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Nexo review: Is it a good choice for your crypto needs?
Buy and trade crypto, or get a line of credit — but crypto yield accounts have been discontinued and the Nexo card isn't available in the US yet.
Nexo is a crypto exchange and lending platform where you can manage your crypto and earn cash back on crypto purchases and trades. The platform also offers a crypto-backed credit line with competitive rates, but be aware of the risks of keeping your assets on a crypto exchange.
Our take on Nexo
Nexo has brought financial services to the cryptocurrency industry with a platform that’s easy to use — even for inexperienced cryptocurrency investors. It’s a place where you can manage a range of cryptocurrency needs, including:
- Borrowing. Get a no-credit-check, instant-approval credit line with rates from 0% to 13.9%.
- Purchasing. Buy 39 types of cryptocurrencies, like BTC, ETH and more.
- Trading. Exchange between 200+ cryptocurrency market pairs.
But as with all crypto platforms, Nexo doesn’t offer FDIC insurance to protect your assets. Instead, the platform advertises it protects its customer assets with a $775 million dollar insurance policy — but that only covers a small percentage of deposits and coverage is subject to the terms of the policy.
This means if the company goes bankrupt due to market conditions or poor risk management, you may not get your assets back. Only invest what you can risk losing. Also, while holding the NEXO token gives you platform benefits, it’s risky to hold a large percentage of these tokens in your portfolio due to price volatility.
Nexo announced in February 2022 that it’s no longer offering interest on deposits, although it’s planning on offering new SEC-compliant products in the future — but what the yields will be is unknown. Current deposit customers will continue to earn yields on eligible balances, but if you’re a new customer looking for a place to park your crypto to earn some extra cash — you’ll need to go elsewhere.
And if you’re a new customer, be aware that Nexo’s customer service isn’t the most responsive. It can take several days to get a support ticket response and you’ll likely wait several minutes or even hours to get help by chat.
Sign up with Nexo in 5 steps
To access Nexo’s features and set up a new account, you must register on the platform and verify your identity.
Typically new customers must follow some version of these steps:
- Go to the Nexo website and create an account.
- Go to the Account page and choose Identity Verification lower on the page.
- Enter your personal information, including your address, employment status and Social Security number.
- Next, you must scan your ID for uploading to the site and take a selfie.
- In rare cases, Nexo may ask you to provide additional documents, such as а bank statement or utility bill.
Once your profile is approved, you’ll have access to all of Nexo’s products and services. Nexo’s review process typically takes a few minutes, or in some cases, up to one business day.
- Beginner-friendly interface.
- All information about assets in custody can be viewed in the Nexo Wallet.
- Accounts for individuals and businesses.
- No FDIC insurance if the company goes bankrupt.
- Insurance policy only protects a small percentage of assets.
- Must hold NEXO to get higher benefits.
- No yields offered on new customer deposits.
- Prepayment penalty on crypto line of credit.
Earning: Nexo Interest Account (discontinued for new customers)
In the past, one of Nexo’s most popular features was the Nexo yield-earning deposit account. While this product is no longer available for new customers, current account holders already earning returns will continue to earn yields on their eligible balances. Instead, it plans on offering a new securities-compliant product in the future, but it’s unclear what the yields will be.
For existing account holders, APYs for cryptocurrencies range from 1% to 12%. They vary based on the cryptocurrency, the amount of NEXO tokens in one’s portfolio, and whether the user receives returns as NEXO. APYs for fiat currencies range from 4% to 12%.
While you can earn higher yields, this is not an endorsement of NEXO. Native tokens are volatile and holding a large percentage of NEXO in your portfolio could lead to significant losses.
Compare other crypto savings accounts to find the best rates and features for your needs.
Borrowing: Nexo crypto credit lines
Nexo offers a line of credit using your cryptocurrency as collateral, which allows you to withdraw funds instantly — with no credit check.
Nexo crypto credit lines
|APR||0% to 13.9%|
|Loan amount||Starting at $50|
|Loan-to-value ratio (LTV)||Starting at 30%|
|Loan terms||From 12 months|
|Issued currencies||USD, EUR, AED, ARS, AUD, BGN, CAD, CLP, CNY, CZK, DKK, EGP, GBP, GEL, GHS, HKD, HRK, HUF, IDR, ILS, INR, JPY, KES, KRW, MAD, MXN, MYR, NGN, NOK, NPR, NZD, PEN, PHP, PKR, PLN, RON, RUB, SEK, SGD, THB, TRY, UAH, VND|
|Margin call threshold||71.4%: Margin Call
74.1%: Margin Call
76.9%: Margin Call
|Liquidation Threshold||83.3%: Automatic Stabilization|
|Type of repayment||No monthly repayments, pay partially or fully when you want|
|Prepayement penalty||Yes, if you make a partial or full payment of the credit line within 30 days from the last withdrawal|
|State availability||Not available in New York, Vermont|
How does the Nexo credit line work?
