Nexo vs Coinbase | Why It's Much Safer To Earn On Coinbase
Jack Moreau
Apr 2024
7 min read
Fact checked
Nexo vs Coinbase: In this comprehensive comparison, we delve into the key features and offerings of both platforms to help you make an informed decision. From KYC requirements to country availability, product offerings, trading fees, deposit methods, and more!
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC: Investments are subject to market risk. Including the possible loss of principal. Don’t invest unless you’re prepared to lose all the money you invest.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC: Investments are subject to market risk. Including the possible loss of principal. Don’t invest unless you’re prepared to lose all the money you invest.
Nexo was founded in 2017 and is headquartered in Zug, Switzerland, and has offices in Bulgaria and the UK.
The exchange has over 500 employees and is available in over 200 countries with restrictions in Bulgaria, Estonia, Alaska, New York, Vermont, and the US for Nexo Earn products.
Nexo exchange
Nexo offers an interest-earning account allowing users to earn interest on their cryptocurrency holdings. The platform also supports over 60 cryptocurrencies, including Bitcoin, Ethereum, Tether USD, and Cardano.
Nexo has attracted over 5 million users worldwide, and its mobile app has been downloaded over 1 million times, maintaining an average rating of 4.1 stars based on 30,000 reviews.
The exchange has over 5,000 employees and has gained a user base of over 100 million primarily in the US and Europe. Coinbase is known for its user-friendly interface, security, and regulatory compliance.
It supports a range of over 200 cryptocurrencies including Bitcoin, Ethereum, Solona, Cosmos, Uniswap, Near, Avalanche and various fiat currencies. The Coinbase mobile app has been downloaded 10 million times, and it holds a rating of 4.1 stars based on over 750,000 reviews.
Coinbase app
While both Nexo and Coinbase cater to a global user base, they differ in terms of their specific offerings. Nexo mainly focuses on providing interest-earning accounts for users to earn passive income on their cryptocurrency holdings.
In contrast, Coinbase is more diverse in its services including spot trading, staking, and an educational program. Additionally, Coinbase offers support for a wider range of cryptocurrencies compared to Nexo.
Nexo vs Coinbase KYC Requirements
When it comes to the signup process and KYC requirements, Nexo and Coinbase have their own unique approach.
Starting with Nexo, the signup process may take a bit longer compared to some other exchanges as all users are required to pass KYC (Know Your Customer) to use its products.
Nexo KYC requirements
This means that in order to create an account, users must provide personal details such as their full name, email, residential address, and identity verification.
Additionally, users will need to upload a government-issued ID which will then be processed by Jumio. The verification process on Nexo can take up to 48 hours in the slowest of cases before an approval (or not) has been given.
Moving on to Coinbase, the signup process is relatively quick and straightforward. It takes about 1 minute to complete the basic signup as users just need to provide full name, email and password.
Coinbase signup
After completing the signup process users gain access to their Coinbase account, but there are still additional steps to unlock full account privileges.
KYC is also required by Coinbase which means users need to go through a verification process. This process involves submitting the required documents such as a government ID, and can take a few minutes to a few hours to be processed.
Either way, whether you are choosing to signup to Nexo or Coinbase, you will need to complete full KYC in order to use their services.
Nexo vs Coinbase Crypto Products
Nexo primarily focuses on providing lending and borrowing services to its users. This means that users can lend their digital assets to earn interest or borrow against their holdings.
Earn with nexo
Nexo also offers the Nexo Card which allows users to spend their cryptocurrencies and earn rewards in return. The exchange further provides a Web 3 Wallet for users to securely store their digital assets.
Nexo trading
However, Nexo does not offer any futures trading or margin trading products, limiting its offerings in comparison to other exchanges.
On the other hand, Coinbase is one of the world's largest cryptocurrency exchanges and is primarily geared towards beginners and institutional clients.
Coinbase USPs
Unlike offshore exchanges like Binance, Kucoin, and Bybit, which offer high-risk products with up to 100X leverage, Coinbase operates under strict US regulations.
This constraint limits its offerings in certain high-risk areas but makes the platform simpler and more navigable for beginners.
Coinbase Interface
The platform offers two distinct user interfaces with the standard Coinbase interface, which is very beginner-friendly, and the Advanced interface, tailored for more experienced traders.
Across these interfaces, Coinbase facilitates spot trading for over 240 cryptocurrencies with users having the option to trade through either interface.
Coinbase Spot Trading
For those looking to invest gradually, Coinbase provides a recurring buy feature, enabling users to systematically invest in cryptocurrencies.
Additionally, Coinbase has ventured into more advanced trading options by introducing BTC and ETH futures and perpetual contracts for various cryptocurrencies with up to 5X leverage.
However, in terms of trading volumes, while Coinbase often ranks in the top three for spot trading, it is less competitive in futures.
An appealing feature for many users is the ability to earn interest, particularly on USDC, where Coinbase offers a 5% interest rate.
Coinbase Earn
Another unique offering is the learn-and-earn program, especially beneficial for beginners. This program allows users to learn about blockchain projects and earn tokens as rewards.
