The Top Coins Is Here To Serve You If You…

Want info about  Crypto

We make buying the right Crypto for you as simple as possible.

Home > Investment guide > The Top 2 Crypto Lending Platforms: Nexo and BlockFi
The Top 2 Crypto Lending Platforms: Nexo and BlockFi

The Top 2 Crypto Lending Platforms: Nexo and BlockFi

24 Oct 2020
Reading Time: 4 minutes

Cryptocurrency transactions have gained lots of attention over the past few years, which means that more and more people are interested in how tokens can replace common banking products, including loans. Here, we’ll take a look at two of the top crypto lending platforms that offer the highest interest rates and the most security. 

Cryptocurrency lending is a process where borrowers use crypto assets as collateral to obtain a fiat or stablecoin loan. The loan platform will supply the assets required for the loan at a locked-in interest rate. Crypto lending is generally very fast and convenient since it doesn’t involve a complicated verification process. Nexo and BlockFi are some of the most-loved crypto lending platforms in the industry. 

In this article, we’ll compare the two to see the pros and cons of each–to help you find the best crypto lending platform that suits your needs. 

Nexo vs BlockFi

Nexo

  • Nexo is one of the biggest cryptocurrency lending platforms and continues to be a popular choice. It has around 2 million customers globally. It supports fiat currencies and over 20 cryptocurrencies, making it a very convenient lending platform.

  • Nexo's first priority is security. They use a military-grade security system and offer $100 million in insurance protection per wallet. They are also a licenced and regulated financial institution. This means that their wallets are pretty much the safest ones around. While they don’t have the highest interest rate at around 5% per year, it’s compounded and paid out daily. Nexo’s loans offer you full flexibility since there are no lock-in periods. In addition to this, you can withdraw your funds at any time without any fees.

BlockFi

  • BlockFi is a leading cryptocurrency and bitcoin lending platform–a direct competitor to Nexo. Blockfi offers loans and savings accounts for GUSD, Ethereum, Bitcoin and Litecoin. They are also one of the oldest and first crypto lending platforms that appeared on the market and are based in the United States.

  • BlockFi rates are higher than Nexo at 8%. The platform requires no minimum balance for you to earn interest in bitcoin and more. There’s no need to use native tokens to receive any interest rate bonus. Blockfi crypto interest accounts are reliable as they’re insured by AON and stored on the Gemini exchange, which is regulated in the US. While their security system isn’t as bulletproof as Nexo’s bank-grade Class III vaults with SOC 2 Type 2 certification, BlockFi still boasts a rather secure network. 

Nexo has a 500 USD minimum and 2 million USD maximum loan policy, whilst BlockFi requires no minimum or maximums. That makes BlockFi an ideal choice if you’re looking to take a loan outside Nexo’s range. However, BlockFi charges a withdrawal fee of 0.0025 BTC while Nexo imposes no such fees. Moreover, BlockFi’s crypto interest account holders can withdraw their assets at any time, but with the following penalty: they will forfeit their compound interest for that calendar month.

To wrap things up, BlockFi has a more responsive team and superior customer service, with a recently-released app that offers user-friendly convenience. In terms of payout, Nexo forces you to be paid out in Nexo tokens, whilst BlockFi can offer more widely-accepted option such as Bitcoin or stablecoin. This functionality can make the whole process much smoother in the long run.


Leave a Reply

Add comment

Fresh Content

Just add your email and hit subscribe to stay up to date.