In a nutshell
Earn money on your crypto or borrow cash with your crypto, with great interest rates for both. You can buy and sell crypto too. It’s an awesome platform overall, trustworthy and great customer service. 5 stars from us.
cracked open 🥥
Are you HODLing your crypto waiting for the value to go up and make loads of cash? You could also consider earning interest on them too (so your coins make more coins over time).
Nexo is a platform to do just that. You deposit your coins, and start earning interest. It’s as simple as that. You can earn between 1% and 17% per year, with the average around 6-10%, which is pretty awesome. (More on interest rates later).
You can also borrow cash too. With super low interest rates. You’ll deposit your crypto as collateral (that means if you don’t repay the loan, some of your crypto could be used to repay it), and you can get more crypto, or cash, as a loan.
Earning more crypto and borrowing cash (and crypto) are the main reasons for using Nexo, but you can also buy crypto, and exchange (swap) your tokens for other crypto – they even scan crypto exchanges for the best price, so you’ll always get a great price.
Nexo is becoming an all-in-one place to manage your crypto. You can even get a credit card that earns crypto as a reward for spending! (Unfortunately not available in the UK just yet.)
In the spirit of crypto, there’s no fees to use their services (e.g. borrowing), they have a #ZeroFees policy. Pretty awesome. Unlike the big banks in traditional finance, who will charge you fees wherever they can.
To date, they’ve issued over $6 billion in credit (loans), have $12 billion saved with them, and have over 4,000,000 customers worldwide. There’s support for 40 local currencies, including the British pound (local currencies are called fiat currencies), and it’s available in over 200 countries. That’s pretty impressive for a company that’s only been around for just 5 years.
It’s all managed on their website, and there’s a great, highly rated, phone app for both Apple and Android.
That’s the overview, now let’s dive into each area a bit more, and see if Nexo is the best option for you.
Earning interest on your crypto (Nexo Earn)
Long term investor? Us too. If you’re not looking to sell your crypto any time soon, earning interest on it could be a great option. And if your coins go up in value too, it’s a win/win.
With Nexo, interest is paid daily and it’s all automatically added to your account everyday. This is great news as your interest is now earning interest too, making you even more money! (This is called compound interest.)
You have 2 savings options, you can start earning interest on your crypto with the flexibility to still do what you like with your tokens, such as withdraw or trade them. This option is called FLEX.
Or, you can sign up to a fixed term, where you’ll earn a fixed amount of interest for a set period of time, and can’t touch your tokens – you’ll earn more interest though.
So, how much can you actually earn in interest? Well the interest rates are currently pretty good, and it depends on which tokens you want to deposit.
The interest rate is called APY, which stands for Annual Percentage Yield, and is simply how much you’ll get back over the next year, so a 10% APY means you’ll have earned 10% more of your tokens at this point in 12 months time.
The interest ranges from 1% to a massive 17%, with the average around 6-10%, depending on what coins you’re saving. And is paid out daily.
There’s 34 coins currently available to earn interest on. Which is quite a lot. You’ve got the major coins such as bitcoin and ethereum (ether), but you can also save Dogecoin and even ApeCoin. Plus you can earn interest on stablecoins (coins that replicate local currencies, such as the US dollar (USD), like USDT, and even GBPx stablecoin.
Here’s how much you could earn with the most popular coins:
Note: you could earn an even higher interest rate if you opt to get your interest paid in NEXO’s own token, called NEXO. It’s 2% higher, so 8% on bitcoin (instead of 6%) and 12% on USDT (instead of 10%).
Oh yeah, and it’s completely fee-free. There’s absolutely no fees at all. No hidden fees, or hidden commission. Pretty good right?!
Borrow money on your crypto (Nexo Borrow)
Don’t want to sell your crypto to pay the bills or for a big purchase? With Nexo you can keep your crypto, and borrow cash with it. It acts as the collateral for your borrowing (that means you provide your crypto as insurance that you’ll repay the loan).
It's often a good idea to do this if you’re optimistic longer-term about the price of your crypto, as you’ll be able to benefit from the increase, instead of having to sell your crypto to get the cash.
And because you aren’t selling your crypto, it also means you don’t have to pay any tax either! It’s kind of a win-win if the coin value goes up, except of course you’ll be paying interest on the amount you borrow.
So what about the interest rates? They start at 0% (yes 0%!) and the maximum is 13.9%.
The rate you’ll get will depend on how much you want to borrow vs how much crypto you have. This is called the loan-to-value (LTV), and measured as a percentage of the total crypto you have. So an LTV of 20% means you’d like to borrow 20% of your total crypto.
For example, if you have £10,000 in crypto, and want to borrow £2,000, that would be an LTV of 20%.
The lower your LTV, the lower the interest rate you’ll get. As you are borrowing a lower amount compared to the total crypto you are holding (in your Nexo account), and therefore lower risk of not repaying your debt.
To get 0% you’ll have to hold Nexo’s own token NEXO in your account too – 10% of your portfolio (how much crypto you have in your account), and borrow under 20% LTV.
It’s a credit-line, rather than a loan
Borrowing money with Nexo is positioned as a ‘credit line’ rather than a loan. Which means, instead of borrowing a fixed amount over a set time as you would with a loan. For instance £10,000 over 5 years, and then paying interest on the full £10,000. With a credit-line, you can spend as little or as much as you like, without borrowing a fixed figure, and you just pay interest on what you need.
It’s actually more similar to an overdraft than a loan. You only pay interest when you dip into it.
As it’s a credit-line rather than a loan, you can pay back whatever you like, whenever you like, just like an overdraft. There’s no fixed monthly repayment plan, and no early repayment fees (which you’d often get with a traditional loan). You can also repay in crypto rather than cash if you like!
