Nexo Review (2024)

What is Nexo?

Essentially, Nexo is a blockchain that’s based on an overdraft system that facilitates crypto lending and makes it easier for the users to access instant crypto-backed loans. The company was launched back in April 2018, but its popularity has grown immensely over the last years. Their slogan is Banking on crypto and they try to facilitate the same services as traditional banks, but with crypto.

Nexo aims at promoting a model in which the users can lend out their cryptos and acquire crypto loans with much more ease. In that, users can earn interest by lending out their cryptos and access loans in fiat money without relying on the credit score checkup.

With the Nexo system, the users must deposit the supported crypto tokens into their Nexo Wallet then lend them out to those who need crypto loans. You can see this as a peer-to-peer lending marketplace. This entire Nexo system aims at devising means for securing liquidity, flexibly and automatically. What’s more, it makes it easier for clients to get fiat currency if needed, but still maintain the ownership of their digital assets.

Currently, Nexo can support up to 40 cryptocurrencies, and that includes some of the most popular options in the crypto market, like Cardano, XRP, Ethereum, Bitcoin, among others. The platform supports payments for NEXO tokens (their native token), ETH, EUR, USD, and BTC.

The blockchain technology that backs Nexo provides the great backbone of the focused transparency system at the heart of Nexo.

Hence, it facilitates the smooth processing of the Ethereum based smart contracts and storing the relevant data to a particular transaction. And the fact that the NEXO token is an ERC-20 token provides better interest-covered security.

Why choose Nexo?

Nexo users get a couple of benefits by choosing this platform to be their go-to crypto lending platform. Some of these advantages include;

• A high level of asset liquidity.
• Highly competitive interest rates (up to 16% for lending and starting from 5.9% for borrowing).
• EU licensed and regulated financial institution.
• BitGo $100 million insurance.
• Over 6 million clients and 130 billion dollar processed in 5 years.
• Free Nexo Card for its retail users which you can use to make daily transactions.
• No credit score checks and guaranteed approval.
• No transaction, withdrawal, or platform fees. No hidden fees.

Continue reading this Nexo review to discover more about this platform.

Receive up to $500 of USDC with Nexo

Up to 16% interest paid out daily or get a loan without credit check with crypto as a collateral. Receive up to $500 of USDC as a new customer.

DEAL ACTIVATED

ACTIVATE DEAL

On Going Offer

Nexo bonus 2024

In 2024, you can temporarily receive an additional bonus in the form of USDC (stablecoin). The bonuses are currently $30, $150 or $500. To qualify, you must meet a minimum amount and lock it in for 3, 6 or 12 months.

• Lock $500 and receive 30 USDC
• Lock $5,000 and receive 150 USDC
• Lock $50,000 and receive 500 USDC

How to create a Nexo account?

To start earning your interest with Nexo, you need to follow the steps below;

1. First, create your Nexo.io account.
2. Verify your identity. To do your verification, there are two steps that you need to follow. The primary verification will collect your personal info like your phone number, address, and name. After that, you need to do a more advanced kind of verification where you can upload your passport picture or photo ID.
3. Proceed and deposit funds to your Nexo account. The minimum top-up for now is 1,000 EUR/GBP/USD and a maximum of 2,000,000 per transfer. Interestingly, Nexo doesn’t charge any additional fees.

How does Nexo work?

Nexo essentially helps you to bank on crypto. In that, lending from this platform, you can earn up to 16% interest that’s compounded then paid out daily. On the other hand, when you borrow from this platform, you are charged an interest rate starting form of 5.9% APR.

On top of that, you make your withdrawals or deposits on this platform whenever you want, without any limits. And best of all, for clients to get automatic approvals, there are no credit checks. The platform also supports multiple assets and over 40 fiat currencies that are supported across 200 countries.

Receive up to $500 of USDC with Nexo

Up to 16% interest paid out daily or get a loan without credit check with crypto as a collateral. Receive up to $500 of USDC as a new customer.

