If you’re looking for an interest-bearing account that is bank-like and offers the ability to make transfers and payments, blockfi may be the account for you. This account is much like checking account but with built-in cryptocurrency interest. However, the account itself is not as straightforward as it may seem – you do not receive your interest as cash on a monthly basis, but rather as a part of each interest payment.

If you were to ask the average person what the best crypto interest account is, you’d probably get an answer like “I don’t know” or “I haven’t tried them all, but this one seems most promising” — or worse yet, just “I have a lot of money so I don’t need one.” That’s understandable, since there are so many different types of crypto interest accounts out there and while some are more trustworthy than others, the average person doesn’t have the resources to do their own research and compare them. That’s why we’re here to help. Here at CoinCentral, we’ve done extensive research and testing to find out which crypto interest accounts are the best options for you.

Interest-bearing bank accounts are one of the most widely used methods for storing and investing cryptocurrency. With over 3.5 million users and growing, this relatively new method is now available to over half of all US adults. In order to know which bank is the best option for you, you need to compare the different offers and features from each one of them. In this short guide, we will take a look at these two options and help you decide which is the best interest-bearing account for you.

BlockFi and Nexo are two powerful cryptocurrency interest account rivals that allow you to earn a high annual percentage yield on a variety of cryptocurrencies, take out crypto-backed loans, and more. 

BlockFi, a crypto lender and interest-earning platform headquartered in New Jersey, was established in 2017. The business has raised approximately $508.7k from its 40+ investors, including Pomp Investments, and is now valued at $3 billion. 

BlockFi has over 230,000 members and administers over $15 billion in assets.

Nexo is a London-based startup that was established in 2017. It offers a diverse set of services, including an exchange, crypto loans, a savings account, and its own NEXO coin. 

The European firm adds an interesting twist to the crypto interest game by providing competitive APY rates for both crypto tokens and fiat currencies such as the US dollar and the British pound. Nexo has over 2 million users and manages over $30 million in assets.

BlockFi and Nexo are both great businesses in their own right, but who brings the most to the table in terms of crypto interest? 

Look no further if you’re undecided about whether to use BlockFi or Nexo, or if you’re contemplating both. 

The following comparison between BlockFi and Nexo will go over major features, interest rate comparisons, security, and sign-up incentives. 

Key Differences Between BlockFi and Nexo

Item

BlockFi

Nexo

Site type

Interest accounts, trading accounts, and crypto-backed loans are all available.

Interest account, exchange, crypto loans, token, and crypto-backed loans are some of the terms used.

The Beginning of a Business

2017

2017

Location

Jersey City is a city in the state of New Jersey in the United States.

London, England, United Kingdom

Suitable for beginners

Yes

Yes

App for mobile devices

Yes

Yes

Cryptocurrencies that are currently available

BTC, ETH, GUSD, and ten more cryptocurrencies

BTC, ETH, USDC, and 17 more cryptocurrencies

Customer Service 

Good

Good

Trust in the Community

Great

Good

Fees

Low

Low

Promotions

You may earn up to $250. 

None

Reviews

Review of BlockFi

Review of Nexo 

Feature #1: Interest Rates – Who Offers a Better Annual Percentage Yield (APY), BlockFi or Nexo?

Bitcoin

BlockFi provides a tiered yearly interest rate structure based on the amount of BTC in your account:

  • 4% on <0.25 
  • 1.5% on <5 BTC
  • 0.25% on >5 BTC

On all BTC deposits, Nexo pays a set APY of 6%.

Ethereum: 

BlockFi pays 4% APY on up to 5 ETH, 1.5 percent on 5 to 50 ETH, and 0.25 percent on everything beyond that.

Nexo customers may earn 6% APY on their ETH deposits.

Stablecoins: 

BlockFi’s tiered offers provide 7.5 percent APY on stablecoin deposits (USDT, USDC, GUSD, PAX, BUSD) between 0 and 50,000 USDT, USDC, GUSD, PAX, BUSD) between 0 and 50,000 USDT, USDC, GUSD, PAX, BUSD) between 0 and 50,000 USDT, USDC, GUSD, PAX, BUSD) between 0 and On Dai deposits between 0 to 50,000, the firm pays 8.5 percent APY, then 6 percent. 

