Nexo Loans Review
Best For
- Investors
- Traders
- Crypto Companies
- Hedge Funds
- Cryptocurrency Miners
Nexo is an automated cryptocurrency loan platform that enables users to receive crypto-to-crypto and crypto-to-fiat loans without selling their cryptocurrency assets.
Nexo Crypto Loans - 2020 Comprehensive Review
Nexo Overview
| APR Rates | 5.9% |
|---|---|
| Borrow Assets | USD, USDT |
| Rate Variability | Low Variable |
| Loan Amounts | $500 - $2,000,000 |
| Receive Funds | Fiat : 3 Business Days, Stablecoin : Instant |
| Repayment Type | Interest Only |
| Available Loans | Fiat, Stablecoins |
| Accepted Collaterals | BTC, ETH, XRP, BCH, BNB, LTC, NEXO, EOS, XLM, PAXG |
| Collateral LTV | 15% - 75% |
| Margin Call LTV | 80% |
| Collateral Insurance |  |
| KYC Check | |
| Platform Fees | Margin Call: 15% |
| Network Token | Nexo |
| Token Benefits | Interest Payments must be paid in NEXO tokens to get the published APR rates. |
| Platform Type | Centralized Lender |
| Credit Check |  |
| Supported Regions | All Countries |
| Excluded Regions | Sanctioned Countries |
About Credissimo Company
Credissimo is a FinTech company founded in 2007 by a group of 4 entrepreneurs looking to disrupt the online lending industry.
Prior to their expansion into crypto asset loans, Credissimo’s primary services were online consumer loans, e-commerce payment financing, and bill payment services within the South Eastern Europe region.
Registered in Malta, the company is regulated by multiple European Financial Services and Central Bank regulators. Credissimo currently has 140 employees and claims to have provided service to more than 350,000 customers.
What Is Nexo?
Nexo is an automated cryptocurrency loan platform that enables users to receive crypto-to-crypto and crypto-to-fiat loans without selling their cryptocurrency assets.
- Crypto Loans - Users borrow against their cryptocurrency and receive an instant credit line in the form of stablecoins or fiat deposited directly into their bank account.
- Interest Accounts - Users deposit and earn compounding interest paid out daily on the EURO and stablecoins. Nexo plans to add interest accounts for Bitcoin, Ethereum, and Ripple in the near future.
Nexo provides services to 200+ jurisdictions in 45+ fiat currencies. Over 200,000 users have received crypto-backed loans and it is currently one of the only platforms that issues users a cryptocurrency credit card.
Is Nexo Legit?
Nexo is SEC compliant and operates under the strict supervision of European Banking and Financial Service Regulators.
Regulated & Compliant - Credissimo is registered and regulated in the EU (Malta).
Audited - Credissimo’s financial statements are audited by Deloitte - one of the largest accounting firms in the world.
Insured Custody - Crypto asset custodian BitGo is insured by Lloyds of London for up to $100,000,000 USD.
Industry Track Record - Nexo’s parent company Credissimo has been operating in the online lending industry since 2007.
Digital Security - Nexo requires Two-Factor Authentication for every client log-in. All sensitive user information is encrypted via Secure Socket Layer (SSL) technology.
Why Use Nexo For Crypto Loans?
- Asset Insurance - All client crypto assets are secured and stored by BitGo, an industry standard custodian insured by Lloyd’s of London.
- Global Access - Nexo provides services to more than 200 jurisdictions in 45+ fiat currencies.
- Multi-Asset Support - Borrow against Bitcoin, Ethereum, Nexo, Ripple, Binance Coin, Litecoin, and more.
- Tax Benefits - Users can access capital by borrowing against their crypto assets instead of selling. In some countries, holding crypto assets for an extended time period can reduce taxes owed on their appreciation in value.
- Transparent Fees - The only fee is the interest on the outstanding crypto-backed loan.
