How Does Nexo Work?
Signing up for a free Nexo account is an identical course of to signing up for a checking account. You will have to enroll with a legitimate e-mail handle, after which submit private data to confirm your id. This contains offering the next:
- Authorized identify
- Authorized handle
- Cellphone numbers
- Image of non-public ID card (corresponding to a driver’s license)
- Selfie image
After submitting this data, your account might be verified and you should use any of Nexo’s options.
Nexo permits you to purchase crypto with fiat foreign money (corresponding to USD), after which use that crypto to use for a mortgage, or earn curiosity (for non-U.S. customers solely). Crypto-backed loans provide charges as little as 0%, and crypto curiosity accounts pay as much as 17% on deposited cryptocurrencies.
Nexo affords a cell app for each Android and iOS, which has the identical performance as the net model. You possibly can deposit and withdraw crypto, apply for a mortgage, or apply for the Nexo debit card all inside the app.
Learn extra: Crypto Lending Defined
How A lot Does Nexo Value?
Nexo makes cash by charging charges for crypto loans, in addition to unfold charges by means of its built-in crypto trade. There are additionally charges charged for making crypto withdrawals. Right here’s a fast breakdown of the prices on the Nexo platform:
Characteristic | Charges |
---|---|
Crypto Loans | 0%-13.9% (varies by loyalty degree and LTV) |
Purchase/Commerce Crypto | As much as 2% unfold price |
Deposit Charges | None |
Withdrawal Charges | Varies by foreign money and loyalty degree |
Be taught extra about Nexo right here.
Nexo Options
Crypto-Backed Loans
Nexo is in the beginning a crypto lending platform that permits you to deposit cryptocurrency as collateral, and borrow in opposition to the worth of their holdings. This requires depositing crypto onto the platform (or buying by means of the Nexo trade), after which selecting your mortgage phrases.
Nexo loans are much like a portfolio line of credit score, permitting you to borrow as much as a sure share of the worth of your crypto holdings. Loans can be found in each money or stablecoins, and there aren’t any required month-to-month funds. Nexo permits you to borrow as much as 90% loan-to-value (LTV) on the worth of your crypto, relying on the token used for collateral.
Rates of interest are primarily based on each the LTV and Nexo loyalty degree. The Nexo loyalty degree is set by the quantity of NEXO tokens held in a consumer’s account. Right here’s a breakdown of the charges:
Loyalty Degree | Mortgage-to-Worth (LTV) | Curiosity Price |
---|---|---|
Base (no NEXO tokens) | As much as 90% | 13.9% |
Silver (1% of portfolio in NEXO tokens) | As much as 90% | 12.9% |
Gold (5% of portfolio in NEXO tokens) | As much as 90% | 8.9% |
Gold (5% of portfolio in NEXO tokens) | ≤ 20% | 1.9% |
Platinum (10% of portfolio in NEXO tokens) | As much as 90% | 6.9% |
Platinum (10% of portfolio in NEXO tokens) | ≤ 20% | 0% |
There aren’t any origination charges, and curiosity is just charged on the quantity of funds withdrawn from the road of credit score, not the entire authorized quantity. There are additionally no month-to-month compensation necessities, which means the mortgage could be paid again every time.
Mortgage minimums are $50 for stablecoin loans, and $500 for fiat loans.
Crypto Alternate
Nexo affords a crypto trade that helps over 40 cryptocurrencies for purchasing and promoting, in addition to buying and selling pairs to swap from one crypto to a different. Altogether, there are over 300 crypto-to-crypto buying and selling pairs obtainable for buying and selling.
Nexo doesn’t provide superior charting or buying and selling instruments, and is geared toward learners and platform customers that merely wish to purchase crypto, or shortly swap between currencies. The order kind may be very easy, and costs are mounted. Nexo additionally affords as much as 0.5% money again on swaps, relying on which loyalty tier you might be in.
Whereas there are technically no charges for utilizing the Nexo trade, in my testing there was a few 2% unfold between the Nexo worth and the market worth, which means that Nexo will gather the distinction in worth as a price. This price is consistent with exchanges like Coinbase, however a lot greater than FTX.us or Binance.us.
Total, the Nexo trade is there for the comfort of Nexo customers that wish to preserve their cash all on one platform, however it’s not best for energetic or high-volume merchants that wish to save on charges.
Crypto Debit Card
The Nexo card is tied to Nexo credit score line accounts, permitting you to spend cash utilizing your borrowed funds. As a debit Mastercard, you can also make on a regular basis purchases and the steadiness of the cardboard is pulled out of your credit score line.
The Nexo card pays 0.5% money again in BTC rewards or 2% money again in NEXO token rewards for each buy. The cardboard additionally helps Google and Apple Pay, and affords digital card numbers for extra safety.
The Nexo card comes with no hidden charges, however it doesn’t have the identical protections as a bank card. You don’t have to make a month-to-month fee on the cardboard; its steadiness is just taken out of your current Nexo credit score line. To use for the Nexo card, you need to have an open Nexo credit score line in good standing.
