Nexo Crypto Review: Nexo Tokens, Nexo Lending Platform & How It Works

The advent of blockchain and cryptocurrencies brought with it a ton of possibilities for the global finance industry. Gone are the days when banks and other financial institutions dominated the finance lending space. Thanks to blockchain, decentralized finance (DeFi) is now possible, and virtually anyone from all around the world can take part in the global financial system – and all they need is an internet connection. 

Nexo is a blockchain-based project that is fulfilling this promise by making it possible for individuals to access such financial services as loans while using their crypto assets as collateral. Individuals from over 200 countries can use their cryptocurrency to receive loans in 45 Fiat currencies – and all this in a transparent, automated, and tax-free process. 

But what is Nexo, and how does this lending platform work? We review this blockchain project to answer these questions and tell you everything else you need to know about the Nexo crypto-lending platform.

What is Nexo? 

Nexo is a blockchain-based lending platform that advances loans and financial assistance to different crypto holders. For the longest time, the crypto market was underexploited, and the only viable method of gaining from one’s crypto assets was by speculating their prices on the market. Nexo, however, seeks to change this by providing crypto investors with a platform where they can issue and borrow crypto loan services while using different crypto assets as collateral. 

Nexo is a product of Credissimo, a Europe-based fintech company launched in 2007. The company is one of the most well established and trusted brands in the online lending space. On their website, they claim to have 73% customer return rate, disbursed over 102, 800 loans in 2019, and maintains a portfolio of 370, 000 unique customers. 

How Does Nexo Work? 

Nexo leverages the blockchain network by providing users with instant lending solutions. With Nexo, crypto holders can get Fiat loans and set up their crypto assets as collateral. It makes it possible to monetize your crypto assets and remain liquid without losing ownership of the investment. The loans are forwarded to the borrower’s bank or debit card.

Nexo How it works - Forex Academy

Nexo is a wholly automated and highly versatile platform with a straightforward lending system.

All you need to do is deposit your crypto assets, access your Fiat loan, and repay it at your convenience. You can repay this loan with fiat, crypto, or a combination of both currencies. There are no minimum repayments with fiat. However, if you are paying back in crypto, the minimum repayment deposits are 0.0025 for Bitcoin, 0.025 for Ether, 32.00 for Ripple, 5.00 for TrueUSD, and 5.00 for USDC. See here the full list for minimum crypto repayments. 

In addition to loans, Nexo also offers its clients with a savings account with an ROI of 8% for stablecoins and fiat currencies. The platform has partnered with BitGo, a digital asset trust to secure all crypto funds. Currently, Nexo supports Bitcoin, Ethereum, Pax Gold, Ripple, Litecoin, Binance, Stellar, NEXO, Bitcoin Cash, EOS, and various stablecoins. 

The Nexo product is available globally – except for a few countries like Bulgaria, Cote d’Ivoire, Myanmar, Iran, Iraq, North Korea, Libya, Syria, and Zimbabwe.

More importantly, Nexo enables you to avoid capital gains taxes even if you live in countries with crypto tax legislation. On their website, Nexo argues that “when you take a crypto loan and spend that loan, you avoid paying any capital gains taxes, which otherwise in many countries you have to pay when you sell your crypto.”

Who Can Use Nexo? 

The NEXO platform is a pretty open platform. Any of the following individuals/entities can utilize NEXO services. 

  • Investors who desire to make profits off their crypto assets, while still maintaining ownership of those assets
  • Businesses of all sizes
  • Crypto miners
  • Hedge funds
  • Pension funds

The Nexo Oracle 

The Nexo Oracle is the technology that drives almost all of Nexo’s functionalities. Some of its core strengths include:

I) Developing loan contracts

The Oracle picks up and automates all the processes after a credit line application is initiated. This includes disbursement of funds, asset monitoring, notifications, and the overall administrative procedures of the loan. 

II)  Developing and maintaining real-time data

The Oracle aggregates data from at least six independent exchanges to perform accurate, real-time data aggregation to minimize the risk for both the platform and users. It also detects market moves and readjusts loan limits accordingly. If an asset increases in price, the Oracle automatically increases the loan limit. 

III) Maintaining an analytics module

The Oracle automatically records and manages all interactions with clients – including loans, repayments, outstanding balances, and accounts. 

IV) Conducting auto-notifications

All of Nexo’s processes are automatically executed, and this includes sending notifications to clients. 

V) Developing prediction modeling and algorithms

Nexo utilizes big-data analysis, automated algorithms, and predictive modeling techniques to realize the smooth running of the system. This helps ensure that information aggregated from outside sources is used appropriately and promptly. 

The Nexo Team

Nexo involves a core team of 14, who hold influential positions in Credissimo. Chief managing partner Kosta Kantchev is the co-founder of both Nexo and Credissimo. 

