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 electronic mail tackle, after which submit private info to confirm your identification. This consists of offering the next:
- Authorized identify
- Authorized tackle
- Cellphone numbers
- Image of non-public ID card (akin to a driver’s license)
- Selfie image
After submitting this info, your account might be verified and you should use any of Nexo’s options.
Nexo permits you to purchase crypto with fiat foreign money (akin 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 may deposit and withdraw crypto, apply for a mortgage, or apply for the Nexo debit card all throughout the app.
Learn extra: Crypto Lending Defined
How A lot Does Nexo Price?
Nexo makes cash by charging charges for crypto loans, in addition to unfold charges by way of its built-in crypto alternate. 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 stage and LTV) |
Purchase/Commerce Crypto | As much as 2% unfold payment |
Deposit Charges | None |
Withdrawal Charges | Varies by foreign money and loyalty stage |
Study extra about Nexo right here.
Nexo Options
Crypto-Backed Loans
Nexo is at first a crypto lending platform that permits you to deposit cryptocurrency as collateral, and borrow towards the worth of their holdings. This requires depositing crypto onto the platform (or buying by way of the Nexo alternate), 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 proportion of the worth of your crypto holdings. Loans can be found in each money or stablecoins, and there are not 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 stage. The Nexo loyalty stage is set by the quantity of NEXO tokens held in a person’s account. Right here’s a breakdown of the charges:
Loyalty Stage | Mortgage-to-Worth (LTV) | Curiosity Charge |
---|---|---|
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 are not any origination charges, and curiosity is just charged on the quantity of funds withdrawn from the road of credit score, not the entire authorised quantity. There are additionally no month-to-month reimbursement necessities, that means the mortgage may be paid again each time.
Mortgage minimums are $50 for stablecoin loans, and $500 for fiat loans.
Crypto Change
Nexo affords a crypto alternate that helps over 40 cryptocurrencies for getting 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 out there for buying and selling.
Nexo doesn’t provide superior charting or buying and selling instruments, and is geared toward newcomers and platform customers that merely wish to purchase crypto, or rapidly 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’re in.
Whereas there are technically no charges for utilizing the Nexo alternate, in my testing there was a couple of 2% unfold between the Nexo value and the market value, that means that Nexo will acquire the distinction in value as a payment. This payment is in keeping with exchanges like Coinbase, however a lot larger than FTX.us or Binance.us.
General, the Nexo alternate is there for the comfort of Nexo customers that wish to preserve their cash all on one platform, however it’s not ideally suited 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 stability 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 added safety.
The Nexo card comes with no hidden charges, however it doesn’t have the identical protections as a bank card. You would not have to make a month-to-month cost on the cardboard; its stability is solely taken out of your current Nexo credit score line. To use for the Nexo card, you will 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 out there to customers that elect to earn curiosity in NEXO tokens, which increase earnings by a further 2%. Customers which can be at a better loyalty stage may additionally earn further curiosity. To start out incomes, you have to to be a non-U.S. verified person and deposit funds right into a Nexo Earn account.
* Word: After a $100M lawsuit by the SEC towards 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 rapidly navigate all of its options, in addition to get an estimate for the way a lot I may borrow towards 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 stunned at how easy all the things 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 excellent for newcomers, or buyers that need on the spot 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 might profit from liberating 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 person expertise, making it simple to purchase and promote crypto, in addition to entry money if wanted. Whereas the buying and selling charges may be on the excessive facet, the expertise is designed with newcomers in thoughts.
Study extra about Nexo right here.
Nexo.io vs. Rivals
Nexo.io | BlockFi | CoinLoan | |
---|---|---|---|
Supported crypto | 40+ | 15 | 25 |
Mortgage rates of interest | 0%-13.9% APR | 4.5%-9.75% APR and a pair of% origination payment | 4.95%-11.95% APR and 1% origination payment |
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 purchasers solely) | Sure |
Crypto card | Sure | Sure | No |
Buyer help | Reside chat, electronic mail, social media | Cellphone help, dwell chat, electronic mail, social media | Reside chat, electronic mail, social media |
BlockFi vs Nexo
BlockFi affords crypto loans on Bitcoin and some different well-liked cryptocurrencies. It additionally affords a built-in alternate and crypto rewards bank card. Much like Nexo, BlockFi used to supply crypto curiosity accounts to U.S. residents, however have 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 fees an upfront 2% origination payment, whereas Nexo doesn’t, making BlockFi rather more costly for borrowing.
General, BlockFi is an honest alternative over Nexo for customers that desire a conventional mortgage as a substitute of a line of credit score. But it fees 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 overview.
CoinLoan vs. Nexo
CoinLoan is a crypto lender out there in all 50 states, providing crypto loans in addition to crypto curiosity accounts. Whereas supporting fewer cash than Nexo, customers can borrow towards over 20 cryptocurrencies, and may 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 may be additionally a 1% origination payment 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 might change this sooner or later.
General, CoinLoan is a well-designed crypto lending platform that provides first rate charges and crypto curiosity accounts to U.S. buyers.
Abstract
Nexo is without doubt one of the high crypto lenders for a cause, providing a few of the lowest charges out there 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 return out with a brand new “Yield” providing to fill the hole quickly.
In case you are in search of a crypto-collateralized mortgage with low charges and versatile reimbursement phrases, Nexo is my best choice.