Nexo Review: Is It a Trustworthy Crypto Trading and Lending Platform?

Nexo Review

In this complete Nexo Review, you’ll learn a lot about this platform, what makes it unique from competitors, if it is legit and worth a try. Let’s get down to it!

At a Quick Glance

Pug Score:4.1/5
Fees:Zero Fees (Service charges may apply)
Best ForBeginners, Advanced Investors, and Whales
Available Number of Assets:27+

Key Findings

Nexo is a crypto lending platform and exchange. Anyone can create an account easily and begin using its products and features.

The platform is properly Audited and registered in the US and many other regions across Europe and Asia. 

Nexo has over 175 markets comprising crypto and fiat pairs and is most suitable for beginners and advanced traders.

ProsCons
Low trading feesSubtle fees may apply
Many products and servicesNumber of crypto assets are quite low compared to that of competitors
Available to US Customers and over 200 jurisdictions
High-interest rates and return on investment for liquidity providers
Strong security protocols
Competitive markets for crypto traders
Easy to use and access
Licensed and regulated company

What is Nexo?

Nexo is a crypto collateralized lending platform and exchange from Zug, Switzerland. It was founded in 2017 but formally began operations in 2018.

Its co-founders, Antoni Trenchev, Georgi Shulev, and Kosta Kantchev, have huge investment and financial industries’ histories.

You may want to know that Nexo was one of the pioneering platforms to offer collateralized loans as a decentralized finance (DeFi) project.

Nexo has over 3 million customers in over 200 jurisdictions. It currently manages over 12 billion worth of insured assets. Its mover advantages include the Credit Lines product and large crypto interest rates and rewards for investors.

Now, below, let’s look at some products and value propositions of Nexo that make it stand out from competitors.

Range of Offering

1. Nexo Exchange

The Nexo exchange is where you swap or trade cryptocurrencies. There are 27+ popular cryptocurrencies you can swap on Nexo’s exclusive exchange.

2. Earn Crypto

The Earn Crypto, also known as “Earn Interest,” is an incentivized model Nexo employs to amplify investors’ gains. You can deposit crypto or fiat and earn up to 36% interest rates.

Image Source: Nexo

3. Collateralized Lending and Borrowing

The collateralized lending service is one of the pioneering offerings by Nexo. Here you can use cryptocurrencies as collateral to borrow fiat funds. The funds in your Credit Line Wallet will determine how much you can borrow at a time.

Before you may borrow a loan, your Credit Line must meet an equivalent requirement. At this point, you cannot spend any of the locked collateral. To spend or invest in Nexo, you must deposit new funds directly to your account.

If the fund in your current account drops to $0.00, Nexo gradually begins to debit your loan amount from the locked-in Credit Line funds.

You do not earn interest rates when you borrow funds or use funds in your Credit Line Wallet as collateral.

4. Buy and Sell Crypto

To participate in the earning campaign, you must buy cryptocurrencies directly from the Nexo exchange. 

If you cannot buy using bank transfer or credit cards, you can fund your account using an external crypto wallet, then swap your coin for another on the Nexo Exchange.

The Buy and Sell Crypto portal allows you to buy and sell cryptocurrencies on Nexo using credit card or bank transfers.

5. NFT Lending

Image Source: Nexo

With the growing trend in non-fungible tokens (NFTs) use cases, Nexo supports buying and selling of NFTs on its platform. 

Nexo’s NFT marketplace is a secondary one where creators and collectors can resell their art pieces to other top collectors. 

However, not everyone may sell on Nexo because of the high taste and quality of NFTs it demands. Nexo doesn’t accept NFTs with a value less than $500k which is pretty high for beginner artists or collectors.

To use the Nexo NFT marketplace, the application process is straightforward:

  • Complete the form on the Nexo NFT application page.
Image Source: Nexo
  • Next, your account manager sends you a quote informing you of a successful application.
  • All you must do now is read the terms of the quote and sign the agreement.
  • Typically, you’ll receive your funds in less than two working days.

