What is Nexo?

Launched in 2018, Nexo is primarily known for offering crypto-backed loans, enabling users to borrow against their digital assets without having to sell them. Over time, the platform has expanded its services, making it more than just a crypto-lending platform. Today, Nexo allows users to:

• Buy, sell, and trade crypto assets
• Earn interest on their cryptocurrency holdings
• Borrow against their crypto at competitive rates
• Use the Nexo Card to spend crypto like cash

With a growing user base, the crypto exchange is designed to cater to both novice traders and seasoned crypto investors, making it a go-to platform for those looking to diversify their strategies.

Key Features of Nexo

1. Crypto-Backed Loans

One of the biggest attractions of Nexo is its crypto-backed loan feature. Users can deposit their cryptocurrency as collateral and take out a loan in fiat currency (such as USD, EUR, or GBP) or stablecoins (like USDT or USDC). This is especially beneficial for those who don’t want to sell their assets but need access to cash.

• No credit checks: Nexo’s lending process doesn’t involve traditional credit checks, and loans are approved based on the value of your crypto holdings.
• Instant access: Loans can be issued within minutes, providing instant liquidity for users when needed.

This feature allows users to maintain ownership of their crypto assets while leveraging them for liquidity, making it an attractive option for long-term holders.

2. Earning Interest on Crypto

Nexo’s Earn Interest feature allows users to earn up to 16% APY on their crypto and fiat holdings. Interest is compounded daily and credited directly to the user’s account, making it a simple and efficient way to generate passive income on idle assets.

Supported assets include popular cryptocurrencies like Bitcoin, Ethereum, and stablecoins. The platform also offers higher rates to users who opt to receive interest in Nexo’s native token, NEXO.

3. Nexo Card

The Nexo Card is one of the few crypto debit cards available on the market. It’s linked directly to the user’s crypto account, allowing them to spend their digital assets while automatically converting them into fiat currency at the time of the transaction. You also get up to 2% cashback instantly on each purchase.

Notable features of the Nexo Card include:

• No monthly or annual fees
• Crypto rewards for every transaction
• Seamless crypto-to-fiat conversion

For users who want to integrate crypto into their everyday spending, the Nexo Card is a game-changer.

4. NEXO Token and Rewards

The NEXO token is an integral part of the platform’s ecosystem. Holding NEXO unlocks several benefits, including:

• Higher interest rates on your assets
• Lower borrowing rates
• Participation in Nexo’s loyalty program, which offers cashback rewards and other perks.

Additionally, Nexo distributes 30% of its net profits to token holders, making it an attractive long-term investment option for users looking to benefit from the platform’s growth.

5. The Nexo App

The Nexo App is designed to bring the full range of Nexo’s services to users’ fingertips, offering a seamless mobile experience for managing digital assets. Whether you want to trade, earn interest, or take out a crypto-backed loan, the Nexo app makes it easy to handle all your crypto financial needs from your smartphone.

Key features of the Nexo App include:

• User-friendly interface that allows for smooth navigation and quick access to services.
• Real-time notifications for account updates, market movements, and interest earnings.
• Instant access to loans directly from the app, with the ability to manage and repay loans at any time.
• Security features such as biometric authentication (Face ID, Touch ID) to keep your account safe.
• Portfolio tracking, enabling users to monitor their assets and earnings across multiple cryptocurrencies.

The Nexo App is available for both iOS and Android, making it a convenient way to manage your crypto on the go, ensuring you never miss an opportunity to maximize your investments or access liquidity when needed.

Security and Compliance

Nexo takes security and compliance very seriously. The platform is fully regulated and compliant with various financial authorities. Users’ assets are secured through multi-signature wallets provided by leading custodians like BitGo and Ledger Vault, which offer $775 million in insurance for custodial assets.

Other key security features include:

• Two-factor authentication (2FA)
• Advanced encryption
• Real-time auditing of reserves to ensure that customer funds are always protected

This strong focus on security and transparency has helped Nexo gain trust among its users and stand out in a space where security is paramount.

Nexo vs. Other Crypto Exchanges

When compared to other top crypto exchanges like Binance, Coinbase, and Kraken, Nexo differentiates itself through its wide range of services beyond trading. Here’s a quick comparison:

Feature	Nexo	Binance	Coinbase	Kraken
Crypto Loans	Yes	No	No	Yes (but less flexible)
Interest on stablecoins	Up to 16% of APY	5.85% (variable)	4.70%	Up to 6.50%
Debit Card	Yes	Yes	No	No
Native Token (NEXO)	Yes, with rewards	Yes (BNB)	No	Yes (but with limited benefits)
Insurance Coverage	$775M	$1B	$255M	$100M

 

Nexo excels in offering a broader range of services like crypto-backed loans, high-interest earning options, and a user-friendly debit card. The card has a credit option, which enables automatic loans on your crypto as collateral which you can repay anytime. In addition, the card also enables a 2% instant cashback on all purchases. In contrast, exchanges like Binance focus more on trading features, and Coinbase appeals to beginner users but lacks more comprehensive interest-earning opportunities that Nexo provides.