Nexo Comprehensive Review
Nexo is one of the leading all-in-one crypto platforms, with over 6 million users in more than 200+ jurisdictions. It offers multiple products and services related to crypto assets, including purchasing, earning interest, borrowing, and trading. The company pioneered the first Instant Crypto Credit Line, where users can easily borrow against their crypto. Since its start in 2018, Nexo has processed over $130 billion in assets.
What Makes Nexo Stand Out?
Since its launch in 2018, Nexo has revolutionized the crypto world with its Instant Crypto Credit Lines. For the past six years Nexo has evolved from a crypto lending platform to a comprehensive all-in-one solution for managing crypto assets, trusted by over 6 million users worldwide. As one of the few crypto companies that has weathered the crypto winter, Nexo is a testament to resilience and innovation in the ever-changing crypto market.
All-in-One Crypto Management Hub:
- Exchange: Engage in futures trading, benefit from dollar-cost averaging, explore high-performing Crypto Bundles, and enjoy straightforward tax reporting.
- Earn: Secure your earnings with an industry-leading 16% return on stablecoins.
- Nexo Card: A vital part of your lifestyle, the Nexo Card is unique in functioning as both a debit and credit card, offering the flexibility to either hold (HODL) or spend your crypto.
- Borrow: leverage your crypto assets with Nexo’s innovative Crypto Credit Line.
Nexo demonstrates a strong focus on security and regulatory adherence as a digital assets platform, maintaining registrations with various regulatory authorities.
What can I trade on Nexo:
Nexo allows users to trade over 60 digital assets using either a card or bank transfer, offering more than 500 trading pairs with various order types like advanced, trailing, and OCO orders. It also provides perpetual futures trading with up to 50x leverage on some assets and margin trading with up to 5x leverage, using the user’s crypto assets as collateral. The Nexo Pro dashboard gives users detailed insights into their trading activities and margin levels.
Spot trading on Nexo
Nexo offers over 500 trading pairs and supports various unique order types, each with specific advantages. These order types include:
- Advanced Order (Trigger Swap): Similar to a stop-market order, it turns into a market order when the asset hits a set price, acting as a trigger for buying or selling.
- Trailing Order: A type of order that sets a stop price below (for sell orders) or above (for buy orders) the market price. The stop price adjusts with favorable market movements.
- OCO Order (One-Cancels-the-Other): A combination of a stop and limit order, where the execution of one cancels the other.
- Stop Loss and Take Profit Orders* (Trigger Orders): Stop-loss orders sell an asset at a certain price to minimize loss, while take-profit orders close a trade at a specified level for profit.
Futures trading on Nexo
Nexo allows trading in perpetual futures contracts settled in USDT (Tether), with up to 50x leverage on some assets. Unique to Nexo’s Perpetual Futures is the ability to trade contracts on assets not available on their spot trading platform, like GMT, ALGO, and XTZ. However, Nexo Pro, their advanced trading platform, and certain trading features are restricted in the U.S., Canada, U.K., and Australia.
Margin trading on Nexo
Nexo’s margin trading feature lets users enhance their positions with up to 5x leverage, using their crypto assets as collateral. Traders can opt for long or short positions. The Nexo Pro dashboard provides a comprehensive view of margin trading activities, including loan amounts, margin levels, and the crucial margin call threshold. Traders need to add more collateral if their margin level falls to the margin call threshold to maintain their position.
Security and Risk Management
Nexo places a strong emphasis on security with its strict over-collateralization policies, guaranteeing that loans are granted only to those who provide sufficient collateral. Their risk management strategy incorporates market-neutral tactics to ensure liquidity and growth. Due to these measures, Nexo was not impacted by the crypto market turmoil of 2023, maintaining stability while many other crypto and fintech firms faced challenges. Notably, Nexo is distinct in that it doesn’t rely on venture capital funding, being entirely owned by its founders.
Furthermore, Nexo employs a robust framework of custody and insurance providers, including Ledger Vault and Bakkt, to ensure safety through top-tier underwriters like Lloyd’s of London. Ledger Vault offers around-the-clock, institutional-grade self-custody backed by a $150 million insurance policy.
