Updated March 10, 2022

Nexo Review

By Jeremy Harshman
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Nexo offers a way to earn interest on your crypto holdings, borrow cash or stablecoins, and spend your crypto in the real world. But is it safe?

Nexo Promotions
Earn Crypto Interest - Up to 17% APR

Overall Score

4.7

Interest Accounts

5.0

Commissions and Fees

5.0

Safety

4.0
5-point scale (the higher, the better)

Pros and Cons

  • Good APY
  • Comprehensive mobile app
  • Advanced security features
  • Limited educational tools

Bottom Line

Safe way to earn interest on crypto assets

Why sit on your crypto holdings just waiting for the price to go up?

With platforms like Nexo, you could earn up to 20%. Or even get a crypto-backed loan.

Before you move your cryptocurrency into Nexo, find out how it works and if it's a safe choice. Plus, see how it compares to other crypto platforms like BlockFi and Celsius.

What Is Nexo?

Nexo is a cryptocurrency lending platform founded in 2017 by Antoni Trenchev and Kosta Kantchev. They are based in Zug, Switzerland.

They offer high-yield interest accounts that allow users to earn up to 20% APR, paid daily. You can earn interest on your cryptocurrency holdings as well as on cash deposits of EUR, GBP, and USD.

Nexo also offers the ability to borrow against your cryptocurrency holdings without selling them. The loan APRs start as low as 0%. It's a compelling solution for crypto investors who need cash in a hurry, but don't want to sell off their holdings to get it.

Nexo's other features, including their Exchange, Nexo Card, and NEXO Token, make it a holistic crypto platform with a lot of promise. Stick around to learn more about these features below.

Supported Cryptocurrencies and Stablecoins
BTC, ETH, LTC, XRP, EOS, XLM, BCH, USDT, USDC, TUSD, DAI, PAX, HUSD, LINK, TRX, PAX Gold, and BNB, with a promise of more to come.

Supported Countries
Nexo is available to all countries except the following:

Bulgaria, The Central African Republic, Cuba, Estonia, Iran, The US state of New York, The US state of Vermont, North Korea, and Syria.[1]

Nexo Pros and Cons

Want the quick takeaway? Review these pros and cons to see if Nexo is the right fit for you.

Pros

  • Good APY
  • Flexible loan terms
  • No origination fees on loans
  • Assets are insured
  • Nexo Card makes it easy to pay with crypto
  • Comprehensive mobile app

Cons

  • Interest account not available in every country[2]
  • Can be difficult to liquidate loan
  • Undisclosed high spread fees
  • Limited free crypto withdrawals
  • Limited educational tools

Is Nexo Legit?

The short answer is yes, Nexo is a legit crypto lending and borrowing platform. They are available in over 200 jurisdictions worldwide, have over $12 billion in assets under management, and clients' funds are held with the qualified, audited, Goldman Sachs-backed custodian BitGo.

Nexo's Features

Nexo offers an impressive suite of features. Review the features below to see if Nexo is worthy spot for your crypto.

Interest Accounts

Nexo's EARN feature will appeal to investors who normally take a more passive investment strategy with their crypto.

Instead of waiting to sell your coin at a higher price (which is never guaranteed), you can earn up to 20% interest on it.

Interest rates on Nexo range from 4%-8% on cryptocurrencies like Bitcoin, Ethereum, and Ripple, and from 10%-12% on stablecoins such as USDT, USDC, and DAI, and cash deposits of USD, GBP, and EUR.

Nexo has announced it will no longer allow U.S. citizens to earn interest on Savings Wallet new top-ups until the restructuring of the Earn Interest Product and the registration process are finalized. However, existing U.S. Clients will continue to earn interest on their current Savings Wallet balances only.

Here's how the rates are determined: [3]

  • Fixed Term or Flex: Users will receive a 1% bonus to crypto and fiat returns for opting into a fixed-term deposit (one month for crypto, three months for fiat currencies). Fixed terms are not yet available for stablecoins.

  • Payout Method: Lower interest rates will be offered to users who choose to earn "in kind"—in other words, in the currency they've invested, while a 2% bonus is given to those who choose to take their earnings in the NEXO token.