DEAL ACTIVATED

ACTIVATE DEAL

On Going Offer

How to lend your crypto to Nexo?

Before you can deposit crypto, you have to verify your personal details. Without a verification, it’s not possible to lend or borrow any crypto or fiat. You can see the interest rates behind every crypto, it can be higher with the NEXO token.

1. Log in to Nexo.
2. Choose a supported crypto and click on Top Up.
3. Send you crypto to the generated address.
4. Done

Nexo will show you daily how much you’ve earned and how much is added to your account. You can withdraw your funds anytime without any penalty fees. When you deposited your favorite crypto, you will also see your credit line. Check out the next chapter in this Nexo review to find out what that is.

How to borrow cash from Nexo?

You can instantly borrow cash from Nexo by using your crypto as a collateral. They support over 40+ different fiat currencies, and it is even possible to spend it with your Nexo Card. Check out how to borrow cash from Nexo:

1. Log in to Nexo.
2. Choose a supported crypto and click on Top Up.
3. Send you crypto to the generated address.
4. Done

As you can see it’s the same as with lending crypto. Behind the deposited crypto you can see your Credit Line, which can be used. You can spend it with the Nexo Card or transfer it to your bank account.

What’s more, with the Instant Crypto Credit Line, the users get to utilize a wide range of cryptocurrencies to back their loans. That makes sure the clients are less vulnerable to the volatility in the crypto market.

That’s because Nexo provides the user with a 50% discount on the total amount. And if the outstanding balance on your loan is within the available loan limit, you don’t necessarily need to make any monthly payments. Once the user fully repays their loan, the client can withdraw their crypto assets from the Nexo wallet. Also, they can opt to start a new credit line with the same collateral.

And when it comes to the loan limits, that is determined by the market value of the crypto assets pledged as collateral. If the client’s assets increase in value, the Nexo Oracle increases the client’s loan limit.

Nexo Card

What’s more, Nexo offers clients a crypto card that gives you similar capabilities as a debit or credit card. The best thing is that, when using the crypto card, you get to spend your crypto in its exact value without having first to sell before you use it.

Also, with the Nexo card, you get a 2% cashback for every purchase you make. In case you are worried about the usability of the card, over 40 million merchants across the world accept this crypto card. The Nexo Card is free to use and there are no monthly or annual fees.

Nexo wallet

The platform also comes with an award-winning wallet that makes it easier for clients to access credit lines or lend out funds. Hence, providing an opportunity for lenders to earn interest. This wallet is downloadable from either Android or iOS phones.

All the custodial assets placed in the Nexo wallet are held in cold storage for enhanced security and are insured up to $100 million.

Receive up to $500 of USDC with Nexo

Up to 16% interest paid out daily or get a loan without credit check with crypto as a collateral. Receive up to $500 of USDC as a new customer.

DEAL ACTIVATED

ACTIVATE DEAL

On Going Offer

About the Nexo Oracle

The Nexo Oracle is a vital part of the Nexo platform. This oracle is responsible for several functionalities. Some of these functionalities include:

Automated notifications

The Nexo Oracle automatically maintains the transactions; therefore, there is no need for manual intervention. That said, all notifications on Nexo have been generated automatically for all the Nexo users.

Algorithms and modeling

The Nexo Oracle also incorporates automated algorithms, significant data analyses, as well as prediction modeling. That helps to facilitate the proper functioning of the system. Hence, any information obtained from external sources of data is used to do individual on-time businesses.

Loan contracts

The Nexo Oracle manages cash disbursement, maintenance of assets, loan management, and notifications automatically when a credit line is started.

Repayment analytics module

When the loan repayments are made, the Nexo Oracle also records the reimbursements and accounts for all transactions made on the specific client accounts. This system maintains the outstanding balances, interest repayments, and also updates the loan limits for the clients automatically.