Nexo offers industry-leading rates of up to 16% on stablecoins. To start earning interest on your crypto assets, all you need to do is purchase or transfer any of the supported assets onto the Nexo platform and then let it sit. Clients can receive daily payouts and grow their assets faster over time.
Users have the flexibility to choose from two methods for earning passive income on cryptocurrencies. The first option is earning in the Flex Term. This method offers the flexibility of no-lock periods, allowing you to freely trade, sell or withdraw assets at any time while earning daily payments. On the other hand, the Fixed Term method allows you to take advantage of the highest rates. You can choose a Fixed Term of 1,3 or 12 months and receive higher rewards. Clients can receive their accrued interest after the term expires.
Nexo allows you to borrow without selling your cryptocurrencies, with rates as low as 0%, when using the Loyalty Program. You can borrow funds immediately after adding crypto to your account. By joining Nexo’s Loyalty Program and maintaining a Loan-to-Value (LTV) ratio below 20%, borrowers can enjoy zero interest on their loans.
Over 60 different digital assets can be used as collateral, offering a wide range of options for securing the loan. Clients receive the loan in a stablecoin of their choice immediately. In some cases, users may also opt to withdraw the fiat equivalent. They can do that by instructing Nexo to sell the relevant loan amount and transfer the proceeds to their bank account on the next business day. Additionally, the crypto platform offers quick access to funds with no credit checks or overwhelming documentation putting a focus on speed and convenience.
Nexo provides tools to monitor loan health in real-time and preserve collateral value even during market downturns. This includes collateral transfers and automatic repayments.
Buying Crypto on Nexo
Nexo streamlines the process of buying cryptocurrencies by offering direct bank transfers for USD, EUR, and GBP. The platform accepts both MasterCard and Visa cards for buying Bitcoin, Ethereum, and more than 60 other assets. Nexo also offers recurring buys in which clients can make consistent automated card purchases with a daily, weekly, bi-weekly, or monthly frequency. Interest begins to accrue on the crypto funds 24 hours after purchase.
In addition to the convenience of instant card purchases, Nexo incentivizes users with the possibility of getting up to 0.5% cashback on their crypto purchases, based on their Loyalty Tier. Customers must complete identity verification, which is typically a quick and straightforward process.
The Nexo Card’s innovative Dual Mode capability allows users to seamlessly switch between Debit and Credit Мodes, tailored to their spending needs. Users can benefit from up to 2% crypto cashback on purchases made in Credit Мode or earn up to 14% interest per year on the balance available for spending with Debit Mode. The latest feature of the Nexo Card allows users to spend their crypto on Debit Mode too.
Here’s a breakdown of the crypto cashback based on Nexo’s Loyalty Program. The higher the Loyalty Tier, the higher the cashback you will receive:
- Platinum: 2% in NEXO Tokens or 0.5% in BTC
- Gold: 1% in NEXO Tokens or 0.3% in BTC
- Silver: 0.7% in NEXO Tokens or 0.2% in BTC
- Base: 0.5% in NEXO Tokens or 0.1% in BTC
The Nexo Card integrates smoothly with Apple Pay and Google Pay, ensuring a seamless payment experience for millions of merchants worldwide. This combination of features makes the Nexo Card a versatile and practical choice for both everyday expenses and larger purchases, all while leveraging the advantages of cryptocurrency.
In addition to the aforementioned, Nexo has been hard at work to offer simple and intuitive trading products.
With Swap, users can exchange popular cryptocurrencies and stablecoins with zero fees and get up to 0.5% cashback per Swap.
- Crypto Bundles
The product allows clients to spread a single purchase into multiple cryptocurrencies and diversify their portfolio with just a tap on the Nexo app. Users can gain exposure to leading Blockchain, DeFi, and Web3 tokens while getting up to 0.5 % cashback for each asset purchased included in their Crypto Bundle.
Trading perpetual Futures on the Nexo app is possible too. Users can go long or short with up to 50x leverage for some assets from an intuitive interface and potentially capitalize on upward and downward price movements.
