Detailed Full Review of Nexo: All you need to know (2024)

What is Nexo?

Nexo is one Cryptocurrency platforms the most popular that allows its customers to earn compound interest on their cryptocurrency that is paid daily.

The platform was created in 2018, and in recent years, it has started to gain popularity in the cryptocurrency market. Antoni Trenchev is the co-founder and a managing partner of Nexo. Nexo's slogan is “Banking on Crypto,” and it's trying to replace the services offered by traditional banking services by using crypto assets.

Nexo promotes the model in which users can not only lend their cryptocurrencies but also acquire loans for them. They can also deposit, lend, earn interest on their crypto assets, and can instantly access fiat currencies without relying on credit scores. Nexo is one of the lending platforms that allows you to borrow money or any stablecoins without a credit check. Nexo lending works by lending cryptocurrencies to other entities. Nexo is an excellent platform for borrowing and earning on savings.

Nexo relies on blockchain technology that ensures the transparency of its operations. In addition, it facilitates the processing of smart contracts on Ethereum, and it stores tokenized data relevant to transactions.

Features

Let's look at a few features that make Nexo an exceptional platform for all types of investors.

Nexo offers quick registration, where an account can be created in just a few minutes, and they can deposit money, currencies, or cryptocurrencies into their account. The user needs to answer a few questions regarding their personal information, and after confirming their account, they can get started.

The platform is very simple, and the platform layout is easy to navigate, especially for new users who have no experience with trading platforms or transferring cryptocurrencies. They can instantly check their assets, available credit, or everything they've borrowed in just a few clicks.

Nexo also offers users two-factor authentication to avoid security breaches and ensure maximum protection of the user's investment.

When an account is opened and funded in fiat currency or cryptocurrency, Nexo will automatically calculate the interest received on a daily basis. It will deposit them directly into the user's account.

In addition, Nexo sends the user a notification in the app and lets them know that their interests are deposited and how much interest they have earned. Nexo users don't have to wait a month if they want to use compound interest on their fiat currency or cryptocurrency.

Fresh

Nexo says that the fees for opening a cryptocurrency savings account are very low. Compared to a traditional savings account, Nexo does not charge any type of account maintenance fees, and the user is free to withdraw their fiats or cryptocurrencies at any time without fees. It covers user account transaction fees, which means that the user only has to pay brokerage fees when making a transfer from their exchange wallet to their Nexo account. Additionally, these fees vary and depend on the broker used. There is no minimum amount of cryptocurrencies to be deposited by the user into their account to start earning interest.

Minimum withdrawals

The minimum withdrawal of cryptocurrencies will vary depending on the type of fiat or cryptocurrencies that the investor holds in their best cryptocurrency wallets. The lowest minimum withdrawal for Bitcoin is 0.001 coins, while the highest minimum for Tron is 20 coins. Nexo Loan provides loans backed by cryptocurrencies, and they are unique because they allow the investor to maintain control of their cryptocurrency and gain appreciation benefits without having to sell their crypto assets to repay their loans.

Products and services

Nexo is crypto lending platforms that offer opportunities to invest in consumer loans backed by crypto. Nexo offers its customers instant cash loans through crypto loans starting at $10 up to a maximum of $2 million. The user can borrow, lend Bitcoin, stablecoins, or money with Nexo at zero hidden fees, and the service is also flexible with repayment, and does not require credit checks and makes it accessible to crypto holders.

It offers a high-interest savings account for cryptocurrencies and fiat currencies like the Euro, US Dollar, and British Pound. In addition, customer funds are guaranteed by an insurance policy. This helps the user earn up to 12% interest on their currencies and cryptocurrencies. These funds are added to the user's savings wallet, or they can be withdrawn at any time by the user.

The Nexo card allows you to spend the value of your digital assets without having to sell them. The Nexo card has been accepted by numerous businesses around the world, and it also offers 2% cashback on purchases made with businesses it supports.

