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    Nexo Review 2022: Is It Safe? Here's What We Found

    Updated: Oct 5th, 2022
    Kevin Groves
    Kevin Groves
    Nexo Review 2022: Is It Safe? Here's What We Found

    Many crypto investors will store their digital assets on a fiat-to-crypto exchange, trading exchange, or hardware wallet for safekeeping. While this is considered the norm, this strategy doesn't build your crypto wealth over time. An alternative is to use a digital currency provider that specializes in borrowing and lending digital assets such as Bitcoin, Ethereum and stablecoins.

    In this review, we take a look at Nexo which boasts generous interest rates on cryptocurrencies of up to 12% APY compared to its competitors in the market. But is it worth investing your money and is Nexo one of the best platforms to earn interest on crypto? We assess the platform that aims to be a leader in crypto lending and interest-earning products by examining its top features, safety measures, and comparing its crypto interest rates with other platforms.

    https://nexo.io/
    HedgewithCrypto Score
    HedgewithCrypto Score
    4.7/5Our ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
    StarStarStarStarEmpty Star
    Trading Fees:None
    Country:Global (USA allowed)
    Currency:USD, GBP, AUD, EUR & 36 others
    Promotion:$25 Bitcoin for >$100 deposit
    Ease of useStarStarStarStarEmpty Star
    ReputationStarStarStarStarEmpty Star
    Deposit methodsStarStarStarStarEmpty Star
    FeesStarStarStarStarEmpty Star
    Visit NexoRead our full Nexo Review

    This post contains affiliate links with our partners who may compensate us. Read our disclaimer for further information.

    Nexo Overview

    Nexo is an online cryptocurrency loan service that offers financial benefits for storing crypto assets on platforms such as Bitcoin and Ethereum within a Nexo secure wallet. The cash-based lending platform is backed by well-known investor and TechCrunch founder Michael Arrington and led by Acntoni Trenchev, Co-Founder & Managing Partner.

    Since its launch in 2017, Nexo has processed more than 1.5 Billion dollars from 2+ Million users across 200 jurisdictions and supports over 40 fiat currencies. The lending service has gained widespread popularity as an alternative crypto investment method and storage option for individuals and companies. It is a growing part of the emerging decentralized finance industry that is rapidly gaining momentum.

    Some of the most notable features of Nexo are:

    • Obtain an instant cash loan without selling crypto
    • Earn up to 10% p.a on stablecoins and fiat currencies
    • Earn up to 6% p.a on crypto coins
    • The platform is insured against theft with custodian BitGo
    • A quick and easy loan review process
    • Crypto interest amount is paid out daily
    PlatformNexo
    ProductsBuy crypto, swap crypto, earn interest, borrow funds, debit card and trading platform
    Supported Fiat CurrencyUSD, GBP, AUD, EUR & 36 others
    Deposit MethodsBank transfers and crypto
    Accepted CryptocurrencyBTC, ETH, LTC, XRP & 10+ others
    Earn Interest RatesUp to 16% APY
    Loan Interest RatesFrom 0% PA

    Our Nexo Review - Quick Summary

    Nexo is an earning and borrowing platform for investors that are looking to grow their crypto portfolio with compound interest or obtain a cash loan with rates from as low as 0% APR. The rates offered with its earn products are some of the highest in the industry up to 16% APY. In addition, it is highly regulated with a robust security framework that makes it a world-class investment platform for digital assets.

    Visit the NEXO website

    Pros & Cons

    Nexo is a world-class platform for individuals to lend out their crypto assets to obtain cash loans or use them as collateral to earn high interest. The advantages of the Nexo platform include the ability to earn interest on fiat currency, interest paid daily to allow compounding and a beginner-friendly platform. There are a few disadvantages such as the limited number of crypto assets and holding a balance in Nexo tokens for additional benefits.

    Pros
    • Allows investors to earn more crypto through an interest savings account
    • High-interest rates that are unmatched compared to the traditional banking sector
    • Interest is paid daily, allowing crypto profits to compound over time
    • Unlock cash without having to sell your assets (e.g. not trigger a taxable event)
    • Earn compound interest in your portfolio while trading assets
    Cons
    • A limited number of cryptocurrencies to use as collateral
    • Have to buy Nexo tokens to obtain higher interest rates
    • Must maintain a certain allocation of Nexo tokens to keep perks

    Is Nexo Trustworthy?

