Update December 25, 2021
It‘s with pleasure that I am going to describe all the opportunities of Nexo.io, the financial platform that has been enjoying such great success in recent months, in fact there are good reasons to consider Nexo.io the largest “cryptocurrency lender” in the world.
The company was founded several years ago, around 2007, to meet and represent a concrete alternative to the inefficiencies of loan systems. But the real turning point came in 2016, with the adoption of machine learning and big data technologies and with the integration of Bitcoin as a loan repayment option.
What is Nexo.io
Nexo.io is an official company, based in London, which aims to provide instant loans to millions of people, through blockchain technology.
The company also allows you to earn interest on your FIAT currencies and 100% guaranteed stablecoins, interest that reaches 8% year, if you invest in the company’s token (NEXO Token), the interest reaches 12%.
All this is done with ease, using a simple App and the Nexo bank card, which provides access to your credit line anywhere in the world.
The most important product offered by Nexo is in fact an instant line of credit that allows you to use your funds without losing the potential for price increase.
This interest is calculated on a compound basis, paid daily and without commissions.
If you’ve never used a cryptocurrency savings account, Nexo is a great platform to start with. It offers high-yield interest rates and both a mobile and desktop App for any use, making it an excellent choice for both beginners and experienced investors.
While you will need to make your actual investments on a brokerage platform, transferring and earning interest through Nexo is intuitive and easy.
Security and prepaid card
Nexo.io, unique of its kind, is able to guarantee its solidity with an insurance coverage provided by Lloyd’s of London for a maximum amount of 100 million Euros for each customer.
The Nexo MasterCard card allows you to access your credit line from anywhere in the world and the Nexo card operates commission-free on all transactions: deposits, withdrawals or Forex.
How Nexo secured loans work
The instant line of credit offered by the Nexo exchange allows you to receive funds instantly and in just a few steps. In fact, a simple e-mail, a password and use the link to confirm the e-mail is enough.
At this point the credit will be immediately transferred.
How much is it possible to borrow
Like any traditional financial loan, the amount depends on the deposit and/or guarantee you provide.
Nexo makes it easy to understand the amount that can be financed thanks to a widget with which: you can select the cryptocurrency fund to be used as a guarantee, then enter the amount of this guarantee and at this point the amount in FIAT currency that you can withdraw as a loan is displayed thanks to the guarantees provided Deposit Crypto funds as collateral for the loan On your dashboard you can see all the supported cryptocurrencies.
The deposit process is quite simple, the only thing required is to enable two-factor authentication before depositing funds. Here are the details of the steps to make the deposit:
Select the asset you want to deposit (BTC, ETH, TRX …)
Copy the deposit address
Send the crypto to the address provided
Withdraw the loan
Once the blockchain has completed the transaction, the funds you have paid are available in your Nexo account and it is possible to view the credit line against the cryptographic asset used as collateral.
Funds can remain in your Nexo account just like in a simple cryptocurrency exchange. When you decide to cash out, you will click on the “Withdraw” button and then select from 40 different FIAT currencies.
Make sure you enter your bank details correctly before completing the loan withdrawal process.
Repay the loan
The last step that closes a loan process is the return of what has been financed. With Nexo it is possible to repay in another FIAT currency or using cryptocurrencies until the repayment amount is reached. At each return deposit, the accounting on the dashboard is updated, allowing the relative monitoring.
Before applying for a loan, you must verify the information relating to your identity, the 2FA security requirement, and KYC. The verification process involves the telephone number and the 2FA two-factor security system.
These mandatory approval steps allow the deposit of cryptocurrencies and the requests for loans and withdrawals from FIAT. It is advisable to further improve the security of your account by providing Nexo with a copy of your passport, identity card or driving license (this allows you to increase the ceilings up to $ 200,000 per month on withdrawal, and unlimited cryptocurrency).
Nexo is therefore consistent with compliance with current regulations, adhering to the most stringent KYC procedures.
Nexo allows you to receive secured cryptocurrency loans quickly by depositing: Bitcoin, Ether, Litecoin, Nexo token, BNB, XRP, XLM or TRX.
Additionally, the company is continually adding new tokens. Nexo also offers some of the most competitive lows and highs. You can start with a minimum of 500 dollars, and a maximum of two million.
The company allows you to withdraw FIAT currency only after advanced verification. The basic monthly limit is set at two hundred thousand dollars and can be increased up to two million. The “Loan-to-value” (LtV) indicator represents the amount of the loan compared to the value of the collateral deposited by the customer.
Since cryptocurrencies are unstable, there is a limit to the amount you can borrow against your collateral.
An example of a cryptocurrency loan
Currently, the maximum loan allowed is 50% on Bitcoin and Ether, 40% on XRP, 90% on stablecoin, 35% on LTC, 30% on BNB, 17% on XLM and 15% on NEXO tokens.
For example, if you want $ 1,000 in your account, you will need to deposit double the value of the collateral loan in the corresponding Bitcoin value.
