In Hodlnaut vs. Nexo we examine the pros and cons of an established crypto interest account giant and a young product that has gained rapid market traction.
Hodlnaut is a Singapore-based cryptocurrency interest provider. Launched in 2019, its six assets are backed by a single investor, with a funding of about $100k. Currently, Hodlnaut manages over $500 million in assets and has over 10,000 users.
Launched in 2017, Nexo is a London-based cryptocurrency platform. Apart from its interest account, the company offers a cryptocurrency exchange, a crypto-backed loan service, a card, and a token. NeXo offers U.S. users 10% APY on stablecoins and 6% APY on BTC and ETH. For those outside the United States, Nexo offers the chance to earn rewards in NEXO, the company’s native token, for an increase of two percent across the board.
Nexo has raised $52.5 million in funding, has more than two million users, and manages $ 15 billion in assets (AUM). The company offers interest both on crypto and on fiat, supporting over 23 coins and 40+ fiat currencies (the fiat feature is only available for international users).
Hodlnaut offers its users up to 12.73% APY on stablecoins, and up to 7.46% APY on Bitcoin and Ether.
Which cryptocurrency interest account is the best for you? Let’s find out.
Hodlnaut vs. Nexo Key Information
|Mobile App||Yes, on iOS.Coming on Android in late October 2021.||Yes, on Android and iOS|
|Available Cryptocurrencies||BTC, ETH, WBTC, USDC, USDT, DAI||BTC, ETH, WBTC, USDC, USDT, DAI|
|Reviews||Read ourHodlnautreview||Read ourNexoreview|
|Site/Promotions and Signup Bonuses||Earnup to $20when you sign up for a Hodlnaut and deposit up to $1000.||Get$10 when signing up and depositing $100or more on Nexo.|
Feature #1: Interest Rates — Who Has Higher Interest, Hodlnaut or Nexo?
Hodlnaut offers tiered rates on Bitcoin:
- 7.46% on <2 BTC
- 4.08% on <8 BTC
- 2.02% on <90 BTC
- 1% on 100+ BTC
Nexo offers a flat rate of 6% APY for BTC deposits and 8% APY for users earning in NEXO. The “Earn in NEXO” option is not available for users in the U.S.
On Hodlnaut users earn:
- 7.46% on <20 ETH
- 4.08% on <80 ETH
- 2.02% on 100+ ETH
On Nexo, users earn a 6% APY on ETH, which goes up to 8% for users earning in NEXO.
Hodlnaut offers up to 12.73% APY on USDT, USDC, and up to 8.32% on DAI
Hodlnaut’s rates on USDT:
- 12.73% on 0 – 25,000 USDT
- 7.25% on 25,000 – 100,000 USDT
- 4.60% on 100,000 – 500,000 USDT
- 3.04% on 500,000+ USDT
Hodlnaut’s rates on USDC:
- 12.73% on 0 – 25,000 USDC
- 7.25% on 25,000 – 100,000 USDC
- 3.56% on 100,000 – 500,000 USDC
- 2.84% on 500,000+ USDC
Hodlnaut’s rates on DAI:
- 8.32% on 0 – 25,000 USDC
- 5.12% on 25,000 – 100,000 USDC
- 3.56% on 100,000 – 500,000 USDC
- 2.02% on 500,000+ USDC
Nexo offers 10% APY on USDT, USDC, USDP, TUSD, DAI, and more. This rate increases to 12% when users choose to earn their interest in NEXO.
Winner: Though its range of assets is limited, Hodlnaut beats Nexo’s rateson all supported stablecoins except DAI, as well as its base rates on BTC and ETH. If you’re keen on earning in Nexo’s token to get higher rates, Nexo may be a better option for you and can offer higher interest, as well as more altcoin options.
How Do Hodlnaut and Nexo Make Money?
Most crypto interest accounts make money on the difference between what they pay depositors and what they charge borrowers, and Hodlnaut and Nexo are no different–both platforms lend to corporate borrowers, consumers, or decentralized protocols.
Cryptocurrency assets held in Hodlnaut, Nexo, or any other cryptocurrency account are not FDIC insured. Your funds in Hodlnaut and Nexo are never entirely risk-free.
Furthermore, loaned crypto assets are not held in one place but are actively deployed to be used by borrowers and earn returns. Because of this, they’re a bit tricky to insure.
However, Hodlnaut gives users the option of purchasing optional insurance coverage on such assets through a partnership with Nexus Mutual, an insurance option that leverages blockchain technology.
Hodlnaut and Nexo require borrowers to post collateral to combat the risk of defaults; users must hold assetsat least twice the value of their loan amountto qualify for a loan, which is called a 50% loan-to-value (LTV) ratio.
Nexo shares 30% of its profits to NEXO holders as dividends. The company has paid over $29.8M to its token holders since 2017.
Feature #2: Payouts and Withdrawals
Hodlnaut users canwithdraw at any time but have a daily withdrawal limit of 100 BTCif they’ve completed KYC. Larger withdrawals can take up to 48-hours and the company charges withdrawal fees on specific assets, as follows:
On Nexo,interest is compounded every 24-hours. Users can make up to five free withdrawals depending on their loyalty tier. Nexo users can also make anywhere from one to an unlimited number of free fiat transfers, deposits, and withdrawals.