    Cryptocurrency lending and savings account Nexo appears to be a reputable, legitimate and trustworthy company that is licensed, regulated in 200 countries and insured up to $100 Million against theft that is provided by qualified custodians, BitGo. While placing money with an online provider requires does involve certain risks, Nexo's insurance policy offers its investors peace of mind their funds can be returned in the event of a security breach or hack. This is crucial given some of the biggest DeFi hacks have occurred in the last few years.

    nexo factsnexo facts

    Is Nexo Insured?

    Nexo has partnered with Ledger to provide a vault solution to store crypto assets that are insured for up to $150 million through a custom insurance policy between Arch and Marsh. The company plans to increase the insurance policy to over $1 Billion dollars in 2021 as a result of its exponential growth and commitment to providing a high standard of safety. 

    In addition, Nexo's cold storage wallets are provided by custodian BitGo, which carries $100 Million insurance protection through a network of underwriters through an insurance company called Lloyd's. This policy protects customers' digital assets and keys that are held within BitGo's wallet. The insurance policy covers hack or theft of private keys, insider theft or loss of keys.

    Review of Nexo's Top Products & Features

    Obtain Instant Cash Loan

    Nexo offers the ability to take out an instant cash loan by lending crypto assets from as little as $10 and to a maximum of $2 million. Borrowing cash or stablecoins with Nexo has zero hidden fees, flexible repayments and no credit checks making it very accessible to many crypto holders.

    Supported Coins

    The following crypto assets can be deposited to the Nexo platform which can be used as collateral to obtain an instant cash loan - BTC, ETH, XRP, LTC, XLM, BCH, EOS, PAXG, NEXO and BNB.

    Earn Up to 12% Annual Interest

    Nexo offers high-interest savings account for cryptocurrencies and fiat money such as the EUR, GBP and USD. Customer funds are backed by an insurance policy to offer complete peace of mind while earning up to 12% interest on stablecoins. For example, Nexo is offering up to 8% APY for Ethereum interest accounts which is one of the highest rates in the market. Funds can be added to the saving wallet or withdrawn at any time (not locked in).

    nexo earn on cryptonexo earn on crypto

    Spend Crypto With Nexo Card

    Nexo has launched its own bank card to spend crypto assets like a traditional debit card. The Nexo card is accepted by 40+ million merchants worldwide that even has 2% cashback on purchases with supported vendors. The new crypto debit card will allows its customers to spend digital currencies without having to sell them.

    Nexo Exchange

    Similar to a cryptocurrency trading platform, Nexo has its own 'Exchange' that allows existing users to instantly swap between 75+ digital assets and fiat pairs. The exchange works like a broker to simultaneously connect to 5+ exchanges to find the best prices.

    nexo trading exchangenexo trading exchange

    Nexo Comparisons & Alternatives

    Nexo is a popular way to make money online through the interest account and lending platform. BlockFi, Celsius and Crypto.com Earn are similar lending and borrowing platforms in the crypto industry that have savings accounts to earn interest or take out crypto-backed loans. Alternatively, read our comparisons Nexo vs. BlockFi and Nexo vs. Celsius to compare the differences in interest rates, features and fees.

    Exchangeavailable Coinsinterest RateratingPromotionWebsiteReview
    nexo

    Nexo

    8+Up to 12% P.A
    RatingOur ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
    4.7/5
    StarStarStarStarEmpty Star
    $25 Bitcoin for >$100 depositVisit NexoNexo Review
    blockfi

    BlockFi

    23Up to 8.6% APY
    RatingOur ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
    4.6/5
    StarStarStarStarEmpty Star
    Get up to $250 Bonus in BitcoinVisit BlockFiBlockFi Review
    Crypto.com

    Crypto.com

    25+Up to 12% P.A
    RatingOur ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
    4.5/5
    StarStarStarStarEmpty Star
    None available at this timeVisit Crypto.comCrypto.com Review
    celsius network

    Celsius

    25+Up to 17% APY
    RatingOur ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
    4.2/5
    StarStarStarStarEmpty Star
    None available at this timeVisit CelsiusCelsius Review

    Is Nexo Safe?

    Nexo uses military-grade security and with 256-bit encryption and 100% offline cold storage wallets provided by world-class custodian BitGo, which has achieved Cryptocurrency Security Standard Level 3 as well as SOC 2 compliant. The 'bank-like' storage solution ensure the highest standard of security and safety of customer funds. The security measures include a multi-signature process to eliminate a single point of failure and improve resilience against the loss or compromise of the crypto private keys.

