Nexo Finance is bridging professional traditional financial services with a digital platform using cryptographically-secure blockchain technology. The Nexo crypto ecosystem offers a holistic service that extends from lending to earning competitive interest rates. Also, the platform presents the Nexo card, a crypto debit card offering cashback on every purchase! Plus, holders of the native NEXO token receive exclusive borrowing and interest rates, varying between four tiers.
In this article, we are going to dive deep into the Nexo crypto ecosystem and explore the variety of products and services on offer. Plus, we’ll look at the benefits of holding the platform’s NEXO token and how users can put idle assets to work and earn a passive income.
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What is Nexo Finance?
Operating since 2018, Nexo Finance is a global leading digital finance institution offering an umbrella of FinTech services. Striving to couple professional financial services and digital cryptocurrency assets, Nexo Finance uses blockchain technology to present innovative solutions to ameliorate the traditional financial sector and the drawbacks and limits it presents.
Using the native NEXO token, users of the Nexo Finance platform receive exclusive discounts on borrowing rates. Also, NEXO token holders can earn bonus yield on their funds within their Nexo Wallet. Nexo Finance has seen immense adoption and praise from its millions of users. As a global digital lending institution, Nexo Finance has user operations across 200 jurisdictions with more than 40 different fiat currencies available.
NEXO Token
The NEXO token uses the Ethereum ERC-20 token standard and is fully transparent on the Ethereum blockchain. Transparency is a core value of Nexo Finance. As such, users can view the token contract address, movements, and activities using the Ethereum block explorer, Etherscan. Holding the NEXO token unlocks a variety of exclusive opportunities on the Nexo Finance platform.
The NEXO token plays a crucial role in the Nexo Finance Loyalty Program. The Loyalty Program rewards NEXO token holders, varying depending upon the percentage of NEXO token holdings within one’s whole portfolio balance in the Nexo Wallet. In turn, the Loyalty Program is split into four tiers (Base, Silver, Gold, and Platinum). Below, we outline each tier and corresponding rewards and eligibility.
Base (NEXO tokens make up 0 to 1% of your portfolio)
- Up to 5% interest on crypto
- 8% interest on stablecoins
- 13.9% borrowing rate
Silver (NEXO tokens make up 1 to 5% of your portfolio)
- Up to 5.25% interest on crypto
- 8.25% interest on stablecoins
- 12.9% borrowing rate
Gold (NEXO tokens make up 5 to 10% of your portfolio)
- Up to 5.5% interest on crypto
- 9% interest on stablecoins
- 8.9% borrowing rate
Platinum (NEXO tokens make up 10%+ of your portfolio)
- Up to 6% interest on crypto
- 10% interest on stablecoins
- 6.9% borrowing rate
All NEXO tokens within a user’s Nexo account will earn interest, even if it is in the Credit Line, Savings Wallet, or in use as collateral. Furthermore, users can earn an additional 2% on their interest rates when opting to receive the interest in NEXO tokens. Also, the Nexo Finance Loyalty Program offers up to five “free crypto withdrawals per month to an external wallet”. Plus, the platform offers free-of-charge fiat withdrawals and in-wallet fiat or crypto transfers.
Nexo Finance Products & Services
Nexo Finance is a one-stop shop for all digital finance needs. Whether you’re looking to take out a crypto-backed loan, earn interest on idle assets, or earn cashback on spending, Nexo Finance boasts popular and secure solutions within its platform. Below we discuss the various elements of the Nexo Finance ecosystem and services available to users.
Buy - Nexo Crypto Exchange
Nexo Finance offers a seamless fiat-on ramp for users unfamiliar with crypto trading. With an easy-to-navigate graphical user interface (GUI), Nexo Finance offers the opportunity to invest in cryptocurrency with Visa and Mastercard credit and debit cards. With support for over 40 different fiat currencies, investing in assets such as Bitcoin, Ethereum, and NEXO, is made straightforward. Also, with no wait time, instant transaction confirmation, and 18 instant purchase assets to choose from, Nexo Finance is fast becoming a popular choice for tech novices to begin building a cryptocurrency asset portfolio.
