Nexo.IO Review – The Future of Crypto Investment Assets

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Nexo Website

Ever since authoritative bodies like the IRS started treating crypto investment assets as legal property, crypto investors have started searching for more investment options and opportunities to make smart investments in crypto-based savings accounts, crypto-backed loans, and other blockchain-native financial products. Using crypto to manage personal wealth wasn’t possible until 2018 when nexo.io, a.k.a Nexo, launched. Nexo is a crypto-based wealth management platform; they provide financial services for digital assets including all the amenities that investors would otherwise get with traditional banks and financial institutions that work only with more conventional asset classes.

Essentially, Nexo is a platform that provides credit and savings accounts for cryptocurrencies, fiat currencies, and various other digital assets. It allows borrowers to mortgage their cryptocurrencies in exchange for fiat loans. Customers can receive loans in stablecoins or via bank transfers that take no longer than 24 hours and are available worldwide in 40+ fiat currencies. During the lending period, the customer maintains full ownership of their collateralized cryptocurrencies. They can repay their loan using either cryptocurrency or fiat.

Unlike other companies offering banking services for digital assets that only accept repayments in fiat currencies, Nexo’s flexibility in this respect demonstrates their dedication to enabling widespread crypto adoption and makes it easier for crypto investors to work with the platform. But there’s more to Nexo when it comes to flexibility: Nexo’s borrowing service isn’t just a simple loan, but rather a credit line. Nexo offers users a sum of available credit (depending on how much crypto collateral they have deposited) from which they can withdraw as much or as little as they wish, in a single transaction or over multiple withdrawals, accruing interest only on the amount they actually take out. There are also no monthly installments with Nexo, so users can repay their credit in their own time.

The process of obtaining loans for cryptocurrency investors has never been easier. Ardent cryptocurrency investors find crypto-backed borrowing much more convenient than taking out loans from regular banks. In three years of existence, the London-based nexo.io has $2+ billion in assets under management and has helped over 1 million users in over 200 jurisdictions.

Nexo.io at a Glance

  • Company Name – Nexo
  • Platform launched – 2018
  • Headquarters – London, UK
  • Website – nexo.io
  • Type – Regulated wealth management platform for digital assets and cryptocurrency wallet.
  • Insurance – All Nexo wallets come with BitGo insurance via various underwriters at Lloyds of London.
  • Fund Storage – Funds held in Nexo Wallets are stored with BitGo, the cryptocurrency world’s leading custodian.
  • Currencies – 18 cryptocurrencies and 40+ different fiat currencies are supported on the platform.
  • Transaction Fee – None. Nexo operates with absolutely no fees for clients.

Nexo immediately started attracting investors once the platform was fully functional in 2018. Currently, it is the best lending service provider in the market that allows investors to borrow cash using their cryptocurrencies as collateral.

How Does Nexo Work?

The Nexo platform can be explained in four simple steps –

  • Crypto owners deposit their cryptocurrencies in their Nexo accounts.  
  • Nexo instantly opens a credit line for them. Funds for Nexo’s credit lines are sourced from the company’s many interest-earning users – these are clients who deposit assets on the platform and earn high yields on their funds through Nexo’s Earn on Crypto and Fiat service.
  • The extensive pool of fiat and cryptocurrencies from the Earn on Crypto and Fiat services provides Nexo with the liquidity needed for loans and makes their instant loans sustainable in the long term.
  • Borrowers can immediately withdraw their loans to a bank account or in stablecoins.

Other Features of Nexo

1.Earning Interest

As we mentioned before, the Nexo platform also offers an earning program, called Earn on Crypto and Fiat which can be used by anyone to earn interest on their cryptocurrencies, stablecoins and fiat. This works by simply depositing assets into the Nexo Wallet. Users don’t need to do anything more, as Nexo automatically begins paying them up to 8% interest on crypto and up to 12% on all other supported assets.

2. NEXO Tokens

To give users higher interest rates for earning and lower borrowing rates for their credit line services, Nexo has a token – the NEXO Token – with which customers can get bonuses. NEXO Tokens are traded on various cryptocurrency exchanges. By buying and holding a certain amount of them in their Nexo Wallets, users qualify for Nexo’s Loyalty scheme. Each level of the scheme – Base, Silver, Gold, Platinum – brings different rewards for users such as bonus interest on their deposits and discounts when repaying their credit line interest.

NEXO Token holders also receive dividends regardless of the Loyalty level they fall into. Nexo distributes 30% of its profits among users who hold their token 30%. Dividends are given out periodically through the Nexo Wallet.

3. Back to Nexo’s Collateralized Loans

Nexo’s crypto-backed loans are available in over two-hundred countries. Since cryptocurrency owners need to provide 200-500% more in collateral compared to the value of the fiat or stablecoins they wish to withdraw,  they never have to go through strict credit checking processes because Nexo’s business is protected via the crypto collateral should a client default on a loan. Getting instant crypto credit has never been easier as all consumers on the platform are eager to take loans and be a part of this new form of secure, quick, seamless, and profitable lending service.

Cryptocurrency owners don’t have to sell their assets and can use their fiat currency loans however they want. After repaying the loans, they can regain control of their cryptocurrencies.

4. Easy to Receive Nexo Loans

Receiving crypto loans on the Nexo platform is very easy.

  • Users first need to deposit crypto in their Nexo Accounts.
  • They can choose to receive their Nexo loan in 40+ different fiat currencies.
  • The deposited cryptocurrency serves as collateral for the users’ fiat loans.
  • The collateralized crypto assets are stored by a certified third-party custodian BitGo which also provides insurance coverage. Thus crypto assets are always protected and in cold storage.
  • When clients withdraw money from their Nexo credit line, Nexo’s automated system instantly credits the user’s bank account with the corresponding sum, irrespective of the user’s location. There are no complicated evaluation processes.
  • There are no fees involved when taking out a Nexo loan. 
  • Interest for a Nexo loan can be as low as 5.9% APR with no set monthly repayment requirements. Users are free to repay their loans whenever they wish with either crypto or fiat.
  • The platform supports plenty of collateral options – 18 in total – including, but certainly not limited to: Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), XRP, Bitcoin Cash (BCH), and many more.

Who Can Use Nexo Loans?

Anyone can use Nexo’s services be it to borrow or earn interest on their assets. Nexo offers small loans of up to $2000 to users with Basic verification. All you need for Basic Verification is your phone number. For all loans bigger than $2000 users need to pass Nexo’s ‘KYC’ (Know Your Customer.)

Pros of Nexo

  • Wallet insurance keeps crypto assets safe and secure.
  • Easy to use app.
  • Offers special support for business accounts.
  • Zero fees.
  • Available globally.
  • Users can earn extra interest or get discounts for their credit lines if they hold NEXO Tokens in their accounts.

Cons

  • No option to purchase cryptocurrencies directly from the Nexo app, although recent interviews with one of Nexo’s co-founders, suggest that this may be changing soon!

Nexo is an award-winning platform that has helped over 1,000,000 users from across the world. It continues to be a platform of key interest for high net worth individuals, both large and small businesses, family offices, and even retail investors. Overall, Nexo offers users the perfect chance to get involved in modern asset classes and the new world of investment!