What is Nexo?
Our Thoughts on Nexo
Nexo has shown that it is a great place to borrow and profit from savings.
Are you searching for a Cryptocurrency Alternative to Traditional Banking? Do you want lower interest rates and loan amounts backed by crypto collateral?
However, if you’re interested in a better life and want to quit your day job, then Nexo may be the answer. Nexo is a blockchain platform that enables cryptocurrency borrowing and lending through its technology.
The easiest way to get fiat currency when you need it is by using a loan service such as Nexo, which allows you to borrow money against your crypto assets. This means you may obtain fiat currency whenever you need it while also earning interest on your dormant cryptocurrency assets. We’ll go through everything there is to know about Nexo, how it works, and what the benefits and drawbacks are in this article.
If you’ve been waiting for the right moment to jump on the crypto bandwagon, keep reading.
Lending & Loans Summary
Bitcoin – Up to 7% APY
Stablecoins – Up to 12% APY
Axie Infinity – Up to 36% APY
Bitcoin – From 0.001% APR
Stablecoins – From 0.001% APR
What Is Nexo?
Nexo is a blockchain-based system that uses overdrafts to allow crypto lending and makes it very simple for customers to get access to crypto-backed loans.
The company was formed in 2018, but it has been gaining a lot of traction lately. The firm’s motto is “Banking on Crypto.” They aim to provide traditional bank services while utilizing crypto as the asset.
The company is continuing to research and develop its product, which enables consumers to borrow money against their crypto holdings. Users can earn interest on their own cryptocurrencies and get quick fiat currencies without relying on credit scores.
The user must first deposit the relevant cryptocurrency into their wallet with Nexo, and then choose how to lend it out. To put it another way, they select how to utilize the peer-to-peer market.
The entire system is built to provide automatic liquidity and more flexibility than a traditional bank. The network allows consumers to obtain fiat if they want it while still maintaining control of their digital assets.
The platform currently supports 35 cryptocurrency transactions. They are as follows: XRP, Cardano, Bitcoin, Ethereum, and a variety of other cryptocurrencies. The NEXO token can also be paid in EUR, ETH, BTC, and USD.
The Nexo blockchain is built on top of a platform that provides strong transparency at its core. It makes the complex smart-contract system of Ethereum work smoothly, and it keeps all necessary tokenized data for transactions.
Not only that, but the fact that NEXO is an ERC-20 token implies that it might be used in interest-covered securities.
How to Take Nexo Loans
1. You can deposit cryptocurrency assets into your Nexo account.
To apply for a Nexo loan, you’ll need to open an account with them first. Open a Nexo account by signing up. You must deposit your cryptocurrency assets after creating your account. The platform continues to add well-known altcoins to its list.
BTC, ETH, PAXG, XRP, LTC, XLM, BCH, EOS, LINK, TRX, NEXO,, and BNB are just a few of the most popular cryptocurrencies that you may immediately deposit. Nexo does not support wrapped currencies representing coins from another blockchain. Such assets may be irrecoverably lost if they are moved.
When depositing cryptocurrencies, keep in mind that taking a fiat loan against a stablecoin requires covering at least 50 percent of the loan with crypto-collateral such as bitcoin or ether. The requirement is in line with anti-money laundering laws.
2. Credit history checks and a rapid credit line are not required.
Although there are no credit checks required for Nexo loans, you will be asked to complete a basic/advanced verification in the “My Profile” area. You may also be requested to submit documentation that would serve as proof of your stated source of funds.
3. Two Asset Class Finance Choices Are Available
You must now choose the “Withdrawal Funds From Credit Line” option after passing verification. The amount of money accessible is displayed here. You’ll have two asset class financing alternatives to select from. The first choice is to borrow in fiat currency, which necessitates your bank account address. The second alternative is to receive a disbursement in USDT (Tether) or USDC (USD Coin), which necessitates that you provide an address for a loan in stablecoins.
If the credit line wallet does not contain enough collateral to cover the loan, crypto-assets may be automatically transferred from the savings wallet to the credit line wallet.
The SEC-approved custodian BitGo trust secures the assets of Nexo, which include cryptocurrencies. The loan’s disbursement is adjustable. It’s flexible in that you have access to your credit line at any time and can spend it however you wish with a 5.9% APR per year charged to the amount spent. There are no minimum repayments or hidden charges involved in the procedure. Your interest will be taken from your available limit, and you are free to make payments whenever you choose.
