Nexo Review Australia – Today I review Nexo.io, a crypto ecosystem that offers a range of services such as a high-interest savings account, crypto-backed loans, an exchange and a cashback crypto visa card. I’ll cover what it is, whether it’s safe, the products offered by Nexo and its pros and cons to help you determine whether Nexo.io is right for you.
Nexo.io is a cryptocurrency platform that was established in 2018. With over 3 million users across 200 jurisdictions, Nexo is one of the most popular and comprehensive crypto platforms on the market. Currently, Nexo offers a range of crypto-tailored services. These services include crypto earn, the ability to borrow using crypto as collateral, the Nexo Exchange and a crypto cashback card.
Nexo has some of the strongest cyber-security parameters of any crypto-based platform. Assets on the platform are only lent to institutions on an over-collateralised basis, ensuring that your funds remain safe. Nexo is also compliant with global KYC and AML standards, utilises military-grade 256-bit encryption on asset wallets and provides extensive firewall server architecture.
Additional Nexo security measures include:
For these reasons, Nexo is considered to be one of the safest crypto platforms available. If you would like to read more about Nexo’s security protocol, please refer to this informative guide on their website:
Similar to Celsius and BlockFi, Nexo offers a comprehensive crypto ecosystem that provides numerous features. These features include a high-interest crypto account, crypto lending, an exchange, a 2% cashback crypto card and a native token with perks to the Nexo ecosystem.
Nexo Earn is a high-interest crypto account that allows you to earn interest on your idle assets. By depositing any of the 31 supported cryptocurrencies on Nexo, you can automatically earn an attractive interest rate ranging from 1 – 34% APY. You can also opt to earn in Nexo, the native token of Nexo.io which will increase your returns from 3 – 36% APR depending on the asset. Popular supported cryptos include Bitcoin, Ethereum, Fantom, Atom, Polkadot and a range of stablecoins.
Interest payments are paid out daily on Nexo, allowing users to compound their returns. This differs from Celsius which offers weekly interest payments and BlockFi which offers monthly interest payments. As such, Nexo has a competitive edge on their Crypto Earn product, due to their daily payments.
Another popular feature offered by Nexo is their Borrow feature. Nexo Borrow allows users to borrow from a list of 40 supported fiat currencies (including AUD) by using their crypto as collateral. Currently, 20 supported cryptocurrencies can be utilised as collateral. These cryptos include BTC, ETH, LUNA, FTM and MATIC among others.
These loans are executed via smart contracts and don’t require any credit checks, making them a convenient tool for people looking to leverage into the market. People may decide to use Nexo Borrow to optimise their tax efficiency, as these loans do not trigger capital gains tax. Additionally, these loans can be used to leverage other cryptocurrencies and assets or to invest in businesses. Loan rates vary from 0% to 13.9% depending on the user’s Nexo Loyalty status and the loan-to-value (LTV) ratio.
However, leverage comes with its inherent risks and should not be undertaken without a sufficient understanding of the risks involved. For more information on Nexo Borrow and how crypto loans work, please refer to the following guides:
Similar to other crypto ecosystems, Nexo offers an exchange service where you can buy, sell and swap various cryptocurrencies. Currently, there are 200+ market pairs offered on the Nexo Exchange. Users can also be given up to 0.5% cashback depending on their Loyalty tier.
While the exchange itself is feeless, Nexo does have a varying spread. Due to this spread varying, the hidden transaction fees fluctuate, making it hard to determine whether it provides a lower or higher fee than its competitors. For this reason, I don’t utilise the exchange option. However, for smaller transactions or those happy to swap conveniently, it can be a useful feature of the app.
Another cool feature of using Nexo.io is their 2% cashback visa card. This card is accepted at over 40 million merchants and rewards users up to 2% instant cashback. This cashback reward can either be in the native NEXO token or BTC, meaning you can stack sats while doing your grocery shopping.
This card can seamlessly integrate with both Apple Pay and Google Pay and provides a range of unique benefits. These benefits include attractive borrowing rates, feeless ATM withdrawals, discounts on the Nexo Exchange and the option to create multiple virtual cards.
While not currently available in Australia, it is scheduled to be released later in 2022. You can secure your spot by signing up to Nexo here and navigating to the ‘Card’ tab of the app where you can join the waiting list.
If you would like more immediate access to a crypto cashback card, I recommend Crypto.com, which offers the greatest rates of any crypto rewards cards in Australia. If you’d like to register for a card, you can use this link to get a $35 sign up bonus or do some additional reading on my comprehensive review.
