Crypto Invest

Hodlnaut vs Nexo – Which Platform Is Better?

Holdnaut vs Nexo

Last updated on October 15th, 2021

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:

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.

Hodlnaut Number Of Currencies July 2021

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:

Nexo Number Of Currencies July 2021

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.

Buy NEXO

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.

Nexo Exchange Cryptocurrency

Hodlnaut also offers a token swap service on their app.

Hodlnaut Token Swap

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:

  1. In-Kind (i.e. the token that you’ve deposited)
  2. 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)
BTC6.2%6.0%8.0%
ETH6.7%6.0%8.0%
USDT10.5%10.0%12.0%
USDC10.5%10.0%12.0%
DAI10.5%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.

Nexo Earn On Fiat Currency

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:

  1. USD
  2. GBP
  3. EUR

However, I can’t find the USD option in my account. I only have the option to deposit either GBP or EUR.

Nexo EUR GBP

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.

Nexo Loyalty Program June 2021

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.

Hodlnaut Interest Rate

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.

Hodlnaut Crypto Lending

Meanwhile, Nexo loans out your crypto to institutions on an overcollaterised basis.

Nexo Loan Out To Financial Institutions

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:

CurrencyMinimum Deposit
BTC0.001
ETH0.01
XRP5.00
BCH, LTC0.01
EOS0.50
XLM20
LINK0.3
TRX150
PAXG0.001
BNB0.05
Stablecoins1

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 you withdrawal fees, based on the crypto that you wish to withdraw:

CurrencyFee
BTC0.0005 BTC
DAI3 DAI
ETH0.005 ETH
USDT3 USDT
USDC3 USDC

Nexo provides you with some free withdrawals. However, this depends on your loyalty tier:

TierNumber of Free Withdrawals
Base1 free withdrawal
Silver2 free withdrawals
Gold3 free withdrawals
Platinum5 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.

Nexo Loan 1

You will need collateral as well, which is:

  1. $500 USD for bank transfers
  2. $5,000 for stablecoin transfers
Nexo Minimum Collateral

Here are some of the currencies you can borrow in:

Type of CurrencyCurrencies Available
Fiat Currencies40+ (EUR, GBP, USD)
StablecoinsUSDT, USDC

In contrast, Hodlnaut does not offer loans if you’re an individual investor.

Hodlnaut Individual Loans

Platform

Both of them use different platforms.

Hodlnaut is a web-only platform, although they intend to have a mobile app in the future.

Hodlnaut Web Platform

Meanwhile, Nexo has both a web platform,

Nexo Web Platform

as well as a mobile app.

Nexo 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.

Hodlnaut Insurance

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!

Nexo Insurance

Moreover, Nexo only loans your assets to credit lines that are overcollateralised between 200-500%.

Nexo Loan Collateral

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:

HodlnautNexo
Year Founded20192018
HQSingaporeLondon
Number of
Currencies
621
Fiat CurrenciesAbsentPresent
Buying
Cryptocurrency
UnavailableOnly for NEXO
Interest RatesIn-KindIn-Kind
NEXO (higher interest)
Accrual
of Interest
Every MondayDaily
Deposit FeesNoneNone
Minimum
Deposit
NoYes
Lock-in PeriodNoneNone
Withdrawal FeesDepends
on currency
Depends on loyalty
tier and gas fees
LoansAbsentPresent
PlatformWeb onlyWeb and
mobile platforms
SecurityNo hot walletInsured 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:

  1. The currency that you wish to earn interest on
  2. Whether you want to earn interest in-kind or in NEXO
  3. 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!

Hodlnaut Referral (Receive a $20 Signup Bonus)

If you are interested in signing up for a Hodlnaut account, you can use my referral link.

You will be able to receive a $20 signup bonus!

Hodlnaut Referral

Here’s what you’ll need to do:

  1. Sign up for a Hodlnaut account
  2. Make an initial deposit equivalent of $1000 on any of the 6 currencies available
  3. Receive the $20 signup bonus

Nexo Referral (Earn USD$10 in BTC)

If you are interested in signing up for a Nexo account, you can use my referral link. You will receive USD$10 in BTC after holding $100 or more in assets for the next 30 days.

Nexo Referral

Here’s what you need to do:

  1. Sign up for a Nexo account
  2. Complete the Advanced Verification on Nexo
  3. Transfer ≥ $100 worth of assets into Nexo
  4. Hold these assets for at least 30 days

You will receive your BTC reward in the next 30 days!


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