Nexo Review 2023: Must Read Before Opening Account
Nexo is one of the few crypto exchange platforms that offer investors high-interest rates on their crypto holdings. Volatility is the primary factor that differentiates cryptocurrencies from fiat money. That is why holding cryptocurrencies can never be the same as holding fiat money. However, platforms like Nexo allow investors to hold their crypto and earn interest like a savings account. Let us look at the Nexo review in detail.
What is Nexo
Nexo was founded in 2017 by Antoni Trenchev, the co-founder and managing partner of the platform. Nexo aims to empower millions of crypto users to harness the power of digital assets by shaping a better financial system. The platform offers its services in more than 200 jurisdictions having around 4 million users worldwide. Nexo claims itself as one of the world’s largest and most trusted lending financial institutions in the digital finance industry.
Nexo is an all-in-one platform where investors can securely store their digital assets and earn interest on popular cryptocurrencies, stablecoins, and selected fiat currencies.
Interest rates of crypto deposits can be as high as 12% on Nexo, which makes it an attractive platform for investors trying to make their crypto work for them. It provides multiple services such as allowing users to buy, exchange, and borrow against cryptocurrencies, offering high-interest rates for crypto deposits, etc.
The Nexo platform is backed by blockchain technology which results in transparent operations. It also facilitates the processing of smart contracts on Ethereum and stores relevant tokenized data for transactions. The platform also has its native token, NEXO, an ERC-20 token. NEXO holders are entitled to extra features within the platform, such as bonus interest rates, lower interest rates on loans, and dividends.
- Nexo provides high-yield savings accounts with up to 12% interest on coins and fiat currencies.
- A suitable platform for beginners who are new to cryptocurrency savings accounts.
- Nexo practices advanced security features, offers insurance for lenders and has 24/7/365 fraud monitoring.
- Nexo mobile application has a simple and easy-to-use interface.
- The platform offers high-yield only on a few of the popular stablecoins.
- It has fewer educational resources compared to its competitor platforms.
Is Nexo Safe?
The Nexo platform practices top-level security infrastructure to make sure they provide maximum protection for all the assets around the clock. The Nexo group holds legal entities in different parts of the world to ensure that they are regulatory complainants in all the jurisdictions where it operates. Let us have a look at the platform’s safety features.
- Military-grade storage - All the assets deposited into the platform are stored securely in military-grade Class Ⅲ vaults. At the same time, Nexo allows users to access their funds instantly and provides full independence from third-party providers.
- Third-party audits - Nexo works with Armanino so that it can conduct a Proof of Reserves assessment and provide real-time attestations over the company’s custodial holdings. This increases transparency, and the platform always meets client obligations.
- ISO certified - Nexo is ISO 27001:2013 certified. This confirms the platform’s flawless risk assessment, robust protection of data, and enhanced cyber security.
- $375 million insurance - Nexo partnered with security providers in the blockchain space, such as BitGo. Ledger Vault, etc. These platforms carry $375 million in insurance protections collectively for digital assets held on Nexo.
- Regulatory compliance - The Nexo platform uses Jumio to meet the KYC and AML global compliance standards. Jumio is trusted by reputed companies such as Microsoft, Oracle, Monzo, and HSBC.
To further strengthen the platform, Nexo is also utilizing BitGo’s Enterprise Solution, which is Cryptocurrency Security Standard Level 3 (CCSS Level 3). It requires advanced authentication mechanisms to ensure the authenticity of data on the Nexo platform. Nexo protects all kinds of customer data and maintains confidentiality by encrypting the data through Secure Socket Layer (SSL) technology.
Apart from these security measures, Nexo platform security practices include 2-factor authentication (SMS and email verification), Biometric identification (fingerprint or face recognition), address whitelisting, withdrawal confirmations, and log-in alerts. The platform also runs regular internal security and privacy workshops to ensure that Nexo’s staff is up to speed with advanced cyber security practices.
Nexo ensures that all funds are asset-backed by a portfolio of over-collateralized cryptocurrency loans. Considering the safety measures employed by the platform, Nexo is safe. However, users should always do their own research and consider potential risks before they start investing their funds.
