Nexo, otherwise known as Nexo.io is a type of Bitcoin/cryptocurrency loan platform where users can get what are called ‘Bitcoin loans’. Bitcoin loans are instances where certain companies or platforms lend users money, usually in fiat, in exchange for cryptocurrency collateral. For example, if you buy cryptocurrency, say $50,000 worth of Bitcoin, and put it up for collateral, you can be issued $25,000 in fiat value. Nexo is a primary example of one of these lenders.
What is Nexo?
Nexo is a cryptocurrency-based lending platform that offers a multitude of different products and offerings. Primarily, Nexo is a cryptocurrency lending portal for users to get loans and store cryptocurrency without needed credit checks, lengthy application processes, or heavy fees. Nexo has filed the SEC, the United States financial regulator under the name of ‘Nexo Capital Inc.’
Nexo works in a lending-type fashion while simultaneously enabling additional products that can all be streamlined by their inclusive NEXO token. The NEXO token can be used for product discounts, however, also serves as a dividend yielding option for passive income. 30% of all Nexo platform income is redistributed to NEXO token holders.
Markets and Products
Nexo offers a variety of intuitive and game-changing cryptocurrency products. Unfortunately, at this time, Nexo is not a platform where you can access markets, as it the case with Coinbase and additional brokers. However, as it’s main purpose is to serve as a lending platform, Nexo offers multiple competitive products. If you buy Bitcoin with Nexo you will instantly be able to get a loan with them and create an account with them.
The following is a very quick/summarized overview of Nexo’s products:
- Instant, crypto-based credit line (Deposit support for over 10 different cryptocurrencies)
- Inclusive platform credit card (Nexo card) powered by MasterCard
- 8% minimum interest bearing stable coin accounts
- NEXO token, cryptocurrencies issued legally that power the entirety of the Nexo platform
One of Nexo’s largest strengths is its ability to offer exclusivity in its platform and products. Here are a few of Nexo’s most impressive and market competing offerings:
➡️Inclusive NEXO Token with Dividends
Nexo’s platform offers an inclusive NEXO token, which is something that most other lending platforms, whether cryptocurrency or not, cannot say they enable. However, what makes NEXO tokens even more impressive are the fact that they enable direct dividends from the platform’s profits. Additionally, NEXO tokens can be used on platform discounts.
➡️Stable Coin Interest-bearing Accounts
Stable coins such as Tether or USDC can be used on the Nexo platform and stored for up to 6.5% interest / yearly just for savings accounts.
➡️Cryptocurrency Credit Cards
While most platforms offer cryptocurrency debit cards solely, Nexo offers the ability for cryptocurrency credit cards, since it’s a creditor.
Nexo seems to only truly falter in the supported countries and languages sectors, mainly because of its placement. Nexo gets major points for its ability to offer its products compliantly and transparently in the United States and the United Kingdom. As it stands, however, Nexo is fairly limited otherwise. While they do ask you to proceed with caution, there are a few major countries that do not support its services, including Australia.
Nexo has fairly limited support for languages, a total of 8 including English, however, we aren’t going to hold that against them in consideration for the entirety of the platform. Languages:
When it comes to lending platforms, Nexo is fairly ahead of the game. The platform is based on an LTV model; this is where certain cryptocurrency is deposited on the platform as collateral, and based on the deposit, you are given a loan. For example, most Nexo loans issued have an LTV ratio of 50%, meaning you need to deposit twice the USD value of cryptocurrency relative to the cash loan you want to take out. The loan is essentially already paid off, however, this type of loan in the crypto market hedges from both missing out on large market opportunities and also having cash on hand.
Nexo offers one of the more advanced lending platforms in the industry. Currently, Nexo is in competition with strictly cryptocurrency-based lending platforms, as well as collateral-focused lenders. In both cases, Nexo provides an extremely impressive platform.
Through the technology developed with Credissimo, which is Nexo’s founding company, loans can be autonomously paid off and set according to your input. Also, since their is liquidation parameters already set, you’ll never have to worry about monthly minimum payments or the like.
Fees and Limits
Fees, as well as account limitations on Nexo, are very very competitive. Considering the platform isn’t in competition with a lot of other entities, Nexo immediately has the upper hand. However, Nexo isn’t trying to compete directly with other cryptocurrency lending platforms; in fact, through advantageous their fees and limits, Nexo places itself in direct competition with traditional investment banks and additional legacy creditors/lenders.
- Minimum: $500
- Maximum: $2.5M
Arguably what has been considered one of Nexo’s largest edges is the fact that there is little to no account verification required in order to get started. The minimum loan amount that you can undertake on the Nexo platform is $500 equivalent. The maximum amount that you can currently can a loan for on Nexo is approximately $2M USD equivalent. However, when looking for loans up to $10,000, you don’t have to verify your account.
As far as minimum amounts of crypto that you can deposit, they are subject as follows:
– BTC: 0.002
– ETH: 0.02
– LTC: 0.1
– Nexo: 25.0
– BNB: 4.0
– XRP: 30.0
Lending and Credit Fees
Nexo’s fees when using their loans and credit lines are various, however, they traditionally start at approximately 5.9% APR and fluctuate depending on the amount of NEXO tokens you have, the amount of information you provide the NEXO platform, the amount of liquid collateral you put up, and so on.