You don’t even need to make the repayments yourself either, it’s handled automatically from your account and balance.
Do keep on top of what’s being paid back. It’s always better to pay the cash back if you don’t need the money any more. You don’t want to be paying interest when you don’t have to.
Range of currencies
You can borrow up to 40 different local currencies (called fiat currencies, including the British pound), or borrow stablecoins USDT and USDC (crypto that represents local currencies), and convert to your local currency however you like (normally through a crypto exchange), or Nexo itself.
No credit checks
By the way, there’s no credit checks, and it doesn’t impact your credit score at all. How good is that? Got a low score, or no borrowing history? No problem.
Get the cash instantly
It’s pretty instant, well, close to. You’ll be approved instantly, but it can take up to 24 hours for you to be able to withdraw the cash.
There’s no fees
Unlike traditional banks who love to charge a fee for pretty much everything. Nexo has a zero-fees policy. There’s no fee to get the loan, no hidden admin fees, and no fees to repay early either.
All you pay is the interest rate you see. Complete transparency. Nexo makes money on the interest of the loan, rather than from fees.
No fees. We like that. And really, it’s how everything should work in finance!
Here’s where things get quite interesting! Because you can borrow cash and crypto on your crypto balance, you can actually use what you have to borrow more crypto and increase your gains (with the risk of higher losses).
You can borrow from 1.25x to 3x of what you have within your account and ride the wave of the next bull run, or buy the dip, or form part of any strategy you like!
All you have to do is hit the ‘booster’ button, and it’s all handled for you automatically.
You can borrow any crypto on Nexo, with any crypto asset you have in your account, so you could use your bitcoin as a deposit to borrow ethereum for example.
There’s even a ‘profit projection’ chart, so you can see how much you’d gain if the price goes up.
You’ll get up to 0.5% cashback too, as part of a reward scheme. Pretty nice of them.
However, to use this feature, there are fees. You’ll pay the interest on your borrowing at the same interest rate as regular borrowing (so from 0% to 13.9%), plus an additional booster fee, which is:
Nexo is also an exchange, where you can buy, sell and trade cryptocurrencies. What’s more, it actually scans the prices of the 10 biggest exchanges at once, when you’re ready to buy. Meaning you always get the best price available, pretty cool!
There’s over 300 market pairs (which are the 2 currencies you are swapping, for instance bitcoin/GBP, or bitcoin/USD). You’ve got all the major coins, such as Ethereum, plus more ‘exotic’ coins such as APE and MANA (for those metaverse trades).
All orders are instant too, so the price you see is the price you’ll pay.
And if you trade regularly (buy and sell), you’ll benefit from a loyalty bonus in the form of cashback, getting up to 0.5% back on every swap. Providing you are holding some NEXO tokens in your account.
The customer service is pretty great.
Just like the crypto markets – it’s 24/7. There’s a live-chat feature where you can chat to real humans, with very quick response times.
If you don’t want to chat, there’s a great help centre to answer the most common questions, and it even has videos and tutorials to learn more about using their platform.
They don’t have a telephone helpline however, so you can’t speak on the phone, but their quick responses on live-chat compensates for this.
Is Nexo safe?
Yes. Nexo has a massive focus on security. There’s a lot of customers' money to look after, after all, over $12 billion.
It’s got pretty much every security feature you can think of, and your identity will need to be verified before you can use it.
Here’s the top-line safety features:
- Military-grade encryption to protect your account
- Crypto is stored in class 3 vaults (super secure)
- $375m insurance against cold-wallet storage issues (e.g. theft or lost)
- Emails alerts for logins and withdrawals
- Biometric identity verification (a scan of your face)
- 2 factor-authentication (use a code on your phone or email, plus your password)
It's been audited too
Nexo has also been vigorously audited too. By Armanino, a very large accounting and consulting firm, who have over 7,000 clients and operate in over 100 countries. I think if we can trust anyone, it’s probably them.
But what does an audit actually mean? Well, it means customers' money is nice and safe and held securely. There’s no bad practices and no missing money. Everything is accounted for and Nexo are operating as they should be.
What do the people say about it?
Wow. Insanely good reviews. Nexo has received over 8,500 reviews on the popular reviews website Trustpilot, giving them a score of 4.6 out of 5, and a rating of ‘excellent’.
That’s very impressive for a company in general, but for a company in financial services it’s incredible. Financial services firms often get very low scores, as they typically treat their customers very poorly.
We really like Nexo. It’s great for making your crypto work even harder for you by generating even more crypto. It’s fee free, and the interest rates are pretty great too.
And more than just getting a return on your crypto, is the ability to borrow cash on your crypto. One of the worst things for long-term investors is having to sell their investments when they need cash and then potentially pay tax. But with Nexo, you can borrow cash as a credit-line instead, and not as an expensive fixed-term loan like with a normal bank.
Nexo’s credit-line lets you borrow just enough to cover what you need and repay whenever you like. The power and flexibility is in your hands. It’s pretty clever (and cheap). And there’s no credit checks.
You can borrow more than you actually own too, to give you more exposure to rising prices (but with more risk).
On top of all of that, their customer service is great and they have comprehensive security measures in place. All audited too.
It’s a great platform, and easy to use. It’s a big 5 stars from us.
Is there a deal?
We’ve got a great deal for our readers (that’s you!), get $100 free, in bitcoin, if you deposit $1,000 or more when you first sign up. Pretty awesome! All you need to do is claim your bonus here¹.
If you’re not ready to sign up, here’s their website to learn more. You can always come back and get the bonus later!