Nexo vs Celsius – Which Platform Is Better?

Nexo vs Celsius

There are quite a few crypto platforms that allow you to earn a high interest rate on your crypto.

2 of them include Nexo and Celsius.

How are they different and which one should you choose?

Here’s what you need to know:

The difference between Nexo and Celsius

Nexo and Celsius mainly differ in the number of cryptocurrencies each platform offers you. Celsius may be slightly better as they offer higher interest rates for stablecoins, and they have free withdrawals too.

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

Founder

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

Meanwhile, Celsius was founded in 2017 and is based in New York.

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

Nexo User Base

Celsius is the smaller with only over 470k users.

Celsius User Base

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

Celsius allows you to deposit 38 cryptocurrencies

Celsius has a much larger offering! You are able to deposit 38 currencies into their platform.

Celsius Number of Currencies

Some of the currencies that are not found on Nexo include:

  1. BUSD
  2. GUSD
  3. XAUT
  4. BAT
  5. UNI

Celsius has a much more diverse offering compared to Nexo!

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.

It is also possible for you to purchase crypto on the Celsius app!

Celsius Buy Crypto Instantly

You can do this via 2 ways:

  1. Credit or debit card
  2. Bank transfer

However, the fees that you incur can be pretty hefty:

Payment ProviderFees
Wyre0.1% (ACH transfer, US only)
Coinify0.5% (manual bank transfer)
2% (EU credit card)
3.5% (non-EU credit card)

Unless you are staying in the US, it may be better to purchase your crypto on another exchange first. Then, you can deposit your crypto into Celsius from that exchange.

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

However, this option is not available for Celsius! This means you can only transfer in the currency that you wish to earn from.

Interest rates

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

Both platforms allow you to earn interest in 2 ways:

  1. In-Kind (i.e. the token that you’ve deposited)
  2. Earning in their native token (NEXO or CEL)

Both Nexo and Celsius have their own tokens:

  1. NEXO
  2. CEL

These platforms allow you to earn a higher interest rate. This will occur if you choose to receive your interest in their native tokens!

You will earn an extra 2% if you choose to earn in NEXO. However, the extra interest you earn in CEL depends on the currency.

Here are the interest rates that you can earn for some common currencies:

CurrencyNexo APY
(NEXO)
Celsius APY
(CEL)
ETH7%6.35%
BTC7%6.2%
USDC10%13.3%
TUSD10%13.3%
PAXG7%6.92%
EOS7%5.6%

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

Celsius seems to be providing a higher interest rates for stablecoins, such as:

  1. USDC
  2. TUSD

However, Nexo provides the higher interest rates for other currencies!

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!

Both platforms have a loyalty program

Both platforms have a loyalty program, which is quite similar. This depends on how much NEXO or CEL tokens you hold, as compared to your entire portfolio.

This is Nexo’s program,

Nexo Loyalty Program

as well as Celsius’.

Celsius Loyalty Program

If you intend to hold NEXO or CEL for a long time, these programmes 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.

For Celsius, your rewards are calculated for each week, between Friday to the next Friday.

Your interest is calculated, and then paid on the following Monday.

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, Celsius lends your crypto to their approved borrowers. Your crypto is also secured with collateral too.

Celsius also claims to return up to 80% of the interest that they earn from lending your coins. This allows them to offer such high interest rates to you.

Deposit

Celsius does not have any minimum deposit.

Celsius No 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 your 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!

Celsius Deposit Crypto

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

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

Withdrawal fees

Celsius does not charge you any fees when withdrawing from your account!

You are able to freely withdraw your currencies in your Celsius wallet at any time.

However, Nexo does charge 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.

As such, it may be more cost effective to deposit your crypto into Celsius. This is because you won’t incur any fees when you’re withdrawing your funds in the future!

Taking loans

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

Celsius has lower interest rates

Celsius allows you to take a loan on their platform.

