Difference Between Blockfi and Nexo (With Table)

“[Blockchain] is the biggest opportunity set we can think of over the next decade or so.” It is a quote by Bob Greifeld, the ex-Chief Executive of Nasdaq, which is a popular electronic security marketplace. Started with bitcoin, and now just after few years, it has created a wide field of a big market.

Cryptocurrencies are considered the best of the best investment for yielding the best profits in the future. Blockchain is a very main part of its procedure, and platforms like Blockfi and Nexo help people ranging from beginners to experienced professionals as it provides them with various features and functions in the process.

Blockfi vs Nexo

The difference between Blockfi and Nexo is that Nexo has its own native token in the cryptocurrency market that is NEXO. Blockfi does not have any cryptocurrency or native token issued until now. Also, NEXO has more functions on the platform in comparison to Blockfi, which is mainly used for getting higher interest rates.

Blockfi is a cryptocurrency exchange platform that is known for two things, mainly giving of high-interest rates to customers who have submitted their cryptocurrencies and, secondly, giving out loans on cryptocurrencies. It has launched its own credit card as well, making the platform even more featureful.

Nexo is a digital assets institution popular for providing instant loans and giving out interest on customers’ cryptocurrencies. It is considered one of the best places in the digital assets market that has comparatively better interest rates holding out cryptos like Bitcoin, Ethereum, other cryptocurrencies, stablecoins, and fiat.

Comparison Table Between Blockfi and Nexo

Parameters of ComparisonBlockfiNexo
Place of headquartersJersey City, NJ, USAZug, Switzerland
Discovered by Flori Marquez, Zac Prince Antoni Trenchev, Georgi Shulev, and Kosta Kantchev.
Features offeredExchange, Better interest rates on cryptocurrency offered than the competitors.Fee-free withdrawals, interest earnings, and portfolio-backed loans.
Maximum interest rate8.6%8%
DisadvantagesThe withdrawal timings are longer, the number of cryptocurrencies available on the platform is less.One can only withdraw one free crypto withdrawal and one free stablecoin.

What is Blockfi?

Blockfi is one of the few cryptocurrency exchanges that is popular for not charging any fee on transactions for a period of time. Users can also trade on the platform. And the interest on a person’s holding can be collected on every the first day of every month.

On Blockfi‘s interest account, one can get 3% to 8.6% interest from their savings. There are two types of accounts that the platform currently offers: A personal cryptocurrency interest account and a business cryptocurrency account. For a business cryptocurrency account, additional documentation is needed according to the region of the business.

One can use the feature of allowing listing that comes with the wallet’s account. It lets a person block withdrawals from different addresses that the user doesn’t feel comfortable in. A certain fee has to paid on these withdrawals aside from one monthly free withdrawal.

What is Nexo?

Nexo is a cryptocurrency lending platform useful as an exchange, giving out loans and interest on various cryptocurrencies to its customers. The interference is quite easier to understand, which makes the platform beginner-friendly.

Though, unlike other popular blockchain sites, people cannot exchange their digital assets. Nexo does bring a decent amount of interest to its cryptocurrency holders. For cryptocurrency, it is around 8%, and for stablecoins, the rate is around 12%.

The company’s native token is NEXO. 

Aside from that, the cryptocurrency range is also quite versatile. The interest payments can be done on a daily basis and are quite fast to transfer. The customer service is also said to be good and fast.

Main Differences Between Blockfi and Nexo

  1. Blockfi does not have its own native token or cryptocurrency to offer to the investors of the market. Nexo, on the other hand, has its own token named NEXO.
  2. The interest rate of Blockfi is more than the interest rate offered by Nexo. Currently, Blockfi offers 8.6% as the highest percentage of interest. Nexo goes as high as 8% as the interest rate.
  3. The security partners of the companies are different as well. Blockfi takes the services of Gemini as their security, and NEXO uses BitGo. There has been a security incident with Blockfi in the past, making the security level of Blockfi a little less than Nexo.
  4. Blockfi is a little less slow in processing the transactions of withdrawals that go through the network. In comparison, Nexo’s system is faster in the withdrawal transaction, and they happen faster. Blockfi takes about a span of 24 hours to complete the transaction.
  5. The main feature of both the cryptocurrency platforms is different as well. Blockfi is popular for giving the best interest rates on the lending of cryptocurrencies. While Nexo is well-known for giving high rewards and benefits to the users.
  6. Nexo currently has more cryptocurrencies on its platform for usage than Blockfi’s platform. So, if a person wants to diversify their digital assets, then they should choose Nexo as their preferred system.

Conclusion

Both of the cryptocurrency platforms can be used from beginners to official traders, and professional investors since their interference are quite easy to navigate than their competitors. Neither of the services offers desktop application, but they have mobile applications available on both Google Play and App Store. Though users can reach into their accounts through internet browsers.

Neither of the companies provides financial advice, so it up to the investor on how much and how they want to spend on these cryptocurrency investments to get as much as profit in the future. If one wants to yield a high rate of interest, they can choose Blockfi as their preferred system; otherwise, for other purposes, Nexo is a better option since it has more features on its interference.

References

  1. https://books.google.co.in/books?id=_8PoDwAAQBAJ&pg=PA133&dq=nexo+crypto&hl=en&sa=X&sqi=2&pjf=1&ved=2ahUKEwjdls_Ryo_xAhVZxTgGHdJSBOMQ6AEwAHoECAkQAw#v=onepage&q=nexo%20crypto&f=false
  2. https://ieeexplore.ieee.org/abstract/document/8884171/
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