A Nexo credit line works by offering the option to borrow cash or stablecoins using your crypto as collateral. The LTV required varies by the type of coin, and ranges from 15% to 90%.
- BTC’s LTV is 50%. To borrow $1,000 USD, you need to pledge $2,000 in BTC.
- Nexo Token’s LTV is 15%. To borrow $1,000 USD, you need to pledge $6,666 in Nexo.
Once you’ve deposited your crypto, set up a Nexo line of credit through the Borrow tab in your account. After your line of credit is established, you can withdraw fiat currency straight to your bank account.
Alternatively, you can withdraw USDT or USDC to your Nexo account or other wallet address that accepts USDT or USDC. These withdrawals are available instantly.
Where some crypto lending platforms only accept Bitcoin or a handful of crypto assets, Nexo accepts over 40 coins as collateral, including BTC, ETH, DAI and USDC. The company advertises up to a $375 million insurance policy for the custody of customer assets, although this only covers a portion of alleged assets.
However, crypto assets aren’t FDIC-insured, and having an insurance policy doesn’t guarantee assets will be returned to you in the event of a significant company loss due to hacking, theft or insolvency. Read our guide to crypto loans to learn more about how they work.
Compare other crypto loans to see how Nexo stacks up.
Interest rates are between 0% and 13.9%
The annual interest rate you receive depends on the amount of NEXO in your portfolio, which is determined by the following tiers:
- Base: 13.9%. Must own at least 1% in NEXO Tokens.
- Silver: 12.9%. Must own 2% to 5% in NEXO Tokens.
- Gold: 8.9%. Must own 5% to 10% in NEXO Tokens.
- Platinum: 6.9%. Must own 10% or more in NEXO Tokens.
Reduce your rate further to between 0% to 1.9% by becoming a Gold or Platinum member and keeping your LTV below 20%. Bear in mind that owning NEXO tokens isn’t risk-free as they can decrease in value.
Make repayments using a range of currencies
Nexo allows you to make credit line repayments any time and for amounts over the minimum repayment. Repay your loan partially or fully using the following crypto assets:
- Fiat: USDx, EURx, GBPx
- Stablecoins: USDT, USDC, TUSD, USDP, DAI, UST
- Crypto: BTC, ETH, LTC, XLM, BNB, BCH, EOS, LINK, TRX, DOT, ADA, DOGE, UNI, AXS, MATIC, SOL, AVAX, LUNA, FTM, ATOM, SAND, KSM, XRP (not available for US residents and citizens) and NEXO
Note: This list of cryptocurrencies is different from the list of coins Nexo accepts as collateral on its credit lines. Both lists are also subject to change.
Prepayment penalties within 30 days
With Nexo, if you pay your credit line loan partially or in full within 30 days from your last loan withdrawal, you must pay the interest on the remaining days.
What happens if my crypto drops in value?
If you have a Nexo credit line, you must monitor your collateral’s value during market dips. If the price of your crypto assets fall too low, you’ll get an SMS and email asking you to repay your Nexo loan or add more collateral to your Credit Line Wallet to get your LTV back to a healthy level. This is known as a margin call.
If you don’t act before your LTV hits 83.3%:
- Nexo will automatically move the available assets in your Savings Wallet to your Credit Line Wallet.
- If you don’t have assets in your Savings Wallet, or if they’re insufficient, Nexo will automatically sell off your crypto collateral to pay back part of the loan in order to get it above 83.3% again.
Spending: Nexo crypto-backed Mastercard
While not yet available in the US, Nexo will be offering a crypto-backed Mastercard that uses your crypto as collateral. Earn between 0.5% and 2% in crypto back on your purchases, although you need to earn in NEXO to get the maximum 2% reward. And while earning rewards in crypto isn’t taxable per se, when you convert it to fiat currency like USD it’s considered a taxable event.
To get the scoop on the benefits as well as pros and cons of using the card, see our full review of the Nexo crypto-backed Mastercard.
Buying: Nexo crypto assets
The Nexo platform allows you to purchase over 30 different types of cryptocurrencies using bank transfers or debit and credit cards. Also, earn up 0.5% cash back on your crypto purchases, depending on your loyalty tier.