By accepting a loan on Nexo, you agree to repay it with the related interest, but in an indefinite period. Returns are possible via bank transfer or via crypto (BTC, ETH, NEXO, XRP, USD, EUR, GBP, AUD, NZD, Stablecoin).
Always keep in mind it may take a few business days for the funds to arrive in your bank account.
On withdrawals, interest is calculated daily and debited from the balance due. Interest rates applied The interest rate depends on the method chosen for the relative repayment.
For example, if you decide to return via Nexo tokens, the annual rate is 5.9%, calculated and added to the balance every day at midnight (CET).
If you opt for other cryptocurrencies or FIAT, the APR will amount to 24.9% per annum (also in this case the interest is calculated daily, at 00.00 CET, and added to the balance).
Nexo has state-of-the-art security and customer protection measures. By depositing assets, you will remain the owner of them.
The platform is protected by a guarantee fund linked to Goldman Sachs. All the services present are based on the Cryptocurrency Security Standard Level 3, which implies multiple actors for the implementation of any critical action.
Regarding the resources, these are stored in cold wallets provided by BitGo. These resources are also insured for up to $ 100 million by Lloyd’s of London, at no additional cost to the client.
Nexo also uses military-grade 256-bit encryption and continuous fraud monitoring services 24h and 7d, in order to provide the highest level of security possible.
You can also enable facial recognition technology to add another layer of security to your mobile wallet and make sure only you can log in if your mobile device is lost or stolen.
Thanks to these security measures, you are also insured against crime, including in the event that Nexo goes bankrupt.
As additional security measures, after creating an account, you will be asked to create a 2FA using the Google Authenticator app (available for both Android and iOS).
The code within the app is automatically generated every 30 seconds and this system ensures that only you will be able to access the account.
Fluctuation of the guarantee
Since cryptocurrencies are unstable, this can lead to a fluctuation in the value of the collateral, with a sudden decrease or increase. They were therefore systems to guarantee solvency. Each cryptocurrency-backed loan, as already explained, has a loan-to-value ratio (LtV) which acts as a margin, in the event that the value decreases and the margin does not reach 80% of the loan value, a request is received for margin and you have to repay a portion of the loan or deposit more cryptocurrency into your Nexo account to continue holding the loaned funds.
If the opposite occurs, a partial automatic repayment of the loan will take place.
If the warnings are ignored, Nexo will liquidate the guarantee provided up to a sum that allows full satisfaction of the loan and accrued interest.
On the other hand, if the value of your cryptoassets increases, your credit line will also increase, allowing for greater exposures.
Nexo customer support can be contacted by sending an email to: firstname.lastname@example.org. As an alternative, there is live live chat.
The pages of the Help Center also allow you to resolve doubts in complete autonomy.
Compliance with tax regulations
Tax legislation depends on the type of services used. In the case of interest on deposits, these will be counted as capital gains and taxes will have to be paid in most jurisdictions.
The Nexo.io mobile app
The Nexo mobile app features the same features as the desktop platform, allowing users to manage their card, credit line and cryptocurrency with just a few steps.
Manage your cryptocurrency investments and interest earned by enabling interest notifications via the Nexo app Other benefits of Nexo.io.
Cryptocurrency miners are a subset of Nexo users who use dynamic lines of credit to cover capital costs without having to liquidate their mining rewards.
Those who hold significant amounts of cryptocurrency find value in Nexo’s services compared to other companies offering crypto banking services such as BlockFi, Crypto.com, and Blockchain.com. Compared to these competitors, Nexo offers more flexibility to users with daily payments and timely withdrawals.
The rates provided by Nexo are competitive and can increase significantly if you hold the Nexo token in your wallet.
Their Twitter account has tens of thousands of followers, while the subreddit is smaller, with a few thousand followers but also remains quite active. The posts are published almost every day and there are a good number of responses and comments to every single post to show that it is a small but strong community of enthusiasts.
The largest community is found on NEXO Telegram, which is also where the team is most active with several tens of thousands of members.
The Facebook group is also relevant to a cryptographic project, with tens of thousands of people following the page.
We believe cryptocurrency lending could become a steadily growing industry especially if cryptocurrencies increase in value as some financial advisors are suggesting these days due to recent exploits.
If you believe that cryptocurrencies have real-world utility as a means of payment and transfer of value, then you will have convinced yourself of the quality of the Nexo project, a lending platform that allows cryptocurrency holders to unlock trillions of dollars of value without giving up ownership. cryptocurrency is an absolutely relevant option.
In addition to unlocking value, Nexo loans allow cryptocurrency holders to access investment funds without the need to pay tax on cryptocurrency profits. Nexo’s team has over ten years of experience in financial services management and, thanks to that background, they have successfully analyzed the need for cryptocurrency lending services.
Are you ready to invest with cryptocurrencies?
If you feel enticed by this review and we have clarified any doubts or concerns, if you think that Nexo could be a real opportunity, use our link and receive a $ 25 bonus on your new Nexo account.