Nexo: What Is It, How Does It Work, Is It Reliable?

Among the platforms dedicated to cryptocurrencies, there is one It’s called Nexo and it offers the possibility to earn interest on your deposit, lend money or request financing. In addition, one’s digital wallet can be linked to a credit card that allows one to spend its contents regularly.

Nexo was founded in 2017, has experienced tremendous growth in recent years, and the company is one of the few to distribute dividends to native token (NEXO) holders every year. All these features, along with a very advanced security system, make it one of the most interesting realities of the crypto landscape.

What is Nexo

The platform allows you to buy cryptocurrencies like a normal exchange, however, the number is limited to those that can guarantee a higher return, since it is the main purpose of the site. Cryptocurrencies are divided between Bitcoin, altcoin and stablecoin, which generate different interests depending on their listing and type. You can also deposit and trade with fiat currencies, such as euros, dollars and pounds. 

How it Works: Earn, Borrow, Card

There are several ways to earn with cryptocurrencies: the most common is to buy them and wait for the quotes to go up with a bit of luck, or to trade them. In both cases the volatility factor is very present and it is mainly speculation that suffers the most, with a very high risk of loss.

With Nexo, on the other hand, it is possible to buy and start earning right away with the Earn feature, simply because you have some funds to make available for loans. The interest you get is increasing based on how many NEXO tokens you own and there are 4 scalable levels as they increase. The annuities are paid by default in the corresponding cryptocurrency, but the percentage increases by 2% if you set the payment in NEXO tokens.

  • Base Level, with less than 1% NEXO tokens: interest at 4% on fiat and crypto currencies and 8% on stablecoins.
  • Silver level, 1 to 5% NEXO token: 4.25% interest on fiat currencies and crypto and 8.25% on stablecoins.
  • Gold level, 5 to 10% NEXO tokens: interest at 4.5% on cryptocurrencies, 5% for fiat currencies and 9% on stablecoins.
  • Platinum level, more than 10% NEXO token: interest at 5% on cryptocurrencies, 6% on fiat currencies and 10% on stablecoins.
  • Interest accrues on a daily basis, so you start earning right away. NEXO tokens, on the other hand, generate 7% interest for all levels and more: once a year, a dividend is distributed to all native token holders, which is based on 30% of the company’s profits


How to get a loan (borrow) in fiat currency? In order to quantify the amount of funding that can be granted, the platform will assess the amount of funds and based on this it will assess the collateral, i.e. the available collateral. Once the amount that can be disbursed has been established, it will be paid directly to the wallet and repayment can take place in installments or in a lump sum. Once the loan has been repaid, the previously frozen collateral will be made available again. The interest due is decreasing, always according to the level to which you belong, from 13.9% to 6.9%.

The Nexo Card

This is a real debit card that does not have an IBAN, because it is not linked to a traditional account, but draws directly from the NEXO digital wallet. It can be spent online, and in physical stores, because it belongs to the Mastercard circuit. It has no transaction fees and can also be used for ATM withdrawals. Free withdrawals are from one to five per month, depending on the level reached, and for each transaction there is a cashback of 2%.

Fees and Commissions

Commissions vary depending on the operations and are constantly communicated by the system, so that you can always be aware of your spending limits. Registration, opening a credit line and deposits are free, as well as the credit card that does not involve any additional cost. 

Security: Is it Reliable?

Nexo’s strong point is certainly security, because it allows users to deposit their funds in cold wallets, i.e. wallets whose keys are private and stored offline. This feature provides a shield against hacker attacks and makes the platform truly secure. But it doesn’t end there: Nexo works in partnership with Bitcoin Ledger Vault and thus provides deposit insurance coverage of up to $375 million. 

As for loans, these are disbursed thanks to smart contracts that are made on the blockchain: they are fast, secure and do not require any intermediation. Moreover, there are no credit scores, the important thing is to validate yourself as a natural person and the liquidity will be immediately available according to the guarantees offered. It is therefore a transparent and reliable platform, with many positive reviews and offering more features than the classic exchange.

Advantages and Limitations of the Platform

We have seen how Nexo is an exchange with very particular characteristics: it is certainly suitable for those who need a loan, but it is also suitable for those who do not like speculation and want to make a profit from their savings. The level of security is excellent, the rewards are remarkable and the fact of having a debit card allows you to mobilize cryptocurrencies, which often remain confined to their own world.

The only drawback is the small number of available currencies, as they have been selected based on the interest they can generate. As a result, if you plan to invest in smaller altcoins, this exchange is not the most appropriate choice. 

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