  • Loyalty Tier: Nexo employs loyalty tiers based on percentage of users' holdings made up of the NEXO token:

    TierNexo tokens in portfolioWithdrawals per monthBonus percentage
    BaseUp to 1% NEXO tokens10.00% bonus
    Silver1-5% NEXO tokens20.25% bonus
    Gold5-10% NEXO tokens30.50% bonus, 1% on cash, stablecoins
    Platinum10+% NEXO tokens51% bonus, 2% on cash, stablecoins

    You can add or withdraw funds anytime, and interest is paid out daily. You'll start earning compound interest 24 hours after your first transfer. Higher tiers also offer free monthly crypto withdrawals, with 3 per month for gold tier members and 5 for platinum.

    While other crypto lending platforms require users to take on some degree of risk, Nexo custodial assets are insured for up to $375 million.

    NEXO Token

    NEXO Token is Nexo's own dividend-paying asset-backed token. The NEXO Token can be used as a source of revenue and comes with discounts for those who hold it.

    Screenshot of Nexo

    Here are some of the benefits of holding NEXO Token:

    • Higher yields on crypto and fiat in Nexo's interest account
    • Lower rates on their crypto-backed loans
    • Higher cash back from the Nexo Card
    • Free crypto withdrawals
    • Dividends: Nexo shares 30% of its profits with NEXO Token holders[4]

    Nexo Crypto-Backed Loans

    The biggest benefit of Nexo's crypto-backed loans, is that you don't have to sell your assets to leverage their value.

    Here's why that's a big deal:

    If you sell your cryptocurrency within a year of purchase, you'll have to pay capital gains taxes on any earnings. Plus, given the volatility of crypto, there's a good chance you won't be able to reinvest at the price you sold at.

    All of this can be avoided if you use them as collateral for a loan instead.

    With Nexo's crypto-backed loans, there are no prepayment, origination, or installment fees. You only pay interest on the period you borrowed.

    Interest rates start at 0% for Platinum users with an LTV of below or equal to 20%.You can still borrow at higher LTV ratios than 20% and get some of their best rates ranging from 6.9% to 13.9% depending on your Loyalty tier.

    The amount you can borrow depends on the loan-to-value ratio available for your given asset. For example, if you have $100 worth of Bitcoin, the LTV Nexo offers is 50%, so you'd be able to take a loan up to $50 in value. The LTV ratios vary from asset to asset between 15% and 90%.[5]

    How to get a crypto-backed loan with Nexo

    1. Open a Nexo account via their website or app.
    2. Fund your account and complete your account verification.
    3. Click the "Top Up" button on the interface and copy the top-up address
    4. Transfer the assets you want to use as collateral
    5. Then, your line of credit is availably instantly.

    It's important to keep track of the currency you're using as collateral until your loans are paid off. If the price rises, you may become eligible for larger loans. But if it suddenly drops by a lot, you'll receive warnings that you need to pay off some (or all of) your loan to maintain the loan-to-value ratio you started with.

    Supported Cryptocurrencies and Stablecoins
    Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin, BNB, EOS, Chainlink, Stellar, NEXO Token, Tron, PAXG, Tether, USDC, PAX, TrueUSD, DAI, and HUSD.

    Nexo Wallet

    Nexo has a wallet app that makes it easy to manage your assets from anywhere. Here are some of the highlights of Nexo's wallet app, which got multiple upgrades in 2021:[6]

    Easy to exchange
    Quick "buy", "sell", and "swap" help you facilitate crypto trades twice as fast. You can also see the rates for each trading pair at a glance.

    Showcase mode
    Nexo introduced the capability to hide all your balances, which makes it safer if you need to access your account from an unsafe network.

    Transaction filters
    See all transactions for a specific asset quickly and easily, or view transaction histories under each asset in your wallet.

    screenshot of Nexo

    App download: App Store, Google Play Store

    Nexo Exchange

    While the Exchange isn't its main feature, it does help make Nexo a one-stop-shop for your crypto needs if you already use their other services.

    Screenshot of Nexo

    You can trade between over 200 crypto and fiat trading pairs.

    By connecting to a number of running exchanges, Nexo aims to offer the best prices for any trade, and locks in your price as soon as you confirm.

    They offer unlimited swaps for as much as $100,000 per transaction. While the Nexo claims the exchange is fee-free, they appear to charge spreads as high as 2% for trades.[7]

    Nexo Card

    The Nexo Card is offered in partnership with Mastercard and accepted by over 40 million merchants worldwide.

