Nexo vs. BlockFi - Which Platform is Better for You? (2021)
Nexo and BlockFi are both trustworthy Crypto Lending & Loan platforms in our opinion, but which one is the better choice overall for you?
We hope to give you the information you need to decide for yourself which is better for you — personally we use both BlockFi and Nexo as they both have advantages that we’ll outline below, and we believe they’re both trustworthy — however we do personally prefer BlockFi and keep much more with them than with Nexo.
We’d also say it’s a good idea to use multiple platforms to diversify your risk in any one of them having any variety of issues — another good crypto-lending platform to check out would be Celsius. You can read our comparison of Celsius vs BlockFi here and Celsius compared to Nexo by clicking here.
Which Offers the Best Yields - Nexo or BlockFi?
Nexo offers slightly higher yields on deposited crypto — however this comes with a MAJOR caveat — Nexo only offers higher yields on medium-term fixed deposits, otherwise their rates are generally lower than BlockFi.
As a result while technically you can earn 1% to 2% more per year on deposits with Nexo we prefer to have the liquidity that BlockFi offers (withdrawals any time, no lock period), that way we can take advantage of changing market conditions and take advantage of promotions other lending platforms may offer such as Celsius.
To sum it up — With Nexo you earn slightly less than BlockFi (1-2%) unless you lock your crypto up on the platform for multiple months, in which case you make a 1-2% more than BlockFi in most cases.
Which has less fees - Nexo or BlockFi?
This is pretty much a draw — Both Nexo and BlockFi offer nearly identical Crypto-Backed Loan rates, with BlockFi being a bit lower if you take their lowest collateral level (20%) but otherwise both platforms charge about 7% per year on crypto-backed loans.
In terms of withdrawals and other fees there’s none for Nexo whatsoever, and BlockFi has none other than the network transaction fee when withdrawing funds — but this is waived once per month, so realistically you’ll not need to pay withdrawal fees with BlockFi.
Which Has The Best Signup Bonus Offers - Nexo or BlockFi?
BlockFi easily wins this category as Nexo doesn’t offer any sign-up bonus or run any promotions for new-users at all — Meanwhile BlockFi always has a promotion running that generally offer between $20 and $250~ in bonuses for new-users — you can read more about them on this page of our site.
Alternatively, you can sign up through this link to be eligible for BlockFi’s sign-up bonus — no need for a referral code. If Nexo begins to release their own you bet we’ll mention it — but as of now (Mid-2021) they’ve yet to release any sign-up promotions or refer-a-friend programs.
Which is more Trustworthy - Nexo or BlockFi?
We’d say this is pretty much a draw — they both have great teams, CEO’s and leadership, partnerships, and investments from massive hedge-funds or venture capital groups that definitely know what they’re doing. They also both have insurance through companies such as BitGo in the event that something goes wrong.
Because of this we wouldn’t really be concerned with having modest sums of crypto on their platforms — although just like any centralized exchange or service (including very old and trusted companies like Coinbase) we’d say you shouldn’t keep all your funds on them — especially on just one of them — just in case something ever goes wrong with the company. You never know what can happen, and you shouldn’t risk all of your crypto in a single platform.
What Advantages does BlockFi have over Nexo?
BlockFi’s main advantage of Nexo is honestly just their sign-up bonus — while they have lower loan rates in some cases ultimately it’s not significant enough to really matter in our view. Beyond this we might say BlockFi is a little more trustworthy and responsive (support-wise) than Nexo, but not by a huge margin.
If you think BlockFi is a better choice for you, or you just want to snag some tasty free crypto, then make sure to sign up through their promotion page by clicking here, which generally offers up to $250 in bitcoin rewards depending on how much crypto you deposit after opening an account with them.
What Advantages does Nexo have over BlockFi?
Nexo’s main advantage is that their rates on deposited crypto are higher than BlockFi’s when using their fixed-term deposit and holding Nexo tokens, but the marginal benefit of the rate increase isn’t really beneficial unless you will be depositing hundreds of thousands of dollars worth of crypto and are fine with not having liquidity or access to your crypto for potentially months at a time.
Otherwise simply taking BlockFi’s sign up bonus and buying crypto with it would net-net you more cryptocurrency than the fraction of interest extra that Nexo offers would net you over the first couple years using them.
Beyond this they’re very similar platforms, and while we personally prefer BlockFi we wouldn’t say if you’re with Nexo you should nessecarily switch to BlockFi — both are fine crypto-lending platforms with fair rates. You may want to consider Celsius as a third option — they are quite good and either our first or second favorite crypto-lending and crypto-backed loan platform currently.