Nexo Review 2023
Nexo, featured in this comprehensive Nexo review, is more than just a cryptocurrency exchange. Its unique offerings, like borrowing options, a crypto rewards card, and other specialized features, stand out in the crypto market. Founded in 2018, Nexo has weathered both bull and bear markets, proving its resilience and commitment to innovation.
In this Nexo review, we'll delve into the various aspects of Nexo, its features, specifics, and more.
Table of content
Table of content
- Nexo lets you earn interest on your crypto, get loans using crypto as security, spend using a special crypto-linked card with rewards, and stake your Ethereum to earn more crypto.
- You can trade many cryptocurrencies on Nexo, use extra money (leverage) to make bigger trades and get access to special trading options if you're a more serious trader.
- If you keep more of Nexo's tokens, you can get lower loan rates and higher interest on your savings.
- Nexo has an easy-to-use app and provides help and guides to make crypto easy for everyone, whether you're new or have been around for a while.
- The platform uses various security measures to keep your crypto safe, like extra login codes, constant updates on its funds, loans that ask for more security than they give out, and partnerships with security companies to protect your investments.
- Nexo reminds you that investing in crypto can be risky because prices can change a lot, and there might be things happening on the platform that you don't see. Also, they might use your deposits for other things like loans or investments.
What Does Nexo Offer?
While Nexo may not be as vast as industry giants like Coinbase, it brings diverse features and innovative solutions that set it apart in the crypto world.
That’s what it offers:
✔️ Nexo Earn Product: Earn up to 16% yield on your crypto assets with the user-friendly Nexo Earn. Please note that this feature is not available in the US or Canada.
✔️ Crypto Loans: Leverage your crypto holdings to borrow funds, with the option to receive the proceeds in stablecoins or fiat currency. Interest rates vary from 0% to 13.9%.
✔️ Nexo Card: The Mastercard Nexo card allows you to access the value of your crypto without selling it and earn up to 2% cashback on your transactions.
✔️ Nexo Staking: Maximize your ETH holdings by staking them with Nexo’s nETH, a liquid staking token that allows you to trade your staked ETH or use it as collateral.
✔️ Nexo Exchange: Trade from an extensive range of cryptocurrencies with over 500 trading pairs available on the Nexo coin Exchange.
✔️ Nexo Booster: Enhance your trading experience with up to 3x leverage and higher Loan to Value (LTV) ratios. Please note that availability may vary by location.
✔️ Nexo Pro: Access a world of advanced trading options and deep liquidity pools with Nexo Pro.
✔️ Nexo Wallet: Dive into the DeFi world and explore popular decentralized applications (dApps) across 5 networks with the Nexo Wallet.
✔️ Loyalty Levels: Save on borrowing fees and unlock exclusive rewards by increasing loyalty. This is based on the percentage of your portfolio comprised of NEXO tokens.
Nexo takes pride in offering its users a cost-effective and transparent fee structure.
Let's understand the fees associated with using Nexo's services:
1. Trading Fees on Nexo
Regarding trading fees for swaps, Nexo operates on a spread basis without imposing any additional trading fee.
2. Nexo Pro Trading Fees
The fees are quite competitive for those engaged in trading on Nexo Pro. Here's a breakdown:
- Up to $10,000 30-day trading volume: 0.40% Taker fee, 0.30% Maker fee.
- Possibility of as low as 0% fees for higher trading volumes.
3. Network Fees for Withdrawals
- Free trade allowance includes up to 5 monthly withdrawals, depending on your loyalty level.
- Free withdrawals on Polygon, Binance Smart Chain (BEP-20), Arbitrum, and EOS.
|Nexo's withdrawal fees|
|Ethereum||Polygon (Matic)||0.0025 MATIC|
|Tether (USDT)||ERC-20||0.0002 USDT|
|Tether (USDT)||TRC-20||10 USDT|
|Binance USD (BUSD)||BEP-20||0.001 BUSD|
|Shiba Inu||ERC-20||0.000002 SHIB|
While Nexo strives to provide a fee-free experience, users might still incur some fees if the free withdrawal limit of their respective loyalty tier is exceeded.
