Nexo is a CeFi platform founded in 2018 in London by Antoni Trenchev, Kosta Kantchev and Kalin Methodistev and offers various cryptocurrency services: purchase/sale, loans, swaps, earn and Nexo Card which I will review based on my PERSONAL experience of over 1 years.
I will divide it into sections to make everything easier for you readers.
- DUAL MODE and differences between the two cards
Nexo's novelty for 2023 is precisely it, the DUAL MODE which makes the Nexo card the first and therefore unique in the world. Specifically, the CREDIT MODE allows you to spend without directly selling your cryptocurrencies (your deposited crypto instantly becomes backup for your credit line. The more you deposit, the more you can borrow against) and also allows you to receive a 2% cashback in Nexo or 0.5% in BTC and receive daily interest on the assets deposited in the account. Being a loan, there may be interest ranging from 0% up to 15.9% (much lower percentages even than American Express). The big advantage for some is that spending money from a loan does not generate a taxable event. The DEBIT MODE, on the other hand, allows you to spend the deposited funds directly, without therefore requesting a loan. In this mode you do not receive cashback but only the earn.
- LTV (interest) and how to keep it as low as possible
https://support.nexo.com/s/article/loan-to-value-ltv-explained?language=en_US
Loan to Value, i.e. ratio between the value of the loan and the value of the guaranteed assets (in this case the money deposited on Nexo). The Nexo website offers a practical example: Loan amount 5000usd, value of guarantee (deposit) 10000usd, loan to value percentage 50%. As the collateral decreases the value of the loan increases, so be careful and keep LTV as low as possible. For Platinum customers who have an LTV lower than 20%, interest is 0%.
- LOYALTY PROGRAMS
https://support.nexo.com/s/article/nexo-loyalty-program-explained?language=en_US
Nexo offers four tiers with various benefits
Base: no cashback, Earn interest up to 8%
Silver (if 1% of your balance is Nexo tokens): 0.5% cashback, earn interest up to 10%
Gold (if 5% of your balance is Nexo tokens): 1% cashback, earn up to 12%
Platinum (if 10% of your balance is Nexo tokens): 2% cashback, earn up to 16%(Here you can check their business model
https://nexo.com/blog/nexo-s-business-model-in-depth-at-length ).
In conclusion, the card has no minimum payment, no commission, no monthly charges, no inactivity charges, it runs on the Mastercard circuit, you can deposit EUR, USD, GBP and many cryptocurrencies, it has no FX commissions, up to 10 free withdrawals per month, daily withdrawal limit up to €10,000, from the app you can block it if you lose your card, change your pin and track every transaction and cashback. To request the virtual card, a minimum wallet balance of $50 is required, while for the physical card it is at least $500 (funds which however are not taken by Nexo, remain ours, spendable, investable and withdrawable at any time).
I have been using this card for at least 1 year and have never had any problems. For any doubts, chat support responds immediately and can be reached 24 hours a day. The concept of LTV may seem complicated and laborious, but once you understand it, I assure you that you will understand the enormous potential of this card. Nexo, I remind readers, has survived many crises including FTX, Celsius and Luna to which it had no direct exposure.
My personal rating is 8/10, the best cryptocurrency card around