Real-time data aggregation

The Nexo Oracle also collects data from the various exchanges to gather accurate real-time valuation of the assets. In fact, the Nexo Oracle manages live data aggregation from at least six different sources.

That helps to minimize the overall risk for both the client and the Nexo platform. The Nexo Oracle helps to detect the live changes in the value of assets then recalculates the client’s loan limits; if the value of a particular asset increases, the loan limit of that asset is also increased.

What are the risks of Nexo?

When it comes to Nexo, certain risks are associated with this platform. Some of these risks include;

Regulatory setup of Nexo

Nexo needs to register in every jurisdiction for the provision of its lending and credit services at the consumer level. However, the legal entity of Nexo seems unclear at the moment. Therefore, it’s also unclear in which jurisdiction the platform operates, making the registration process a bit challenging.

Custody of crypto assets

In that, Nexo uses BitGo multi-signature wallets. However, BitGo only has insurance for 100m USD on the assets that are managed on BitGo. The BitGo insurance is cumulative for all the BitGo clients. Also, the insurance only applies to assets that are kept in the BitGo cold wallets.

Re-hypothecation of the assets.

Although Nexo doesn’t mention the use of re-hypothecation, sometimes, it seems like it is used. That’s because, in some cases, the lender interest rates tend to be higher than the borrower’s interest rates.

Nexo is a company

Nexo is a company where people work and theoretically it can go bankrupt. Never invest your life savings in platforms like these and spread your risks. The past shows that lending platforms can be very risky. So it is very unwise to put your entire wealth into Nexo. BlockFi and Celsius have gone bankrupt before (becasue of FTX) and users are still trying to get their money back.

Nexo fees

Nexo is one of the few crypto companies that will allow you to make your transaction with zero fees. In that, they will not charge you any withdrawal fees. You receive, pay, or send crypto free of charge.

Is Nexo safe?

It is an innovative and progressive instant crypto lending platform that allows people in more than 200 countries to use their cryptocurrency assets to receive loans and earn interest. The platform is well designed and the process of creating an account, depositing money and taking out a loan is relatively simple. The ability to earn interest on deposited money is another compelling feature, while the Nexo Card and mobile app makes earning a passive income even easier. The project allows people to put their assets to work and access money instantly, while still maintaining ownership of their assets.

Licensed and Regulated Financial Institution

The team behind Nexo has over 12 years of experience in the field of credit platforms. Nexo also complies with all relevant money laundering and terrorist financing laws (Patriot Act), which means that all users must verify their identity, and Nexo uses Onfido as a trusted third party to run the KYC (Know Your Customer) process. All sensitive customer data are stored encrypted and it is mandatory to have two-factor authentication.

While Nexo is fully compliant in all jurisdictions in which it operates, it is still awaiting regulation by a well-recognized authority and the crypto industry is known for its volatility and sudden changes. That said, Nexo is a good choice for anyone looking to raise capital by pledging their crypto holdings or earning interest on your assets. Do your own research into the company and decide for yourself whether or not it is a good idea.

If you can see cryptocurrencies adapting a real-world utility as a means of transfer of value or payment, then the Nexo project is for you. Nexo offers you a lending platform that allows the users to unlock their assets’ value without giving up ownership of their cryptos. If this is something you are interested in, this is the right time to get in while Nexo is still in the early stages. There is much more possibility in the future for the cryptocurrency lending industry.

Do your own research on the company and decide for yourself whether or not it is a good idea. Never invest your entire wealth in platforms such as Nexo, as there is always a chance of bankruptcy.

Receive up to $500 of USDC with Nexo

Up to 16% interest paid out daily or get a loan without credit check with crypto as a collateral. Receive up to $500 of USDC as a new customer.

DEAL ACTIVATED

ACTIVATE DEAL

On Going Offer

Have you lent or borrowed assets with Nexo and would you like to share your experience? This can be done via the assessment form below.