As with all crypto exchanges, you’ll pay a fee when buying crypto, but Nexo shows the exact processing fee you’ll pay so there’s no surprises like with other exchanges.
Trading: Nexo Exchange
The Nexo Exchange lets you trade over 200 different cryptocurrency and fiat pairs, offers up to 0.5% in instant cashback if you belong to one of its loyalty tiers, which requires you to own a certain amount of NEXO in your portfolio.
Features of the trading platform include:
- Smart Routing system. Simultaneously connects to over five different exchanges to find the best price and then splits orders depending on price volume.
- No direct fees. No direct trading fee when making an exchange. Instead, Nexo charges a spread, which is the difference between the rate you receive and the market price.
- Card purchases. Buy Bitcoin, Ethereum, Litecoin, and other select cryptocurrencies with a debit or credit card.
- Nexo booster. Gives you between 1.25 and 3x leverage on your portfolio, which means you can spend more than the assets you have on hand. However, buying with leverage can be extremely risky and is only recommended for experienced investors.
Cryptocurrencies are highly volatile and past performance is not a guarantee of future performance. While you can earn trading cryptocurrencies, you can lose money too.
Compare Nexo to other platforms
Use this table to compare crypto platforms to find the right one for your crypto investing and borrowing needs.
Is Nexo safe to use?
As with all crypto exchanges, the crypto assets you hold on the Nexo platform are not FDIC-insured and not as safe as assets held in traditional financial institutions. Crypto platforms can go bankrupt on sudden notice are often the targets of hackers. And any cyber insurance advertised by the platform may not cover you, regardless of the marketing claims.
While Nexo advertises a custodial partnership with bakkt, BitGo and Ledger, which offers a $775 million insurance policy for all users’ deposits, this only covers 5% of a purported $15 billion worth of assets under management. What this all means is that you should only invest what you can risk losing — and never place your entire life savings on a crypto exchange.
Nexo states that it protects your assets by lending them to institutions on an over-collateralized basis only, but using a crypto platform always comes with risk. Overall, the policies at Nexo make it as safe as similar cryptocurrency platforms, but with no FDIC insurance it’s riskier than keeping funds at a traditional financial institution.
Nexo also claims that the majority of assets are held within offline “cold” storage facilities, but what percentage of assets are held there is unknown. Consult a crypto-savvy financial advisor if you have concerns about how your funds are protected.
What does the Nexo token do?
NEXO is the native token of the Nexo platform and can be purchased like any other coin using the Nexo Exchange option. While native tokens historically don’t offer the same level of returns as Bitcoin, owning NEXO gives you specific benefits on the Nexo platform:
- Interest rate discounts. Get a credit line with rates as low as 0% to 1.9%, depending on the loan-to-value (LTV) and amount of NEXO Tokens in your portfolio.
- Cash back on buys and trades. Get up to 0.5% back on cryptocurrency purchases and trades by holding at least 1% in NEXO tokens in your portfolio.
While there are platform-specific benefits to holding NEXO, this is not an endorsement of NEXO. Native tokens are volatile and holding a large percentage of NEXO in your portfolio could lead to significant losses.
Nexo reviews and complaints
Nexo earns mostly positive customer reviews on platforms like Trustpilot. But like other crypto company reviews we’ve seen, some of the positive reviews look incentivized — with users leaving single sentence reviews using the words like “great” or “fast” without much detail.
In the more genuine-looking reviews, satisfied customers praise the platform and app for being easy to use and their ability to earn high interest — although Nexo no longer offers interest accounts to new customers. Unhappy customers report problems with account restrictions and having difficulty reaching a human when needing help.
In my experience it takes a long time for the company to respond. I was told to wait seven days for a response from a support ticket I submitted, and I couldn’t get any human help with the site’s chat bot after waiting for over an hour.
The company isn’t registered with the Better Business Bureau (BBB) and has an F business rating for how it has handled four complaints over the past three years.
How to contact Nexo about my account?
There are three ways to get help with your Nexo account.
- Submit a help ticket on Nexo’s website.
- Email email@example.com
- Send a message on Twitter @NexoFinance.
Nexo is a popular platform for buying and trading a wide range of cryptocurrencies. But it no longer offers yields on new deposits and like all crypto exchanges, carries no FDIC insurance to protect your assets. Compare more crypto exchanges to find the right platform for your needs.
Nexo Earn is not currently available on Finder
Have you considered UFB High Yield Savings?
Score an impressive 5.25% APY, and pay $0 in monthly fees. No minimum deposit requirement. FDIC insured.
- 5.25% APY
- $0 monthly fees
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- FDIC insured