The Nexo wallet is available on Android and iOS. If you need access to the instant crypto credits or a high-yield ‘Earn Interest’ account at any time, anywhere, the Nexo wallet is the app for you. The wallet can hold all of your Nexo-approved electronic assets. Users may use the Nexo transfer service to move assets between two accounts with the aid of the platform’s new incentive programs, such as the Nexo loyalty program. The latest incentives offered by the platform, such as the Nexo loyalty program, are accessible through the NEXO wallet.
With the aid of a Nexo account, you may access two primary deposit services provided by the platform. The crypto-backed loan service, which we previously discussed in detail, is the first one.
The Crypto-Backed Loan Service
While cryptocurrencies have been around for less than a decade, they’ve already amassed an impressive track record. They’ve survived more than 500 market cycles and are now accepted by millions of merchants around the world because of their trustworthiness. Nexo’s instant crypto credit lines start at 5.9 percent APR and accept fiat currencies or stablecoins. Nexo has helped more than a million customers use its service.
For disbursement, you have the option of using any of the more than forty fiat currencies offered. Nexo also enables you to choose from any of the 18 cryptocurrencies for collateralization. On Nexo, you can receive loans ranging from US$10 to US$2,000,000 with no restrictions. When it comes to security of the collateralized assets, the Nexo platform is without a doubt trustworthy. There is $100 million worth of insurance on custodial assets on the Nexo platform.
The second benefit of depositing crypto-assets in a Nexo account is the high-yield interest service on the platform.
Who is Eligible for a Nexo Loan?
There are no strict requirements for becoming a Nexo loan eligible. All you have to do to register an account on the platform and deposit your collateral is follow the signing up procedure. The platform accepts loans worldwide without requiring credit checks, although borrowing in fiat currency necessitates completing both the basic and advanced verifications.
The Caveat to Earn a Higher Yield
With Nexo, you may earn a significant return. There is, however, a catch! To obtain a rate of 17% on your fiat and stablecoins, and up to 36% on your crypto savings, Nexo requires that 10% of your funds in the saving account be in NEXO tokens. If this condition is not met, you will only receive ordinary interest rates.
You can access your funds anytime you want through Nexo’s high-yield interest service. There is no minimum deposit requirement, and the site does not charge any fees. Payouts are made on a daily basis. Apart from cryptocurrencies, you may earn interest of up to 17% on fiat currencies like the Euro, Pound sterling, or US dollar.
NEXO, Nexo’s Native Token
The current price is $2.39 per NEXO, -40.632% from the all-time high of $4.07. The current circulating supply is 560,000,010.006 NEXO.
You may leverage your credit lines at any time and from anywhere in the world with your Nexo card. It can be ordered and managed from the comfort of your Nexo Wallet app. More than 40 million merchants across the world accept the card. When you swipe your Nexo card, the payment amount is subtracted from your instant crypto credit line’s available balance. There are no monthly or annual fees to maintain the card.
You may make purchases in the local currency without paying any FX costs using a Nexo card. Instant cashback of 2% is available on all transactions. Before making a transaction, you have the option of receiving your rewards in NEXO tokens or bitcoin.
Automatic Transfer of Assets From Savings Wallet to the Credit Line Wallet
As previously said, if there aren’t enough funds in the savings wallet to cover the Loan-to-Value ratio, assets from that wallet are instantly transferred to the credit line wallet. If it still falls short, the Nexo blockchain oracle sells collateralized securities in order to bring the Loan-to-Value ratio back into balance. The 83.3% threshold has been set as a value.
Nexo tokens might be used to receive loans and get high interest rates, both of which are perks connected to their holding. In addition, Nexo tokens provide something that none of the other regular cryptocurrencies can. It is the first dividend-paying asset-backed coin in the world since 30% of Nexo’s profits are paid out as dividends in the form of Nexo tokens.
Dividends are split into two categories: basic dividends and loyalty dividends. The base dividend is paid out in proportion to the volume of your NEXO investment, whereas the loyalty dividend is paid out based on how long each Nexo token has been in your Nexo Wallet from one ex-dividend date to the next.