Nexo Mobile and Other Features
Regarding user-friendly and visually appealing exchanges, Nexo undoubtedly stands out, with a sleek mobile Nexo app that complements its desktop counterpart seamlessly.
The interface is intuitive, ensuring every tool or feature you need is just a click or two away. For instance, the ‘add funds' button is conveniently placed on the main dashboard, making it easy to locate.
Nexo Loyalty Levels
Nexo employs a unique system of Loyalty Tiers to incentivize users with benefits such as lower fees and higher interest rates.
Starting at the base loyalty level, users can progress to higher tiers by holding a specific percentage of NEXO tokens relative to their total portfolio on the platform.
The tiers are as follows:
- Base: 0% up to 1% of your portfolio in NEXO
- Silver: 1% up to 5% of your portfolio in NEXO
- Gold: 5% up to 10% of your portfolio in NEXO
- Platinum: 10% or more of your portfolio in NEXO
Reaching the Platinum tier, for instance, grants you numerous perks such as:
- Lower borrowing rates, including a 0% Nexo interest rate for lower Loan to Value (LTV) loans
- Exchange rebates of 0.50% cashback on trades
- Additional free withdrawals per month
- Higher interest on deposits, allowing you to earn an additional 25% on most interest-bearing deposit types
However, it is essential to be mindful of the volatility risks of investing in NEXO tokens.
Nexo Earn is one of the platform's most attractive features, although it is currently unavailable to US users. This service allows users to lend BTC and other crypto assets with support for over 60 lending assets.
The Savings Hub is your gateway to accessing lending terms and payment options. Here, users can earn a base rate and opt for a higher Nexo rate by committing to a longer lending period.
Additionally, you can earn up to a 2% higher rate by taking your interest earnings in NEXO token.
The platform's ETH staking feature, called Smart Staking, offers users a liquid staking token, nETH, with an estimated annual yield of 4% to 12%, paid in nETH.
Nexo Exchange and Nexo Pro
Nexo Exchange provides a seamless platform for no-fee trades, with the spread acting as a “padded” price. Nexo Pro is the way to go for those interested in direct interactions with trading books.
Users can place limit orders or buy at the asking Nexo crypto price with applicable trading fees. Nexo Pro also offers a unique Insights menu, where users can explore trending tokens (for example KAVA token) on Twitter.
Nexo Booster Options
Nexo Booster allows users to trade larger amounts of crypto with borrowed funds, with options ranging from 1.25x to 3x leverage.
This tool has a one-time fee based on the LTV and applicable interest rates determined by your loyalty tier.
The Nexo Wallet grants users access to the DeFi ecosystem and a unique web3 identity, with features including aggregated wallets, batched transactions, and efficient DEX trading.
The wallet is compatible with five Ethereum-compatible networks, providing users a comprehensive tool to explore the crypto world.
⭐ What is the risk with Nexo?
It's crucial to understand that investing in crypto assets comes with the possibility of losing your entire investment. The market for crypto assets is predominantly without comprehensive regulations, exposing you to the potential of losing your funds or purchasing crypto assets due to various risks, including cyber-attacks, financial crimes, and the failure of the firm holding your assets.
⭐ Is your money safe in Nexo?
Nexo works with well-known security companies, Ledger Vault and Bakkt, to create a strong system of safety and insurance for stored assets. These partnerships provide strong insurance for assets in custody, with the support of famous insurance providers like Lloyd's of London and Marsh & Arch.
⭐ Can I withdraw from Nexo?
To withdraw funds from Nexo, input the desired amount and carefully review all provided details. Once you have confirmed everything is correct, click on the blue “Withdraw” button. It is crucial to ensure you have sufficient tokens remaining to cover any associated gas fees.
⭐ Does Nexo have fees?
