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Nexo vs Celsius Network vs BlockFi


What is the best crypto lending platform? A detailed comparison between Nexo, Celsius Network and BlockFi including who they are, interest rates offered, pros and cons, stats and security

July 30, 2021

Stablecoins | Crypto Lending Platforms

Nexo vs Celsius Network vs BlockFi
All figures and stats taken from time of writing - 20/05/2021

Nexo vs Celsius Network vs BlockFi

Intro

Perhaps you are not interested in trading but want to take advantage of the significant gains that can be made through owning cryptocurrency. Or maybe you're not satisfied with the 0.02% interest your bank is paying you. Below we explore 3 of the top crypto lending platforms to see which is the best way to earn a passive income while you sleep.


Nexo

Who are Nexo?

Nexo, founded in 2017 by Antoni Trenchev, Georgi Shulev and Kosta Kantchev is a subsidiary of a company called Credissimo, a company who have been in the lending business since 2007 so backed by a team with a wealth of experience.

Nexo's partners
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Nexo's partners

Stats

  • Manages $15B+ in assets
  • 1.5M+ users
  • 200+ jurisdictions
  • 40+ fiat currencies available

Nexo Loyalty Program

Nexo has an “Earn in NEXO” option similar to Celsius’s (Earn in CEL), from which users get about a 2% boost per asset.

Nexo's loyalty program
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Nexo's loyalty program

Nexo Interest Rates

Nexo offers very high rates, especially on stablecoins where you can earn up to 12% APY when choose to "Earn in NEXO". "Earn in Kind" rates are lower by 2%.

Nexo's 17 supported assets
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Nexo's 17 supported assets

How Does Nexo Generate Interest?

Interest generated from lending to institutions and customers who provide collateral for loans. If the loan goes south, collateral is liquidated and used to pay interest.


Secruity

  • Two-factor authentication
  • Nexo only loans your assets to credit lines that are overcollateralised between 200-500%
  • Licensed and regulated financial institution
  • $100 million insurance on custodial assets
  • Nexo uses BitGo as it's custodian, a company backed by Goldman Sachs and is CCSS Level 3 and SOC 2 compliant
  • Nexo uses Jumio to adhere to the strictest KYC and AML global compliance standards. Jumio is also trusted by Microsoft, Oracle, Monzo, and HSBC
  • In February 2021, Nexo added security infrastructure in the form of Ledger's institutional-grade security system, Ledger Vault, backed by $1 billion in crime insurance.
$375M digital assets insured
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$375M digital assets insured

Read more about Nexo's security here.


Nexo Pros and Cons

ProsCons
Easy to use app and websiteMust hold NEXO tokens for highest rates
Very high levels of securityThe $375 million insurance is cumulative for all clients
Withdraw at any timeLoyalty tier determines number of free withdrawals per month
No credit score checks
Compound interest paid daily


Celsius Network

Who are Celsius Network?

Founded in 2017 by Alex Mashinsky and S. Daniel Leon, Celsius Network are a mobile-only blockchain-based lending company. Although they have a website, their platform is only accessible through their free app. This may be an inconvenience to many, however it's not the first time we've seen this - popular challenger bank Monzo has been hugely successful with it's mobile-only banking services with currently 4M+ customers.

Celsius also offers a product called CelPay, which lets customers send and receive crypto for free.

Update:Celsius now has a web app!


Stats

  • 882,000+ users
  • $2,000,000,000 held in treasury
  • 21,000,000,000 held in commodity assets

Celsius Loyalty Program

Rewards tiers are based on the proportion of holdings that are held in CEL tokens.

Celsius's loyalty program
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Celsius's loyalty program

Celsius Interest Rates

Celsius offers the highest rates on stablecoins compared to the Nexo and BlockFi at 12.65%

Some of Celsius's 44 supported coins and top rates
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Some of Celsius's 44 supported coins and top rates

How Does Celsius Generate Interest?

The Celsius finance team generates returns for our community by lending out our community's digital assets to institutional and retail borrowers. We aim to return up to 80% of the revenues made from lending out our community's assets back to our community on a weekly basis.

Due to the rate of returns we can achieve in the lending market change nearly every day, we adjust the rates that our community earns on their digital assets on a weekly basis.

Security

  • Two-factor authentication
  • Whitelisted withdrawal addresses
  • “HODL mode” which can be activated to restrict withdrawals
  • Fireblocks and PrimeTrust (their custodians) both provide insurance on digital assets held by Celsius
  • Borrowers are required to post collateral of up to 150%

Read more about Celsius's security here.