- Trigger Swap
With the Trigger Swap product, users can buy and sell assets automatically once their desired price is reached. On top of that, clients receive daily interest on their assets, while waiting for the order to be executed.
- Dual Investment
With Dual Investment, clients can increase their earnings while taking advantage of market fluctuation. Users can subscribe to automated Buy Low or Sell High strategies and secure high interest rates regardless of market volatility.
This product allows users to amplify their purchasing power. Clients can borrow up to 3 times against their assets and leverage their portfolio. Additionally, they can receive up to 0.5% cashback per exchange transaction.
The NEXO Token, as the native cryptocurrency of the Nexo platform, offers a range of rewarding benefits for its holders. Adding NEXO Тokens to their portfolio offers users the potential for interest rate discounts on loans that can go as low as 0%. These discounts depend on their loan-to-value ratio and the proportion of NEXO Тokens they hold. The more NEXO tokens users hold, the more favorable the terms.
Higher Loyalty Tiers offer additional perks such as free withdrawals, lower borrowing rates, and more cashback. These features position the NEXO Тoken as a key to unlocking enhanced functionalities and rewards on the Nexo platform. The requirements for each tier are as follows:
- Base: No NEXO Tokens are needed
- Silver: The ratio of NEXO Tokens in your account against the rest of your portfolio must be at least 1%
- Gold: The ratio of NEXO Tokens in your account against the rest of your portfolio must be at least 5%
- Platinum: The ratio of NEXO Tokens in your account against the rest of your portfolio must be at least 10%
Licenses, Registrations, Compliance
Nexo holds a registration with the Ministry of Finance of Poland as a Virtual Assets Service Provider (VASP) and has a Virtual Currency Operator registration in Italy. Additionally, in Lithuania, Nexo is recognized by the Financial Crime Investigation Service as a Virtual Currency Exchange and Wallet Operator.
Nexo has obtained CSA STAR Level 1 Certification, indicating compliance with established data security standards and transparent practices in the crypto industry. The company has also successfully completed a prestigious SOC 2 Type 2 audit, adhering to the highest standards in cybersecurity. Additionally, the crypto platform has attained the ISO/IEC 27001:2013 Certificate for its information security management system, ensuring strong security measures and minimized risks for clients and investors.
Nexo is also a member of the Association of Certified Sanctions Specialists (ACSS), aiming to strengthen its global compliance efforts. By leveraging ACSS resources, Nexo’s team enhances their skills with specialized training and certifications, further ensuring top-notch regulatory adherence.
Resources and Education
Nexo provides 24/7 support to its users, offering options such as submitting a ticket or using the live chat when logged in. Nexo also features an extensive and detailed support section, equipped to address a wide range of issues and questions related to the platform.
Based on user feedback on Trustpilot, Nexo has a high rating of 4.7 out of 5, with over 83% of reviewers rating the company as “excellent”, citing great customer service and quick issue resolution.
Promotions and Bonuses
Nexo consistently demonstrates its commitment to community engagement and user satisfaction through various promotions centered around product usage. Additionally, Nexo maintains ongoing Referral and Affiliate programs. For example, Nexo’s Referral Program offers users the opportunity to invite friends and get rewarded with BTC for each successful referral.
Opening an Account
Opening an account with Nexo is a straightforward process. Clients can register by providing some personal details and a valid email address. At Nexo, account verification is a mandatory final step. Nexo adheres to all and the latest AML/KYC regulations, requiring users to submit a selfie and active ID to complete the verification process. This usually takes about five minutes, and Nexo’s customer support is readily available to assist clients if needed.
Verdict / Conclusion
In summary, Nexo positions itself as a dynamic and secure platform in the cryptocurrency space. The platform’s rich product offering is designed to meet a wide array of client needs, catering to both beginner and advanced users. Amidst market uncertainties, Nexo has maintained robust risk management measures, ensuring a safe and reliable environment for its clients. Key benefits such as competitive earning and borrowing rates, excellent customer support, and versatile trading products further enhance the user experience. This combination of a diverse product range, security, and user-centric benefits makes Nexo a compelling choice for those seeking an attractive choice for managing their digital assets.