The cryptocurrency market and cryptocurrency investments are highly volatile and risky. If you think in terms of fiat currencies, you could lose thousands of dollars in minutes. But 1BTC will always be a 1BTC. But you can earn interests by depositing fiat currencies in bank accounts. So you can see your deposit grow by the day. Some people deposit millions of dollars and live their day-to-day life only using the interest. That is one of the main pros of depositing money in fiat currencies. But now, those fiat interest rates are low, and some countries have negative interest rates.
Now you can earn interest for your crypto assets as well. Few great companies pay you interest for depositing your cryptos with them. They will replace the traditional banking system soon, and embracing them early will give you more benefits. In this article, let’s talk more about Nexo, the best crypto bank, and the pros and cons of the platform.
In short, Nexo is an over-the-top blockchain system that allows crypto borrowing and makes it much easier for users to get a crypto-backed loan quickly.
The company was launched in 2018 but has begun to gain popularity in recent years. The company’s motto is “Banking on Crypto.” They are trying to incorporate traditional banking services, but with crypto as an asset.
Nexo is trying to promote a model where users can borrow their crypto and get themselves a loan. Users can earn interest on their crypto and access fast fiat money without relying on credit scores.
Nexo doesn’t have a minimum account balance to earn interest.
Nexo Support and gives interest for 17+ Cryptocurrencies, Stable Coins, and Fiat currencies
Nexo gives loans to its users by keeping cryptocurrencies as collateral.
Nexo is an EU-licensed and regulated financial institution.
With Nexo, the user has to put the supported crypto in their wallet and then choose how they want to borrow it. In other words, they decide how they use the peer market.
The whole system is designed to protect liquidity automatically and with greater flexibility than a traditional bank. The network makes it easy for customers to find fiat if they want it while maintaining the ownership of their digital finance.
At the moment, Nexo supports more than 17+ cryptocurrencies. Rated but not limited to XRP, Cardano, Bitcoin, Ethereuum, and more. The platform also supports NEXO token payments in EUR, ETH, BTC, and USD.
The technology that supports the Nexo blockchain helps clear visibility at the heart of the platform. It facilitates a smooth process with the Ethereum smart-contract system and maintains all the relevant details of transaction tokens.
Nexo Supported Cryptos, Stable Coins, and Fiat Currencies
- Paxos Standard
- Bitcoin Cash
- USDC(USD Coin)
Nexo Loan Service
These crypto fast credit lines start from 5.9% APR only and are available in fiat currencies or Stable coins. To add to its credibility as a lender, Nexo has earned more than the US $ 5 billion over two years. More than a million Nexo users have benefited from this program.
For a fee, you can choose from any of the more than forty fiat currencies available. Together, Nexo also allows you to choose from any of the 18 cryptocurrencies. You can get a loan from the US $ 10 to US $ 2,000,000 at Nexo for a minimum loan limit. This service also has unquestionable integrity when it comes to providing security for joint assets. Nexo’s platform has secured $ 100 million in asset insurance.
The second advantage of adding crypto-assets to a Nexo account is in the form of a high-interest platform service.
Nexo APY Percentages
Nexo has 4 Loyalty Levels. Those are,
- Base Level
- Silver Level
- Gold Level
- Platinum Level
Your Loyalty Level is based on the ratio of NEXO Tokens to the other assets in your account and the interest rates are different in those loyalty levels.
If you have less than 1% Nexo tokens in your portfolio you will be in the base level.
|Cryptocurrencies Saving Interest Rate||4% + 2% with Nexo Tokens|
|Fiat Currencies Savings Interest Rate||4% + 2% with Nexo Tokens|
|Stable coins Savings Interest Rate||8% + 2% with Nexo Tokens|
|Free Crypto Withdrawals per Month||1|
|Borrowing Interest Rate||13.9%|
If you have 1 – 5% Nexo tokens in your portfolio you will be in the Silver level.
|Cryptocurrencies Saving Interest Rate||4.25% + 2% with Nexo Tokens|
|Fiat Currencies Savings Interest Rate||4.25% + 2% with Nexo Tokens|
|Stable coins Savings Interest Rate||8.25% + 2% with Nexo Tokens|
|Free Crypto Withdrawals per Month||2|
|Borrowing Interest Rate||12.9%|
If you have 5 – 10% Nexo tokens in your portfolio you will be in the Gold level.
|Cryptocurrencies Saving Interest Rate||4.5% + 2% with Nexo Tokens|
|Fiat Currencies Savings Interest Rate||5% + 2% with Nexo Tokens|
|Stable coins Savings Interest Rate||9% + 2% with Nexo Tokens|
|Free Crypto Withdrawals per Month||3|
|Borrowing Interest Rate||8.9%|
If you have more than 10% Nexo tokens in your portfolio you will be in the Gold level.
|Cryptocurrencies Saving Interest Rate||5% + 2% with Nexo Tokens|
|Fiat Currencies Savings Interest Rate||6% + 2% with Nexo Tokens|
|Stable coins Savings Interest Rate||10% + 2% with Nexo Tokens|
|Free Crypto Withdrawals per Month||5|
|Borrowing Interest Rate||6.9%|
Nexo Pros and Cons
Nexo is best for,
- Long term crypto investors
- Those who hold stable coins
- Beginner investors as a long term saving account.
- High-yield savings accounts earn up to 12% interest on coins and fiat currencies
- The easy to use beginner-friendly mobile app makes management simple
- Advanced security features and insurance
- Fewer educational resources and tutorials.
Is Nexo Safe to Use?
Nexo is designed for security and driven by trust. They are strictly in line with international KYC and AML standards and strict regulations. Nexo gives protection first. They have also put various security measures to ensure that Nexo remains one of the largest crypto lending companies. It Includes Biometric-Based Identity Verification, Extensive Firewall Server Architecture, Segregated Multi-Signature Cold Wallets, and more. Nexo also saves user funds for vaults in the Class III banking bank via Ledger Vault.
With 2FA verification, biometric identification, withdrawal confirmations, login alerts, and round clock support, Nexo ensures you stay in control of your account.
Nexo is an EU licensed and regulated financial institution.