Nexo vs Coinbase Exchange Comparison

Nexo and Coinbase are popular cryptocurrency exchanges with unique features but very different approaches.

Nexo is a newer Swiss-based platform that offers interest-bearing accounts, allowing users to take out loans using their crypto assets as collateral. Coinbase is a legendary US-based exchange with a simple user interface that allows users to securely buy, sell, trade, and trade various supported cryptocurrencies. 

This article provides a side-by-side comparative analysis of the overall unique features, trading experience, accepted fiat currencies, and other valuable information that makes Nexo and Coinbase appealing platforms for crypto trading.

Below, we glance at both exchanges’ general pros and cons so you can get a first impression.

Both our reviewed Nexo and Coinbase are considered secure, bearing in mind their method to secure users’ data, funds, and regulation compliance approaches. Let’s dive into the details and see how Nexo compares to its counterpart, Coinbase. 

Both platforms have strong security models to ensure the safety of funds and sensitive details like credit card numbers.

Both platforms’ security features include 2FA Authentication (SMS verification, Email verification, and Authenticator App), Biometric support (face and finger verification), address whitelisting, and login alerts.

Both Nexo and Coinbase require users to verify their identity with a photograph.

Coinbase took a further step to strengthen users’ funds, keeping 98% of cryptocurrency funds stored in air-gapped cold storage via vaults and safe deposit boxes.

In a similar but slightly different approach, Nexo adopted an additional security feature by incorporating the Cryptocurrency Security Standard Level 3 (CCSS Level 3) as an advanced authentication mechanism.

Nexo has earned the ISO/IEC 27001 certification, which means its security is paramount. With this certification, Nexo sets a higher standard for security in the blockchain industry by using strict security rules, thorough risk checks, and the latest cybersecurity.

There are also the Nexo Card Payment Security Specifications, an integrated security protocol to protect all card payments and payment processes.  

To serve the respective jurisdictions they’re operating in, both Nexo and Coinbase legal teams are keen on complying with the different regulatory bodies in the most efficient manner.

Below are a few regulatory measures adopted by Nexo: 

• Mandatory Auditing: The exchange undergoes mandatory internal and external auditing, which functions as a four-layer defence mechanism.
• Anti-Money Laundering (AML) Policies: They carefully check and confirm who their customers are, doing extra checks when needed. They also ensure no one is on major UN, E.U., or OFAC sanction lists. 
• Data Protection and Security: They use advanced I.T. security to protect data, control who can see it, and encode it to keep it private.

Coinbase, on the other hand, approaches its regulatory compliance a little differently, which makes it one of the most trusted exchanges.

Coinbase puts the following security measures in place:

• Licenses and Regulations: Coinbase got a BitLicense from the New York Department of Financial Services in 2017 and has licenses in almost all U.S. states.
• Sanctions Compliance: It follows the rules set by the U.S. and other countries to avoid working with people, companies, or nations that the U.S. government has banned because of safety concerns or political issues. 
• Preventing Money Laundering and Terrorism Financing: Coinbase uses measures to prevent and detect the use of its platform for money laundering or supporting terrorism.

Here’s a detailed comparison of supported currencies on Nexo and Coinbase:

Fiat Currency Options

Coinbase supports a broader range of fiat currencies (60+) across over 100 countries worldwide compared to Nexo (40+). This means Coinbase users have more flexibility regarding the different national currencies they can use on the platform.

It should be noted that supported fiat currencies on Nexo and Coinbase depend on regions. For example, some countries may not support certain payment methods or may place a limit on specific cryptocurrencies a person can buy or sell. 

Cryptocurrency Options

Coinbase supports a more extensive selection of cryptocurrencies (over 260) compared to Nexo (around 70 tokens). This variety on Coinbase provides users with more options for trading and investing in different digital assets.

Network Options

Nexo currently supports 24 different crypto networks but limits withdrawal and incoming transfers on specific networks.

For example, it does not support withdrawals of the NEXO Token through the BNB Beacon Chain (BEP-2) network. It also does not support incoming transfers from smart contracts on ATOM, HBAR, SWEAT, and KNC networks.

Unlike Nexo, Coinbase does not disclose the exact number of supported networks. Users can deposit crypto funds regardless of which network they were deposited from.

Coinbase then automatically converts them to the Ethereum network. At the time of withdrawal, users would see supported networks from which to choose.