All cryptocurrencies are stored on the Ledger Vault platform. Bank-grade cold storage is used for private keys guarded by Ledger Vault. The security of assets backed by Arch and Marsh is guaranteed up to $150 million thanks to the Ledger Vault. According to Nexo, their insurance portfolio now stands at $775 million. Nexo plans to insure more than $1 billion in 2021 with a syndicate of insurers, according to them. This is, without a doubt, the most incredible insurance policy of all crypto lending and borrowing firms. It’s encouraging to see them taking this aspect of their business so seriously.y.
Is Nexo Safe to Use?
Nexo is a cryptocurrency-based lending platform that is focused on trust. They follow strict global KYC and AML standards as well asstringent rules and regulations. Nexo places a high value on security. They’ve also implemented various safeguards to ensure that Nexo remains one of the most secure crypto lending firms. Biometric-Based Identity Verification, Extensive Firewall Server Architecture, Segregated Multi-Signature Cold Wallets, and more are among the measures taken to keep users’ money safe. User funds are kept in bank-grade Class III vaults thanks to Ledger Vault.
With authorization by 2FA, biometric identification, withdrawal confirmations, login alerts, and round-the-clock assistance, Nexo ensures that you maintain control of your account.
Is Nexo Regulated?
Nexo is a fully regulated European financial company. For additional information, go to this page.
How to Borrow Cash With Nexo
You can obtain fiat via Nexo by putting crypto as collateral. They support over 40 distinct currencies, so you may spend it however you like with your preferred method or a Nexo card.
To borrow again, go to your account and choose the correct crypto. “Top Up” by selecting supported cryptocurrency. Send your crypto to the provided address and you’re done. It’s just like loaning cryptocurrencies.
You’ll notice your credit line on the right side of the page. You can use it right away, or you may send it to a bank or use it with your Nexo card. You can utilize a variety of crypto to back your loan using the Instant Crypto Credit Line. This helps you avoid being exposed to cryptocurrency volatility.
If you wish to withdraw your assets, you’ll be charged a 2% fee. You won’t have to pay anything until the loan is paid in full; instead, you will be charged an interest rate equal to 100% of the original amount owed at that time (plus any accrued interest). A minimum $1 payment is required if your outstanding balance is less than the loan limit. You’ll get a 50% discount on the final amount if you accept our offer. If your outstanding debt falls within the loan limit, no further payments are required. You have the option of renewing or establishing another line of credit based on the collateral.
It’s all about the market value of your collateral assets. The Nexo Oracle (Nexo AI) will automatically raise your loan limit if your assets rise in value.
How to Use Your Crypto On Nexo
Before you can put your digital assets into a Depository, you must confirm your personal information. You will not be able to borrow or lend fiat or cryptocurrency unless you are verified. The interest rates will also be displayed.
Create an account on Nexo and log in to your account. Select the cryptocurrency you want and “Top Up” after that. Send your digital assets to the secure address, and you’re ready to go.
If you have an account with Neteller, you’ll notice that there’s a new option on the main page of your account. Select “Nexo” from the drop-down menu and it will take you to a new window where your balance and earning potential will be shown. You may withdraw whenever you like without paying any costs or penalties. When you deposit crypto, you’ll see how much credit is still available to you.
How to Deposit Funds Into Nexo
To deposit money to Nexo, all you have to do is choose a crypto and type in the associated private deposit address. Select one of the supported cryptocurrencies, then generate a secret deposit address by clicking Copy & paste this address into the “withdraw address” option on your wallet or exchange, then click withdraw/send. That’s all there is to it; after the number of network confirmations has been reached, you’ll get your funds in your Nexo wallet/account.
The Way Forward with Nexo.io
The success of Nexo, which began in 2017, has drawn the attention of everyone. With more than four billion dollars in assets under management and over a million users, it has shown that it is a great platform for borrowing and profit on savings.
With the Nexo card, Nexo has expanded its practical use as a means of exchange and money. The community’s cohesion and incentives for long-term participation have been bolstered by the sharing of dividends with customers. Nexo may be expected to establish itself as a standout investment in the crypto sector and beyond, taking full advantage of conventional finance and blockchain technology with its services expanding in terms of quantity as well as convenience.
What's unique about Nexo?
Nexo’s most unique characteristic is that it supports more than 45 fiat currencies and many cryptocurrencies. In addition to this, the team have been working together in the fintech industry for more than 10 years.
How safe is Nexo?
Nexo offers two-factor authentication in their app. They also offer third-party custody from Bitgo. BitGo investors include Goldman Sachs and the platform is SOC 2 Type 2 certified. BitGo Custody carries $100 million USD in insurance protection.