See if Nexo Is a Good Fit for You
Platform & Features
The Nexo platform offers its services through its desktop version and mobile application. Both platforms are not so different in functionality, allowing users to manage their funds, card, and credit line in simple steps. Nexo mobile applications are available both for iOS and Android software.
Nexo wallet allows users to access all the features a crypto wallet could provide, and they can experience all the advantages of mobile cryptocurrency wallets. The Nexo wallet is always in sync with the blockchain, and users can log in at any time using their email or mobile phone number. Users can access their Nexo accounts around the clock using its website and manage coins on the desktop anytime. The Nexo wallet is available for Windows, OSX, Ubuntu, and other Linux-based operating systems.
Benefits of Nexo wallet
- Users can store, send, and receive cryptocurrency securely with the Nexo wallet.
- Mobile Nexo wallet is available on iOS and Android.
- Freewallet users of Nexo can enjoy free transactions among them.
- Users can fund their wallets with a wide range of cryptocurrencies.
- Nexo wallet allows users to monitor exchange rates with real-time price charts.
- Users can access their Nexo wallet account with the Freewallet website on various operating systems.
Let us now discuss the major features of the Nexo platform, such as borrowing and lending funds along with the Nexo card.
Lending: Nexo savings account
One of the most attractive features of Nexo is its interest-bearing savings account. Lenders can open a savings account on Nexo and start earning rewards for depositing various cryptocurrencies, stablecoins, and fiat currencies. Interest is paid on a daily basis, and Nexo does not set a particular period for which the digital assets must be locked in the account.
Users can earn higher interest rates when they deposit the native NEXO token into the interest account. Stablecoins such as USDT, USDC, PAX, DAI, etc., can also be deposited to earn considerable interest rates from the Nexo savings account. The platform even allows users to earn interest on fiat money like USD, GBP, and EUR.
Users can earn the rewards in the underlying cryptocurrency when they choose the “Earn in kind” option while opening the account. If you would like to earn in NEXO tokens, you need to select the “Earn in NEXO” option. When users choose to be paid in NEXO tokens, they will receive an extra 2% APY. Interest rates in Nexo savings account range from 6% to 12% and vary based on the cryptocurrency and whether the users would like to receive rewards in NEXO.
Borrowing: Nexo crypto credit lines
Nexo offers users instant loans, which are known as Nexo crypto credit lines, by using cryptocurrency as collateral. The options for collateral to get a loan on Nexo include BTC, ETH, DAI, and USDC. The company even offers up to a $100 million insurance policy for the custody of assets.
When a user creates a loan, his annual percentage rate (APR) depends on the amount of NEXO token he holds in his portfolio. When users do not hold any NEXO, the platform’s loan APR can be as high as 13.9%, and it can be reduced to 5.9% when the user holds NEXO tokens. The value of the collateral will influence the amount of credit offered by the platform. Notably, loan repayments are always rounded up to 30 days.
Nexo card offers users instant access to their digital assets for purchases on a daily basis. Users can make purchases at more than 90 million merchants around the world using the Nexo card.
The card is linked to Nexo instant crypto credit lines so that you can spend from your available credit limit without disturbing their portfolios.
By making purchases with the Nexo card, you can earn up to 2% in crypto rewards. Thus, you can increase your crypto holdings with every additional purchase or ATM withdrawal. If you choose to receive BTC as the reward, you can only receive a 0.5% reward.
Nexo card does not charge any monthly, annual, or inactivity fees to utilize the card, and it also allows users to borrow funds at 0% APR. Users can activate the virtual credit card and start spending the funds with a single tap on their mobile phones because the virtual card is compatible with online payment methods like Apple Pay and Google Pay. Nexo card has a monthly withdrawal limit of up to €10,000 per month.
Nexo Fees & Commissions
Nexo charges considerably low fees for its savings account. It also does not charge account maintenance fees and allows users to withdraw their crypto at any time without charging fees. When users transfer funds from an exchange wallet to a Nexo account, they would only need to pay brokerage fees.
When purchasing cryptos with a credit card, Nexo charges a 1.49% fee for EU countries, and 3.49% for non-EU countries.
