November 13, 2020
NEXO 2021 REVIEWS : the best crypto lending platform ?
Neither cryptocurrency exchange platform nor bank, Nexo offers innovative credit and savings services based on cryptocurrencies, offering a very interesting alternative to the most well-known banking products. In this Nexo review, we will therefore review all the details concerning this platform, also explaining how the products and services offered by the company work. We will also show you via a step-by-step tutorial on how to register with Nexo to start saving or borrowing funds via cryptocurrencies.
As can be seen, the remuneration of Nexo savings accounts is much higher than the current remuneration of the savings accounts of conventional banks,knowing that BookA, for example, offers an annual interest rate of less than 1%.
What is Nexo?Nexo is an advanced platform for instant credit linked to cryptocurrencies, or crypto-lending, and the only blockchain company to offer its services in more than 40 currencies and in more than 200 jurisdictions. It is not a cryptocurrency exchange platform. You will therefore need to buy your cryptocurrencies from another intermediary (we recommend Binance). Nexo’s offer is closer to the banks, offering loans and a bank card. However, the big difference is that you can also earn money with Nexo, by participating in loans, not as a borrower, but as a creditor. Simply put, it is possible to lend cryptocurrencies in exchange for an interest rate via the Nexo platform. Nexo offers borrowers the advantage of instant access to cash and the ability to retain ownership of their assets. The global business is based on Credissimo’s extensive lending experience, a leading FinTech group that has served millions of people in Europe for more than 10 years, as well as multiple banking and financial regulators. Nexo’s lending platform comes with a whole user experience with 256-bit encryption and military-level security. Client funds are held in individual multi-signature wallets in refrigerated warehouses, held by the only qualified custodian audited and supported by Goldman Sachs, BitGo. Nexo is therefore a platform for conservation and crypto-lending, and it controls the assets of customers. Visit Nexo
Nexo and his teamNexo is based in Zug, Switzerland. It comes from a well-known name in the field of consumer lending and online bill payment in Europe, namely Credissimo. Credissimo went public in 2014. With the support of Credissimo, we can be sure that Nexo has an in-depth knowledge of lending services on the European continent and also knows how to comply with all the laws and structures provided by the European Union in their field. Zug is a crypto valley and the Nexo team is based there with a team of 20 people. Most of the members of this team have experience in the field of finance and have gained a great deal of experience within the founding company, Credissimo. The technical team consists of two or three people.
Nexo in a few figuresBelow are some key figures to help describe Nexo’s activity and its benefits.
- $3 billion in transactions in 2 years
- 1 million Nexo users
- 13 years of fintech experience
- 40 fiat currencies available
- Available in more than 200 countries
A brief history of NexoBelow is the full chronology of Nexo’s young story 2007 – Creation of Credissimo: The development of a user-friendly mobile website and mobile applications has enabled the company to process more than 1 million online loan applications 2010 – Automation of proprietary processes: Credissimo has developed innovative internal technology that has introduced an automated and near-instantaneous credit approval, seven days a week 2013 – Mobile adoption: The development of a user-friendly mobile website and iPhone/Android apps has enabled the company to process more than 1,000,000 online loan applications 2013 – E-commerce and public services bill: Driven by the desire to provide practical solutions to its customers, Credissimo diversified its products and introduced e-commerce financing and direct payment of utility bills – more than 300 merchants joined the initiative. 2014 – First public offering (IPO): On May 7, 2014, Credissimo successfully introduced 2.5 million shares on the public markets 2015 – Data Analysis and Evaluation: The adoption of machine learning and big data technology has further improved Credissimo’s loan scoring algorithms 2016 – Bitcoin and Chatbot integration: Credissimo was the first to offer a Bitcoinloan repaymentoption. The company was also the first consumer lender in the world to launch an automated lending chatbot (for which it received the “Innovation of the Year” award) 2017 – FinTech Award: Credissimo reached the Top 10 alternative finance at the 2017 European FinTech Awards and received two Forbes Business Awards 2017 for “financial sector innovations” and “quality of services”. Lately, in 2020, Nexo announced a double increase in savings APY for some cryptos up to 8% through its Earn on Crypto product.
How crypto-lending works at NexoBelow you will find more details on the products and services offered by Nexo, which are all unique features, the offer of Nexo having no real equivalent currently on the French market.
