BlockFi vs. Nexo: Which is the best crypto interest account?

BlockFi and Nexo are strong competitors for cryptocurrency interest accounts that offer the ability to earn relatively high APY on various cryptocurrencies, obtain crypto-backed loans, and more.

BlockFi was founded in 2017 and is a New Jersey-based company as a cryptocurrency lender and interest earning platform. company is currently valued at $ 3 billion and has raised more than $ 508.7k from its more than 40 investors, including Pomp Investments.

BlockFi manages more than 15,000 million assets for its more than 230,000 users.

Nexo was founded in 2017 and is based in London. It has a cocktail of offerings, including an exchange, crypto loans, an interest account, and its native NEXO token.

European company brings an intriguing twist to the crypto interest game, offering competitive APY rates for crypto tokens and fiat currencies like USD and GBP. Nexo has more than 2 million users and more than $ 30 million in assets under its management.

Both BlockFi and Nexo are impressive companies in their own right, but who brings more to the table of crypto interest?

If you’re torn between using BlockFi or Nexo or considering using both, look no further.

following BlockFi vs. Nexo review will outline the key features, various interest rate comparisons, security, and sign-up bonuses.

BlockFi vs. Nexo: key information

Article

BlockFi

Nexus

Site Type Interest Account, Business Account, Crypto Backed Loans Interest Account, Exchange, Crypto Loans, Token, Crypto Backed Loans Company Launch 2017 2017 Location Jersey City, NJ, USA London, England, Kingdom united beginner friendly yes yes mobile Application Yes Criptomonedas available BTC, ETH, GUSD, another 10 BTC, ETH, USDC, another 17 Attention to the customer Good Good Confidence community Great Well Fees Low Low promotions Earn up to $ 250 None Reviews Review from BlockFi Nexo Review

Characteristic n. 1: Interest Rates – Who Has Better APY, BlockFi, or Nexo?

Bitcoin:

BlockFi offers tiered annual interest rates based on the amount of BTC you have in your account:

  • 4% in <0.25
  • 1.5% in <5 BTC
  • 0.25% in & gt; 5 BTC

Nexo offers a fixed 6% APY on all BTC deposits.

Ethereum:

BlockFi allows you to earn 4% APY on up to 5 ETH, 1.5% between 5 and 50 ETH, and 0.25% on top of that.

Nexo offers its users a 6% APY on ETH deposits.

Stablecoins:

BlockFi tiered offerings give users a 7.5% APY on stablecoin deposits (USDT, USDC, GUSD, PAX, BUSD) between 0 and 50,000, then 5%. company offers an APY of 8.5% on Dai deposits between 0 and 50,000, then 6%.

Nexo offers a 10% APY on USD-backed stablecoins (USDT, USDC, DAI, TUSD, HUSD) and 6% on PAXG.

BlockFi’s highest rates are for DAI holders, while Nexo offers a 12% APY to holders of its NEXO token.

Nexo users who choose to receive their interest earnings on NEXO get a 2% interest increase in all currencies .

Unlike most other accounts, Nexo also allows its users to earn interest on fiat. Users can make 10% APY on EUR, GBP and USD . se rates also go up to 12% if you choose to receive your fiat earnings in NEXO instead of the currency you deposit. However, “Earn in NEXO” is not available in the US.

NEXO APY when the “Earn in kind” option is selected.

How do BlockFi and Nexo make money?

BlockFi

BlockFi borrows assets at a particular rate (the interest it offers to users) and makes money by lending those assets to retail and institutional borrowers through cryptocurrency loans. Borrowers obtain liquidity without having to sell their assets in cryptocurrencies.

BlockFi is known for its more cautious lending strategies and conducts credit assessments on its borrowers. For security, BlockFi stores its crypto reserves (which it uses to fund user withdrawals) with Gemini Trust, its primary custodian.

BlockFi also offers secured loans to individual consumers, and finances these loans using stablecoin deposits (~ 7.5% – 5% APY). se consumers must have holdings of at least twice the value of the amount they wish to borrow

For example, if you want to get a $ 5,000 loan from BlockFi, you will have to keep at least $ 10,000 worth of cryptocurrency in your account. If during the period of your loan, the total value of your cryptocurrency holdings in your account falls below $ 10,000 and you do not deposit more, BlockFi will immediately liquidate your holdings to repay the loan. This is called a “margin call.”