6. The Nexo Credit Card

Nexo looks to compete with Crypto.com to offer credit card services. But unlike Crypto.com’s Debit Card offering, Nexo offers Credit Cards instead. 

In a bid to perform services like primary financial institutions, Nexo’s credit card will aid users to withdraw cryptocurrencies on crypto ATMs and spend online.

The credit card will also help users buy and sell cryptocurrencies on Nexo without needing third-party payment solutions like VISA or Mastercard.

7. Nexo Token

The Nexo Token powers Nexo’s ecosystem. It ranks among the top 100 cryptocurrencies by market capitalization.

At some point during the crypto pump of 2021,  a Nexo Token was worth over $3 in value. Nevertheless, its low value backed by real projects gives it a high potential index.

8. Nexo Prime

Nexo Prime is a brokerage service by Nexo. It gives institutional and private traders access to the crypto market. 

In addition to providing traders access to the market, it equips them with the necessary tools to successfully trade, predict the market, lend, and invest in cryptocurrency.

Traders will be assigned account managers, and funds will be in Nexo’s custody. There is nothing to fear as over 35 licensing bodies in the US and beyond monitor Nexo’s operations. 

Nexo partners with top hedge funds firms like BitGo, Ledger Vaults, Bakkt, among others to insure over $370 million worth of investors’ funds.

Image Source: Nexo

Commission and Fee Structure

Majority of the fees charged on Nexo comes from the blockchain network surrounding the respective cryptocurrencies.

That said, Nexo runs a “zero-fee” program that gives users free withdrawal slots depending on the percentage of Nexo tokens they hold in their wallets.

This means that Nexo may not charge you for using any of its products, provided you’re a holder of its tokens. You can withdraw fiat (called FiatX on Nexo) free using the Nexo credit card.

However, withdrawing cash through bank transfers or to an external payment service like VISA or Mastercard attracts fees, which the respective platforms decide.

Ease of Account Opening

Opening an account on Nexo is pretty much easy. However, you must complete basic KYC to use its products and features to the fullest. KYC verification requires you to provide salient information about yourself, including documents such as proof of identity and residence.

Getting Started on Nexo

Nexo is a custodial and KYC-compliant platform, and you must open an account to use its products and features. Below is a breakdown on how to get started on Nexo:

Step 1—Open an Account

In less than 5 minutes, you should have your Nexo account up and running.

  • First, you must visit the official Nexo website or download the Nexo app on your mobile device. For this review, we will show you how to sign up using the web portal only.
  • Locate and click any “Sign Up or Create Account” button you find on Nexo’s landing page to get started
  • Enter a valid email address and create your password
  • Read Nexo terms and conditions covering its products and services, and tick the “agree” button
  • Click “Create Account”
  • Verify your email and move on to the next phase, which is KYC verification

You may proceed to fund your Nexo account with just an email (starter) verification. However, you will not enjoy investment benefits as in the basic and advanced verifications.

Image Source: Nexo

Verifying your email (starter verification) allows only depositing and buying/selling crypto. Also, you cannot withdraw above $20,000 per day.

To enjoy advanced features, you must either complete the basic or advanced verifications, depending on the exact features you need.

  • Click the image (profile) icon at the top of your screen. You can find this at the far right of your desktop screen
Image Source: Nexo
  • Click “My Profile” and choose basic verification
  • Scroll down the page and click “Start Basic Verification”
Image Source: Nexo

The basic verification is all about providing your personal information

Image Source: Nexo

The advance verification dives deeper into submitting your proof of identity and residence documents. It lets you do bank transfers up to $2,000,000 per day, which is impossible with the starter and basic verifications.

Nexo claims that Jumio Enterprises handles the advanced verification which typically takes 5 business days.

  • On the same page you did the basic verification, toggle to the next section and scroll down to begin the advanced verification process

Note: you must complete the basic verification before proceeding with this process.

