Nexo vs BlockFi – Which Account Should You Choose?

Nexo vs BlockFi

If you want to earn some interest on your crypto, there are quite a few platforms that offer you high interest rates.

2 of these platforms include Nexo and BlockFi.

How are they different, and which should you choose?

Here’s what you need to know:

The difference between Nexo and BlockFi

Nexo offers you a wider variety of cryptocurrencies to earn interest in, and the rates are generally better than BlockFi. However, BlockFi gives you one free withdrawal, which you can only receive if you are a Gold member on Nexo.

Here is an in-depth comparison between these 2 accounts:

Founder

Nexo was founded in 2018 and their headquarters is in London.

BlockFi was founded slightly earlier in 2017 and is headquartered in New York.

Nexo has a large user base with over 1 million users!

Nexo User Base

Meanwhile, BlockFi has more than 125,000 users on their platform.

Number of cryptocurrencies

Here are the different cryptocurrencies that you can deposit into either account:

Nexo allows you to earn on 17 cryptocurrencies

You can earn interest on Nexo with 17 different currencies:

Nexo Number Of Currencies

BlockFi allows you to hold 10 different currencies

Meanwhile, BlockFi only allows you to deposit 10 cryptocurrencies into your account.

BlockFi Number Of Currencies

The number of cryptocurrencies that you can hold are much lower on BlockFi.

Some of the currencies that are found in Nexo, but not in BlockFi include:

  1. TRX
  2. TUSD
  3. DAI
  4. XRP

Buying cryptocurrency

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.

BlockFi does not allow you to purchase crypto directly

Meanwhile, BlockFi only allows you to transfer USD into your account.

BlockFi Deposit USD

You are able to transfer your USD via a wire transfer. The minimum deposit is $10.

You are unable to buy crypto using your credit card.

When you deposit USD into your BlockFi account, you will receive the equivalent in GUSD.

GUSD is a stablecoin that is created by Gemini.

After depositing your USD, you can trade to other cryptocurrencies from your GUSD.

BlockFi Trade GUSD To Other Crypto

Interest rates

The main thing you’ll be interested in are the interest rates that either account offers you.

Nexo allow 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)

You are able to earn a higher interest rate, if you choose to earn it in NEXO tokens.

Meanwhile, BlockFi only provides you with interest based on the currency that you own.

Here are the interest rates for some currencies that you can deposit on both platforms:

CurrencyNexo APY
(In-Kind)
Nexo APY
(NEXO)
BlockFi
APY
BTC5%7%6.0%
ETH5%7%5.25%
USDT8%10%9.3%
USDC8%10%8.6%
LTC5%7%6.5%

APY stands for annual percentage yield. This takes into effect the compounding interest that you earn on your crypto.

If you choose to earn in-kind for Nexo, the rates are rather comparable to BlockFi’s.

However if you choose to earn in NEXO, then the interest rates are slightly higher!

As such, you may want to see which currency you intend to hold and see which platform offers you the higher rate.

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!

Interest rates may change

Like all other accounts, the interest that you earn on your crypto is not guaranteed.

Both accounts reserve the right to change the yields at any time.

Nexo did not explicitly state how often they may change their interest rates. This makes them slightly less transparent on this issue.

For BlockFi, they will review their interest rates each month and make any changes accordingly.

Nexo has a loyalty program

Nexo has a loyalty program that gives you rewards, such as:

  1. Lower interest rates when borrowing
  2. Higher interest rates on crypto, stablecoins and fiat
  3. Free monthly crypto withdrawals

This depends on the amount of NEXO tokens that you have in your portfolio:

Nexo Loyalty Program

If you intend to hold NEXO for a long time, this program may benefit you!

How you earn your rewards

For Nexo, your interest is paid out daily. With this daily compounding effect, you are able to receive even higher returns!

However, you will need to hold your assets for at least 24 hours first, before the payout will be issued to you.

Meanwhile, for BlockFi, your interest is only paid on the first business day of each month. This is similar to how banks pay you.

The daily payouts from Nexo will help to compound your returns much faster!

Borrowers of both platforms

How can both of these platforms afford to pay you such a high interest rate on your crypto?

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

Nexo Loan Out To Financial Institutions

Meanwhile, BlockFi lends your crypto to “trusted institutional and corporate borrowers“. They also lend your crypto “on overcollateralized terms“.

Over-collateralization (OC) is the provision of collateral that is worth more than enough to cover potential losses in cases of default.

Investopedia

This means that your crypto is lent to rather reputable sources who are able to pay in case of a default.

However, the assets that you own in BlockFi are not insured by the FDIC!

Deposit

BlockFi does not have any minimum deposit.

This means that you can deposit any amount into either account, 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!

Depositing your money via the blockchain

When you are depositing money into either account, you will be given a crypto wallet address to send your crypto to.

NEXO Deposit BTC

You can send you crypto from any exchange that allows you to do so. Some examples include:

  1. Coinhako
  2. Luno
  3. Gemini
  4. Coinbase

It is very important that you only send crypto of the same currency to the wallet. If not, all of your crypto will be lost!

BlockFi Deposit BTC

You will also need to make sure that the address that you’re sending to is exactly the same!

The string of letters and numbers are really long. If you make any mistake when typing out the address, your crypto will be lost forever!

As such, you may want to directly copy and paste the address instead.

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 Nexo and BlockFi do not have any lock-in periods. This means that you are able to freely withdraw your crypto any time you wish!

