Having more than ten years of experience in FinTech, Nexo is presently the world’s leading crypto lender. Upon realizing the ineffectiveness of the lending system back in 2007, a group of four entrepreneurs formed Nexo. However, the company rose to fame in 2016 upon the adoption of big data technologies and machine learning, whereby adding Bitcoin as a repayment option for loans. The financial institution has been able to receive multiple awards since then, including the Forbes Business Award in the Financial Sector Innovation and the “Innovation of the Year” award in 2016.
A Review of Services Provided by Nexo
By the application of modern blockchain technology, Nexo provides instant loans to millions of people in Europe. Besides, Nexo also provides the opportunity for investors to earn interests as high as 8% annually on 100% asset-backed EUR, USD, GBP, and stablecoins. All of this can be done with the Nexo bank card or by a solid app that provides global access to your credit line. All services provided by this company are easily accessible.
Instant Crypto Credit Line
The most significant product offered by Nexo is the Instant Credit Line that enables the investors to use funds without any KYC. The registration process takes only a few minutes, and afterward, you can receive a credit line in Ether, Bitcoin, XLM, LTC, BNB, XRP, and Nexo token.
Its plus points include flexibility, no hidden fees, and guaranteed approval. The company plans to expand further with the addition of Dash, NEO, Tron, and privacy coins, including Monero.
Opportunity to Earn Interest
Nexo is the world’s largest interest-earning platform having more than a quarter of a million users. The current interest rate of 8% being offered by Nexo is miles ahead of that being provided by the traditional banks. Nexo has the additional benefits of no fees, and interests are paid daily.
The funds are secured by a $100 million per each customer insurance by Lloyd’s of London, which makes it a very safe investment. The 8% annual interest can be earned right from day one by depositing GBP, EUR, USD, TUSD, PAX, DAI, USDT, or USDC.
You can obtain global access to your credit line by opting for the Nexo branded MasterCard. The cards are not ready yet but will be provided to customers after regulatory approval.
- Some of the key benefits to Nexo card include:
- Total control over funds
- Ability to freeze and unfreeze your Nexo card
- Ability to create virtual cards
- Access to millions of merchants around the globe
- Ability to monitor transactions
The Loan Amounts on Nexo
The minimum limit for loans starts from a value of a mere $500, and the maximum amount is $2 million. After advanced verification by providing your ID photo, Nexo offers the ability to withdraw $200,000 monthly. However, the amount can be increased up to a limit of $2,000,000 per month.
Because of the volatile nature of the cryptocurrency market, a limit is set to how much can be borrowed using it. Currently, Nexo is offering the option to borrow as much as 50% of the investor’s Ether and Bitcoin value, 40% of XRP value, 90% of the stablecoins value, 30% of BNB value, 35% of LTV value, 17% of XLM value and 15% of NEXO tokens value. Even though Nexo has a lot of options, it is advisable to work using Stable coins, to eliminate the external risks.
The interest rates for crypto-based loans depend on the way of repayment. For example, if the payment is made via Nexo token, the APR is pretty low, with a rate of 5.9%. However, in case the loan payment is made via fiat or any other crypto, then the value of APR is a staggering 24.9%.
It needs to be noted that the interests are calculated at 00:00 CET and added to the balance. We also advise going through their Terms and Conditions before taking a loan.
Customer support is available at the email address firstname.lastname@example.org. Furthermore, the Live Chat option located at the right bottom corner of the webpage can be used to contact the customer support.
The Nexo website also offers a Help Center, which contains a glossary of frequently asked questions.
Pros of Nexo
- Nexo has a lot of Pros, some of which are as under:
- The registration process and setting up the account takes a very short time.
- The interest rate is 8% of stablecoins and fiat
- Interest is paid daily, and you can withdraw your balance instantly.
- Very helpful customer service that replies quickly to queries
- Global service provision in around 2000 jurisdictions
- Nexo is secured by BitGo and backed by Goldman Sachs
Cons of Nexo
Despite its lucrative features, there are also disadvantages of using Nexo.
- Nexo resembles the competition in the way that upon a decrease in the value of the collateral, you might get liquidated
- The company relies on 3rd party loan providers, and interest rates might vary depending on their partnership.
Nexo is the most popular crypto-backed loan company and has been marked “excellent” by Trustpilot. It offers a high-interest rate of 8% annually, paid daily, and is secure and trustworthy.
Nexo is providing unique services to its customers. The platform offers global services in 2000 plus jurisdictions and is thus the platform of choice for investors around the globe. It provides an excellent opportunity to the individuals seeking loan services or looking for high pay rates on the investment of EUR, USD, TUSD, PAX, DAI, USDT, or USDC, GBP.
Overall, the services are excellent, but you should be cautious before investing your hard-earned money online. Besides, here you also can read more about various other Crypto lending services and Bitcoin interest-earning platforms.
Disclaimer: This article by no means offers any investment recommendations. Therefore all interested individuals and advised to invest only after research from multiple sources while acting under their local regulations.