Nexo pays a ten percent annual percentage yield on dollar-backed stablecoins (USDT, USDC, DAI, TUSD, HUSD) and a six percent annual percentage yield on PAXG.

Holders of BlockFi’s DAI token get the best rates, while holders of Nexo’s NEXO token get a 12 percent APY.

Nexo customers who choose to receive their interest earnings in NEXO will see a 2% rise in interest on all currencies.

Nexo, unlike most other accounts, enables users to earn interest on fiat currency. On EUR, GBP, and USD, users may earn 10% APY. If you opt to receive your fiat profits in NEXO rather than the currency you deposit, these rates rise to 12%. Earn in NEXO, however, is not accessible in the United States.

BlockFi vs. Nexo: Which is the Best Crypto Interest Account? &#8211; CoinCentral

When the “Earn in Kind” option is chosen, NEXO APY is calculated.

What is the revenue model for BlockFi and Nexo?

BlockFi

BlockFi generates money by borrowing assets at a fixed rate (the interest it provides customers) and lending them to retail and institutional borrowers through bitcoin loans. Borrowers may obtain cash without selling their bitcoin holdings. 

BlockFi is renowned for taking a more careful approach to financing and doing credit checks on its customers. BlockFi’s crypto holdings (which it utilizes to finance customers’ withdrawals) are kept securely at Gemini Trust, the company’s main custodian. 

Individual customers may also get collateralized loans through BlockFi, which are funded by stablecoin deposits (APY of 7.5 percent to 5%). These customers must have assets worth at least double the amount they want to borrow. 

If you want to take out a $5,000 loan on BlockFi, for example, you’ll need at least $10,000 in crypto in your account. If the total value of your crypto assets in your account falls below $10,000 over the term of your loan and you do not deposit more, BlockFi will sell your holdings to repay the loan. This is known as a “margin call.”

It’s essential to keep your LTV over 50% if you want to prevent margin calls. The LTV percentage you should have is determined by the currency’s volatility. 

BlockFi charges interest depending on the amount of money it makes through lending. The business uses stablecoin deposits to finance its consumer loans (which typically charge 10–13 percent APR), allowing it to offer greater interest rates to customers who deposit GUSD and other stablecoins.

Nexo

Nexo, like BlockFi, profits on the gap between the interest it pays borrowers and the interest it charges borrowers. 

Consumers and institutional borrowers are both lent to via the platform.

Payouts and Withdrawals are the second feature.

The day after you put money into BlockFi, your assets will start earning interest. The interest is compounded on a monthly basis.

Interest is compounded everyday on Nexo.

Each month, BlockFi allows customers to make one free crypto withdrawal and one free stablecoin withdrawal. BlockFi imposes fees (below) with specified withdrawal limitations per coin, and users may only utilize this free withdrawal on one currency.

BlockFi vs. Nexo: Which is the Best Crypto Interest Account? &#8211; CoinCentral

BlockFi vs. Nexo: Which is the Best Crypto Interest Account? &#8211; CoinCentral

BlockFi vs. Nexo: Which is the Best Crypto Interest Account? &#8211; CoinCentral

 

Nexo, on the other hand, gives its customers 1 to 5 free withdrawals based on their loyalty tier (or the amount of NEXO they have on the site). 

BlockFi vs. Nexo: Which is the Best Crypto Interest Account? &#8211; CoinCentral

Nexo users have unrestricted access to fiat deposits, transfers, and withdrawals.

BlockFi vs. Nexo Security (Feature #3)

BlockFi entrusts its customers’ money to Gemini Trust, a crypto security firm renowned for its industry-leading standards. 

Gemini is a New York Trust business that is regulated by the New York Department of Financial Services and has over $30 billion in cryptocurrency (NYDFS). The business has passed the SOC 1 Type 2 and SOC 2 Type 2 examinations and is certified to ISO 27001 standards. 

For security, Gemini keeps BlockFi assets in offline cold storage and in insured hot wallets, but does not insure them after they’re deployed. 

BlockFi has been hacked for user account information as of this writing, however no money have been stolen. The breach was disclosed in an email to BlockFi customers on May 14th; the malicious actor used a sim-swapping assault to obtain access to clients’ contact information (email, SMS).