Transfer of cryptocurrencies to the Nexo accountA potential customer transfers cryptocurrencies to their Nexo account. Once confirmations of the relevant blockchain are received, the nexo blockchain oracle automatically calculates the loan limits and instantly sets the loan limit and instantly sets the loan set.
Customers receive instant loans in dollars or EurosThe loan limit is available instantly via bank transfer or the free Nexo Card. Depending on their needs and situation, clients can choose the most convenient way touse their cash, as well as the currencies in which they wish to receive the funds. The loan limit is based on the market value of the cryptocurrencies in the Nexo account. If the crypto appreciates, the oracle of the Nexo blocking chain increases the loan limit.
The customer repays the loanCustomers can repay their flexible loans in a number of ways – by bank transfer, fiat or crypto-credit. Interest rate discounts are given to those who choose to make payments with Nexo tokens. The third option is to pay by partial sale of crypto assets (BTC,ETH, etc.) on their Nexo account. Nexo does not require a minimum monthly repayment as long as the remaining balance is within the limit of the available loan. Once the refund is received, the Nexo blockchain records the transaction and instantly updates the loan limits.
Withdrawal of cryptocurrencies from Nexo accountIf the encrypted assets in the account meet the required limits of the loan balance, customers can withdraw some or all of the excess amount at any time. Once the loan is fully repaid, customers can withdraw all their cryptocurrencies. Note: It is therefore not possible to buy cryptocurrencies from Nexo. You will need to buy them from a cryptocurrency exchange platform (which carries it security risks), or from a broker only secure line, such as Binance. Visit Binance
Earn money with interest on your cryptocurrencies via NexoIt is therefore possible to obtain credits on Nexo, but it is also possible to deposit cryptocurrencies or FIAT currencies to earn an interest rate, as with a bank savings account, but with a much more attractive remuneration. Here’s how to do it:
Transfer cryptocurrencies to your Nexo accountYou can top up your account by sending cryptocurrencies from an exchange platform or wallet (this transfer is normally processed in minutes) You can also transfer USD, EUR or GBP directly from your bank account (depending on your location, this transfer can take between one and three business days) Once Nexo has received your assets, they will automatically be added to your corresponding savings portfolio.
Start collecting interestYou will start collecting interest the next day. Your interest is compounded daily and is automatically paid into your savings portfolio, so you start collecting interest on it as well. You can always view your account balance on the platform dashboard or in the Nexo mobile app available on iOS and Android. Please note that compensation varies depending on cryptocurrencies or deposited currencies, and for each asset, two interest rates are displayed. The first is the basic interest rate. The second is the higher interest rateyou can get if you have at least10% of the balance of your Savings Portfolio in Nexo Tokens. You can buy Nexotokens from the platform. It allows you to get a higher interest rate, and get dividends equal to 30% of the platform’s profit. The exact amount of Tokens Nexo required for higher interest rates at any given time will be displayed on the Total Interest Earned page. Good to know: Just as is the case with crypto-lending, you will have to buy your cryptocurrencies outside of Nexo, then deposit them with Nexo and start collecting interest. For this, one of the most reliable solutions is to go through the regulated online broker Binance. Visit Binance
The Nexo cardIn addition to the loan and savings services described above, Nexo also offers a crypto bank card.. The Nexo card allows you to spend your cryptocurrencies without actually spending them. Basically, Nexo lends you money based on the guarantee offered by cryptocurrencies held in your Nexo account, much like a revolving credit. And there is no control over how you can spend the funds you receive. This is an international card that is linked to the user’s credit limit so that they can spend their funds on purchases without having to withdraw funds from a bank account. The Nexo MasterCard is therefore linked to the assets of portefeuille the user’s Nexo portfolio. The Oracle Nexo confirms the credit line balance in real time every time a purchase is made and a notification is sent to you. This card can be ordered and managed using the Nexo Mobile app. The card does not have a monthly or annual fee and there are no exchange fees.
How much money can I make with Nexo?When you deposit cryptocurrencies into a Nexo account, you receive a remuneration in the form of an interest rate. However, this compensation varies depending on the cryptocurrencies deposited, as described in the table below.
|Tether – USDT||10%|
|USD Coin – USDC||10%|
|Paxos – PAX||10%|
|TrueUSD – TUSD||10%|
|Dai – DAI||10%|
|Bitcoin – BTC||6%|
|Ethereum – ETH||6%|
|Ripple – XRP||6%|
|Bitcoin Cash – BCH||6%|
|Litecoin – LTC||6%|
|Binance Coin – BNB||6%|
|Stellar – XLM||6%|
|Tron – TRX||6%|
|Pax Gold – PAXG||6%|
How do I open an account on Nexo?In this section, you will find a step-by-step tutorial to register with Nexo.