This makes both platforms more flexible compared to Crypto Earn.

For BlockFi, you do have certain withdrawal limits over a 7-day period:

CurrencyWithdrawal Limit
(Over 7-Day Period)
BTC100
ETH5,000
LTC10,000
Stablecoins1,000,000
PAXG500

However, you may want to take note of the withdrawal fees that you’ll incur!

Withdrawal fees

Nexo charges fees for withdrawals that you make. The number of free withdrawals each month depends on your loyalty tier.

TierNumber of Free Withdrawals
Base and SilverNo free withdrawals
Gold1 free withdrawal
Platinum3 free withdrawals

The withdrawal fee that you are charged depends on the gas fees that are being charged by the network!

However if you make a fiat withdrawal to your bank account, this will be free of charge!

Unfortunately, there is no way for you to exchange your crypto to a fiat currency on Nexo.

BlockFi has one free withdrawal a month

Meanwhile, BlockFi allows you free withdrawals for each month:

  • 1 free crypto withdrawal per month
  • 1 free stablecoin withdrawal per month

This free withdrawal can only be applied to one currency only.

After that, you’ll be charged withdrawal fees which depends on the currency you withdraw:

CryptoWithdrawal Fee
BTC0.00075 BTC
ETH0.02 ETH
LTC0.0025 LTC
Stablecoins$10.00 USD
PAXG0.015 PAXG

These fees can eat into your returns! You may want to consider Celsius which does not charge any fees when you withdraw from your account.

Taking loans

If you are looking for a loan, you can take one from either platform:

Nexo charges interest rates from 5.9% APR

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

BlockFi also has loans on their platform

BlockFi also allows you to take a loan on their platform.

BlockFi Loan

You will need to select a collateral from 4 cryptocurrencies:

  1. BTC
  2. ETH
  3. LTC
  4. PAXG

You can only take a loan in USD. This is more restricted compared to Nexo which allows you to take a loan using stablecoins.

The minimum amount you can loan from BlockFi is $10,000 USD.

BlockFi Minimum Loan

The interest rate that you are charged depends on your Loan-To-Value (LTV) ratio:

BlockFi Loan To Value Ratio

Platform

Nexo has both a web platform,

Nexo Web Platform

as well as a mobile app.

Nexo Mobile App

Here is BlockFi’s web platform,

BlockFi Web Platform

and their mobile app.

BlockFi Mobile App

You can access both platforms from your mobile and laptop.

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?

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!

BlockFi uses Gemini as their primary custodian

To ensure that some of your assets are available to be withdrawn quickly, BlockFi leaves your assets under the custody of 3 institutions:

  1. Gemini
  2. Coinbase
  3. BitGo

Gemini is BlockFi’s main custodian of your assets.

Majority of your assets on the exchange are stored in an offline cold wallet.

Moreover, the remaining funds in the hot wallet is insured.

Our policy insures against the theft of Digital Assets from our Hot Wallet that results from a security breach or hack, a fraudulent transfer, or employee theft.

Gemini

It seems that Gemini’s owners are quite confident about the security of their platform!

As such, you can be reassured that your assets are rather safe with BlockFi.

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 Nexo and BlockFi:

NexoBlockFi
Year Founded20182017
HQLondonNew York
User Base1 million125,000
Number of Currencies1710
Fiat CurrenciesPresentAbsent
Buying CryptocurrencyOnly for NEXOAvailable (via Trading)
Interest RatesIn-Kind 
NEXO (higher interest)
In-Kind
Accrual of InterestDailyEvery 1st business day  
of the month
Deposit FeesNoneNone
Minimum DepositYesNone
Lock-in PeriodNoneNone
Withdrawal FeesDepends on loyalty 
tier and gas fees
1st withdrawal for both crypto  
and stablecoin are free
LoansPresentPresent
PlatformWeb and
mobile platforms
Web and 
mobile platforms
SecurityInsured up to $375 millionGemini as primary 
custodian

So which platform should you choose?

Choose Nexo for a wider variety of currencies

Nexo allows you to earn interest on a wider variety of currencies compared to BlockFi. If you are looking to earn interest for certain currencies such as DAI, then Nexo is the choice for you.

If you choose to earn your interest in NEXO, the interest rates are generally higher compared to BlockFi.

However, if you choose to earn your interest in-kind, the rates are rather similar.

Choose BlockFi for the free withdrawal

BlockFi gives you 1 free withdrawal each month for both your cryptocurrency and stablecoin.

This is better than Nexo, which only gives you a free withdrawal when you hit the Gold tier.

The withdrawal fees that you incur can be really high, if the network demand is high.

As such, having that fee waiver will help to reduce costs on your side!

Conclusion

Both accounts allow you to earn extra interest on your crypto, which is similar to Crypto Earn.

Both of these platforms are very similar. As such, it may not really matter which platform you choose!

Here are some things you’ll need to consider:

  1. The type of currency you intend to hold
  2. The number of withdrawals you wish to make
  3. The amount of interest that you wish to earn

BlockFi Referral (Earn $10 USD in BTC)

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

You will be able to receive $10 USD worth of BTC in your BlockFi account!

BlockFi Referral

Here’s what you need to do:

  1. Sign up for a BlockFi account
  2. Deposit $100 USD or more into your BlockFi account
  3. Hold the balance until the next interest paying day (1st business day of each month)
  4. Receive the $10 USD worth of BTC in your BlockFi account

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