Nexo

Lending features

• With these credit lines users can transfer in digital assets to use as collateral and then use a Nexo Card to spend it (in 40+ fiat currencies). They can also use it to withdraw stablecoins, or send cash to their bank account. Interest will accrue on the amount withdrawn. Minimum and maximum credit line amounts range from $10 to $2 million.
• An additional benefit for crypto traders using DeFi lending platforms like Nexo is the mitigation of capital gains. Nexo offers a place to make easy token swaps, access the very versatile stablecoins, and use these tools to help offset their capital gains. 
• During the duration of the credit line, if the collateral (your digital assets) appreciate, your credit line will grow in relation to the growth of the collateral. If the collateralized assets depreciate, users receive a notification to repay the credit line. If they don’t, assets are auto transferred from the Nexo savings wallet into the credit wallet while a minimum payment is initiated to cover the margin. 
• Interest rates start from 5.9% APR, the loans have automatic approval, and borrowers are not charged any fees other than interest.
• Nexo carries a $375 million insurance policy on its custodial assets. 
• All loans can be repaid with crypto, fiat in supported countries, or stablecoins.
• Digital asset transfers are immediate; fiat deposits generally take 1-3 days.

In the US, the average interest rate on a savings account is currently 0.05% (remember when they were closer to 5%?). Nexo crypto asset “savings accounts” earn up to 12%, paid daily and compoundable. It doesn’t take advanced math skills to calculate the disruptive value propositions that crypto assets make. 

For depositing crypto assets, Nexo supports 15+ cryptocurrencies and stablecoins. Generally, the less volatile and risky the crypto, the higher the interest rate. Additionally, users have the option to receive +2 basis points if they choose to receive their interest payments in Nexo’s exchange token, $NEXO. 

Interest rates in Nexo savings accounts vary by coins as well as with market fluctuations.

It takes about 24 hours for you to start earning interest once you’ve funded a Nexo savings account.

While Nexo does support token swaps and fiat exchanges, it is centered mainly on the lending and borrowing side of business. The crypto swaps are instant and seamless, with 75+ crypto and fiat pairs available. 

There are no advanced trading tools or charting mechanisms; the swap interface is simple and designed more of a digital asset savings portfolio than an investment portfolio.

The minimum exchange amount is $40 and the maximum is $50,000. There is no limit to how many exchanges one can make.

The Nexo card allows people to easily use their crypto backed credit lines at over 40 million merchants. Cash back rewards are available for purchases and payments are made in the user’s local fiat. There are no monthly or yearly fees; just the interest on the borrowed line of credit.

Although it’s not termed as crypto “staking”, Nexo does allow its users to gain value in the form of better interest rates by holding the Nexo token ($NEXO) in a wallet on the platform. A Loyalty program grants users with different tiers that have varying user benefits:

Nexo does not provide in-app pop up instructions as you might see on crypto exchanges like Binance and Gemini. But what they do provide is content that is thorough, easy to understand and available in many formats. 

The Nexo homepage is filled with resources for Nexo users. They have a vibrant blog and YouTube channel filled with Nexo how-to’s, market updates, AMAs, interviews and crypto-based educational articles and videos.

Nexo has a zero fee policy. It’s revenue modely, unlike most crypto exchanges, is based on interest income from their loan programs.

Nexo does have limitations as far as how much a user may withdraw, as follows:

Users may make between 1 and 15 crypto withdrawals per month, depending on their Loyalty Tier (described in the $NEXO section above). For digital assets, the minimum withdrawal amount depends on the cryptocurrency. For instance the minimum Bitcoin withdrawal is .001 BTC, whereas the minimum for USDT is 2 Tether, and for Tron is 20 TRX (subject to change).

There are 3 verification levels at Nexo and they are fully KYC compliant. Withdrawal limits are based on the verification level (see withdrawal limits in above section).

Starter Verification: Email address only

Basic Verification: Name, address, phone number and email address

Advanced Verification: Basic information plus photo ID

What are AML and KYC?

As part of a range of Anti Money Laundering regulations mandated nationally and internationally, KYC involves the requirement of companies to verify each customer’s identity during the onboarding process. Verification is achieved by submitted identification, proof of ownership, and personal information such as name, address, email address, phone number and tax I.D. number.

• Nexo provides best in class educational resources and 24/7 online support.
• The support center makes it easy to find what you’re looking for, is thorough, and includes step-by-step guides for everything you need to do on the platform.
• Nexo has over 6400 reviews on GooglePlay averaging 4 stars, with an average of 4.1 stars for 200+ reviews in the App Store. The relatively small percentage of complaints varied from login and account set up issues to long waits for customer service and negative customer support experience.

Currently, Nexo has over $4 billion in assets under management, over a million users and over $5 billion in funds processed during the last two years. They are partnered with BitGo, a leading company in crypto custody, and are dedicated to increasing insurance coverage, becoming more decentralized, and instituting a community governance model.

Nexo is very transparent and information regarding their fees, privacy policy, etc., are readily available on many fronts. They do not yet have a public status page, which helps users check for downages.

None reported.

• • Dollar cost averaging (no recurring buys available)
  • Trading (exchanging only, no order books or charts)
  • Automated trading
  • Automated tax reporting
  • Leverage (not in the traditional sense, but does enable collateralized loans)
  • Futures (not a trading platform)