Antoni Trenchev is the managing partner and also co-founder of Nexo. Trenchev is a former member of the National Assembly of Bulgaria and has a background in e-commerce development, strategy, and processes.

Georgi Shulev is also a managing partner and co-founder of Nexo. Shulev has long-running experience in investment banking and is the co-founder of Consestimate – a financial estimate platform where investors share ideas and forecasts with peers and identify the “fundamental value of public companies.”

The NEXO Token 

Nexo token - Forex Academy

The NEXO token is the native token of the Nexo platform. And the Nexo project creators define the token as a security instrument that’s compliant with the United States Securities and Exchange Commission (SEC) regulations. The Nexo platform incentivizes users to hold the NEXO token by paying out dividends derived from loan returns. Here, 30% of loan returns are channeled to a dividend pool and distributed to the coin holders. 

At the time of writing, the coin is trading at $0.122583, ranking at #81 in the market. It has a market cap of $68,646,212, and a 24-hour volume of $4,089,490. The coin has a circulating supply of 560,000,011, with a total supply of 1,000,000,000 Nexo Tokens. The coin’s all-time high was $0.539466 (May 07, 2018), with an all-time low of 0.043333 (Sep 12, 2018). 

Where to Buy and Store NEXO

You can purchase NEXO from several reputable exchanges, including IDEX, Huobi, Coinswitch, YoBit.Net, Huobi, Binance, HotBit, and Changelly. The majority of these will require you to trade other cryptocurrencies, such as Ethereum and Bitcoin, to get  NEXO. 

NEXO is an Ethereum-based token, meaning it can be stored in any Ethereum-compatible wallet such as MyEtherWallet, MetaMask, Ledger, Trezor, or Atomic Wallet.

Final Thoughts

Nexo brings real value and utility to crypto users and the crypto space. Users can leverage their crypto holdings to gain access to Fiat loans without the plethora of the terms and conditions of traditional finance. Nexo users can also earn passively by keeping their money on Nexo and letting it work for them. It will be interesting to see how Nexo advances as a platform and how its offerings will continue to evolve. 

Crypto Daily Topic

The Best 6 Crypto-Lending Platforms And Their Pros And Cons

Most crypto holders believe trading is the only way to make money from their crypto holdings. On the contrary, cryptocurrency today offers many possibilities for individuals to boost their crypto savings and grow their investments. One of these is via crypto lending, whereby you loan out part of your crypto assets and earn interest.

Another is to deposit your credit funds and let them grow passively.

Via crypto lending platforms, individuals can also get fast access to loans. Unlike traditional lending platforms that require a good credit score, conduct KYC checks, and are at the whims of state regulation, crypto lending platforms allow users to access credit as painlessly as possible.

Thanks to the unregulated nature of cryptocurrency, however, virtually anyone can get access to a loan as long as they have internet connectivity. (This, at least, is the standard, but some crypto lending platforms will restrict use in certain jurisdictions depending on their regulatory requirements. As such, before considering any lending platform, always check whether your country is supported).

How Does Crypto Lending Work?

Crypto lending is a fairly straightforward process. The lender deposits crypto funds on a lending platform. The lending platform then makes the funds available to borrowers at a rate set by the lender.

To take a loan, borrowers create an account and take out a loan for a specified period. When that specified period expires, the borrower returns the funds, along with the pre-set interest rate.

To eliminate risks such as borrowers being unable to pay back the loan, crypto lending platforms usually institute guarantees or require borrowers to set up collateral or some other type of loan-backing system.

Most borrowers take out Crypto loans for two purposes: personal expenses or for margin trading. The personal expense borrowing is similar to the loan services in traditional finance.

Borrowers who take out the loan for margin trading do so because they don’t have enough capital for placing a trade. If they make a favorable trading decision, then they make a profit and pay back the loan easily. If the trade goes awry, they have no choice but to meet the loss and pay back the loan out of their pocket.

The Advantages of Crypto Lending

  • Very favorable transaction fees, especially when compared to the traditional lending system
  • Borrowers do not need to have a bank account (for the 1.7 billion unbanked people, crypto lending is likely their only option)
  • Quick confirmation time
  • No byzantine procedures so prevalent in the traditional lending system
  • Diversified loan options
  • No discrimination based on nationality

The risks with crypto lending

  • A higher default rate when compared to traditional loans
  • The lending platforms are prone to online attacks
  • The volatility of cryptocurrencies that can cause lenders to lose profits or force borrowers to pay more than they borrowed

With that, let’s look at some of the best crypto lending platforms in the industry.

1. CoinLoan

Coinloan is an Estonia-based peer-to-peer lending platform where borrowers can take out crypto-collateralized loans. Clients can also earn interest simply by “parking money” on CoinLoan and letting it work for them.

CoinLoan imposes no credit history checks or KYC procedures. The loan repayment period goes from 7 days up to 3 years, and the platform doesn’t impose any extra fees or penalties. Everyone’s funds are put under the maximum security possible – with cold storage wallets and distributed key storage being the standard.

