Nexo vs Celsius vs BlockFi Crypto Loans
The Top 3 Crypto Borrowing and Earning Platforms
Why would one want to borrow against their crypto assets?
Debt really sucks, right?
Yes, debt can often be a drag.
But with a bull market, many want to buy more assets.
As well, many long-term holders, or “Hodlers,” don’t want to sell their assets, often because of the high cost of capital gains.
This means borrowing against our assets and getting tax-free loans can be a worthy strategy to discuss with one’s tax advisor.
With the options to earn or borrow against our crypto assets, I look deeper at the best options.
Is Nexo, Celsius, or BlockFi the best crypto lender?
Which one has the top-earning rates for staking?
Which one is the best to buy as a token?
Already listed on our top 5 favorite small-cap coin list, I need to highlight my bias, as I am a major Nexo bulls.
Please make your own informed decisions, based on which one best suits your own needs and goals.
And always borrow responsibly.
1) Nexo (NEXO) — Our Choice (Highest LTV’s)
Supporting over 40 fiat currencies, and over 20 cryptocurrencies, Nexo offers solid customer support service with their live chat option.
In launching their own minor exchange, Nexo now offers payments in USD, EUR, BTC, ETH, and NEXO.
With the highest loan to values, Nexo offers instant crypto loans up to 60% loan to value (LTV), and 90% LTV on stable coins.
Nexo has the backing of Credissimo, the fintech group with millions of customers, focusing on payment services, e-commerce financing, and instant online consumer loans for the past decade.
The loan interest is 11.99% APR, which drops to 5.99% based on having up to 10% of your holdings in NEXO.
Earning interest rates go up to 12%, again depending on the percentage of NEXO tokens one holds.
Sharing 30% of net profits with its token holders, Nexo offers this annual reward for the time and number of tokens held.
Coming soon is the Nexo spendable crypto debit card.
2) Celsius (CEL) — Highest Number of Supported Tokens
The winner of the top ICO for 2018, Celsius has been on a monster crypto run.
Founded by VOIP creator Alex Mashinsky in 2017, Celsius supports a wide variety of 36 different cryptocurrencies.
Celsius also varies earning and borrowing rates based on how many Celcius tokens one holds.
Like Nexo, Celsius offers free withdrawals and deposits, and higher interest rates if you elect to earn in their native token.
The LTV ranges from 25 to 50%, with the APR increasing with the LTV.
A couple of Celsius negatives is its app-based only, with the customer service on a par with other platforms where your support request receives an eventual response in the distant future.
While earning rates might be lower for certain tokens, they are substantially greater on others.
3) BlockFi — First Bitcoin Credit Card
Along with lower LTVs, and only a select few cryptocurrencies supported, BlockFi offers the lowest borrowing rates.
Despite not being a tokenized company, BlockFi has made a name for itself.
BlockFi will soon launch the industry’s first Visa Bitcoin rewards credit card with unlimited 1.5% back in Bitcoin.
As this is more than notable, and while I don’t feel BlockFi offers the best crypto lending platform, its revolutionary Bitcoin credit card causes me to put it on this comparison list.
4) Yield App (YLD) — Rising Star
Yield App is a token we hold and are quite bullish about.
Yield App offers users a simple, easy-to-use decentralized DeFi banking mobile app, paying up to 20% APY across their ETH, USDC, USDT, and YLD deposits.
Led by an impressively experienced team, YLD should make waves forging well into the future.
While the high APY might not be sustainable in the bear market, their overall decentralized platform and value proposition remain quite relevant.
Final Conclusions
While there are many crypto lending and earning platforms, such as Crypto.com, I feel these are the top 4 worth mentioning.
These crypto platforms serve as invaluable solutions to crypto banking and borrowing needs.
As their popularity continues rising, I expect more options and more competitors to move into this sector.
Which one is your favorite crypto lending platform?
Which one do you think will perform best in 2021 and beyond?
Would you drop me a comment below?
Your Friend in Prosperity,
Ross Jones
Disclosure/Disclaimer: This article is not an offer to provide financial, legal, or tax advice. This article represents an opinion, as you should not rely upon this subjective opinion, instead of your own independent research. All investments pose the risk of loss to the investor, with any investment posing up to 100% loss of investment. Always consult your financial, legal, and tax advisor prior to engaging in any investment. Always do your own research and invest at your own risk with complete awareness and acceptance of all risks. I am choosing to disclose that I have a financial interest in all tokens discussed in my articles.
