Nexo is a crypto platform that offers a range of services to its users, such as buying, selling, swapping, earning interest, and borrowing against their digital assets. In this review, we will examine the features, advantages, and disadvantages of Nexo and how it compares with other major crypto exchanges in the market.
What is Nexo?
Nexo is a regulated and licensed financial institution that was founded in 2018 by a team of fintech experts and entrepreneurs. Nexo’s mission is to bridge the gap between traditional and digital finance by providing a comprehensive and user-friendly platform that covers various crypto needs in one place1.
Nexo claims to have processed over $130 billion in transactions and served over 5 million users worldwide since its launch1. It supports over 60 cryptocurrencies and 45 fiat currencies across more than 200 jurisdictions1. It also has a $375 million insurance policy on custodial assets and real-time attestation by Armanino LLP, one of the largest accounting firms in the US1.
Nexo has a native utility token called NEXO that offers various benefits to its holders, such as higher interest rates, lower borrowing costs, dividend payouts, governance rights, and exclusive offers1. NEXO is an ERC-20 token that can be traded on several exchanges, including Binance, Huobi, HitBTC, and Uniswap2.
What are the features of Nexo?
Nexo offers four main features to its users: exchange, earn, borrow, and NEXO token. Let’s take a closer look at each of them.
Exchange
Nexo’s exchange feature allows users to buy, sell, or swap their crypto assets with zero fees and excellent market prices3. Users can choose from over 500 market pairs, including 100+ exotic pairs that are hard to find elsewhere3. Users can also swap between any two supported cryptocurrencies with fixed-price execution and no price slippage3.
Nexo’s exchange feature uses a smart routing system that connects to the top 10 exchanges at once, providing users with the most cost-effective execution possible3. Users can also get up to 0.5% on each transaction as a bonus for using the exchange feature3.
Nexo’s exchange feature is easy to use and accessible from both the web platform and the mobile app. Users can start exchanging with as little as $1 and see their balances updated instantly after each swap3. All new assets are placed directly in the user’s savings wallet, meaning they are always earning high-yield interest – even in between swaps3.
Earn
Nexo’s earn feature allows users to earn up to 12% interest on their crypto and fiat deposits, paid out daily1. Users can choose between flexible, fixed, or locked terms and switch between them at any time4. The interest rate depends on the asset type, the term length, and whether the user holds at least 10% of their portfolio in NEXO tokens4.
Nexo’s earn feature supports over 60 cryptocurrencies and stablecoins, as well as fiat currencies such as USD, EUR, GBP, AUD, CAD, JPY, CHF, HKD, SGD4. Users can also earn interest on their NEXO tokens at a flat rate of 7% per year4.
Nexo’s earn feature is secure and transparent. Users have full control over their funds and can withdraw them at any time without fees or penalties4. Users can also monitor their earnings in real-time on the web platform or the mobile app4. Nexo also provides regular audits and reports on its custodial assets by third-party firms such as Armanino LLP and Onfido4.
Borrow
Nexo’s borrow feature allows users to borrow up to 50% of the value of their crypto collateral in more than 45 fiat currencies or stablecoins1. Users can access instant crypto-backed loans with no credit checks, no monthly payments, and no hidden fees1. The interest rate ranges from 6.9% to 13.9% APR depending on the loan-to-value ratio and the NEXO token balance4.
Nexo’s borrow feature supports over 20 cryptocurrencies as collateral options, including BTC, ETH, XRP, LTC, BCH, EOS, LINK, BNB, ADA, and more4. Users can also use NEXO tokens as collateral at a preferential rate of 5.9% APR4.
Nexo’s borrow feature is flexible and convenient. Users can withdraw their funds instantly via bank transfer or stablecoin transfer without any minimum loan amounts or repayment schedules4. Users can also repay their loans partially or fully at any time without fees or penalties4. Users can also top up or withdraw their collateral at any time according to the market conditions4.
NEXO Token
NEXO token is the native utility token of Nexo that offers various benefits to its holders. Some of these benefits are:
Higher interest rates: Users who hold at least 10% of their portfolio in NEXO tokens can earn an extra 2% interest on all supported assets in their savings wallet4.
Lower borrowing costs: Users who hold at least 10% of their portfolio in NEXO tokens can enjoy a discount of up to 50% on their borrowing interest rate depending on their loyalty tier4.
Dividend payouts: Users who hold NEXO tokens are eligible to receive dividend payouts from Nexo’s net profit. The dividend payouts are distributed proportionally to each user’s NEXO token balance and loyalty tier4.
Governance rights: Users who hold NEXO tokens can participate in the governance of Nexo by voting on important decisions such as new features, asset additions, interest rates, and dividend distributions4.
Exclusive offers: Users who hold NEXO tokens can access exclusive offers from Nexo and its partners such as discounts, bonuses, airdrops, and giveaways4.
NEXO token is an ERC-20 token that can be bought, sold, or swapped on several exchanges such as Binance, Huobi, HitBTC, and Uniswap2. Users can also buy or sell NEXO tokens directly on the Nexo platform or app using the exchange feature3. Users can also store their NEXO tokens securely in their savings wallet and earn interest on them at a flat rate of 7% per year4.
What are the pros and cons of Nexo?
Some of the pros of using Nexo are:
It offers a comprehensive and user-friendly platform that covers various crypto services in one place.
It has competitive interest rates and low borrowing costs compared to other platforms.
It has a large and diverse selection of supported assets and market pairs for exchange.
It has a loyal and engaged community of NEXO token holders who benefit from its utility and rewards.
It is a regulated and licensed financial institution that complies with the highest security standards and has a $375 million insurance policy on custodial assets.
Some of the cons of using Nexo are:
It requires KYC verification for all users, which may limit some users’ privacy and accessibility.
It does not support some popular features such as margin trading, futures contracts, or staking.
It has limited customer support options and relies mostly on FAQs and email tickets.
It faces strong competition from other platforms that offer similar or better services.
How does Nexo compare with other major crypto exchanges?
To compare Nexo with other major crypto exchanges, we will use four criteria: exchange features, earn features, borrow features, and token features.
Exchange Features
Nexo offers zero-fee crypto exchange with over 500 market pairs, including 100+ exotic pairs that are hard to find elsewhere. Users can swap between any two supported cryptocurrencies with fixed-price execution and no price slippage. The exchange also provides smart routing system that connects to the top 10 exchanges at once to offer the best market prices.
Some of the major crypto exchanges that offer similar or better exchange features are:
Binance: Binance is one of the largest and most popular crypto exchanges in the world. It offers low trading fees (0.1% for spot trading and 0.02% for futures trading), high liquidity, and over 1000 market pairs for spot trading and over 200 market pairs for futures trading. It also supports margin trading and staking.
Coinbase: Coinbase is one of the most trusted and regulated crypto exchanges in the US. It offers high security standards, easy-to-use interface, and over 100 market pairs for spot trading and over 50 market pairs for futures trading. It also supports margin trading and staking.
Kraken: Kraken is one of the oldest and most reputable crypto exchanges in the world. It offers low trading fees (0.16% for maker orders and 0.26% for taker orders), high liquidity, and over 300 market pairs for spot trading and over 100 market pairs for futures trading. It also supports margin trading and staking.
Been using Nexo for a while. Interest rates are little high for the loans.