Sirwin
Sirwin

Why I joined the NEXO Credit Card waitlist


I've been a NEXO user for a few months and I really enjoy the platform. As of right now, I've only been using it to grow my crypto portfolio thanks to their sweet interest bearing accounts, but the new features brought by their Nexonomics 2.0 initiative are really growing my interest in the platform as fast as they are the value of the NEXO token.

One of the things that I'm most excited about in the NEXO environment is the NEXO card.

Now, when it comes to crypto cards, there are dozens of them: Crypto.com, Binance, Coinbase, Wirex, Uphold, Plutus, Swipe, TraStra... I wrote a comparison article last year that you can check out if you're interested in learning more about crypto cards. But, if there are already so many, how is the NEXO card different?

While all the cards listed above are debit cards, meaning they let you spend your cryptocurrencies directly, the NEXO card is a credit card. This means you are using your crypto assets value without actually spending them. That's right, you can pay using your BTC without losing any BTC.

Actually, let me rephrase that: you can pay using your BTC while earning even more BTC. Your crypto assets sitting in your NEXO account are earning you interests, compounded daily (from 4% to 8% depending on how many NEXO tokens you're holding), and every single transaction with the card is rewarded with cashback, in BTC.

Let's look at an actual case study, to see how the maths work:

  • Let's say you have $200 worth of BTC in your account, and no NEXO tokens.
  • This means you're earning $0.02 of interests daily, in BTC, and you have a credit line of $100 available to use (50% of your balance).
  • If you make a $10 purchase at Starbucks with the card, 2 things will happen: you'll immediately receive 2% cashback, so $0.20, in BTC and your credit line will go down to $90.
  • This means you just used your $200 worth of BTC to buy a coffee and you end up with $200.22 worth of BTC before you can even take a sip of it.

And this is the worst case scenario, with the lowest rates possible if you hold no NEXO tokens.

Now, let's not forget that this is a credit line, so you'll need to pay it back at some point and you'll have to pay interests on what you used. The APR ranges from 11.9% to only 5.9%. According to the Federal Reserve, the average APR for credit cards in the US at the end of 2020 is 16.28%. So NEXO, even in its most expensive form, is doing really good with these rates.

Fortunately, there is no minimum required nor real deadline, meaning you can pay as much as you can, whenever you want, as interest is simply debited from your available credit limit. And, since you only pay for the days where the loan was out, the faster you can pay back, the lower the interests you'll pay. To top it all, NEXO allows you to pay with the assets available in your account if you want, making it a closed loop system with no interaction required with an external bank or wallet (although you can use these third parties to pay back as well).

But the way I see it is, if BTC keeps growing and the US dollar keeps doing whatever it's doing, using a card such as this one can actually make you earn money in the long run, or at least spend less on every purchase, if you get cashback and interests in crypto (being worth more and more), while you pay back the debt with dollars (being worth less and less).

However, since the credit line is based on the market value of your collateral, it also means that if this value goes drastically down, you might end up having to repay more than you anticipated, if your credit line goes down too much. In this case, NEXO can take some of your collateral to cover the increasing debt.

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Before we wrap up, here are some other features that are not necessarily groundbreaking but that are definitely nice, convenient and important for security reasons:

  • It's a MasterCard, meaning it is usable virtually anywhere,
  • You can create multiple virtual cards for free for online purchases,
  • You can freeze and unfreeze your card instantly from within the app,
  • You receive a notification instantly after a transaction was made,
  • You can check out your PIN and transactions in the app,
  • You can choose to earn cashback in NEXO tokens or in BTC, and you can change this whenever you want, even just before a transaction,
  • NEXO supports 18 crypto assets as collateral, so you can use ETH, BNB, LTC, USDT, DAI... and not necessarily BTC. And the list of available tokens will keep growing in the future,
  • NEXO also announced that, as part of their Nexonomics 2.0 program, the NEXO token will play a role in the card system as well. I assume it would offer bigger cashback to token holders, but there's no detail on that yet.

And finally, it's free. No monthly fee, no annual fee, no transaction fee.

 

The main problem is I have no idea how long it will be before I can receive it... So while all of these advertised features look very promising and appealing, I won't be able to get a hands-on experience and truly see how good or bad it actually is for a while. I'm number #248727 in the waitlist, so it's all about being patient now. The only thing I can say is that I truly hope it's as good as they make it out to be, and I'll definitely make a new (honest) review here once I finally receive it!

You can join the waitlist from the app, or by clicking on this link, if you wish to help me move up in the waitlist: https://nexo.io/nexo-card?referral=p5i7N6g.

 

-This is obviously not financial advice, I don't even know if what NEXO advertises is legit, I just really hope so!-

 

 

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PierreL
PierreL

French video editor, wildlife photographer, amateur space junkie, sports and history buff and crypto enthusiast.


Pierre's Miscellaneous Corner
Pierre's Miscellaneous Corner

I write about things I like unrelated to photography or videography, such as crypto, personal finance, traveling, sports, space, my fight against pollution, consumerism and waste, and online privacy and accessibility.

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