Cryptocurrency lending is becoming one of the most popular opportunities for p2p lenders. Choosing between the various centralized finance platforms is not an easy task, as these platforms tend to have similar features and perks that may compel an individual to be stuck between choices. For instance, Nexo and Celsius Network provide crypto savings accounts and loans at relatively competitive rates. However, the platforms have specific differences that may make a user choose one over the other.
Nexo vs. Celsius Network: Interest Rates
Nexo and Celsius Network allow you to earn interests through deposited tokens and their native tokens, NEXO and CEL. If you choose to earn interest through these native tokens, you will earn a higher interest of an extra 2% in NEXO, but in CEL, the extra interest will depend on the currency.
Generally, Nexo will give you higher interest rates in various currencies than Celsius Network, especially when you earn your rewards in NEXO tokens. However, the rates keep changing. Both Nexo and Celsius Network allow you to earn interest on fiat currencies, and the interest rates vary from 8% to 10% APY.
Nexo vs. Celsius Network: Number of Cryptocurrencies and Withdrawal
While you can deposit your cryptocurrencies to Nexo and Celsius Network accounts, your Nexo account will allow you to earn interest with 21 different cryptos, while Celsius Network will offer you more options as you can earn interest on 44 different digital assets.
You can instantly swap coins and tokens on Nexo.io free of charge. You can also buy NEXO tokens with both fiat and crypto on the Nexo platform. When it comes to Celsius Network, you can buy crypto with your credit card or a bank transfer, but the fee incurred may be massive.
Also, as mentioned earlier, Nexo allows you to exchange crypto to other currencies. However, Celsius Network does not offer this feature.
When it comes to withdrawals, Celsius Network covers gas fees, while Nexo no longer practices this. Withdrawal charges apply on Nexo, and the number of free monthly withdrawals depends on your loyalty level. The downside of Celsius Network (when it comes to withdrawals) is that a user can withdraw a cryptocurrency to a single whitelisted address. The whitelisting process takes at least 24 hours, so you can’t change withdrawal addresses too frequently. This becomes an inconvenience if you need to pay salaries in crypto. Celsius Network is not going to make it convenient for you.
Nexo vs. Celsius Network: Security
Security is definitely one of the most sought-after features in crypto. Most users may encounter sleepless nights as they worry about their funds on either account. Nexo is the most secure option because of its huge insurance guarantee. To ensure the safety of your crypto assets, Nexo partners with BitGo and Ledger Vault. BitGo, which is a veteran security partner, is the primary insurer. Furthermore, Nexo only issues loans to over-collateralized crypto credit lines.
On the other hand, Celsius Network barely discloses its security measures and only insures assets under their custody through Fireblocks and Prime Trust. Loaned assets are not insured, which poses more risk to the user. Additionally, the Celsius Network database was breached at least once, even though the Celsius Network representatives denied this.
Takeaway
Your decision to use either platform depends on the perks that you want. If you want to access higher interest rates, Nexo is your platform, and what’s more, it is more secure than Celsius Network. However, Celsius Network has a wider variety of currencies on offer and does not charge for withdrawals, thus it may be less costly.