Coinbase Learn & Earn
Expanding into the fast growing NFT market, Coinbase has developed a platform where users can mint, buy, and sell NFTs on various blockchains like Ethereum, Base, and Polygon.
Coinbase NFTs
For those wanting to spend their cryptocurrency in the real world, Coinbase provides a Visa Card that allows spending in both cash (USD) and crypto (USDC), with rewards for everyday spending.
Coinbase Visa Card
For a more decentralized experience, Coinbase has developed the Web 3 Coinbase Wallet that lets users store and manage a wide range of coins and tokens across multiple blockchains such as Bitcoin, Ethereum, Solana, and others.
Coinbase Wallet
Coinbase has also launched the Coinbase One Membership, priced at $29.99 per month which offers zero-fee trades, boosted staking rewards, and priority support.
Coinbase One Membership
As a public company based in the United States, Coinbase adheres to stringent regulations and accountability standards, making it a highly secure platform.
Coinbase Institutions
This security and reliability attract significant institutional clients like BlackRock and Grayscale, who trade or custody a variety of crypto assets.
Lastly, for high-net-worth individuals and institutions, Coinbase Prime provides access to advanced trading, financing solutions, cold storage, staking services, and more, ensuring a comprehensive and secure trading experience.
Coinbase also offers discounts for high volume traders that trade from $10,000 up to $400,000,000 per month. One thing to note is that Coinbase does not offer futures trading, so if you're looking to engage in futures trading, you'll have to explore other options.
On the other hand, Nexo offers spot maker and taker fees that range between 0.04% and 0.20%. The fees charged by Nexo are lower compared to Coinbase, making it an attractive option for traders who are conscious of their trading costs.
On the other hand, Nexo offers no specific fee reduction options based on trade volumes, but their fees are generally lower than those of Coinbase in the first place.
When comparing the deposit methods offered by Nexo and Coinbase, there are some key differences to consider.
Nexo supports fiat deposits for three currencies: USD, EUR, and GBP. They offer bank transfers via SWIFT for USD, SEPA for EUR, and Faster Payments for GBP.
Nexo fiat deposits
The good news is that Nexo does not charge any deposit fees for these fiat currencies. This can be a significant advantage for users looking to deposit funds without incurring additional costs.
On the other hand, Coinbase also supports fiat deposits for three currencies as well: USD, EUR, and GBP. They offer multiple deposit methods, including ACH, Wire (USD), SEPA (EUR), and Swift (GBP).
Coinbase fiat deposits
Coinbase charges a $10 USD fee for wire deposits, a 0.15 EUR fee for SEPA deposits, and there is no fee for Swift deposits. While the fees are not exorbitant, they are necessary to keep in mind when considering which exchange to use.
When it comes to withdrawing funds, Nexo and Coinbase offer different options for their users.
For fiat withdrawals, Nexo allows users to withdraw USD, EUR, and GBP free of charge. This is a great benefit for users who want to cash out their funds without incurring any additional fees.
When it comes to cryptocurrency withdrawals, Nexo charges a withdrawal fee based on the specific cryptocurrency being withdrawn.
For example, withdrawing Bitcoin incurs a fee of 0.0001 BTC, Ethereum comes with a fee of 0.04 ETH, Solana has a fee of 0.03 SOL, and USDT incurs a fee of 10 USDT.
On the other hand, Coinbase charges a withdrawal fee of 0.0002 BTC for Bitcoin, 0.000768 ETH for Ethereum, and 0.008 SOL for Solana.
Nexo and Coinbase thus both provide options for users to withdraw their their fiat or cryptocurrencies with low withdrawal fees and multiple withdrawal methods.
In conclusion, Nexo and Coinbase are both reputable cryptocurrency exchanges that offer a wide range of services to their users.
Nexo is mainly known for its interest-earning accounts and attractive fee structures, while Coinbase offers a more comprehensive suite of services and a wider range of supported cryptocurrencies.
In terms of the signup process and KYC requirements, Nexo and Coinbase both require users to pass KYC verification. Nexo's process can take longer, up to 48 hours in some cases, while Coinbase's process is relatively quick and straightforward.
When it comes to trading fees, Nexo generally offers lower fees compared to Coinbase, making it an attractive option for cost-conscious traders. However, Coinbase offers fee reduction options based on trade volumes, which can be advantageous for high-volume traders.
In terms of deposit methods, Nexo supports three fiat currencies without any deposit fees, while Coinbase supports the same currencies but with associated fees for certain deposit methods.
Regarding withdrawals, Nexo allows users to withdraw fiat currencies without fees, while Coinbase charges fees for Wire, SEPA, and Swift withdrawals.
In terms of user experience, both exchanges offer user-friendly interfaces that are easy for beginners to use.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC: Investments are subject to market risk. Including the possible loss of principal. Don’t invest unless you’re prepared to lose all the money you invest.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC: Investments are subject to market risk. Including the possible loss of principal. Don’t invest unless you’re prepared to lose all the money you invest.
Author
Jack Moreau
Jack is a crypto writer and reviewer who has been active in the space since he caught the crypto bug in 2017. With a passion for trying out new shiny things, Jack is always eager to try the latest cryptocurrency exchanges, wallets or DeFi applications.
