How Does Nexo Work?
Signing up for a free Nexo account is an identical course of to signing up for a checking account. You’ll need to enroll with a legitimate electronic mail deal with, after which submit private data to confirm your id. This consists of offering the next:
- Authorized title
- Authorized deal with
- Cellphone numbers
- Image of non-public ID card (comparable to a driver’s license)
- Selfie image
After submitting this data, your account can be verified and you should use any of Nexo’s options.
Nexo permits you to purchase crypto with fiat foreign money (comparable 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 presents a cellular app for each Android and iOS, which has the identical performance as the online model. You’ll be able to 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 Value?
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:
Function | Charges |
---|---|
Crypto Loans | 0%-13.9% (varies by loyalty degree and LTV) |
Purchase/Commerce Crypto | As much as 2% unfold charge |
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 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 share 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 based mostly on each the LTV and Nexo loyalty degree. The Nexo loyalty degree is decided 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 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 simply charged on the quantity of funds withdrawn from the road of credit score, not the whole permitted 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 Change
Nexo presents 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 accessible for buying and selling.
Nexo doesn’t provide superior charting or buying and selling instruments, and is aimed toward rookies and platform customers that merely need to purchase crypto, or shortly swap between currencies. The order kind may be very easy, and costs are fastened. Nexo additionally presents 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 alternate, in my testing there was a few 2% unfold between the Nexo worth and the market worth, which means that Nexo will acquire the distinction in worth as a charge. This charge is according to exchanges like Coinbase, however a lot increased than FTX.us or Binance.us.
Total, the Nexo alternate is there for the comfort of Nexo customers that need to hold their cash all on one platform, however it’s not perfect for energetic or high-volume merchants that need 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 may 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 presents 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 don’t have to make a month-to-month fee on the cardboard; its steadiness is just taken out of your present Nexo credit score line. To use for the Nexo card, you have 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 daily again into the account, permitting funds to compound.
The best rates of interest are solely accessible to customers that elect to earn curiosity in NEXO tokens, which enhance earnings by a further 2%. Customers which might be at the next loyalty degree can also earn further curiosity. To begin incomes, you have to to be a non-U.S. verified consumer and deposit funds right into a Nexo Earn account.
* Be aware: 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 present U.S. customers’ deposits can not earn curiosity as of February 19, 2022. U.S. residents with present 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 capable of shortly navigate all of its options, in addition to get an estimate for the way a lot I might borrow towards my crypto portfolio. Even earlier than creating an account, I used to be capable of begin up a chat session with the customer support workforce 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 could be excellent for rookies, or buyers that need prompt entry to money with out the tax implications of promoting their crypto.
Who Ought to Use Nexo?
Crypto HODLers
Traders that need to HODL their crypto for the long run might 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 presents a really intuitive consumer expertise, making it straightforward 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 rookies 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 pair of% origination charge | 4.95%-11.95% APR and 1% origination charge |
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, electronic mail, social media | Cellphone help, dwell chat, electronic mail, social media | Dwell chat, electronic mail, social media |
BlockFi vs Nexo
BlockFi presents crypto loans on Bitcoin and some different common cryptocurrencies. It additionally presents a built-in alternate and crypto rewards bank card. Just 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 presents curiosity accounts to customers with $3 million in belongings (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 price. Sadly, BlockFi additionally prices an upfront 2% origination charge, whereas Nexo doesn’t, making BlockFi rather more costly for borrowing.
Total, BlockFi is a good alternative over Nexo for customers that need a conventional mortgage as an alternative of a line of credit score. But it prices 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 evaluation.
CoinLoan vs. Nexo
CoinLoan is a crypto lender accessible 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 choice 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 charge on all loans.
CoinLoan additionally presents high-yield crypto financial savings accounts, paying as much as 12% on deposited crypto. CoinLoan nonetheless presents these accounts to U.S. buyers, although ever-changing laws might 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 without doubt one of the prime crypto lenders for a purpose, providing a few of the lowest charges accessible on crypto-backed loans, in addition to a good choice 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.