Nexo’s withdrawal limits are as follows:
Winner:Hodlnaut lets users withdraw at any time as long as they don’t withdraw over 100 BTC or its equivalent in a single day.
Feature #3: Hodlnaut vs. Nexo Security
Hodlnaut’s primary custodian is Fireblocks. When users deposit with Hodlnaut, they are received through Fireblocks’ secure wallet infrastructure. Hodlnaut will then either transfer the cryptocurrencies to our self-custodied cold wallets or lend them to borrowers.
Hodlnaut’s on-platform security strategies includepassword hashing, two-factor authentication, and more.
Nexo’s platform employs security procedures including 2FA, a password, biometric security, and email confirmation features. The company keeps user assets safe in cold wallets secured with multi-signatures, storing private keys offline in Class III bank vaults for physical protection. This substantial defense is possible through several custodians, which they outline in their documents:
Nexo’s user assets are insured by its custodians (around $375 million, roughly 3% of its AUM) but thisinsurance does not protect assets after they’ve been loaned and leave their custody. Hodlnaut offers its users the option to purchase insurance that covers their deployed assets through its partnership with Nexus Mutual.
As of this writing, both Hodlnaut and Nexo have never been hacked.
Winner: Though Hodlnaut’s robust on-platform security is worth noting, Nexo wins.
Feature #4: Ease of Use
Nexo and Hodlnaut are both beginner-friendly platforms.
Nexo is accessible via web, Android, and iOS apps. Be sure to go toNexo.io, as the Nexo dot com domain isn’t related to the cryptocurrency company.
While Hodlnaut can be accessed via web and iOS only, the company plans to launch an Android app in late October 2021.
Nexo’s Crypto Earn feature is only one out of its many offerings. The company is more widely known for its crypto exchange and token. The Nexo card is accepted by over 40 million merchants worldwide,gives users 2% cash-back on every transaction, and allows users to access crypto-backed credit lines. Furthermore, Nexo offers up to 12% APY on fiat currencies like USD, GBP, and many others.
Hodlnaut offers industry-leading interest rates, trumping those of bigger crypto interest names likeBlockFi and Celsius. The platform has a crypto exchange feature called TokenSwap, which lets users switch directly between two cryptocurrencies. TokenSwap lets users wrap and unwrap their Bitcoin, change ETH to BTC or BTC to USDC, and more.
Furthermore, Hodlnaut’s preferred interest feature allows users to earn in the currency of their choice. For example, a user who deposits BTC can choose to earn their interest in USDC, USDT, or another supported currency.
Winner: Nexo. With an exchange, token, cashback card, and more, a Nexo account connects users to a suite of valuable features.
Hodlnaut’s FAQ page covers most of the information a user would need help with, and customers can contact the company’s 24/7 help center for more personalized support.
Nexo’s customer service is also accessible around the clock, and also provides a comprehensive FAQ section on its site.
The Court of Public Opinion: Hodlnaut vs. Nexo Reddit
Reddit support for both Hodlnaut and Nexo is generally stable across the board. Some users show support for Hodlnaut because their interest rates are higher and more flexible, while others prefer it for its prompt and professional support.
Other users are more drawn to Nexo because they offer higher BTC rates, have comprehensive security practices, and have formidable financial backing.
Hodlnaut vs. Nexo Review Final Thoughts: Which is The Better Crypto Interest Account?
Hodlnaut and Nexolead the industry with some of the highest interest rates on the market, posing stiff competition to larger crypto interest products like BlockFi and Celsius.
In terms of security and fund safety, both platforms employ industry-leading technologies and make the safety of their users’ funds, data, and private information a top priority.
Hodlnaut and Nexo are quite evenly matched on several fronts, but reasonably different in a few important distinctions.
Nexo has been around for longer and with upwards of $52 million worth of investor backing. When compared to Hodlnaut’s humbler $100K, the company has a stronger foundation for further improving its large number of offerings.
Nevertheless, Hodlnaut is an undeniable industry competitor with a growing base of loyal customers.
Hodlnaut beats Nexo’s base interest offerings. Where Nexo offers 6% on BTC and ETH, Hodlnaut offers 7.46% on the same. Hodlnaut’s rates reduce as the amount of BTC and ETH increases, while Nexo’s rates remain the same and increase if users earn in Nexo.
If they’re open to risk the volatility of holding the NEXO token, Nexo users can access premium interest rates on 20+ cryptocurrencies. The company’s mix-and-match custodian strategy means that it has industry-leading fund security. Its insurance covers only about 3% of its AUM and doesn’t cover deployer assets, whereas Hodlnaut offers insurance options on deployed assets.
Hodlnaut is a well-rounded crypto interest product. With strong security, high-interest rates, and industry-leading customer service and support, it’s likely that as the company grows its product will have increasing influence on the crypto interest market.
However, with more comprehensive fund security, a wider range of supported assets, more flexible interest, larger investor backing, and a stronger brand and customer base, Nexo wins in this review.