    Screenshot of Nexo

    With the Card, you can spend against the value of your credit line, based on your assets on Nexo's platform. In effect, it allows you to borrow against your crypto holdings in real-time. Here are some of the Card's features:

    • No monthly or annual fees
    • No foreign exchange fees (payment available in your local currency)
    • 2% cash back on all transactions, which you can swap between NEXO and BTC in real time
    • 256-bit encryption and 24/7 fraud monitoring
    • Ability to freeze and unfreeze your card via your Nexo account
    • Instant notifications about any transactions, ensuring that your card isn't being used without your knowledge

    Are There Any Fees?

    Nexo has a "#ZeroFees" policy, which is quite rare in the cryptocurrency space.

    However, this does not appear to be an entirely accurate representation of their business model.

    Spread Fees
    While Nexo does not provide any information on their rates, multiple users have reported being charged a spread on their transactions.[7]

    A spread is a fee, often invisible to the user, calculated as a percentage and included in the price of a buy/sell transaction by the exchange. It is common practice that exchanges disclose their rates, and hopefully Nexo will soon.

    The spread has been estimated at around 2%.

    Gas Fees
    Nexo charges gas fees on crypto withdrawals after a user's monthly limit has been reached. Basic users get 1 free withdrawal, Silver 2, Gold 3, and Platinum 5 per month.[8]

    They offer unlimited fiat withdrawals, crypto and fiat deposits into the Nexo Wallet, and credit line withdrawals free of charge.

    Gas fees are charged in order to facilitate network processing for your transactions and adding them to the blockchain. The price of these fees changes over time.

    Loan Fees
    For crypto-backed loans, interest rates start at 0%, and you only pay for the term you borrow.

    There are no prepayment, origination, or installment fees.[9] You can pay your loan off over an extended period or in a lump sum with no penalties.

    How does Nexo make money? Nexo makes money in a few main ways: they charge interest on their crypto-backed loans and they charge both gas fees and spread fees.

    How to Open a Nexo Account

    It is easy to sign up for an account with Nexo through their mobile app or desktop site:

    1. Visit their site or download their app and click "create account."

      screenshot of Nexo

    2. Add your email address and choose a password.

      screenshot of Nexo

    3. Confirm your email address, and you're ready to get started.

      screenshot of Nexo

    App download: Apple, Google Play

    Is Nexo Safe?

    Nexo employs a variety of security measures to protect users.

    • Two-Factor Authentication (2FA): Helps to prevent unwanted access to your account, and is required to start using the platform.

    • Pin & Facial Recognition: When setting up a Nexo account, you're required to set up a 4-digit pin, which you'll need to enter on login or after timeout. It can be bypassed with facial recognition.

    • Insurance: Nexo, in partnership with companies like BitGo and Ledger Vault, has obtained $375 million in insurance for digital assets.

    • Bank-Grade Storage: Assets are stored in Class III vaults.

    • KYC and AML: With partner Jumio, Nexo complies with strict know-your-customer and anti-money laundering standards.

    • Collateral: Users' funds are lent to institutional borrowers on an over-collateralized basis, meaning the collateral always exceeds the value of the loan.

    • Withdrawal Confirmations & Login Alerts: So that no transaction or login happens without your knowledge.

    Has Nexo ever been hacked?
    No. To date, Nexo has never been hacked.

    Is Nexo easy to use?

    If you're new to the crypto world, Nexo is a good platform to get up to speed and learn the ropes. Here are a few things that make Nexo user-friendly:

    • Uncomplicated platform with simple navigation

    • View all your holdings and assets in one place

    • Opening an account is quick (via app or online)

    • Regular notifications about your interest account

    • Withdrawal confirmations and login alerts to keep your account safe

    Is Nexo insured? Yes. Nexo and it's partners, including BitGo, Ledger Vault, Bakkt, and others, collectively carry $375M in insurance protections for digital assets held on the Nexo platform.[10]

    Nexo customer support

    When you need help, Nexo offers a few different ways to get your questions answered.

    • Nexo Help Center: Most basic answers can be found in Nexo's comprehensive Help Center, which offers info on all their products, helpful explainers, and more.

    • Submit a request: You can submit a request for help if your question isn't covered in the Help Center.