Just like popular cryptocurrency trading platforms, Nexo has its own exchange that allows existing users to trade over 75 cryptocurrencies and also multiple fiat currency pairs instantly. The exchange works like a broker, and investors can connect to more than five exchanges simultaneously to compare the best prices of various cryptocurrencies.

If the value of assets pledged as collateral decreases significantly, the customer will be notified that additional collateral must be added. The customer will be notified and partial automatic loan repayments will only begin once the loan-to-value ratio has reached 83.3%. As a borrower, you always have the option of transferring more collateral at any time. The loan-to-value ratio (LTV) is a financial term used by lenders to express the relationship between a loan and the value of the collateral.

In other words, the measure of the loan balance in relation to the value of the collateral asset is represented by the loan-to-value ratio (LTV).

Interests

The company allows investors to earn money from the interests on several stablecoins, bitcoins, and altcoins. Supported coins are Bitcoin, Ethereum, Chainlink, Stellar Lumens, and Tron. Nexo's interest rates for cryptocurrencies start at 6% for altcoins, 10% for stablecoins; users can also earn 12% interest when they choose a Nexo token.

Nexo calculates interest rates on a daily basis, and the user is free to deposit or withdraw the chips at any time. Additionally, there is no minimum balance requirement to benefit from the Nexo Interest Program.

Nexo card

With regard to the usefulness of credit lines, the user can use them anywhere and at any time using a Nexo card. These cards can be ordered and managed via the Nexo wallet application. With this card, the user can make payments in the local currency without exchange fees. Plus, this card offers 2% instant cashback on all purchases. The user can choose to receive rewards in either Bitcoin or Nexo Tokens prior to completing a transaction.

Nexo wallet

• The platform's wallet application is accessible from Android and IOS. If the user is looking to access crypto credit instantly and earn secondary income through interest on their funds anytime and anywhere, the Nexo wallet is the best choice. The user can store all their approved digital assets in their wallet.
• Nexo wallet also has an exchange service and a transfer service. Thanks to the transfer service, the investor can transfer assets from one account to another. It also facilitates access to the latest incentive programs launched by the platform, such as the Nexo loyalty service.
• By depositing crypto assets into the account, makes the user eligible for access to two important deposit services on their platform, such as the lending service backed by crypto assets.

Token Nexo

Nexo's native token is “Nexo Token”, a money lending platform that shares 30% of the net profit with their loyal customers in the form of high-yielding dividends. According to the website, the Nexo coin is the first dividend-paying asset token and has already paid out over 9 million in the last three years to Nexo holders.

According to Nexo's comments, the token offers a few benefits to users, including —

• Users can earn an annual rate of return of 12% for deposits in stablecoins, GBP, EUR, USD.
• They can also benefit from an 8% APR for ETH, BTC, XRP, LTC, BCH, BNB, EOS, XLM, LINK, etc.
• They can borrow an APR of 5.9% per year for Nexo's instant crypto lines of credit.
• 30% of Nexo's net profit is shared with Nexo token holders in the form of dividends.

Mobile app

The Nexo mobile app has the same features as the desktop platform and allows users to manage their credit line card and crypto in a few clicks.

Here are some of its characteristics

• THENexo mobile app offers a range of management services and ensures that only users have access to their Nexo cards. They can use this application to activate notifications of interest when completing a transaction, changing their card pin code, etc.
• It offers security features such as two-factor authentication, and it uses a military-grade 256-bit encryption method and 24-hour fraud monitoring services to provide the highest security standards for the user's mobile investment.
• The user can also activate facial recognition, which adds an additional layer of security to their mobile wallet and ensures that only the user can access their accounts in case their mobile device is stolen or lost.
• Managing crypto investment and interests is simple when the user activates interest notifications through their app. The app can be downloaded for free on Apple and Android devices.

Customer support

In this Nexo lending review, we've also covered Nexo customer support. The platform offers four methods for an investor to contact the customer support team.

They can contact Nexo by email, or send a letter to support@nexo.io.

Users can also contact Nexo through online messaging or fill out an online request form.

Support can also be reached through live chat. Users need to go to the website where they need to click on the icon in the right corner of the screen.