- Convenience - Users will find securing a crypto loan on the Nexo platform is a (mostly) automated process.
Nexo Platform Deposit Wallet
In order to access the services on the platform, users will need to deposit their crypto assets into the Nexo Wallet.
All crypto assets in the Nexo Wallet are secured by 256-bit military grade encryption and kept in multi-signature wallets provided by BitGo, an industry standard custodian insured for up to $100,000,000 USD.
Clients seeking to receive dividends on their NEXO token holdings must KYC and keep their NEXO tokens in the Nexo Wallet.
Nexo Credit Card
Nexo has announced plans for a cryptocurrency credit card.
The Nexo Credit Card will be directly linked to the users account and credit limit. Purchases can be made without needing to withdraw funds to a bank account.
Clients will be able to purchase anything they wish - the Nexo Credit Card will function the same as any standard credit card.
APR Rates
| Borrow Asset | APR Rate |
|---|---|
| US DollarsUSD | 5.9% |
| TetherUSDT | 5.9% |
Collaterals Accepted
| Collateral Asset | Collateral LTV |
|---|---|
| PAX GoldPAXG | 75% |
| BitcoinBTC | 55% |
| EthereumETH | 50% |
| XRPXRP | 40% |
| Bitcoin CashBCH | 30% |
| Binance CoinBNB | 30% |
| LitecoinLTC | 30% |
| EOSEOS | 30% |
| StellarXLM | 30% |
| NexoNEXO | 15% |
How To Get An Instant Crypto Credit Line (Loan) With Nexo:
- Create an account with Nexo.
- Pass KYC verification by sending necessary documents; Goverment ID or Passport, and a selfie verification picture.
- Deposit supported crypto assets into Nexo’s secured and insured wallet.
- Nexo will issue a credit line based on the real time value of the crypto assets. Instant loans up to 50% of the value (LTV) of their deposited crypto assets are immediately accessible.
- User can receive funds by withdrawing the funds to the Tether (USDT) stablecoin, spend instantly by debit card, or withdrawal to their bank account via wire.
- Interest is debited from the available credit limit. Loan repayments can be made anytime with crypto, fiat, or a combination of both.
An Example Loan Process
- User deposits $10,000 USD worth of Ethereum as calculated by several major cryptocurrency exchanges prices in real time.
- An instant credit line of $5,000 USD is automatically made available to the user.
- The user can immediately access the $5,000 USD in stablecoins or initiate a bank transfer to receive the equivalent USD amount in fiat.
- Additional credit lines are instantly available when the value of the user’s deposited crypto assets appreciate in value.
*Nexo does not currently charge any banking related fees, however the user may incur charges from their respective bank.
Nexo (NEXO) Token
The NEXO token can be used to reduce interest rate payments from 16% to 8%.
Ticker NEXO |
Price $3.64 |
Volume $12,299,580.95 |
Market Cap $2,038,423,112.00 |
Circulating Supply 560,000,011 |
Total Supply 1,000,000,000 |
Rank 57 |
Blockchains Ethereum |
Trusted Exchanges Huobi Global, Binance DEX |
Hardware Wallets Ledger, Trezor |
Nexo (NEXO) Token Exchanges
| Exchange | Rating | Price | Pairs | 24hr Volume |
|---|---|---|---|---|
| Huobi Global | 8/10 | $3.69 | 3 | $4,682,616.58 |
| Binance DEX | 5.5/10 | $3.71 | 1 | $127,520.17 |
*We only include exchanges that pass our reputability standards
*Minimum monthly average 24h volume of $10,000 USD
Recommended Nexo (NEXO) Token Wallets
| Wallet | Rating | Type | Price |
|---|---|---|---|
| Ledger | 10/10 | Hardware | $69.99 |
| MetaMask | 8/10 | Browser Extension | $0.00 |
| Ledger Nano M | 7/10 | Mobile Application | $96.00 |
| Trezor | 9/10 | Hardware | $149.99 |
| MyEtherWallet | 9/10 | Web | $0.00 |
| MyCrypto | 9/10 | Web | $0.00 |
| TrustWallet | 9/10 | Mobile Application | $0.00 |
Nexo Crypto Loans Alternatives
Pros and Cons
Pros
- No Credit Checks - Users only need cryptocurrency to obtain loans from Nexo.