Step 2—Fund Your Account

Depending on your verification level, you can fund your account using bank transfers, credit cards, and cryptocurrencies.

Flat rates apply for the payment service you use. However, if you have the Nexo credit card, you may do this for free.

You can deposit any amount from $10, then top up anytime. Also, you can track and monitor your transactions in the “Transactions” section.

Image Source: Nexo

Step 3—Start Using the Platform

After depositing funds into your account, you can begin exploring Nexo’s products and services.

The most notable product on Nexo is the Credit Line which works just like a normal credit line in banks. 

Your credit line on Nexo is typically a savings mechanism that you can withdraw whenever you deem okay.

It allows you to spend and borrow on Nexo.

Here is how the Credit Line works:

  • You deposit funds (crypto or FiatX) into your Nexo account, it displays in USD in your Credit Line
  • Anytime you top up your funds, your Credit Line automatically adjusts
  • Your Credit Line determines how much collateral you can stake to borrow fiat.

Asides from the Credit Line, there are other interesting features to explore, like the Nexo crypto lending Nexo Exchange, where you can instantly buy, sell, or swap cryptocurrencies or fiat.

Deposit and Withdrawal

Nexo operates a tiered-fee structure that allows you to withdraw any amount of funds from the minimum withdrawal amount as seen in the snapshot below:

Image Source: Nexo

Depending on your level, the tiered-fee structure allows up to five free withdrawals per month. The percentages of Nexo tokens you hold will determine your level at some point. Below is a breakdown:

  • The Base Level—You must hold at least 1% Nexo tokens to qualify
  • The Silver Level—You must hold at least 5% Nexo tokens to qualify
  • The Gold Level—-Begins from 5% to 10% Nexo tokens in your portfolio or wallet
  • Finally, the Platinum Level—At least 10% Nexo tokens

Breaking down further on how the free withdrawal works:

  • Base Level: 1 free crypto withdrawal per month
  • Silver Level: 2 free crypto withdrawal per month
  • Gold Level: 3 free crypto withdrawal per month
  • Platinum Level: 5 free crypto withdrawal per month
Image Source: Nexo

Now, what happens after you exceed your free withdrawal limit?

Nexo opens up your account for network fees, which fluctuate depending on the respective blockchain networks or market conditions.

You can find your withdrawals on your account’s “Transactions” page.

Minimum deposits could range from $1.00 to at least $100.00 worth of crypto assets.

Many users may fault Nexo’s withdrawal mechanism, especially after exhausting their monthly free slots. This is because Nexo automatically adjusts your withdrawal limit to include additional network fees (which could often be outrageous).

Platform’s User Interface and Trading Experience

Nexo has a great user interface and design. The user experience (UX) is also worthy of praise. You can create an account and verify it properly in simple steps.

The platform is beginner-friendly that even eighth-grade student can find their way around.

Advanced traders would also find the platform interesting because it has over 175 market pairs to select and swap. They can also borrow up to $1,000,000 or more and pay when they restock.

The color combination on Nexo is amazing, and texts are boldly written to aid users make informed decisions.

Mobile Application

Nexo has interactive mobile applications for iOS and Android devices. You can download them on Apple Store and Playstore, respectively. Features are quite similar to the web platform.

Since Nexo doesn’t operate as an exclusive trading platform like many crypto exchanges, anyone can use its mobile app without needing help with technical analysis using a desktop or PC.

Supported Cryptocurrency

At the time of writing, Nexo has up to 27 supported cryptocurrencies. BTC, ETH, USDT, Nexo Token, XRP, and Polygon, among others, are popular crypto assets you can swap on the platform.

Image Source: Nexo

Educational Tools

Nexo has a Youtube channel that helps users understand its ecosystem better. Visuals are a more effective way of teaching people than words because we tend to remember what we see when it is more concrete than just texts.

Anyone can easily get accustomed to the platform faster by watching Nexo how-to videos and thought leadership/ keynote speeches. That’s a great approach to enlighten users about its services and products.