Celsius Loan Types

Here are the currencies that you can loan:

Type of
Currency
Currencies Available
CryptoTUSD, GUSD, PAX, USDC,
USDT ERC20, DAI
FiatUSD

To take a loan, you would need to have some cryptocurrency kept as collateral.

Celsius Loan Collateral

The amount of interest that you pay depends on 3 factors:

  1. The loan tenure (6-36 months)
  2. Loan to Value (25% – 50%)
  3. Whether you’re paying your loan in CEL or Cash

You can use the in-app calculator to determine the amount you’ll need to pay in interest.

Celsius Loan Calculator

The interest rates start from 1%.

Nexo charges a higher interest rate for 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

Platform

Nexo has both a web platform,

Nexo Web Platform

as well as a mobile app.

Nexo Mobile App

Meanwhile, Celsius is a mobile app-only platform.

Celsius Mobile App

Even though Celsius has a website, you can’t login from the platform.

Celsius Web Platform

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!

Celsius is insured, but only for assets under their custody

Celsius does not disclose the security measures that they have.

However, the assets under their custody are insured by Fireblocks and PrimeTrust.

Your assets are only insured when they are under the custody of Celsius. Once they are loaned out to borrowers, your assets are no longer insured!

However, Celsius is a pretty well established company. Its services are available in more than 100 countries around the world.

As such, I believe that your assets should be rather secure with this platform!

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 Celsius:

NexoCelsius
Year Founded20182017
HQLondonNew York
User Base1 million470k
Number of Currencies1738
Fiat CurrenciesPresentAbsent
Buying CryptocurrencyOnly for NEXOAvailable
Interest RatesIn-Kind
NEXO (higher interest)
In-Kind 
CEL (higher interest)
Accrual of InterestDailyEvery Monday
Deposit FeesNoneNone
Minimum DepositYesNo
Lock-in PeriodNoneNone
Withdrawal FeesDepends on loyalty
tier and gas fees
None
LoansPresentPresent
PlatformWeb and mobile appMobile app only
SecurityInsured up to $375 millionInsured by Fireblocks 
and PrimeTrust

Which platform should you choose?

The interest rates that you earn are pretty similar for both platforms. Again, it depends on the currency that you’re holding to see if one platform offers a higher interest.

Here could be some reasons why you choose one platform over the other:

Choose Nexo if you want a more secure platform

Nexo does provide higher interest rates on your crypto compared to other platforms. However, it still slightly loses out to Celsius.

Its main feature is that it looks to be the more secure platform compared to Celsius. With a huge insurance guarantee, it will reduce your fears, even in the event of a hack!

Apart from that, there are not many compelling reasons why you should choose Nexo.

The withdrawal fees can be really costly, which will affect your returns!

Choose Celsius if you want to earn in more currencies and have free withdrawals

Celsius is the more flexible platform due to the wider variety of currencies that it has on offer.

Moreover, it does not charge any withdrawal fees at all. These fees can be really costly if you want to send your crypto in the blockchain.

As such, Celsius may be the better platform for you.

Conclusion

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

The main considerations when you’re choosing between the platforms could be:

  1. The currency you wish to hold
  2. The interest rates you wish to earn
  3. The number of withdrawals you intend to make each month
  4. How secure the platform you want to invest in

Celsius Referral (Earn $40 USD in BTC)

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

Alternatively, you can enter my referral code ‘174656489c‘ when you are on the sign-up page.

Celsius Referral

Here’s what you need to do to earn the $40 USD reward:

  1. Sign up for a Celsius account
  2. Verify your account
  3. Transfer a minimum of USD $400 worth of cryptocurrency into your wallet for the very first transaction
  4. Hold your balance for at ≥ 30 days
  5. Receive $40 USD worth of BTC in your Celsius account (after 30 days)

The reward will only be unlocked 30 days after your initial transfer of $400 USD.

Celsius Referral BTC Reward

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