Moreover, in addition to the Nexo Finance instant purchase, the platform offers a crypto exchange. The Nexo crypto exchange has over 150 trading pairs at the time of writing. Further, the Nexo crypto exchange offers “fixed-price executions”. This means that upon placing an order, the price of the assets will remain the same instead of fluctuating with the markets. Users of some exchanges may see a price fluctuation of up to 5% when completing a transaction. However, Nexo Finance ensures “the price you see is the price you pay”, with instant swaps and the Nexo Wallet balance automatically updating upon order confirmation.
Additionally, when using the Nexo crypto exchange, Nexo Finance uses a Smart Routing System, which can communicate and calculate the best trades with the top 10 crypto exchanges simultaneously. In turn, Nexo Finance prides itself on offering the best trades and prices to its users.
Earn - Nexo Staking
Nexo Finance offers competitive yield and interest rates for staking a variety of assets within the Nexo Wallet. The project aims to provide users with a no-fuss reliable source of passive income. All users need to do is to top up their account to start earning daily compounding interest!
Furthermore, Nexo Finance offers a zero-fee service for depositing, withdrawing, and hodling funds. Plus, with the Nexo FLEX offering, users can gain instant access to the interest accrued from their funds through the Nexo daily payouts. Users are free to withdraw funds at any time. Or, users can compound daily interest payouts to earn higher rewards over a longer period.
Additionally, Nexo Finance offers flexible earning rates with bonus interest amounts for fixed-term provisions. Lock up your idle assets for three, six, or 12 months with Nexo Finance platform to earn some of the most competitive interest rates in the industry. Users of Nexo Finance can earn up to 12% compounding annual percentage yield (APY) on stablecoins and NEXO tokens. Plus, for a limited time only, Nexo Finance is offering 17% APY on Polkadot (DOT) holdings on the platform. Users have complete control over funds at all times, with military-grade cryptographic security, which we will discuss further on.
Borrow - Nexo Crypto Loans
Nexo Finance offers users the ability to take out loans using their crypto assets as collateral. All loans are fully collateralized. As such, the platform enables automatic approval with no credit checks. Users can deposit their crypto and borrow anywhere between $50 to $2 million in stablecoins. Then, users can exchange their stablecoins for over 40 different types of fiat currencies.
Moreover, with no monthly repayments, users can choose to pay back their loan when they please using either crypto assets or direct fiat deposits. Further, this can be done through several partial payments or one full payment. Borrowing rates vary depending on the tier within the Nexo Finance Loyalty Program. Rates range between 13.9% APR for the Base tier to 6.9% APR for the Platinum level.
Nexo Finance has contingency plans in place should the value of the collateral assets begin to depreciate. If the value falls below a certain threshold, the Nexo blockchain oracle automatically alerts users via email or SMS text. Users will receive a message to deposit funds into their Credit Wallet to ensure full collateralization. Plus, if users fail to take action, the Nexo crypto oracle will allocate assets from users' Savings Wallet to their Credit Wallet. If there are no funds in the Savings Wallet, a portion of the collateral will be used to cover the cost of the loan repayment.
Nexo Card
In addition to the in-application digital financial services, Nexo Finance is introducing one of its latest products, a Nexo crypto debit card. With a Visa partnership, the Nexo card is available to use with over 40 million merchants worldwide. Nexo Finance doesn’t charge any monthly or annual fees either. Nor does it charge for foreign exchange fees, with payments available in local merchant currencies.
The Nexo card is available as a typical physical debit card or as a virtual mobile app card. To get hold of the Nexo card, all users have to do is select the “Card” tab on the Nexo app. Then, users will need to fill in a few personal details, and Nexo Finance takes care of the rest. Having a Nexo card account, users gain exclusive access to other free virtual cards. Also, Nexo card holders receive 2% cashback on every transaction! Users can receive their cashback in either Bitcoin (BTC) or the NEXO token (NEXO). Alternatively, users can receive a combination of the two before making a transaction.
