Nexo provides streamlined lending services and solutions. Thanks to the adoption of blockchain and tokenization, Nexo offers users secured, seamless and instantaneous transactions as well as efficient management tools for their assets and funds.
In a relatively short time period, Nexo has constantly expanded with over 4 million users worldwide, accepting 40 fiat currencies and complying with more than 200 jurisdictions.
The recently launched Nexo Card, in particular, is one digital loan product launched by Nexo, developed as an extension of the Instant Crypto Credit Line.
As its name suggests, Nexo Card functions just like a regular credit card, except that it uses crypto for collateral in exchange for a loan in fiat currencies.
With this mechanism, you do not need to sell your precious crypto but still have money in case of emergencies.
Using Nexo Card
Nexo is built to be easy to use. Let’s take a look at how you can use Nexo Card.
To obtain a Nexo Card, first and foremost, you ought to have an active Nexo account. There are also specific restrictions to who are eligible, at present only those with European Economic Area citizenship are able to order a Nexo Card.
Besides, you need to prove a Portfolio Balance of minimum 50 USD to register for a virtual card, while a Balance of no less than 500 USD plus a Platinum Loyalty tier are must for physical card requests.
Activate Your Nexo Card
The activation almost takes some seconds and completely online. All you need is to go to the Nexo app in the “Card” section, and select the button “Activate Nexo Card”.
In the next step, you will be asked to link your newly issued card to Apple Play or Google Play. Then, you’re ready to go and make purchases with Nexo Card.
Where to use Nexo Card
After connecting your Nexo Card with the play store, it can be used to either purchase stuff or withdraw fiat money from ATMs. That applies to both Nexo virtual and physical cards (virtual cards can conduct contactless withdrawals without any problems, while eliminating the risk of losing or being stolen).
Interest rate
Nexo Card provides a range of The Annual Percentage Rate (APR) from 0% to maximum 13.9%. To adjust and set up the 0% APR, go to the Card Settings menu in the Card tab then find the option “Purchase with 0% APR”.
Once activated, the Nexo system will automatically calculate and transfer just enough crypto amount from users’ wallet as collateral in order to maintain their Loan-To-Value (LTV) under 20%.
With that low LTV ratio, Nexo Card holders will benefit from the 0% Dynamic Interest, which gives them the most tempting rate ever.
Fee schedule and thresholds
One most fabulous thing about Nexo Card is that apart from the APR, there are completely no other charges or fees incurred.
- Indeed, unlike bank’s credit cards, Nexo requires no minimum repayment per month, nor any annual or monthly maintenance fees. If no transactions are made for a while, it is still fine, since Nexo does not charge an inactivity fee.
- Holders can also open additional virtual cards for free. And Nexo even gives free FX transactions for up to 20,000 EUR for a card per month.
- The minimum level is 3,000 EUR for a Basic Loyalty account, while the largest limit applies for Platinum ones. A 0.5% fee will be charged for the exceeding amount.
- Card holders should also notice the transaction and withdrawal limits to avoid unexpected overkills. In particular, for transactions, the maximum amount permitted per one single transaction is 10,000 EUR, which is also the threshold for one day.
- In a month, Nexo Card holders can conduct at most 60,000 EUR in transactions. In terms of withdrawing cash at ATMs, each single withdrawal’s maximum amount is 600 EUR, while a holder can cash out no more than 2,000 EUR a day and 10,000 EUR in a whole month.
- Nexo allows card holders with a wonderful favor to withdraw up to 10 free withdrawals every month, depending on their Loyalty tier.
- In the Basic plan, holders are granted 1 free withdrawal, which climbs up to 10 for Platinum tier. Once the free slots are empty, each additional withdrawal will cost 1.99 EUR.
Make repayments
This can be done easily within the Nexo app. Go look for the button “Repay” and proceed as instructed. If you have obtained an open credit line, the unpaid credit in Nexo Card will be automatically added into the open credit line.
Great Features From Nexo
In addition to functionality, the Nexo Card also delivers some great features. Let’s take a look at what is included.
Crypto rewards
Nexo provides a bunch of rewards for every activity and transactions made on the platform, including with Nexo Cards. Basically, how much of the reward is closely tied with the amount of NEXO Tokens held in users’ account or the Loyalty Tier in other words.
Whenever you conduct a transaction with Nexo Card, you will receive the respective crypto reward either in NEXO Token or BTC, it is upon your choice.
The reward percentage, in specific, is 2% in NEXO token or 0.5% in BTC for Platinum users, then falls down to 0.5% in NEXO or 0.1% in BTC for Base tier.
Online spending
As Nexo Card is linked with your Apple Pay or Google Pay, spending on a virtual cart becomes so easy and instantaneous with only one tap inside the app on your mobile device.
Pay for travel
Nexo Card helps erase the border across different countries and is a perfect choice for tourists and travel fans.
Being accepted by over 90 million stores and merchants around the world, plus a tempting scheme of free ATM withdrawals, Nexo Card opens the door for travelers to go and purchase anywhere they like.
Tax liability optimization
Normally if you sell your crypto to convert into fiat money, you are subjective to pay the tax incurred from your transactions.
Now, with Nexo Card, it is no longer the pain in the ass. Since you can spend while your crypto still stays in your wallet, no taxable event is triggered.
That does not only help you maintain the ownership over your valuable crypto assets, but also save a lot of time and money to complete unnecessary tax obligations.
Nexo Card Makes Sense for Crypto Holders
On the final note, Nexo is such a smart way to tap into digital finance and the loan market’s future. It is convenient, beneficial, more agile, and provides both cost saving and security.
To increase compliance for card holders, Nexo constantly works with authorities to ensure the highest security level for the platform and its financial processes.
Nexo Card holders can rest assured to put their precious crypto onto the platform and access easy credit without possible worries of vulnerability.
The post Nexo Card Review: Spend Your Money Without Having to Sell Your Crypto appeared first on Blockonomi.