Step 1: RegistrationTo register with Nexo, follow this link. Then you’ll just have to enter your name and email. Then click the “register” button. You will then have to pass the spam check, moving a cursor to place a puzzle piece in the right place on an image. Visit Nexo
Step 2: Checking email addressOnce you’ve completed the previous steps, you’ll need to log in to your email address to click a verification button in an email sent by Nexo. Then you click the confirmation button within the email, a page confirming the check will appear. On this page, click the “Continue to your Nexo Account” button.
Step 3: Access the Nexo platformYou now have access to your Nexo online account, which will allow you to access the products offered by the company. Please note that depending on the product you want to access, additional procedures will be required, such as the KYC or “Know Your Customer” process, during which you will have to answer many questions about your investor profile and expectations. This is a legal obligation for all regulated financial intermediaries. Once your account is opened and verified, you will be able to deposit your cryptocurrencies to start using Nexo’s services. If you don’t already own cryptocurrencies, you’ll need to buy them before you can take advantage of Nexo. In this regard, we remind you that Binance seems to be one of the most reliable intermediaries for this. Visit Binance
Nexo regulation and securityFrom a financial and systemic point of view, Nexo’s risk policy of never lending to individuals and institutions without collateral completely secures its business. The cryptocurrency storage portfolios sent to Nexo accounts are provided by BitGo, the leading financial services provider of digital assets. BitGo Custody offers $100,000,000 in insurance coverage through Lloyd’s. And this premium service is offered at no extra cost. The $100 million policy covers digital assets whose private keys are 100% owned by BitGo in the event of:
- Piracy, copying or theft of private keys by third parties
- Insider theft or dishonest acts committed by BitGo employees or executives
- Loss of keys
Is Nexo regulated?The Nexo Group has legal entities in different parts of the world, in order to serve more than 200 jurisdictions in the most efficient way possible and is in compliance with all applicable global and local regulations. The company maintains that it is in compliance wherever it provides services and retains the services of high-level legal advisors in the jurisdictions where it operates. All aspects of Nexo’s activities are audited prior to execution by the relevant legal and compliance teams.
Support clientNexo customer support is done via a help center very well provided in fact sheets, videos and tutorials that best meet the needs of beginners who take their first steps on the platform (which, let’s remember, is not a trading platform).). It is also possible to ask questions via a ticket system. Nexo states that agents process tickets quickly, 7 days a week and 24 hours a day. It should be noted, however, that it would have been better to be able to contact Nexi by phone in case of emergency, which is unfortunately not offered by the company. Despite this, our research has not allowed us to find negative customer reviews regarding Nexo’s customer service, which is definitely a good sign.
Nexo Review: Pros and ConsIn this section, we will detail Nexo’s strengths and weaknesses for each of the products on offer (loans, savings and card).
Borrow from Nexo: Pros and ConsBelow is a summary of the strengths and weaknesses of Nexo’s crypto credit offering.
- More currencies to borrow (45 euros) than the competition
- High insurance coverage ($100 million)
- Interest rates are not as low as those of the competition. It starts at 8% — but some competitors have lower interest rates.
Nexo Savings: Pros and ConsLet’s continue with the strengths and weaknesses of the Nexo savings offer.
- Higher insurance for lenders. Up to $100 million in total.
- Secured by military-level security with 256-bit encryption and state-of-the-art technological advances, as well as 24/7 and 365-year fraud monitoring.
- The interest is not as high as that of the competitors. Some other lending platforms offer up to 12%, but they compensate for this with less security, less flexibility and more compromise.
- Crypto that is not stable corner produce less interest.
Nexo bank card: Pros and consLet’s end with the strengths and weaknesses of the Nexo map.
- Manage via the Nexo app. Most competitors’ cards don’t connect the card to an app with which you can manage the card.
- Create free virtual maps. This allows for one-off purchases and offers a little more privacy
- Earn 5% instant off on your purchases.
- It’s a Mastercard. It is not as large or as widely accepted as a VISA card, but much more than an American Express card.