to hold your assets for at least 24 hours first, before the payout will be issued to you.
Borrowers of both platforms
How can both of these platforms afford to pay you such a high interest rate on your crypto?
Hodlnaut lends your crypto to “established and vetted financial institutions” that are willing to pay a high interest rate.
Meanwhile, Nexo loans out your crypto to institutions on an overcollaterised basis.
Deposits
Hodlnaut does not have any minimum deposit.
This means that you can deposit any amount Hodlnaut, and still earn interest on it!
However for Nexo, you are required to have a minimum deposit to start earning the high interest rates:
| Currency | Minimum Deposit |
|---|---|
| BTC | 0.001 |
| ETH | 0.01 |
| XRP | 5.00 |
| BCH, LTC | 0.01 |
| EOS | 0.50 |
| XLM | 20 |
| LINK | 0.3 |
| TRX | 150 |
| PAXG | 0.001 |
| BNB | 0.05 |
| Stablecoins | 1 |
The minimum amounts are not too high, but it may affect how much you need to transfer to your account!
No deposit fees
You are also not charged any deposit fees for either account.
However, you’ll need to consider the fees you’ll incur when sending your crypto from an exchange!
This depends on the exchange that you’re using, and some of them may be very hefty.
Some exchanges like Gemini allow you to withdraw up to 10 times each month without incurring any fees.
No lock-in period
Both Hodlnaut and Nexo do not have any lock-in periods. This means that you are able to freely withdraw your crypto any time you wish!
Withdrawal fees
Hodlnaut charges one free withdrawal each calendar month, but you will need to pay a withdrawal fee for every subsequent withdrawal:
Nexo provides you with some free withdrawals. However, this depends on your loyalty tier:
| Tier | Number of Free Withdrawals |
|---|---|
| Base | 1 free withdrawal |
| Silver | 2 free withdrawals |
| Gold | 3 free withdrawals |
| Platinum | 5 free withdrawals |
The withdrawal fee that you are charged depends on the gas fees that are being charged by the network!
If you are looking to reduce the withdrawal fees that you’ll incur, Nexo may be the better choice with its one free withdrawal.
This is because the fees for Hodlnaut can be quite steep, especially for BTC!
Taking loans
You can start taking a loan from Nexo starting from 5.9% APR.
You will need collateral as well, which is:
- $500 USD for bank transfers
- $5,000 for stablecoin transfers
Here are some of the currencies you can borrow in:
| Type of Currency | Currencies Available |
|---|---|
| Fiat Currencies | 40+ (EUR, GBP, USD) |
| Stablecoins | USDT, USDC |
In contrast, Hodlnaut does not offer loans if you’re an individual investor.
Platform
Both of them use different platforms.
Hodlnaut has both a web platform,
and a mobile app.
Nexo has both a web platform,
as well as a mobile app.
Security
If you intend to leave your funds with either account, you will be more at ease if they are secure.
So what measures do both of these accounts have?
Hodlnaut does not store your crypto on hot wallets
Hodlnaut stores your assets in a BitGo wallet when you deposit your funds to them.
Moreover, Hodlnaut does not have any hot wallets. This means that their crypto wallets are not connected to the internet.
This reduces the chances of your accounts being hacked!
Hodlnaut does not have any third-part insurance to cover for any losses. However, they stated that they have set aside some of their profits to cover any losses due to hacks.
Nexo has a rather secure platform
Nexo has partnered with BitGo and Ledger Vault as their security partners.
BitGo is the main custodian of your crypto assets, and has a pretty strong track record.
Nexo also has $375 million worth of assets being insured by both partners!
Moreover, Nexo only loans your assets to credit lines that are overcollateralised between 200-500%.
This should help to reduce the risk of the institution defaulting from the loan!
Crypto lending is risky
The reason why both platforms are offering such high interest rates on your crypto is because this is quite a risky business.
Cryptocurrency is very volatile, and it may fluctuate in price by a lot!
The amount of crypto that you have in your portfolio really depends on your risk profile.
As such, you should decide if you are willing to take the risks when it comes to investing into any cryptocurrency!
Verdict
Here is a comparison between Hodlnaut and Nexo:
| Hodlnaut | Nexo | |
|---|---|---|
| Year Founded | 2019 | 2018 |
| HQ | Singapore | London |
| Number of Currencies | 6 | 21 |
| Fiat Currencies | Absent | Present |
| Buying Cryptocurrency | Unavailable | Only for NEXO |
| Interest Rates | In-Kind | In-Kind NEXO (higher interest) |
| Accrual of Interest | Every Monday | Daily |
| Deposit Fees | None | None |
| Minimum Deposit | No | Yes |
| Lock-in Period | None | None |
| Withdrawal Fees | Depends on currency | Depends on loyalty tier and gas fees |
| Loans | Absent | Present |
| Platform | Web and mobile platforms | Web and mobile platforms |
| Security | No hot wallet | Insured up to $375 million |
So which platform should you choose?
Choose Hodlnaut for higher interest rates in-kind
If you are keen to earn interest on your crypto in the same currency, Hodlnaut provides the higher interest rates compared to Nexo.
Then again, the difference is rather small, as Hodlnaut offers just a slightly higher interest.
You will need to weigh between the slightly higher interest rate with the withdrawal fees that you’ll incur with Hodlnaut!
Choose Nexo for free withdrawals and earning interest on more currencies
Nexo allows you to earn interest on more cryptocurrencies compared to Hodlnaut. You are also able to get at least one free withdrawal each month, even if you are on the Basic tier.
This helps you to save on the crypto withdrawal fees, which can be quite high!
If you decide to earn your interest in NEXO tokens, the interest rates are higher too.
Conclusion
Both Hodlnaut and Nexo are great ways to earn some interest on your crypto. In the end, the one that you choose may depend on:
- The currency that you wish to earn interest on
- Whether you want to earn interest in-kind or in NEXO
- The number of withdrawals you will be making each month
👉🏻 Referral Deals
If you are interested in signing up for any of the products mentioned above, you can check them out below!
Nexo Referral (Earn USD$25 in BTC)
If you are interested in signing up for a Nexo account, you can use my referral link. You will receive USD$25 in BTC after holding $100 or more in assets for the next 30 days.
Here’s what you need to do:
- Sign up for a Nexo account
- Complete the Advanced Verification on Nexo
- Transfer ≥ $100 worth of assets into Nexo
- Hold these assets for at least 30 days
You will receive your BTC reward in the next 30 days!
You can view more information about this promotion on Nexo’s website.
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