Key Cryptocurrencies

Both platforms support popular cryptocurrencies such as those listed below, and we have articles about betting with some of them:

• Bitcoin (BTC)
• Ethereum (ETH)
• Tether USD (USDT)
• USD Coin (USDC)
• Cardano (ADA)
• Dogecoin (DOGE)
• Solana (SOL)
• Polkadot (DOT)
• Shiba Inu (SHIB)
• Uniswap (UNI)
• Litecoin (LTC)
• Polygon (MATIC)

However, Coinbase offers a broader range of cryptocurrencies that appeal to many people.

Also, Coinbase announced on February 20, 2023, that it will stop supporting specific cryptocurrencies like BCH, ETC, XLM, and XRP because of low usage. However, these coins can still be traded on the Coinbase exchange for those interested.

Both platforms have different payment methods for fiat and cryptocurrency users. Users on Nexo and Coinbase can buy supported crypto assets with USD, GBP, and EUR using the following payment methods. 

• Crypto Deposits: Nexo accepts deposits in various cryptocurrencies such as Bitcoin, Ethereum, Litecoin, XRP, etc.
• Bank transfers: Nexo accepts bank transfers in USD, EUR, GBP, and CHF.
• Credit/debit card payments: Nexo accepts payments made using credit or debit cards. The supported card providers include Visa, Mastercard, and Maestro.
• Mobile Payments: You can also use Apple Pay and Google Pay. 
• Nexo Token (NEXO): Nexo also accepts payments made using its token, NEXO, which can be purchased on the Nexo exchange and several other cryptocurrency exchanges.

Coinbase approved payment methods for U.S. customers:

• ACH Transfer: Transfer money from your bank to Coinbase. It will take 3 – 5 days to complete. 
• Mobile Payments: Apple Pay and Google Pay are available for Android users.
• Credit & Debit Cards: Allows you to buy crypto instantly.
• PayPal: Use PayPal funds or linked accounts to buy crypto.
• Sofort: Instant bank transfers for users in Europe.
• Wire Transfer: Send large amounts of money to Coinbase, but it will take 1 – 3 business days to complete.

There is a minimum deposit of $10 on the Nexo exchange platform. Coinbase has no minimum deposit applied. 

• Payment Options: Nexo accepts various cryptocurrencies, bank transfers, card payments, and mobile payments, along with its NEXO token. Coinbase offers ACH transfers, mobile payments, card transactions, PayPal, Sofort, and wire transfers.

• Fees: Nexo has no trading fee for swaps but uses a spread and has specific fees for Nexo Pro trading. It offers some free monthly withdrawals. Coinbase has a maker-taker fee model, charges for particular trades and fiat transactions, and will have fees for large USDC to USD conversions.

• Minimum Deposit: Nexo has a $10 minimum deposit, while Coinbase does not require a minimum deposit.

Here is how both platforms compare in terms of fee structure.

Fees on Nexo, like most exchanges, are subject to the type of services used, which may include third-party fees, such as bank charges, card fees, gas fees, etc. Standard fees within the platform are highlighted below:

• Trading Fees (swaps): There’s no additional trading fee but a spread cost.
• Trading Fees Nexo Pro: Fees start at 0.40% for takers and 0.30% for makers for up to $10K trading volume, with lower fees for higher volumes.
• Network Fees (withdrawals): No fees for up to 5 withdrawals per month depending on your loyalty level, and free on specific networks like Polygon, Binance Smart Chain, Arbitrum, and EOS.
• Nexo Pro vs. Coinbase: Nexo Pro’s base tier fees are lower than Coinbase Advanced Trade’s fees.

• Maker-Taker Fees: Coinbase uses a maker-taker fee model, where fees vary between 0.00% to 0.40% for makers and 0.05% to 0.60% for takers, depending on the trade volume.
• Stablepair Fees: For trading pairs pegged to a stable reference, makers pay 0.00%, and takers pay between 0.10bps and 0.45bps, based on the liquidity program tier.
• Fiat Deposit and Withdrawal Fees: ACH transactions are free, wire transfers in USD cost $10 for deposits and $25 for withdrawals, SEPA deposits in EUR cost €0.15 (withdrawals are free), and Swift GBP withdrawals cost £1.
• Miner Fees: Coinbase charges a fee based on the network transaction fees for each transaction, which is disclosed at the time of the transaction.
• USDC to USD Conversion Fees: Starting February 5, 2024, Coinbase will charge a fee for USDC to USD conversions exceeding $75 million in a 30-day period, with rates ranging from 0.10% to 0.20%, depending on the conversion amount.

When to Choose Nexo:

👉 Prefer no trading fees for standard swaps and are okay with a spread cost.

👉 Trade less than $10K volume and seek competitive fees with Nexo Pro.