    Getting Started

    To start earning passive interest on cryptocurrencies using Nexo, users will need to create an account and complete a Know Your Customer (KYC) and Anti-Money Laundering (AML) process. The ID verification process is fully automated and can be completed in a few minutes. The information that will need to be submitted is a basic name, address and a Government-backed form of ID such as a Passport or Drivers license.

    The Nexo Token

    Nexo recently announced a 100% increase in cryptocurrency savings account interest rates for BTC, ETH, XRP, BCH, LTC, EOS, LINK, XLM, TRX, and PAXG. The rate has been increased to 6% APY, which previously ranged between 4% and 5% on cryptocurrency assets.

    Nexo's new Earn on Crypto product allows clients to opt to receive a pay-out in the platform’s native NEXO token, regardless of the asset amount held in a Nexo wallet. The incentive brings a competitive yield with an extra 2% interest on all digital assets. Earning the NEXO token further increases the interest rate to 8% APY for cryptocurrencies and 12% APY for fiat currencies and stablecoins. 

    The NEXO Token is the native token of the cash lending platform which shares 30% of all net profits with its customers in the form of dividends. According to the website, Nexo coins are the World’s First Dividend-Paying Asset-Backed Token and has paid out over $9 million to Nexo holders in the last 3 years. The token provides the following benefits to user's on the platform:

    • Earn 12% APR for stablecoins, EUR, GBP and USD deposits
    • Earn 8% APR for BTC, ETH, XRP, BCH, LTC, BNB, EOS, LINK, XLM, TRX, PAXG
    • Borrow 5.9% APR for Nexo’s Instant Crypto Credit Lines
    • Receive 30% of Nexo token net profit in dividends

    Instant Cash Loans Backed With Crypto

    Nexo offers a safe and easy to use platform to obtain a cash loan fast for every day spending by depositing cryptocurrencies to use as collateral. The crypto-backed loan provides flexibility over a traditional loan as there is no lengthy loan process or credit checks required. Users can spend the money instantly if they use the Nexo card or withdraw to a bank account. The current Nexo loan interest percentage is from 5.9% per year on what is spent.

    nexo loan benefitsnexo loan benefits

    Crypto owners can leverage their crypto portfolio to obtain fiat cash instantly without having to sell the investment or give up ownership. It is an alternative way to preserve the upside potential of Bitcoin and other assets, while withdrawing cash to cover costs. Investors can also avoid triggering a capital gains taxable event.

    For example, using the Nexo loan calculator, a Bitcoin investors can take out a cash loan of $10,000 by depositing 0.296 Bitcoin to their account to use as collateral. There are zero monthly, annual fees or hidden fees and no minimum monthly repayments.

    nexo loan calculatornexo loan calculator

    To take out a cash loan in fiat, users need to complete a Basic and Advance verification. Once the deposit has been confirmed by the blockchain, the user can withdraw a cash loan.

    How To Take Out A Loan With Nexo

    To get a cash loan with Nexo, follow these steps:

    1. Visit the Nexo website and create an account
    2. Deposit crypto to the platform
    3. Complete the verification process (KYC)
    4. Navigate to “Withdraw Loan” on the dashboard
    5. Select the preferred withdrawal method
    6. Enter in your bank account/Tether address
    7. Complete the loan and withdraw cash instantly

    Nexo Crypto Loan Step-By-Step Guide

    To obtain a loan in your local currency using your crypto portfolio as collateral, follow these steps:

    1. Assess How Much You Can Borrow

    The first step is to determine how much you can borrow. Just like any other traditional finance loan, you need to understand how much you can borrow based on the size of the deposit amount or collateral.

    Nexo makes it easy for beginners to use a simple widget as shown below. This allows you to:

    • Select the cryptocurrency asset to use as collateral (e.g. Bitcoin, Ethereum)
    • Enter in the amount of crypto you can store on the platform as collateral
    • View the amount of fiat currency that can be withdrawn as a cash loan
    nexo loannexo loan

    2. Deposit Crypto Funds As Loan Collateral

    Once you are happy with the loan details and displayed interest rates, the next step is to deposit funds into the platform. On the dashboard, you will see a list of supported crypto coinsthat are accepted by Nexo.