By creating a Nexo card account, users receive instant notifications of transaction confirmations with the ability to freeze and unfreeze the Nexo card activities with a single tap. This is to aid with the security surrounding the Nexo card. Furthermore, users can check balances and change their Nexo card at any local ATM. Security of the network, funds, and transactions is paramount to Nexo Finance. As such, they employ a wide range of security measures to assure customers of the safety of their assets and investments.
Nexo Crypto Security
Nexo Finance appreciates the risks of providing digital financial services, operating with a combination of centralized and decentralized technologies. Further, Nexo works together with partners as the “Leading Authorities in Compliance”, to protect users' funds, with effective regulations adhering to global standards for KYC (know your customer) and AML (anti-money laundering) measures. This includes working with Jumio, a compliance company popular for working with the likes of HSBC, Oracle, and Microsoft.
Nexo Finance claims to employ “security-savvy” employees ensuring staff are up-to-speed with current cybersecurity affairs. Also, Nexo Finance has a collective of insurance partners, protecting up to $375 million of users’ funds. This includes the likes of Ledger Vault and BitGo. Plus, Nexo uses “military-grade 256-bit encryption” for storage protection of users' assets. In turn, this facilitates full flexibility and access to funds while abstaining from third-party providers and is said to guarantee the security of users’ assets.
Further to the aforementioned security practices, Nexo Finance bestows several additional security measures on the Nexo mobile app. This includes biometric identification (fingerprint or facial recognition), two-factor authentication (2FA), and email and SMS text verifications. Plus, Nexo Finance will alert users with every log-in and send email confirmations prior to withdrawals from the account. Additionally, the app employs BitGo’s Enterprise Solution enabling the Cryptocurrency Security Standard Level 3 (CCSS Level 3). Also, any sensitive data on the application adheres to strict protection and confidentiality laws. This is through the use of the Secure Socket Layer (SSL) encryption technology.
Another partner of Nexo Finance is accounting and consulting firm, Armanino, increasing the transparency of the network. Using a Proof of Reserves assessment, Nexo Finance users will soon be able to view real-time attestations of the holdings Nexo has under custody. This will prove Nexo Finance can “meet client obligations at all times”.
Exploring Nexo Finance & NEXO Token Summary
With continuous adoption since its inception in 2018 and over 200,000 social media followers, Nexo Finance is among the leading global digital financial services providers. With core values of inclusivity, efficiency, and transparency, Nexo offers fully transparent, easy-to-use financial tools. Moreover, with no credit check and using an over-collateralization model, anyone anywhere in the world can take out a crypto-backed loan. This opens up a wealth of opportunities for people who may struggle to access traditional financial services.
Nexo Finance is fully compliant with security standards and available in more than 200 local jurisdictions. As such, it's no surprise Nexo Finance is a popular choice for both individual traders and institutions alike. Catering to a broad demographic of users, the project offers users exclusive rates and opportunities by holding its native NEXO token.
Nexo loans are completely flexible, with repayments available in a range of crypto or fiat currencies. Also, with no automatic repayments, users can choose to pay back the loan over time or as one single payment. Nexo Finance presents a range of digital financial products and services that are more attractive, accessible, and profitable than traditional alternatives.
If you would like to dive deeper into the global regulations surrounding finance and technology, be sure to see our FinTech 101 course! At Moralis Academy, we cover the evolution of FinTech, open banking, and how to launch your own FinTech business! Also, if you’re thinking about founding a business in this industry, check out our Blockchain Business Masterclass course first! You’ll discover all you need to know about organizing and managing a blockchain development team. Start your blockchain career at Moralis Academy today! Also, don’t forget to follow us on Twitter @MoralisAcademy! We’d love to know your thoughts about this Nexo Finance article and the NEXO token!