👉 Value up to 5 free monthly withdrawals and use networks like Polygon or Binance Smart Chain.

👉 Want lower base tier fees compared to Coinbase Advanced trade.

When to Choose Coinbase:

👉 Seek a maker-taker fee model with a range of fee rates based on trade volume.

👉 Engage in trading stable pairs and want low fees for makers.

👉 Use ACH for free fiat deposits and withdrawals or SEPA and Swift for international transactions.

👉 Plan to convert large amounts of USDC to USD and want a transparent fee structure for high-volume conversions.

While both Nexo and Coinbase offer spot trading for various top cryptocurrencies, their margin trading approaches differ. 

Supported Cryptocurrencies

On Nexo, users can trade with borrowed money for a few well-known cryptocurrencies. Coinbase, conversely, does not feature margin trading for most people due to legal rules, but interested users can trade futures for a similar effect.

Maximum Leverage

Nexo provides a maximum leverage of 5x, which is suitable for those seeking moderate amplification of returns while managing risk. Coinbase Futures trading Offers varying leverage depending on the chosen futures contract, typically ranging from 20x to 100x.

Margin Fees

Nexo adds a cost to margin trades by charging more for buying than selling. They also have trading fees on their Nexo Pro platform. However, Coinbase Futures trading uses a system that charges fees based on whether you’re making or taking an offer. Plus, they charge extra for maintaining positions with borrowed money.

Margin Features

Nexo provides basic margin trading functionality with long and short positions. Meanwhile, Coinbase offers a more advanced futures trading platform, including features like stop-loss and take-profit orders for managing risk.

Choose Nexo for margin trading if:

👉 You’re a beginner or a risk-averse trader seeking moderate leverage with established crypto assets.

👉 You prefer a more straightforward interface with transparent spreads for margin costs.

Coinbase (Futures) might be suitable if:

👉 You’re an experienced trader comfortable with high leverage and the associated risks.

👉 You want to leverage your crypto exposure through futures contracts, even if spot margin trading isn’t available.

Staking cryptocurrencies allows you to earn passive income by supporting Proof-of-Stake (PoS) blockchains. 

Here’s a simple comparison of how Nexo and Coinbase:

Supported Coins

• Nexo: Offers staking for a curated selection of popular PoS coins, focusing on established assets with strong reputations.
• Coinbase: Provides staking for a limited number of cryptocurrencies compared to Nexo. While the list includes major PoS coins, it’s not as extensive.

Staking Rewards

• Nexo: Generally offers competitive staking rewards ranging from 5% to 12% APY depending on the coin and whether you hold NEXO tokens (their native token). Nexo rewards are paid out using the exact coin you stake.
• Coinbase: Provides moderate staking rewards, usually between 3% and 8% APY. Rewards are typically paid out in the same coin you stake.

Staking Features

• Nexo: Offers a user-friendly platform with flexible staking options. You can choose between fixed terms for potentially higher rewards or flexible staking for immediate access to your holdings. Nexo also boasts auto-compounding functionality to maximize your returns.
• Coinbase: Provides a basic staking experience. While they offer some flexibility in terms of lockup periods, they are not as comprehensive as Nexo. Auto-compounding is currently not available on Coinbase staking.

Minimum Staking Amounts

• Nexo: Generally has no minimum staking requirements, allowing even smaller investors to participate.
• Coinbase: Some coins may have minimum staking requirements, potentially limiting participation for those with lower holdings.

Who Should Choose Which Platform?

Choose Nexo for staking if:

👉 You prioritize a wide selection of established PoS coins with competitive rewards.

👉 You value flexibility with staking terms and immediate access to your holdings.

👉 You’re interested in maximizing returns through auto-compounding.

Coinbase might be suitable if:

👉 You prefer a simple staking experience.

👉 You’re comfortable with a limited selection of major PoS coins.

👉 Minimum staking requirements aren’t a concern for your holdings.

Here’s a breakdown of Nexo and Coinbase’s U.I.s to help you decide which platform feels more intuitive for you:

Nexo: Streamlined for Efficiency

This platform is designed for people who know about cryptocurrency and want to make money from their investments or take out loans using their crypto as a security. 

Coinbase: User-Friendly First Steps

Perfect for beginners getting into crypto or anyone looking for an easy way to trade digital currencies. 

Nexo offers low fees, easy-to-use tools, and ways to earn on your crypto. At the same time, Coinbase is known for its reliable trading platform, a large selection of cryptocurrencies, and strong security. 

Choose Nexo for a more feature-rich experience and Coinbase if you want a wide range of crypto options and a straightforward trading experience.