Nexo is a cryptocurrency organization that gives you the opportunity to trade, take a loan or earn interest on your cryptocurrency. In short, Nexo is the crypto-economy equivalence of a bank with many perks. In this Nexo review, our goal is to bring you an in-depth discussion on the business of Nexo and how it might benefit you.
In this review of Nexo, our goal is to cut throw the clutter and provide you with adequate pieces of information that would enable you to make informed decisions on some very crucial points before you put your hard-earned crypto into Nexo.
Who owns Nexo? Is Nexo safe? how does Nexo work? how does the Nexo card work, where to buy Nexo, will Nexo go burst? where to buy Nexo, are Nexo deposits insured, and can Nexo be trusted? and many more are discussed in detail below. Stick with me!
Table of Contents
Who Owns Nexo
Nexo was founded in 2018 by Antoni Trenchev, Kosta Kantchev, and Kalin Metodiev. Antonio is the current managing partner of Nexo.
Over the last couple of years, Antonio and his team have helped built Nexo into an amazing financial institution, incorporating lessons from the digital world into becoming an institution of choice for the cryptocurrency ecosystem.
Is Nexo Safe
Nexo is a licensed and regulated digital asset institute, it is ISO/IEC 27001:2013 information security management system and has real-time audit performance by Armanino.
Besides these, Nexo is also registered and licensed by the following organizations:
- U.S. Financial Crimes Enforcement Network – Money Services Business Registration, reference number;31000201460825
- State Banking Department, Consumer Credit License, Alabama – Reference number; MC 22897
- Alabama Securities Commission, Money Transmitter License – Reference number 859
And many more licenses across the globe! The full list of Nexo registration and Licenses is listed here.
Licensing and regulation provide a safety net for users of the Nexo platform, it provides the assurance that Nexo has undergone the requisite due process and is deemed by multiple state regulators as being safe and secure for the general public to use.
Regulatory oversight also ensures that Nexo does not have the ability to just dip its hands into users’ funds, Nexo is required to keep users’ funds and company funds separate and only touch users’ funds as per regulatory requirements.
To further strengthen its business processes and ensure the safety of users’ funds, Nexo utilizes a trusted and secured third-party institutional digital asset management platform called Bitgo.
In the event of a hack, $775 million to cover any losses that may occur.
We believe that Nexo has putten in all the necessary precautions and stops to protect your funds and secure your business.
How Does Nexo Work
The Nexo Crypto Deposit Business
Similar to a traditional bank account, Nexo allows members to deposit their cryptocurrency and earn interest on them. The percentage of interest earned varies depending on the type of cryptocurrency you deposit but in general Nexo interests paid to depositors are higher than what you would likely gain from a traditional bank account.
This offers several advantages;
- You have access to your money from anywhere in the world with an internet connection
- You earn more than traditional banks with less hustle
- If you are from a foreign country, Nexo gives you the opportunity to save in a currency other than your native currency, this helps beat depreciation and preserve value you otherwise would have lost.
However, if you want to actually invest your crypto and make more in profits, you might want to read about the top 3 investment platforms available today.
The Nexo Currency Conversion
Nexo allows the user’s to convert one cryptocurrency to another with ease. With a few clicks, you are able to convert bitcoin to Ethereum and vice versa. You can convert all the cryptocurrencies listed on Nexo to another with ease and with some of the best rates in the industry.
The Nexo Boost
Nexo allows members to trade using leverage, with Nexo boost you can trade up to 3x your capital. This level of leverage has its risks, but when gotten right, it could double or triple any gains you may have had should you have just kept your funds.
The Nexo Loan Platform
Perhaps Nexo’s most popular offering to date is the Loan platform, Nexo allows members to borrow up to 50% of their cryptocurrency deposited with them.
In simple terms, when you deposit $10,000 into Nexo, you can take a loan of up to $5,000 while keeping your $10k intact with Nexo. This enables you to get the upside of any cryptocurrency you may have deposited while gaining the liquidity to use.
For example, Bitcoin price is now $20k and you have 2 BTC in your wallet, you can deposit that BTC into your Nexo platform and then take a loan of $10k, i.e half of your BTC at current prices.
Should the price of BTC rise from $20k to 30k, the 2BTC you deposited are now worth $60k with Nexo while you have a loan of only $10k.
The BTC appreciated in value, you gained the value and still got the fiat to spend.
However, there is a catch, should the BTC Price reduce by half, Nexo would begin an automatic liquidation process to protect their funds. In short, Nexo would never allow your holdings to fall below the loans you have taken without liquidating your portfolio.
The Nexo loan portfolio is a good product, however, use it with caution and only for emergencies, paying back as soon as possible, in other to survive any negative circumstances that could have arrived in any bear market.
The Nexo Trading Platform
Nexo has a sparkling new trading platform that allows users to trade cryptocurrencies.
The Nexo trading platform is a fairly advanced trading platform yet simple to use. It has a very simple learning curve. All important details you need are made easily available to you.
How to Deposit Crypto into Nexo
There are two (2) ways you can deposit crypto into your Nexo account, you can ;
- Transfer crypto from another wallet or broker into Nexo
- Purchase crypto directly on Nexo using your bank or credit card
How Does the Nexo Card Work
The Nexo card, an exciting new addition to the Nexo family of products is designed to bring ease to your life as a member of the Nexo platform.
The Nexo card allows you to spend without touching your crypto. In essence, it is the entirety of the Nexo loan platform on the card.
Here are a few features of the Nexo card;
- Earn 2% cash back when you make a purchase in the real world using your Nexo card.
- Credit line rates starting from 0% APR
- No minimum monthly repayments Apple & Google Pay integration.
This is how the Nexo card works;
- You use your crypto as collateral; Essentially, you use your digital assets as collateral while spending their fiat value at millions of merchants worldwide.
- Spend the Available Credit; The card is tied to Nexo’s Instant Crypto Credit Lines. All purchases are deducted automatically from your available credit line while your portfolio remains intact.
- Retain Ownership of Your Assets; The credit line can use one or multiple assets as collateral, allowing you to spend up to 90% of the value of your crypto without selling it.
The Nexo credit card offers more advantages over traditional credit cards, below are a few things to note.
Where to Buy Nexo
You can buy Nexo on the following platforms;
Nexo token is an Ethereum-based coin that is designed for use on the Nexo platform. It offers holders the following advantages on the Nexo platform;
- Higher earnings on their deposited cryptocurrencies
- Holders also pay the lowest interest rates of loans made from Nexo
Nexo also periodically buys back the Nexo tokens, thus reducing the total number of tokens in circulation and giving the tokens an upward price projection.
How to Buy Nexo Tokens on Nexo Platform
Will Nexo Go Burst?
We believe Nexo has put in all the necessary procedures, and checks and balances to ensure continuous business development.
The one area of their business model which could cause them to go burst is their loan portfolios. However, with automatic liquidations set by code, Nexo is able to, in real-time prevent any loans from becoming bad.
We do not see Nexo going burst in the foreseeable future.
Are Nexo Deposits Insured?
This is currently over $775 million dollars worth of Insurance on Nexo deposits.
This ensures the security of all deposited capital and protects deposits from losses.
Can Nexo Be Trusted?
With Over 20 regulators and their unique business model, we do believe Nexo can be trusted.
However, if you use crypto for ANY ILLEGAL ACTIVITIES, you might think twice before using Nexo.
We would email you of new and promising cryptocurrency projects, legit investments etc. once a week
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