The fees you pay depend on your pricing level when you make a trade, not the level you'll be in after the trade is done. If you make a market order that gets filled right away, you're considered a “taker” and will pay a fee between 0.03% and 0.20%.
⭐ Is Nexo available in Europe?
Nexo, a UK-based crypto lending service, has launched a new Mastercard that works like a debit and credit card in some European countries. This innovative card lets people in the European Economic Area (EEA) buy things using credit backed by their cryptocurrencies without selling them.
⭐ Does Nexo have a wallet?
Creating a NEXO wallet account is as simple as configuring an app. Simply download the application, adhere to the on-screen instructions, and voila, you're ready to go! Your wallet address will be instantly generated and ready for use.
Who Can Benefit from Nexo?
Whether you want to borrow against your crypto, earn substantial yields, venture into crypto as a beginner, or invest in major cryptocurrencies, Nexo can be beneficial.
Let’s explore how Nexo can cater to your unique crypto needs:
✔️ If you want to borrow
Nexo simplifies the process of using your cryptocurrency as collateral. Users can choose from three convenient options:
- Opt for a crypto-backed loan.
- Leverage the Nexo Card for purchases.
- Amplify trading positions with Nexo Boost.
✔️ If you want to earn from crypto assets
Nexo offers a straightforward pathway to earning yields on your cryptocurrency investments. It allows the purchase or deposit of crypto to initiate automatic earnings.
You can also opt for a lending term to secure a higher yield rate or utilize staking options as an ETH holder on Nexo to earn additional yields.
Also you can use cryptocurrency for crypto betting.
✔️ If you are new to cryptocurrency
Nexo is equipped with features that cater to both experienced users and newcomers.
You can easily access comprehensive help pages and instructional videos or navigate Nexo's features.
✔️ If you are an investor
While Nexo does offer a selection of less common crypto assets, its offerings are not as extensive as platforms like Coinbase.
Investors can find major cryptocurrencies readily available and explore a curated selection of less common crypto assets.
Is Nexo safe to use?
While Nexo incorporates several robust safety measures to protect its users, it is important to remember that the crypto world is not without risks.
Here you will find cryptocurrency scams list.
Nexo Safety Features
Nexo employs a variety of safety measures to ensure its platform is secure and trustworthy:
✅ Two-factor authentication (2FA): An essential layer of security that requires a text code for any transaction, preventing unauthorized access even if login info is compromised.
✅ Real-time reserves attestation: Transparency is key, and Nexo provides real-time updates on its crypto holdings to verify that customer liabilities can be met.
✅ Overcollateralized lending: Nexo takes a conservative approach to Loan-to-Value (LTV) ratios to safeguard lender assets on the platform.
✅ Secure storage: In partnership with Ledger Vault, Nexo ensures the secure storage of crypto funds.
✅ Insurance: Teaming up with Bakkt, a leader in secure storage, Nexo provides a $125 million insurance policy to protect crypto assets.
✅ Global licensing: Nexo is fully licensed to operate worldwide, adhering to local regulations and blocking certain features where necessary.
Potential Risks to Consider
While Nexo offers an array of safety features, users should also be mindful of the associated risks:
❌ Lending: The crypto market is volatile. Rapid price fluctuations can lead to situations where assets might not be liquidated swiftly enough to cover loans.
❌ Centralization: As with other centralized exchanges, the platform's inner workings might not always be transparent.
❌ Rehypothecation: Like many crypto lenders, Nexo reserves the right to use your funds for various purposes, including investments or as collateral for its borrowings.
Nexo differentiates itself from standard cryptocurrency exchanges by integrating banking-like services tailored to the needs of crypto investors.
The platform is designed to be user-friendly and secure, making it a suitable choice for newcomers to the world of cryptocurrency.
While those with a strong interest in decentralized finance might view the platform's DeFi offerings as somewhat limited, advanced users will find value in Nexo’s unique features.
As we said in the Nexo review, its wallet, in particular, offers the convenience of grouped transactions and the ability to pay transaction fees with various cryptocurrencies, which seasoned crypto enthusiasts should not overlook.