Nexo has its own native token called ‘NEXO’. By buying the NEXO token, users gain access to a variety of loyalty tiers. These tiers are decided based on the percentage weighting of NEXO to other tokens that you hold on the exchange.
The requirements for each tier are as follows:
Holders of NEXO receive up to 12% per annum on the NEXO tokens held in both their savings and credit line wallets. Additionally, they receive a range of attractive perks including:
For more information on how the Nexo Loyalty Program works, check out this helpful guide:
Nexo differs from other crypto earn products due to its unique daily payout feature. When you utilise Nexo Earn, you receive daily yields paid into your Nexo account. This allows you to compound your returns at a faster rate than competitors, making it one of the most efficient crypto yield platforms available.
Additionally, you can earn interest on flexible and fixed-based deposits.
By using the FLEX offering, users can earn interest on their assets while leaving them liquid. This means that you can access your crypto at any time to move or spend it as you please. Alternatively, you can lock your crypto up for a fixed period (similar to a term deposit) to increase your earning potential.
For these reasons, Nexo has one of the best crypto interest accounts on the market.
Due to being partnered with reputable companies such as Ledger, BitGo and Bakkt, Nexo has one of the best overall security protocols of any crypto ecosystem. Insured for over $375 million, being ISO/IEC 27001 Certified and offering real-time, transparent audits, Nexo is an industry leader in security. For these reasons, anyone who is worried about storing their assets on a digital platform can rest assured knowing that their funds are safe.
Despite not being available in Australia yet, the Nexo Card shows promise in being one of the best crypto visa cards available to Australian residents. The ability to earn rewards in NEXO provides users with increased perks on their earn, lend and exchange products. Alternatively, the BTC earn feature allows people to dollar-cost average (DCA) into BTC with each transaction that they make.
Additionally, the ability to integrate the Nexo card with Google and Apple Pay gives it a competitive advantage over other crypto cashback cards which don’t have this feature. As such, this card has the potential to be one of the leading crypto visa cards once it’s released.
As mentioned previously, the Nexo Exchange has fluctuating fees based on its varying spread feature. Due to this fluctuation, the Nexo Exchange may not be appropriate for frequent traders who want consistency with their fees. Similarly, investors who like to make infrequent, but large transactions may opt for exchanges that offer lower fees.
If you are looking for exchanges that offer low fees, I recommend Binance or KuCoin which both offer 0.01% maker and taker fees.
Similar to most crypto platforms, users are incentivised to hold the native token to unlock additional perks. This means that to receive the highest degree of benefits on Nexo, users will have to hold a minimum of 10% of their portfolio in NEXO.
People just getting started or those who believe in Nexo as a long-term project shouldn’t have any issues with attaining these tiers. However, for people who don’t want to invest in the NEXO token or those with large portfolios already, this can limit the user experience on the platform.
|Daily Interest Rewards||Varying Exchange Rates|
|High Security and Insurance||NEXO Tokens Required for Optimal Benefits|
|Nexo Rewards Card (Coming Soon)|
Nexo is a complete crypto ecosystem that offers a range of financial products and services. This all-in-one platform allows users to earn interest on their assets, buy and swap hundreds of cryptos, borrow cash by using crypto as collateral and will eventually offer a 2% cashback card. Nexo also offers a range of bonus perks for users who accumulate their native NEXO token.
While similar to other crypto ecosystems such as BlockFi, Celsius and Crypto.Com, Nexo has several unique perks that separate it from the competition.
Firstly, Nexo Earn offers daily yields, allowing users to compound their assets at a faster rate than their competitors. Nexo also has extensive security measures, making it one of the safest crypto ecosystems available to Aussies. Lastly, the crypto cashback card will allow users to earn BTC on their daily purchases, making it a great tool for accumulating BTC once it’s available.
However, Nexo like all crypto platforms is not without its flaws. The spread on Nexo Exchange can result in higher fees than its competitors. Similarly, users who have large portfolios or those unwilling to invest in NEXO will only receive limited perks due to being in a low loyalty tier. While these may not necessarily be deal-breakers, they are worth considering for people looking for an all-in-one crypto platform.
Overall, Nexo is a great and comprehensive crypto platform that provides attractive yields on its earn feature. It is secure, has a range of features suited to most crypto investors and the future integration of the Nexo Rewards Card will continue to make it a strong competitor among the various crypto ecosystems available to Australian investors.
If you would like to sign up for Nexo, you can use the following referral link to earn a $25 BTC bonus once you sign up and top up $100 or more worth of assets.
If you would like to compare Nexo.io with other exchanges and interest earn apps available to Australians, here are some reviews of my favourite platforms.