Nexo – what it is, how it works, opinions

Nexo is an innovative Fintech operator looking to bring banking solutions to the Crypto World. It has been online since 2018 and has more than 1 million customers in 200 countries around the world. It, therefore, ranks as a leading operator in the world of Digital Currencies. In this article, you will find out how it works and what services this platform offers.

When it comes to cryptocurrencies, there are usually two opposite reactions.

On the one hand, there are the enthusiasts, those who believe that a real revolution is taking place, destined to change the world of payments and beyond.

On the other hand, there are the skeptics, the cryptocurrency deniers, i.e. those who think that Bitcoin and the like are just sandcastles destined to collapse at the first gust of wind.

I’ve always been excited about this phenomenon.

And today I must say that I notice more and more turmoil in the Fintech world in general and today also in the Crypto world.

There are so many innovative companies and services and even traditional operators are converging in this new world.

It is recent news that Paypal will allow all account holders in the United States to buy, hold, and sell cryptocurrency.

It is no longer atypical to talk about Bitcoin even for traditional finance operators and despite cryptocurrency transactions have not yet taken hold in a preponderant way, many services based on the crypto world are emerging strongly.

Among the most interesting services are those that allow you to use your cryptocurrencies, earn and spend the same.

I have already told you about BlockFi and Celsius Network and today I want to talk to you about Nexo, a European platform that is growing and which offers very interesting services for the financial sector in general.

In this article

  • What is Nexo?
  • The Nexo Team
  • How to open an account on Nexo?
  • How to transfer your currencies and start earning?
  • How to Spend Crypto?
  • My opinion on NEXO

What is Nexo?

Nexo is an alternative Fintech operator that allows institutional and retail Crypto investors to use their crypto and obtain the maximum in terms of returns and possibilities of use.

It was set up by Credissimo, a Bulgarian financial group active since 2007 and listed on the Sofia stock exchange.

It has three main services:

  • Earn: earns interest on the money deposited on the platform;
  • Borrow: get immediate loans against digital currency collateral;
  • Card: spend the amount obtained in terms of credit line with your credit card.

It offers an app with a very easy-to-use user interface and a well-structured and very simple desktop site.

It also has a proprietary Token, in which you can receive interest on your currencies and thanks to which you can participate in the success of the platform by participating in the distribution of dividends to the extent of 30%.

It qualifies as a regulated operator, i.e. subject to the supervision of the control and supervisory authorities of the countries in which it operates.

The money deposited on the platform is kept on BitGo, a company that offers custody services for digital assets and which, in addition to being equipped with the best security standards, is also insured with Lloyd’s in London with a ceiling of 100 million dollars.

The Nexo Team

The Nexo team is located in the various countries where the platform operates, but mainly in Sofia in Bulgaria.

The founders are Antoni Trenchev, Kosta Kantchev, and Georgi Shulev, all with excellent financial and academic backgrounds, studies abroad, and experience in traditional and innovative financial operators.

There are about 100 employees of the company on Linkedin.

How to open an account on Nexo?

To register, simply go to the Nexo.io website and click on New Account.

You will be able to proceed with the process of creating a new account.

With a few simple data, you can quickly open an account and after adding your data, your identity card, and enabling two-factor authentication you can start operating.

How to transfer your currencies and start earning?

Once you have opened your account, you are ready to use it to Earn and Spend Crypto and Digital and Non-Digital Currencies.

First, go to the Settings and set the currency in which to receive the interest.

You can choose whether to receive the interest in the same Deposit Currency or the Nexo Token.

In this case, you will receive 2% more, in addition to participating in the distribution of the dividends produced by the platform.

You are now ready to deposit Euros, Pounds as well as major Crypto (BTC, ETH, BCH, XRP, LTC, LINK, USDC, DAI).

On Crypto, you will get a base rate of 5% on an annual basis to which 2% per year must be added if you choose to receive your money in NEXO.

On Fiat currencies, the base rate is 8%, to which is always added the 2% bonus rate.

You will receive the accrued interest daily.

How to Spend Crypto?

Your Crypto is freely transferable and withdrawable simply by clicking on Withdraw and entering your address.

Alternatively, if you need liquidity and do not want to withdraw your funds, there is the possibility of obtaining a loan in Euros, placing your crypto as collateral.

As soon as you deposit currencies on NEXO you will be assigned a credit limit, i.e. a maximum amount that the company is willing to finance you.

Usually, it corresponds to 50% of the deposited amount.

This amount is calculated simply based on the value of the deposited currencies.

You can always withdraw this sum by bank transfer with a credit to your current account or spend with the NEXO Card.

You will have to pay an interest rate ranging from a minimum of 5.9% on an annual basis if you keep NEXO tokens on the platform, to a maximum of 11.9%.

Interest is only charged for the time you borrow the money.

Keep in mind that you will not be obliged to repay the loan until your balance is less than the value of the loan.

To pay off the loan and repay the interest, you can use the money you have on the platform or transfer the requested sum.

My opinion on NEXO

Nexo is an interesting platform that allows holders of digital currencies and not only to get very high interest by depositing their money in an interesting account.

It also allows you to transform these currencies into immediate liquidity without actually spending them, thanks to the granting of an onerous loan.

It can therefore be useful for all those who think that the World of Cryptocurrencies can mark significant increases and therefore do not want to spend absolutely what they earn, but have temporary liquidity needs.

I honestly am not particularly attracted to this form of financing and debt in general.

Moreover, tying debt to crypto collateral also exposes you to greater risk, should the prices of cryptocurrencies fall instead.

So I don’t think I’ll use this feature, but I opened an insurance account instead to earn interest by choosing to receive interest in the NEXO token.

At the moment there is also no possibility to convert the various currencies between them and I think this function can be very useful in the future.

They are also on a long waiting list for the Card, but their use is still limited to the financing function.

Of course, I will update you on upcoming developments and my experience.

In the meantime, let me know what you think in the comments, and please don’t forget to subscribe to my  free newsletter