Coinloan’s lending process is as follows: Borrowers deposit part of their cryptocurrency portfolio as collateral. Borrowers are furnished with the exact figures for the loan contract beforehand. They’re also granted flexible lending conditions, are not submitted to any credit checks, and are offered convenient withdrawal procedures.

Lenders are offered with these guarantees: First, the platform is licensed in the EU and is subjected to various checks and compliance. As such, lenders on the platform are guaranteed repayment of their loan, and their transactions are fully protected with SSL-encryption.

2. YouHodler

This is a crypto-lender based out of Cyprus and Switzerland and lends both crypto and fiat loans backed by crypto.

Its Turbocharge service allows borrowers to take out additional crypto and use it as collateral for other loans. Its MuliHODL feature allows users to boost their holdings by “playing with their crypto and finding the right balance,” which means making small and careful trades with calculated risk. YouHodler also has a wallet available for iOS and Android.

Another thing YouHODLER has going for it is their service which allows borrowers to access instant cash from the platform’s fiat-base funds. This eliminates the need for borrowers to search for a compatible lender, saving time and allowing them to access cash quickly.

3. SALT Lending

Launched in 2016, US-based SALT Lending was one of the first crypto lending platforms in the space. The platform is one of the trusted around and for a good reason. Borrowers can take out crypto-backed loans on a peer-to-peer platform, while also using crypto as collateral.

SALT’s lending procedure is straightforward. Users don’t need to undergo any background verification, and can usually receive the loan the same day. Loan terms are also tailored according to the borrower’s needs, from loan-to-value ratio to loan length.

When it comes to security, SALT Lending goes the whole nine yards. From backing all crypto assets with insurance, to keeping crypto funds in cold wallets. Currently, SALT services loans are available in a select 35 US states, plus Bermuda, Brazil, New Zealand, Puerto Rico, Vietnam, the UK, UAE, Switzerland, and Hong Kong.

4. BlockFi

Launched in 2017, US-based BlockFi offers two products; an interest account and crypto-backed loans. The BlockFi Interest Account lets your crypto work for you by putting it up for monthly interest. Users can earn compound interest on their crypto, boosting their savings in these cryptocurrencies; Bitcoin, Ether, and Gemini Dollar (GUSD).

For crypto-backed loans, BlockFi clients can use their crypto holding as collateral and unlock up to 50% the value of their assets in US dollars. Moreover, borrowers get the funds on the same day through bank wire or stable coin.

Individuals can use the BlockFi loans for pretty much any use, from paying off credit card debt to paying school fees or a home. Small businesses can take out loans to expand their business or to help them pay employees. Currently, BlockFi supports 46 states and all other countries except those with US sanctions.

5. Com

Launched in 2016, Hong Kong-based is a crypto lending platform that also offers exchange-based crypto trading, investment options, and crypto payment gateway services for merchants. clients can get instant loans without going through convoluted background checks. There also are no fixed repayment schedules or deadlines or late payment penalties. You can repay at your own pace at any time, and any amount, in the 12 months upon the start of the credit period. also allows users to earn interest on their deposits. Currently, investors can earn interest on the following cryptocurrencies: Bitcoin, Ethereum, Ripple, Binance, Chainlink, Maker, Pax Gold, TrueUSD, Paxos Standard, USD Coin, and Tether.

6. Celsius.Network

Celsius.Network was founded in 2017 with the aim of leveraging blockchain technology to empower individuals with “unprecedented economic opportunities, financial freedom, and income equality.”

Customers can receive loan facilities on collateral-based credit lines on loan terms of 6 months, 1 year, 2 years, or 3 years. The platform imposes no penalties for defaulted loans – failure to pay back the loan within the specified loan term will also lead to the liquidation of your collateral.

Like many other crypto loan platforms, Celsius.Network does not conduct credit checks, and loans are approved within minutes. The platform lets borrowers deposit their collateral in either Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ripple, and DASH. Loans are given in Tether, Fiat, some stablecoins, and Celsius’s own native token – the CEL token.

Users can also deposit CEL, Bitcoin, Ethereum, Litecoin, Ethereum, OMG, Bitcoin Cash, EOS, and other crypto-assets and earn interest.

Bottom Line

As you can see, there are options aplenty for crypto-based lending services. With these platforms, anyone from anywhere can access a loan regardless of their location, credit history, nationality, and whether they’re banked or not.

While all platforms offer the same kind of service, there are the subtleties with each service that differentiates it from the others. These differences lie in loan repayment schedules, supported currencies, loan terms, loan-to-value ratios, and so on. As such, you need to read the fine print and discover which platform works for you.

Finally, ensure to read and understand any terms and conditions for any platform, and check the legality and tax requirements for crypto-based loans in your jurisdiction.