The customer service team is available 24 hours a day, 7 days a week, and support requests are answered immediately.

The platform also provides users with some special tools to allow them to become familiar with the cryptocurrency market and the platforms in which they plan to invest. Its educational tools are available for free, and the user does not need to log into their account before starting. Here are some tools offered by the platform −

Nexo offers YouTube screens that can be easily configured using the platform's on-demand YouTube tutorials. You can get up to speed with the platform in a few minutes and have easy access to the account's advanced features.

The Nexo app provides tips on using the platform's main cryptocurrencies, and updates to help the user keep up with current market trends.

Alternatives to Nexo

Compared to its competitors, the company offers more flexibility when it comes to daily withdrawals and payments.

Traditional banks are Nexo's main competitor. However, they are not a major threat as customers are looking for real returns rather than ideal cash flow. They don't want to keep cash with low interest rates in their bank accounts because that can be risky due to inflation.

The second type of competitor is formed by neobanks like Revolut, N26, Monzo, and several others. Like traditional banks, these companies offer interest rates of no more than 1.25%. That said, they offer several more features than traditional banks, including faster customer support.

The third group of competitors are companies like Celsius, crypto.com, BlockFi, blockchain.com, and many others. In addition, the difference between the rates is minimal, and they are subject to change at any time.

How do I get started with Nexo?

Opening an account with Nexo is hassle-free and takes less than a minute. Once the email has been verified, the user can start earning interest.

The platform has three levels of verification and KYC processes; the basic and startup verification levels allow customers to earn interest on their digital currencies and cap withdrawals at a lower amount. On the contrary, the advanced verification level allows the user to earn interest on fiat currencies and also offers higher maximum withdrawals using a Nexo account.

Basic verification requires investors to submit contact information such as full name, address, and phone number. When the SMS verification is sent to the phone number, and after confirmation, the user can get a line of credit of up to $2,000,000 per day, and they can withdraw up to $20,000 from their savings account daily.

The advanced level of verification on Nexo allows investors to take advantage of the advantages offered by the platform. At this point, an investor can withdraw a maximum of $5,000,000 from their savings portfolio and a maximum of $2,000,000 from their line of credit.

This advanced step also unlocks bank account transfers that were not possible during the previous verification steps. It is therefore easy and fast to transfer money from traditional bank accounts to the Nexo account. After the KYC process, users are eligible for Nexo token dividends, and they can apply for the Nexo credit card.

FAQs

Is Nexo safe to use?

Nexo is built on trust and built for security. It follows global anti-money laundering and knowledge control standards and complies with strict regulations to avoid risks. Nexo has implemented security measures and has become one of the most secure crypto lending companies. It has an extensive firewall server architecture, biometric-based identity verification, segregated multi-signature cold wallets, and it also stores client funds in a ledger vault.

Is Nexo regulated?

Yes, it is a regulated and authorized digital currency provider that complies with strict regulations in over 200 jurisdictions around the world. The team ensures that all compliance and legal requirements are met before accepting customers from other countries.

Is Nexo better than any bank account?

Using the platform, you can deposit cryptocurrencies like bitcoin and other altcoins into their wallets, and they can also choose how they can lend them, which means they can use the peer-to-peer marketplace for lending. The entire system is designed to secure liquidity more automatically than a traditional bank. It allows the user to easily obtain fiat currency while maintaining ownership of their digital assets.

Final Verdict

To conclude this Nexo lending review, the idea of crypto lending is one of the most groundbreaking things that have happened due to the wide adoption and popularity of cryptocurrencies. Nexo is considered to be the first crypto lending platform to provide instant loans backed by cryptocurrencies. Nexo also allows crypto investors to use their digital assets & provide them as collateral for a crypto line of credit.

Nexo.io has remained stable regardless of market conditions. One thing we'd like to mention at the end of our Nexo.io review is that the platform is suitable for long-term investors who plan to build their wealth using cryptos. Nexo provides an assured and secure way for users to earn interest or access money through a loan. Nexo has over $4 billion in assets and over 1 million users.