Celsius Pros and Cons

ProsCons
Easy to use mobile platformNeed to hold CEL Tokens for highest rates
Highest interest rates on stablecoinsInterest rates can vary
No withdrawal fees, no transfer fees, no transaction fees, no early termination fees, no origination feesKYC required
Withdraw anytime
Interest paid weekly


BlockFi

Who are BlockFi?

Founded by Zac Prince and Flori Marquez in 2017, BlockFi is a New York based, fully regulated lender. They use Gemini, a New York trust company regulated by the New York State Department of Financial Services, as their primary custodian. They have major institutional backing from investors such as Valar Ventures, Galaxy Digital, Fidelity, Akuna Capital, Bain Capital Ventures, Coinbase Ventures and Winklevoss Capital.


Stats

  • $15B+ assets under management
  • 225,000+ users
  • 10 coins supported

Withdrawals

1 free crypto and 1 free stablcoin withdrawal per calendar month.

BlockFi withdrawals
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BlockFi withdrawals

BlockFi Interest Rates

BlockFi's supported coins and rates
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BlockFi's supported coins and rates

How Does BlockFi Generate Interest?

BlockFi generates interest on assets held in Interest Accounts by lending them to trusted institutional and corporate borrowers. To ensure loan performance, BlockFi lends crypto on over-collateralized terms (similar to the structure of our crypto-backed loans).

Furthermore, BlockFi’s automated risk management system monitors positions 24/7, providing the same trusted risk management system used with BlockFi’s crypto-backed loans. BlockFi has the ability to terminate a borrow in a timely fashion and also manages reserve balances to facilitate clients withdrawals from Interest Accounts. Reserves are stored securely with our primary custodian Gemini, a New York trust company regulated by NYDFS.

Security

  • Two-factor authentication
  • Asset balance sheets only get lent to trusted institutions and corporations
  • "Allowlisting" allows you to ban all cryptocurrency withdrawals, or restrict withdrawals to a list of known addresses only

Read more about BlockFi's security here.


BlockFi Pros and Cons

ProsCons
Telephone supportKYC required
No lock-up periodsOnly 1 free withdrawal per month
Compound interestInterest paid monthly(can see interest accumulate on dashboard though)
No need for native tokens to get highest rates
Accepts USA citizens


$1000 Interest Rate Scenario

Below is a rough estimate of the potential returns made through compound interest. "Earn in Kind" will be chosen as the value of CEL/NEXO tokens can fluctuate. The following asumptions are made:

  • New Nexo user - Hold 0 NEXO tokens, depositing USDT, "Earn in Kind"
  • New Celsius user - Hold 0 CEL tokens, depositing USDT, "Earn in Kind"
  • New BlockFi user - Depositing USDT
1 Day1 Week1 Month1 YearInterest earned after 1Y
Nexo logo @ 8% APY$1,000.22$1,001.54$1,006.69$1,083.28+ $83.28
Celsius logo @ 10% APY$1,000.27$1,001.92$1,008.37$1,105.16+ $105.16
BlockFi logo @ 9.3% APY$1,000.25$1,001.79$1,007.78$1,097.45+ $97.45


Celsius vs BlockFi vs Nexo Comparison Table

Celsius logoBlockFi logoNexo logo
Year Founded201720172017
Interest Payout FrequencyWeeklyMonthlyDaily
Number of Currencies441017
Highest Interest Rate Available17.78% (with SNX or MATIC)9.3% (with USDT)12% (with stablecoins)
Highest Rate With Stablecoins12.65%9.3%12%
Compound InterestYesYesYes
Lock-up PeriodNoneNoneNone
KYCYesYesYes
Users882,000+225,000+1,500,000+
Miniumum Deposit$0$0$0
Withdrawal Fees$01 Free Crypto and 1 Free Fiat Withdrawal per Month1 Free Withdrawal per Month
PlatformMobile & Web AppMobile & Web AppMobile & Web App
SecurityHighHighVery High
Platform TokenCEL Token-NEXO Token
Trust Pilot Rating4.1 (1,352 reviews)3.9 (137 reviews)4.6 (4,932 reviews)

Sign-Up Offers

If you decide to sign up to any of these lending platforms, use my referral codes below to take advantage of their introductory offers.

RewardTermsReferral LinkReferral CodeWhere To Use
Celsius logo$50 in BTCDeposit $400 and hold for 30 days-150232debaEnter code upon sign-up
BlockFi logo$10 in BTCDeposit $100 of any crypto or stablecoinblockfi.com9d60eddcEnter code upon sign-up or use link
Nexo logo-----