????Nexo has no monthly minimums and no late fees.
????Average interest rates for Nexo loans are approximately 8-14%.
Nexo does not incur any withdrawal fees, only network fees retained to pay the network when transactions are made.
Nexo offers a very unique combination in its offering that blends the two account types together very well. Those accounts are as follows:
Interest Bearing Stable Coin: Opening these accounts means you are depositing a stable coin to earn yearly interest.
Loan Accounts: These types of accounts are opened when seeking a loan from Nexo.
How to get a loan on Nexo
Security and Regulation
Nexo is registered and regulated with the SEC; their filings can be found under the SEC archives as ‘Nexo Capital, Inc.’ As long as you follow the proper protocols parallel to your jurisdiction in buying cryptocurrency, you should be secured.
Their token offering of ‘NEXO’ was registered and entirely compliant with the proper legislation.
We’re extremely fond of Nexo because of their ability to enable such a high level of fund security and custodian. Nexo is partnered with the custodian BitGo, and offers insurance on your funds for up to $100M; all transparently.
Deposit and Withdrawal Process
Nexo offers a variety of different payment options when it comes to deposits and withdrawals, so let’s review each one separately.
Deposit: Deposits made to the platform are exclusively made in cryptocurrency, well, because the main purpose of the platform is to provide you a loan in fiat. Deposits for Nexo loans can be made via Bitcoin, Ethereum, Binance Coin, Litecoin Cardano, EOS, IOTA, Monero, OmiseGO, VeChain, Stellar, NEXO, XRP, Bitcoin Cash, Dash, Ethereum Classic, Kin, NEO, Qtum, Tron, and ZCash.
Withdrawal: When you are issued your loan you have the choice for withdrawal via either cash and a bank account or stable coin. In both cases, your withdrawal is generally maintained as secure.
Education and Resources
Although Nexo as a whole is an excellent platform and maintains excellent products that beat out its competitors, we do believe that it can improve upon its educational and resources section within the industry. The concept behind Nexo is already complex as it is, however, we feel that with the amount of institutional backing that it has, that it can improve its educational and resources-focused sectors.
As a whole, the Nexo platform isn’t something that newcomers can grasp straight off the bat within cryptocurrency. Additionally, Nexo does, in fact, offer some interactive designs and click-throughs on their website, however, we believe that Nexo should have more of a dedicated educational and assistive resource center. The following is an example of one of the educational graphics available on the homepage:
While the above makes sense to a user who understands LTV-based loans and has done thorough research and diligence on the idea, such as ourselves, for newcomers and beginners, this seems like a lackluster effort at trying to teach the public how to use it.
Nexo offers customer service that is fairly quick and responsive; they offer 9-5 instant customer service response during the week, and email and text-based customer service 24/7 at all other times. While a perfect score of 10 would be warranted if the platform enabled 24/7 access to instant customer support, unfortunately, it’s just not the case yet with Nexo.
Nexo’s customer service is also, more importantly, knowledgable in regards to Nexo, which is something that isn’t always the case with customer service.
Pros and Cons
From our due diligence and personal interaction with Nexo, we can confidently say that Nexo is our top selection as far as Bitcoin lending platforms go. Due to its regulatory abidance, a competition squishing fee structure, and transparent insurance on your funds, we highly recommend Nexo to prospective cryptocurrency users looking for a lending platform.
In each case, getting started with Bitcoin loan platforms such as Nexo requires an initial purchase of cryptocurrency; if you’re unfamiliar with buying crypto, check out our beginner’s guide on buying Bitcoin using PayPal.
My LTV ratio on Nexo is 30%, why?
This can be because of the type of cryptocurrency you've deposited for collateral, the country you reside in, and more. It's best to ask Nexo directly about your LTVs.
Who are Nexo's main competitors?
The community has considered BlockFi and SALT Lending as Nexo's main competition.
What do NEXO tokens do?
NEXO tokens give you 30% of the profit that Nexo produces, and also gives you exclusive discounts on the Nexo platform. NEXO tokens are available for purchase on a variety of validated exchanges, including Binance.
What is Nexo mainly used for?
Nexo is mainly used and known for its lending platform. Users who don't believe that cryptocurrency will fall any more than 50% from its current value, and additionally want immediate cash for their investments can use Nexo.
Does Nexo have hidden fees?
It is affirmed in the terms and conditions as well as all user agreements that Nexo will never incur hidden fees.
What happens if I miss a monthly payment on Nexo?
Nothing - your loan is relative to your collateral cryptocurrency. As long as the value of your collateral doesn't bring your LTV ratio above 100%, nothing happens when missing your monthly fee.
Can I use Nexo if I have bad credit?
Yes! Nexo doesn't require any credit checks whatsoever.
Does Nexo also offer cryptocurrency credit cards?
Yes - since Nexo is one of the only cryptocurrency creditors, they have subsequently also enabled cryptocurrency credit cards. These are credit cards issued to you Powered by MasterCard that are directly linked to the credit line that is issued to you.