Customer Support

You will find a chatbot floating on your screen. Although this is not live chat, users can enter their email addresses and type in their complaints in the message section provided.

Asides from the little chatbox floating on your screen, you can get more help through Nexo’s “help center.” You can find the help center when you tap the little “question mark” icon at the top right corner of your desktop screen.

The help center hosts many information and FAQs about Nexo. You can also access Nexo’s educational materials there.

At least, this should cover for the platform’s lagging direct customer relationship.

Regulation and Security

There is so much to say about Nexo’s regulation and security. Nexo places its customers at the frontline. It does secure not only their funds and assets but also insures them.

Nexo is a regulated company and has over 35 operating licenses worldwide. Some of them include: 

  • U.S. Financial Crimes Enforcement Network (Fincen): Money Service Business Registration (Ref. No.: 31000201460825)
  • State Banking Department, Alabama: “Mini-Code” License (Ref. No.: 22897)
  • Affiliated Member of the Recognized Self-Regulatory Organization (SO-FIT), Geneva, Switzerland
  • Australian Securities, and Investment Commission: Registration as Foreign Company (Ref. No. 647056540)
  • Financial Transactions and Reports Analysis Centre of Canada (FINTRAC): Money Service Business Registration (Ref. No.: M20280268)
  • Companies Registry, Hong Kong: Trust or Company Service Provider License (Ref. No.: TC007556)
  • Financial Crime Investigation Service, Lithuania: Registration as Virtual Currency Exchange Operator and Depository Virtual Currency Wallet Operator

In terms of security, Nexo adopts a strict protocol to safeguard users’ funds. 

  • Alerts you through email when you log in or withdraw from your account and informs you of the IP address used to access your account.
  • Anti-phishing protocol to keep you on the correct website
  • Nexo is properly audited using real-time reserves audit by US-based accounting and auditing firm, Armanino
  • Insurance up to $375 million from different hedge fund groups
  • Certified Information Security Management System: ISO/IEC 27001:2013
  • Biometric identity verification
  • Two-Factor Authentication
  • Storage of investors or users’ funds in Class III Vaults offline.

From these protocols, it is obvious that Nexo puts the security of users before anything else. That’s a thumbs up and boosts its credibility score above its competitors.

Is Nexo Safe?

Nexo’s security protocols make it one of the safest crypto investment platforms. However, security measures keep evolving.

Therefore, while the platform does its best to keep user information and funds secure, you also must follow strict security guidelines such as securing your account with Two-factor authentication and cross-checking the platform you’re on every time.

Also, the fact that Nexo has licenses in several regions gives it a high trust score as a safe trading crypto platform.

Conclusion

Nexo might just be the best crypto collateralized lending platform worth trying. From this review, the company is obviously doing its best to beat competitors by providing more value to its customers.

Also, Nexo will launch a voting portal where Nexo token holders can participate in some decision-making processes on the platform, just like a DAO governance protocol. You can find this teaser currently on Nexo’s official website.

FAQs

What is a Crypto Collateralized Lending?

Crypto collateralized lending is a loan process where investors use crypto or fiat as collateral while borrowing any of the two financial options. That is, you can borrow cryptocurrencies while you stake equivalent fiat, plus agreed interest rate. Interest rates may vary depending on what you’re borrowing and the terms of borrowing.

Is Nexo Available to US Customers?

Nexo is fully registered in many jurisdictions in the US. You can check its license page to know if your region falls under the approved jurisdictions. Needless to say, Nexo is available to US customers.

Is Nexo Legit?

Nexo is a legit lending platform and crypto exchange. The platform has official operating licenses that ensure it complies strictly with the financial rules of the 200+ jurisdictions it operates in.

Does Nexo Require KYC?

While you may use Nexo by just confirming your email address, you must verify your account with your personal information and documents to access advanced resources and products like higher Credit Lines, deposits and withdrawals, bank transfers, and so on.

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