Nexo uses a number of custodians to keep money secure, including BitGo, Ledger, and Fireblocks. 

The platform is covered by insurance up to $375 million, or approximately 3% of its total assets under management. Here’s how it works:

 

BlockFi vs. Nexo: Which is the Best Crypto Interest Account? &#8211; CoinCentral

Ease of Use is the fourth feature.

Both systems are user-friendly and may be accessed via a web app or Android/IOS applications. 

Feature #5: Distinguishing Characteristics

Users of BlockFi’s credit card get 1.5 percent cash back on all transactions. Nexo, on the other hand, allows customers to borrow crypto-backed credit lines in over 40 different fiat currencies. BlockFi vs. Nexo: Which is the Best Crypto Interest Account? &#8211; CoinCentral

NEXO, Nexo’s native coin, is traded on most cryptocurrency exchanges. There are now 560 million NEXO in circulation, with a total supply of 1 billion tokens.

BlockFi vs. Nexo Reddit in the Court of Public Opinion

Because of its better BTC rates, many consumers choose Nexo over BlockFi. 

However, many people choose BlockFi since you don’t need to own any local tokens to get premium pricing. 

Overall, BlockFi and Nexo support is consistent across the board.

Customer Service

Both BlockFi and Nexo provide a help center with FAQs and other useful information for its customers. Nexo’s customer service professionals are accessible 24 hours a day, 7 days a week. Support for BlockFi may be reached at [email protected].

Which Crypto Interest Account Is Better: BlockFi or Nexo? 

BlockFi and Nexo are two of the finest bitcoin interest accounts available. 

Both platforms have industry-leading security and have released enough information about their lending processes to give consumers a general sense. 

If you were to choose between BlockFi and Nexo, you should think about the following:

  1. To benefit from Nexo’s increased rates, you’ll need to invest in its volatile NEXO coin. 
  2. BlockFi offers a $250 sign-up incentive to CoinCentral readers, whereas Nexo does not. 
  3. Nexo is headquartered in Europe, whereas BlockFi is located in the United States. 
  4. Nexo pays up to 12% APY on fiat currencies and has no fees for withdrawals or transfers, while BlockFi only pays interest on cryptocurrency. 
  5. BlockFi offers a credit card that complements the interest account well. 

You have the option of taking the risk of utilizing a cryptocurrency interest account. 

Check out the complete Nexo and BlockFi reviews for additional information. 

BlockFi vs. Nexo: Which is the Best Crypto Interest Account? &#8211; CoinCentral

BlockFi vs. Nexo: Which is the Best Crypto Interest Account? &#8211; CoinCentral

*BlockFi is a company that started in 2016 but didn’t get the attention it deserved until recently. This company is a direct banking alternative with the same idea of providing a platform for crypto users, where they can buy and sell with no fees (apart from the ones for the exchange).. Read more about blockfi review and let us know what you think.

Nexo is a cryptocurrency lending platform that allows you to borrow and lend cryptocurrencies. BlockFi is a company that provides loans in USD at competitive rates, but does not allow for lending or borrowing of cryptocurrencies."}},{"@type":"Question","name":"Which is better crypto com or BlockFi?","acceptedAnswer":{"@type":"Answer","text":" BlockFi is a better option for you, as it offers lower rates."}},{"@type":"Question","name":"Does BlockFi pay interest in crypto?","acceptedAnswer":{"@type":"Answer","text":" Yes, BlockFi pays interest in crypto."}}]}

Frequently Asked Questions

Is Nexo better than BlockFi?

Nexo is a cryptocurrency lending platform that allows you to borrow and lend cryptocurrencies. BlockFi is a company that provides loans in USD at competitive rates, but does not allow for lending or borrowing of cryptocurrencies.

Which is better crypto com or BlockFi?

BlockFi is a better option for you, as it offers lower rates.

Does BlockFi pay interest in crypto?

Yes, BlockFi pays interest in crypto.

This article broadly covered the following related topics:

  • blockfi interest rates
  • best crypto interest account reddit
  • nexo vs blockfi
  • nexo interest rates
  • blockfi review