The number of platforms to be used by cryptocurrency investors for transactions such as borrowing and lending is gradually decreasing. Especially as a result of the authorizations granted by the United States, regulatory bodies take very strict measures and impose some sanctions on this issue. This has made interest and staking transactions more difficult.
When it comes to investment options, you can easily earn interest by trading on cryptocurrency lending platforms such as Nexo and BlockFi or gain liquidity by borrowing.
We’ll take a detailed look at the differences between these two platforms and explain which one is more advantageous than the other.
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Let’s Get To Know the Platforms Closely
Nexo is a decentralized cryptocurrency lending platform founded in 2018. BlockFi, on the other hand, was founded in 2017 and is a platform that offers loans, interest and trading options to cryptocurrency investors.
Both platforms offer highly advantageous options for cryptocurrency investors. Basically, they offer a wide range of alternatives such as different degrees of loyalty, cryptocurrency credit cards, rewards and interest pools.
Learn About Trading Options
Both platforms offer cryptocurrency traders a variety of investment options. On Nexo, users can earn interest on more than 20 cryptocurrencies such as Bitcoin, Ethereum and Litecoin. On BlockFi, users can earn interest on Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Stablecoins.
The cryptocurrencies on which interest can be earned or borrowed are constantly changing. For this reason, it may be a good idea to visit their websites to get more detailed information about the available coins.
Nexo offers the opportunity to earn interest on its tokens, including Binance Coin and NEXO tokens. Trading options and prices may differ on both platforms, but in general, Nexo offers the ability to earn interest on more cryptocurrencies, while BlockFi offers a more diverse selection of assets.
What Are The Fees And Deductions?
Nexo and BlockFi offer traders the opportunity to open an account for free. Trading and lending fees on both platforms vary depending on the platform. Both platforms charge some fees, such as transaction fees and loan repayment interest rates.
These fees apply not only to these platforms, but also to all platforms and all areas where ease of use is provided. In other words, these rates are deducted on all platforms where interest and lending are available.
Nexo offers interest rates of 5-12% for interest-bearing options, while BlockFi offers interest rates of 0.5-8.6% for interest-bearing options. Therefore, traders should carefully examine the fees offered on both platforms and choose the one that suits their needs.
Interest Rates Offered By The Platforms
Both platforms offer different interest rates for different cryptocurrencies and stablecoins. Nexo gives users a clear indication of the interest rates for the assets they will invest in and can change interest rates on a daily basis. BlockFi’s interest rates are more volatile. This variability is due to price changes or fluctuations in market conditions. Nexo’s interest rates are particularly high for its tokens, while BlockFi’s interest rates are lower.
Loan Services
Both platforms offer lending options. Nexo lends to users using cryptocurrencies and tokens as collateral. BlockFi lends to users using cryptocurrencies or stablecoins as collateral. Loan rates may vary on both platforms. It should be noted that the rates are higher on Nexo and lower on BlockFi. This means that many users do not care about these rates. However, if you intend to play with cryptocurrencies at high odds, you may incur high costs as a result of these odds.
Which Account Types Are Available?
Nexo and BlockFi offer different account types, such as individual, joint and trading accounts. Both platforms offer traders many additional features and benefits, such as Nexo’s debit card, BlockFi’s mobile app and trading tools.
Nexo also offers users the ability to trade at a discount on their own tokens. BlockFi allows users to borrow and trade more. The features and advantages offered on both platforms should be evaluated and selected according to the needs.
What Are The Security Measures Taken?
Nexo and BlockFi use security protocols to protect their clients’ assets. Nexo stores cryptocurrencies and tokens in hot and cold storage to ensure asset security. BlockFi also uses hot and cold storage devices for asset security.
Since both platforms are licensed by regulatory authorities, they keep their operations up-to-date with maximum security measures.
Customer Support And Education
Nexo and BlockFi offer options for customer support. Nexo offers phone, email and live chat options to its customers.
BlockFi offers its customers email, live chat and phone support. Both platforms offer users a wealth of educational resources.
For example, Nexo offers webinars and educational videos, while BlockFi offers educational articles and informative content about cryptocurrencies.