    The process to deposit funds works in the same way as a cryptocurrency trading exchange. Make sure to enable two-factor authentication before depositing funds. To get started, follow these simple steps:

    1. Click on the crypto asset
    2. Take note of the unique deposit address
    3. Send crypto to the provided address
    deposit funds to nexodeposit funds to nexo

    3. Withdraw Fiat Currency Loan

    Once the blockchain completes the transaction, the funds will show in your Nexo account. You will see the amount of 'credit line' appear on your dashboard against the crypto asset used as collateral. For example, if you deposited Bitcoin, then the line of credit amount will be shown against Bitcoin.

    There is no obligation to withdraw funds immediately. It can remain in your Nexo account just like on a crypto exchange. When you decide to cash out, click on the 'withdraw' button. You can select from 40 different fiat currencies. Make sure to enter your bank details correctly before completing the cash loan withdrawal process.

    4. Make Loan Repayments

    The final step in the loan process is to make repayments. This is no different from any other traditional finance agreement such as a mortgage or a car loan. The good thing with Nexo is that you can choose to make repayments in another fiat currency or even a cryptocurrency.

    As long as the amount equates to the minimum repayment amount that was confirmed during Step 1. Each time you make a repayment, it will be displayed in your Nexo dashboard so you can keep track.

    Savings Accounts

    Nexo offers high-interest accounts where users can earn passive income up to 10% p.a on stablecoins and fiat, and up to 6% on cryptocurrency. The interest earned in a Nexo savings account is significantly higher than a traditional bank account interest rate as shown below. The Nexo interest amount is paid out daily which allows the account to compound and grow rapidly, similar to dividends on a stock.

    nexo earn featuresnexo earn features

    Nexo recently announced a 100% increase in cryptocurrency savings account interest rates for BTC, ETH, XRP, BCH, LTC, EOS, LINK, XLM, TRX, and PAXG. The rate has been increased to 6% APY, which previously ranged between 4% and 5% on cryptocurrency assets.

    Nexo's new Earn on Crypto product allows clients to opt to receive a pay-out in the platform’s native NEXO token, regardless of the asset amount held in a Nexo wallet. The incentive brings a competitive yield with an extra 2% interest on all digital assets. Earning the NEXO token further increases the interest rate to 8% APY for cryptocurrencies and 12% APY for fiat currencies and stablecoins. For example, individuals can deposit and earn interest on Bitcoin up to 8% per year which is very competitive in the market. For a comparison of the best places to earn interest on Bitcoin, read this article.

    nexo comparednexo compared

    A big point of difference in the graphic above besides the higher annual interest rates is there are no fees on the interest account. Your crypto funds can be accessed at any time allowing you to withdraw funds to a personnel hardware wallet or sell back to fiat using a reputable exchange. To be eligible for interest gains, users need to provide liquidity to the platform by depositing and storing their fiat and crypto assets with Nexo.

    To be eligible for the interest rate, users need to provide liquidity to the platform by depositing and storing their fiat and crypto assets with Nexo.

    Frequently Asked Questions

    Nexo is a licensed and regulated digital currency provider that complies with local regulations across 200+ jurisdictions in the world. Nexo's team ensures that all relevant legal and compliance terms are met prior to accepting customers from each country.

    Nexo crypto loan cards can be obtain and managed using the Nexo Mobile App. The card allows users to spend funds on the card that can be linked directly to the users cash loan account.

    Nexo has introduced an exchange for its users to buy Bitcoin using fiat currency or trade to another crypto. Nexo Exchange supports 75+ crypto assets and fiat pairs that can be bought, traded and sold between each other.

    Nexo allows residents in Australia to create an account and take out a cash loan in US Dollars (USD) or Australian Dollars (AUD). This was confirmed in a Twitter post by a company representative. Nexo also provides an exchange and instant-swap service for trade and convert cryptocurrencies. For more information on cryptocurrency exchanges in Australia, click to read our article.

    Conclusion

    To conclude our Nexo review, we believe the platform will be well suited to long term investors that are looking to build wealth by leveraging their crypto. In return, the platforms offers a safe and insured way to earn high-interest returns or access quick cash through a loan. 

    Visit Nexo

    Overall, the Nexo website is easy to use and offers features and rates that are not possible with traditional banking methods. We anticipate Nexo to lead the DeFi space and become a leader for lending and borrowing of digital currencies in the future.

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    Kevin GrovesKevin GrovesKevin Groves

    Kevin started in the cryptocurrency space in 2016 and began investing in Bitcoin before exclusively trading digital currencies on various brokers, exchanges and trading platforms. In 2019, he started HedgewithCrypto to publish informative guides about Bitcoin and share his experiences with using a variety of crypto exchanges around the world.

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