    • Live chat: Nexo offers 24/7 assistance via their live chat panel on the main support page (lower right-hand corner of the screen.)

    • Email: You can also email Nexo with any questions at support@nexo.io, but try checking the Help Center first for more basic inquiries.

    How It Compares

    Nexo is but one of many businesses offering crypto services. Let's see how it stacks up to its competitors.

    BlockFi

    BlockFi is another well-known crypto platform offering lending and reward services.

    While they offer roughly the same number of currencies for earning interest, the rates on Nexo tend to be better, especially those with their higher-tiered memberships and for stablecoins.

    Additionally, BlockFi interest rates decrease with volume on many of the more popular cryptocurrencies, while Nexo offers a flat rate. Nexo also offers the ability to earn on some fiat currencies, which BlockFi does not.

    Regarding crypto-backed loans, Nexo's 0% Interest for Platinum users are better than BlockFi's 4.5% for loans with an LTV of below or equal to 20%. For users looking to use less collateral, BlockFi's rates tend to be more expensive.

    Celsius

    Celsius is known for offering some of the highest returns on high-yield crypto interest accounts, and some of the lowest APRs on crypto-backed loans.

    However, like with Nexo, the best rates are not available to all users. Both platforms use a tiered membership model based on holdings of their respective tokens, CEL and NEXO.

    Unfortunately, CEL is only available in the U.S. to accredited investors, meaning that average users will probably be able to find better rewards on Nexo if they optimize for it.

    Celsius offers much more lenient interest rates on their crypto-backed loans, as low as 1.0% for loans with an LTV of 25%, and comparable to Nexo's at higher values.

    For U.S. users, Celsius makes more sense for loans, and Nexo is the better choice for earning rewards. For international and accredited investors, Celsius may be the more appealing choice.

    Coinbase

    Coinbase is possibly the most popular cryptocurrency exchange. It's available around the world and offers over 150 cryptocurrencies for trade.

    For trading, Coinbase outperforms Nexo in every category except for fees. Coinbase fees are quite high relative to other exchanges, which they attempt to make up for by being easy to use.

    When it comes to borrowing and lending crypto, Coinbase hasn't got much to offer yet. Users can currently earn 0.15% by depositing USDC with Coinbase, compared to a maximum rate of 20% on Nexo.

    Coinbase currently has a waitlist for Ethereum staking at 7.5%, but the feature hasn't launched yet.

    If you're a crypto beginner looking to trade, Coinbase's user-friendliness may make it an attractive option, but when it comes to crypto, Nexo is the obvious choice.

    Bottom Line: Should You Use Nexo?

    In crypto, there is rarely a platform that outperforms the others across the board. Instead, users must consider a variety of factors like fees, available currencies, and interest rates when determining which platform to use.

    Nexo is a safe choice for users looking to earn interest on their crypto assets, especially if they're willing to boost their returns by investing in NEXO Token.

    For crypto-backed loans, they're not always the cheapest option, but not too expensive either. And the Nexo Card makes it easy to access your credit line on the go. Consider using them if you're able to pay back your loan quickly, as there are no fees or penalties for prepayment.

    References

    1. ^ Nexo. In which jurisdictions is your product available?, Retrieved 3/10/2022
    2. ^ "Changes to Nexo's Earn Interest Product in the U.S.": Nexo, 2022.
    3. ^ "Earn interest on Crypto Assets - Explained": Nexo Help Center, 2021.
    4. ^ Nexo. NEXO Tokens Holders Receive $20,428,359.89 in Dividends (June 2021), Retrieved 3/10/2022
    5. ^ Nexo. What Loan-to-Value (LTV) can I get on my assets?, Retrieved 3/10/2022
    6. ^ "The Nexo App Revamped": Nexo, 2021.
    7. ^ "Nexo Exchange Fees": Reddit, 2021.
    8. ^ "What are the withdrawal fees for crypto and fiat currencies?": Nexo Help Center, 2021.
    9. ^ "Are there are prepayment, origination or loan installments fees?": Nexo Help Center, 2021.
    10. ^ "Security and Insurance": Nexo, 2022.
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Jeremy Harshman is a protector of art and writing at CreditDonkey, a crypto comparison and reviews website. Write to Jeremy Harshman at jeremy.harshman@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

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