Crypto Curiosity Accounts (Non-U.S. Residents Solely)
Nexo has interest-bearing crypto financial savings accounts for non-U.S. residents, providing as much as 18% APY on chosen crypto deposits. Curiosity is paid out day-after-day again into the account, permitting funds to compound.
The best rates of interest are solely obtainable to customers that elect to earn curiosity in NEXO tokens, which enhance earnings by an extra 2%. Customers which are at a better loyalty degree can also earn further curiosity. To start out incomes, you will have to be a non-U.S. verified consumer and deposit funds right into a Nexo Earn account.
* Observe: After a $100M lawsuit by the SEC against crypto lender BlockFi, Nexo eliminated the Earn product for U.S. residents, and new U.S. customers in addition to current U.S. customers’ deposits can not earn curiosity as of February 19, 2022. U.S. residents with current deposits in a Nexo Earn account previous to February 19, 2022 can nonetheless earn curiosity, however eliminated funds can’t be re-deposited.
My Expertise Utilizing Nexo
Nexo is an intuitive platform, and I used to be in a position to shortly navigate all of its options, in addition to get an estimate for a way a lot I may borrow in opposition to my crypto portfolio. Even earlier than creating an account, I used to be in a position to begin up a chat session with the customer support staff and get some questions answered inside a couple of minutes.
Having tried out dozens of crypto exchanges, I used to be pleasantly shocked at how easy every thing was on Nexo’s user-friendly buyer dashboard.
Although I’ve not pulled out a Nexo mortgage or traded on the platform, the general expertise appeared like it might be good for learners, or buyers that need instantaneous entry to money with out the tax implications of promoting their crypto.
Who Ought to Use Nexo?
Crypto HODLers
Traders that wish to HODL their crypto for the long run could profit from releasing up a few of their capital by using Nexo for its crypto line of credit score. It’s exhausting to beat charges as little as 0%.
Crypto Newbies
In case you are new to crypto, Nexo affords a really intuitive consumer expertise, making it simple to purchase and promote crypto, in addition to entry money if wanted. Whereas the buying and selling charges could be on the excessive aspect, the expertise is designed with learners in thoughts.
Be taught extra about Nexo right here.
Nexo.io vs. Opponents
Nexo.io | BlockFi | CoinLoan | |
---|---|---|---|
Supported crypto | 40+ | 15 | 25 |
Mortgage rates of interest | 0%-13.9% APR | 4.5%-9.75% APR and a couple of% origination price | 4.95%-11.95% APR and 1% origination price |
Minimal mortgage quantity | $50 (stablecoin) and $500 (fiat) | $10,000 | Varies by foreign money |
Crypto curiosity account for U.S.? | No | Sure (excessive net-worth shoppers solely) | Sure |
Crypto card | Sure | Sure | No |
Buyer help | Dwell chat, e-mail, social media | Cellphone help, reside chat, e-mail, social media | Dwell chat, e-mail, social media |
BlockFi vs Nexo
BlockFi affords crypto loans on Bitcoin and some different common cryptocurrencies. It additionally affords a built-in trade and crypto rewards bank card. Much like Nexo, BlockFi used to supply crypto curiosity accounts to U.S. residents, however had been penalized by the SEC in February of 2022, and now solely affords curiosity accounts to customers with $3 million in property (or extra) on the platform.
BlockFi loans solely permit customers to borrow as much as 50% of the worth of their crypto, and rates of interest are decrease for customers that borrow at a decrease LTV fee. Sadly, BlockFi additionally expenses an upfront 2% origination price, whereas Nexo doesn’t, making BlockFi far more costly for borrowing.
Total, BlockFi is an honest selection over Nexo for customers that desire a conventional mortgage as an alternative of a line of credit score. But it expenses extra for crypto loans than Nexo’s LOC, with much less cryptocurrencies that can be utilized as collateral.
Get began with BlockFi or study extra by studying our full BlockFi evaluate.
CoinLoan vs. Nexo
CoinLoan is a crypto lender obtainable in all 50 states, providing crypto loans in addition to crypto curiosity accounts. Whereas supporting fewer cash than Nexo, customers can borrow in opposition to over 20 cryptocurrencies, and might borrow Euros (EUR), or a number of crypto, together with stablecoins and different currencies. Rates of interest vary from 4.95% to 11.95%, permitting customers to borrow an LTV of as much as 70% of the worth of their collateral. There’s additionally a 1% origination price on all loans.
CoinLoan additionally affords high-yield crypto financial savings accounts, paying as much as 12% on deposited crypto. CoinLoan nonetheless affords these accounts to U.S. buyers, although ever-changing rules could change this sooner or later.
Total, CoinLoan is a well-designed crypto lending platform that gives respectable charges and crypto curiosity accounts to U.S. buyers.
Abstract
Nexo is among the prime crypto lenders for a motive, providing a number of the lowest charges obtainable on crypto-backed loans, in addition to an honest number of currencies. The dearth of curiosity accounts for U.S. buyers is a bummer, however they’re promising to come back out with a brand new “Yield” providing to fill the hole quickly.
In case you are searching for a crypto-collateralized mortgage with low charges and versatile compensation phrases, Nexo is my best choice.