If you invested in cryptocurrencies before 2021, chances are you are sitting on some very nice returns; but what is the next step? One option is to take profits and convert them back into fiat currency. This is the traditional method and usually a safe option. You can then make investments such as stocks or bonds and let your money work for you.
If we are at the start of a bull run, selling crypto might not be the best move. Crypto returns have been dwarfing all competition lately. People used to make 10% profits in a day, aren't so enticed by 5% per year.
Platforms such as Nexo allow users to keep their crypto and earn interest at the same time. This means you can benefit from the rising price of your crypto as well as generating extra income from your holdings. Interesting right? Well, there's even more than meets the eye when talking about NEXO, so grab your coffee and get ready for this NEXO review.
What is Nexo?
Nexo is a platform that allows users to lend their cryptocurrencies to earn interest or take out instant loans against their crypto.
In terms of lending, you can think of it as a type of crypto bank. You store the money with the bank, and they give you interest. Nexo has a couple of advantages over traditional banks. Interest rates are higher than most banks, and they are paid out daily.
Nexo also has some advantages over banks for users who want to take out a loan against their crypto. Receiving a loan from Nexo is a much faster process than with a bank. There are no background checks or other requirements, and anybody with crypto is accepted. This type of financial inclusion is a big plus for Nexo.
Who Is This Product for?
Nexo will suit people looking for a regulated platform where they can earn money or take out loans against their crypto. There are lots of DeFi platforms appearing in the space, but few are as trusted and well-regulated as Nexo. Although the interest rates on Nexo are not as good as other platforms, these other platforms come with more risk.
Finance is perfect for anyone looking to take control of their own finances without having to use a bank. It's also great for crypto holders who want to earn extra money on their coins but don't want to run the risk of trading. This type of use-case appeals to a broad range of people, and if De-Fi and Compound Finance takes off, it could be the future of lending and borrowing.
The pricing and rates are competitive and are often better than you would find at a bank. They're certainly miles ahead of payday lenders and others who charge extortionate rates for a similar service.
The Nexo Card is one of the big plus points for the platform. It's a physical card made in partnership with Mastercard. It allows you to spend your crypto and is accepted by over 40 million merchants.
Nexo is a user-friendly exchange that crypto users will have no trouble navigating around.
Download the Nexo app, and you can have access to your Nexo wallet via your cell phone. From the app, you can take out loans or make repayments. You can also send and receive crypto as well as making payments. The app is available for Android and iOS.
Nexo allows users to make same-day bank withdrawals completely free in most of the major currencies. This makes Nexo a great option for crypto holders who need access to instant money, for whatever reason.
Nexo is free to download; the only requirement is that you transfer either crypto or fiat to your Nexo account. The amount that you transfer will decide how much you can lend and borrow. The minimum you can borrow is $500 and the maximum $2 million. A man in the Netherlands bought a house with a Nexo loan, and the increasing price of Bitcoin covered his repayments.
Creating an account on the Nexo platform gives users access to all Nexo services, including the chance to apply for the Nexo debit card. The Nexo debit card is available throughout the world, although residents in some countries are restricted from applying. A list of countries where a Nexo card isn't available can be found here.
The Nexo site also features job postings for people looking to start a career at Nexo. There is also a link for Institutional customers wanting to use Nexo.
Using the Nexo platform is fairly straightforward. The site layout is easy to understand, with the main features listed at the top of the screen. There is a help box for FAQs and a Live Chat option for further queries.
Once you are registered on Nexo, you need to upload some funds to your account, and you are ready to go. It really is that quick and simple. For a video guide on how to use Nexo, you can watch the video found here.
There are lots of DeFi platforms offering a similar service to Nexo. These offer a similar service, deposit crypto to earn interest or take out a crypto loan. Some of the top alternatives to consider are:
MyConstant is the main competitor to Nexo and allows you to take out loans and earn interest in fiat, stablecoins, and crypto. Lending rates go up to 11% when you use the PRV token.
AAVE has a good reputation; it has been around for a while and was previously known as ETHLend. You can also earn money on different stablecoins. Interest rates can be as high as 9%. AAVE isn't quite as easy to use as Nexo and requires you to connect your own wallet with their platform.
CoinLoan will let you take out a loan against your crypto with interest rates starting at 4.5%. Thanks to using multisig, the platform is extremely secure, but fees can be an issue. Liquidation fees are 7%, and there is also a 1% fee to be paid against all loans.
NEXO Review – Conclusion
Nexo is an innovative platform that makes a lot of sense for two groups of people. The first group is long-term holders who want to earn some interest in their coins. The second group is people who need a loan to be approved quickly.
For the first group, Nexo is one of the safest places to store your coins for interest. Other companies offer better rates, but the risk is higher.
For the second group, Nexo is a potential lifesaver. Easy and fast access to money is an area where traditional finance has been failing a lot of people. Nexo is a step in the right direction and could be an industry-changer.
The Nexo card is also excellent. There aren't enough ways for users to easily spend their crypto. Nexo is ahead of the curve here, and this card is a major selling point for the platform.
Nexo deserves credit for making an easy-to-use platform and for being clear about interest rates and charges.
There are some negatives, though. Nexo is proud of having $375 million insurance for coins on the platform. However, this $375 million is part of shared insurance under the BitGo umbrella. This $375 million needs to cover all of the BitGo operations, which total more than $2 billion. A major problem would mean over $1.5 billion would be uninsured.
Not your wallet, not your coin, is always a consideration. Nexo is a reputable company that isn't going to pull an exit scam, but there are still some risks. Any time you leave your coins on an exchange, they are vulnerable to a hack.
The Nexo token is another area of potential concern. Nexo offers better rates to users who earn rewards in their Nexo tokens. These have been classified as restricted tokens, which means they need to be held by accredited investors. Nexo giving these tokens to U.S. citizens could put Nexo in the sights of the SEC. The SEC are currently looking at Ripple, so we know they are starting to take a big interest in the crypto industry.
Overall, Nexo has some big benefits, but tread carefully and weigh up the risks and rewards. You should only put money on Nexo that you can afford to lose. Risking 100% of your holdings before regulatory clarity is not a smart play.
Ease of Use
- Earn interest in your crypto holdings.
- Nexo Card allows you to make payments like a regular debit or credit card.
- Instant loan approval at better rates than payday loan companies.
- Fully regulated platform.
- Price volatility can be a problem.
- Some competitors have better interest rates.
- Users need to hold NEXO tokens to receive the best rates.