Depending on a user’s Loyalty tier, they can receive from 1 to 5 monthly crypto withdrawals without any charges. Internal Nexo transfers are not counted as one of these withdrawals as they are off-chain. Even though the proper fee structure is not mentioned on the Nexo platform, they stated that the fee depends on the current condition of the respective blockchain.
Bitcoin has the lowest withdrawal minimum at 0.01 coin, and Tron has the highest withdrawal minimum of 20 tokens on the Nexo platform. As per the Nexo Zero Fees policy, users can make unlimited free-of-charge FiatX withdrawals, crypto, and FiatX transfers into users’ Nexo wallets and credit line withdrawals.
What can you trade on Nexo
Nexo allows users to trade a wide range of assets with their preferred assets as the platform supports more than 300 trading pairs. Let us look at a list of all the assets that can be traded on the Nexo platform with different trading pairs:
- USD Coin
- Axie Infinity
- Bitcoin Cash
- PAX Gold
- The Sandbox
- Pax Dollar
Check this article for more information about Nexo fiat trading.
How to Open An Account
Here is a step-by-step guide to creating an account on Nexo to start using the platform and its features.
- Go to the Nexo website and click on the “Create Account” button in the top left corner of the screen.
- You will be redirected to the registration page, where you can enter your email address and create a strong password. Click on the “Create Account” button once you enter the details.
- You need to verify your email address. Nexo will send a link to the email address you have entered. You need to click on the link and verify your email address.
- After verifying the email address, you can log in to your Nexo account. It is recommended to go to the “Security” tab to enable 2-factor authentication before you start utilizing the platform.
- Go to “My Profile” and click on “Verify Identity.” Complete the identity verification process by providing your personal details, such as an address and mobile number, and scan your ID and upload a selfie.
How to Purchase Crypto on Nexo
- Users need to follow the steps mentioned in previous sections to create a Nexo account and verify their details.
- Log in to your account and tap on the “Exchange” option. Then select the “Buy” option, choose the fiat currency you would like to pay with, and choose BTC to purchase Bitcoin.
- You can also buy Bitcoin with yout Visa or Mastercard cards by entering the required details.
- Once Nexo confirms the purchase, you can start earning, borrowing, and swapping your Bitcoin.
Depositing and withdrawing crypto assets
Depositing crypto assets
- You can now deposit funds and purchase your preferred cryptocurrency. Users can click on the “Top Up” button next to any cryptocurrency they want to deposit.
- Click on the dropdown menu and select your preferred network. Make sure the selected network matches the withdrawal network you have chosen on the platform or wallet from which you are sending the assets.
- Enter your private deposit address to transfer the funds to Nexo.
- Users can also deposit their crypto directly from their MetaMask wallet.
Withdrawing crypto assets
- Users need to click on the ‘Withdraw” button next to the cryptocurrency they would like to withdraw.
- Click on the dropdown menu and select the network for your withdrawal. Make sure that the chosen network matches the withdrawal address.
- Enter all the required information and the amount you would like to withdraw and click on the ‘Withdraw” button.
- You would have to complete 2FA verification by entering the code. After that, you need to confirm the withdrawal through the confirmation email you receive in your registered Nexo email inbox.
Nexo Customer Support
Nexo is one of the rare platforms that provide excellent customer support. The support team constantly monitors its social media feed, and the platform has a detailed help center to assist users in utilizing the platform’s services. Nexo provides customer support through 3 different methods.
- Email support - Users can send an email to firstname.lastname@example.org for support from the team.
- Online messaging - Users can contact the Nexo support team by filling out an assistance request form.
- Live chat - Users can click on the blue icon in the bottom right corner of its website to chat with the Nexo support team.
Nexo is one of the best platforms for beginners. It has brought traditional financial services to the cryptocurrency industry. Even inexperienced users can access its wide range of features and services with its easy-to-use platform. Nexo is a good choice for inventors looking to earn passive income through their crypto holdings.
However, it is important to research and find out whether a platform is suitable for your requirements and long-term goals. Check out our crypto comparison page which helps you find out the best suitable crypto platform so that you can make the most of your funds in the crypto space.