- Collateral Options - Nexo allows users to loan against 20+ crypto assets.
- Fees - Nexo does not charge origination fees, prepayment fees, or any transaction fees within the native Nexo wallet.
- Automated Platform - Nexo offers a self-serving platform with a seamless user experience. No phone calls, paperwork, or lengthy verification processes involved.
- Earn Interest On Crypto Assets - Nexo also offers interest accounts on stablecoins. Crypto interest accounts will be offered in the near future.
- Tax Benefits - In some countries, selling crypto assets before a certain period of holding time can void tax benefits. Nexo crypto-backed loans enable users to access capital without selling their crypto assets.
- Custodian Insurance - Nexo uses industry standard custodian BitGo to maintain and secure customer asset balances. These assets are insured for up to $100M USD by Lloyd’s of London.
- 45+ Supported Fiat Currencies - Nexo has done a great job of providing global access to crypto-backed loans in over 200 jurisdictions.
Cons
- Centralized - Unlike decentralized lending platforms such as Compound and Maker, user funds on centralized lending platforms can be subject to government regulations and company policies at any time.
- Privacy - All users looking to obtain crypto-to-fiat loans from Nexo must KYC and submit personal identification documents.
- High Risk Assets Accepted - Nexo allows users to loan against some very high risk crypto assets. Quite a few of the available options are subject to higher than average volatility and can trigger liquidations if the user is not closely monitoring their loan agreement.
- Native Token - Nexo raised $52M USD and issued a native token (NEXO) to contributors in the process. Many Nexo users and community members believe the token does not provide enough value or utility. Other centralized loan platforms, such as BlockFi, did not issue a native token and are operating equally well.
Frequently Asked Questions
Is Nexo safe?
Does Nexo have a debit card?
Where can I buy the Nexo token?
Is the NEXO ERC20 a security token?
Does Nexo accept US customers?
Summary
Nexo is one of the most successful crypto lending platforms with claims of over $700M USD in loans processed in 250+ jurisdictions. Their parent company, Credissimo, has offered services in the loan industry for over a decade.
Nexo plans to roll out its ‘Nexo Card’ which enables users to access their credit line worldwide in the near future. This is quite an advantage, as Nexo would be the only crypto loan platform with a functioning credit card available to its users.
While the interest rates are not the lowest in the industry, Nexo’s user experience has kept them in the running as one of the most popular crypto loan platforms. 20+ crypto asset collateral options, global availability, and close to zero fees on loan services (apart from interest) make Nexo a solid choice for both retail and institutional investors.
| Learn More | Best Features |
|---|---|
|
Legal & Regulation - Facts & Figures
| Legal Name | Credissimo AD-Sofia |
|---|---|
| Incorporated Country | Malta |
| Headquarters | Sofiya, Bulgaria |
| Year Founded | 2007 |
| CEO | Sokol Iankov |
| Total Employees | 101-250 |
| Regulators | Unclear Regulation |
| Links | Website, Crunchbase, Whitepaper, Source code, Twitter, Blog, LinkedIn |
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About The Author
Delton has been writing about blockchain finance & technology, decentralized applications, and crypto assets since 2017. His work has been published and featured by several independent news publications and blockchain projects.
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The crypto lending platforms found in this category have been tested extensively by our team as part of the review process. Factors we analyze in our crypto loan reviews and comparisons include: APY rates, available assets, loan amounts, loan options, LTV ratios, platform fees, reputation, ease of use, loan terms and fees, and customer support.
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