To avoid margin calls, it is best to maintain an LTV greater than 50%. percentage of LTV you should have will depend on the volatility of the currency you have.

BlockFi pays interest based on the return it generates on loans. company finances its consumer loans (typically charging ~ 10 – 13% APR) using stablecoin deposits, which means that it can pay higher interest rates to users who deposit GUSD and other stablecoins.

Nexus

Like BlockFi, Nexo makes money on the difference between the interest it pays to users it borrows from and what it charges its borrowers.

platform makes loans to both its consumers and institutional borrowers.

Feature # 2: Payments and withdrawals

Your assets in BlockFi will start accruing interest the day after you make your deposit. Interest is compounded monthly.

At Nexo, interest is compounded daily.

Read also Universal Basic Income (UBI) Token What is it, how to buy and price?

BlockFi offers users a free cryptocurrency withdrawal and a free stablecoin withdrawal every month. Users can only use this free withdrawal in one currency, and BlockFi charges fees (below) with specific withdrawal limits per currency.

Unlike, Nexo offers 1 to 5 free withdrawals to its users depending on their loyalty level (or the amount of NEXO they have on the platform.

Nexo users can make unlimited deposits, transfers and withdrawals free of charge.

Feature # 3: BlockFi vs. Nexo Security

BlockFi secures user funds with the Gemini Trust, which is known for its industry-leading encryption security practices.

Gemini has more than $ 30 billion in cryptocurrency in its custody and is a New York trust company subject to the New York Department of Financial Services (NYDFS). company has completed the SOC 1 Type 2 and SOC 2 Type 2 exams and is ISO 27001 certified.

Gemini has BlockFi assets in offline cold storage and hot wallets secured for security, but does not secure those assets once they are deployed.

At the time of this writing, BlockFi was hacked to obtain user account information, but users did not lose any funds. breach was announced on May 14 in an email to BlockFi users; malicious actor gained access to customers’ contact information (email, SMS) through a sim-sharing attack.

Nexo uses a couple of custodians, including BitGo, Ledger, and Fireblocks, to keep funds safe.

platform is insured up to $ 375 million, approximately 3% of its total assets under management. Here’s a breakdown:

Feature # 4: Ease of use

Both platforms are beginner friendly and accessible through a web app as well as Android / IOS apps.

Trait # 5: Featured Features

BlockFi Credit Card offers users a 1.5% cash back on all purchases. On the other hand, Nexo allows users to borrow lines of credit backed by cryptocurrencies in more than 40 fiat currencies.

Nexo’s native token, NEXO, is available on most crypto exchanges. Its supply is tied to 1 billion tokens, and there are currently 560 million NEXOs in circulation.

Court of Public Opinion: BlockFi vs. Nexo Reddit

Many users prefer Nexo over BlockFi for its higher BTC rates.

However, a good number prefer BlockFi because it doesn’t require you to have any native tokens to access the premium rates.

Read also OnX Finance (ONX) Token What is it, how to buy and price?

Overall, support for both BlockFi and Nexo is stable across the board.

Customer Support

Both BlockFi and Nexo maintain a support center with frequently asked questions and other customer information. Nexo support representatives are available 24/7. Users can contact BlockFi support at [email protected]

BlockFi vs. Nexo: Which is the best crypto interest account?

BlockFi and Nexo are considered two of the best cryptocurrency accounts.

Both platforms use industry-leading security, and both have disclosed more or less enough information about their credit practices to give users a rough idea.

If you had to choose BlockFi vs. Nexo, you should consider the following:

  1. To get the highest rates from Nexo, you would need to hold your NEXO token, which is quite volatile.
  2. BlockFi has a sign-up bonus for CoinCentral readers of up to $ 250, while Nexo does not.
  3. BlockFi is a US-based company, while Nexo is based in Europe.
  4. Nexo offers up to 12% APY in fiat currencies, with no fees for withdrawals or transfers, while BlockFi only offers interest in cryptocurrencies.
  5. BlockFi has a credit card that combines very well with the interest account.

decision to take the risk of using a cryptocurrency interest account is yours.

For a more detailed dive, check out the Nexus Review and BlockFi Review

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