In this Nexo Australia review I will explore all the features on offer from the crypto lending platform. These features include a cryptocurrency interest account, a Nexo card, Nexo wallet, the Nexo exchange, Nexo Token and the ability to borrow fiat currency with crypto backed loans. It is hard to believe a platform can fit so many features into the one crypto platform. I hope you find this Nexo review insightful.
What is Nexo?
The Nexo platform is multifaceted, with a lot of functionality. However, it is primarily known as a crypto lending platform that offers users a cryptocurrency interest account. These crypto interest accounts provide users with a great way to earn passive income from the crypto space.
In addition to the crypto lending interest account, the Nexo platform also offers a Nexo card, Nexo wallet, Nexo token and the ability to borrow cash via a crypto backed loan. Not to mention the ability to trade crypto assets.
Nexo was founded in Switzerland but is a global company. It is registered with ASIC and AUSTRAC as Nexo Capital Inc. It is therefore a registered digital currency exchange and must adhere to Australian legislation.
Nexo has over 4million users worldwide and offers over 40 different fiat currencies for users. It operates in over 200 jurisdictions globally. Where it holds the relevant licences and adheres to local legislation.
Creating a Nexo account provides users with access to multiple features. Some of which are linked to specific jurisdictions, for example the Nexo card is currently only available to users in Europe.
However borrowing fiat currency or the ability to earn interest are available to most users globally, this includes Australians. All Nexo account holders have access to buy Nexo tokens. There are a few benefits to being nexo token holders which I will explore later in this Nexo review.
Who owns Nexo Exchange?
In 2017 three Bulgarian founders launched Nexo. Antoni Trenchev, Georgi Shulev, and Kosta Kantchev, were experienced financial professionals and wanted to solve inefficiencies in the lending markets.
Interestingly, Nexo has created a spinoff Venture Capital arm called Nexo Ventures. Which is a Web3 focussed investment and acquisition arm of Nexo. It has over $150million to invest into Web3, DeFi, NFT’s and the Metaverse.
How Does Nexo Exchange Work?
Nexo is one of many Global crypto platforms that also operate in Australia. It is registered in Australia and allows users to trade over 40 different cryptocurrencies. A user is able to create an individual account as well as corporate entity accounts with Nexo.
Nexo also enables users to earn interest by lending their crypto assets. This is done through an interest account called Nexo earn. This is one of their best features and is similar to what Celsius and BlockFi offer.
Additionally users can borrow fiat currencies or stablecoins against their crypto collateral. These crypto backed loans have become increasingly popular as people don’t want to sell a crypto asset.
Nexo provides easy to understand crypto investing with a simple fee structure and personalised customer support. Users can also invest in their native token, the Nexo token for greater user utility within the platform.
Nexo Review Australia – Features
Investing in cryptocurrencies carries risk, given the volatile nature of digital assets. Similarly, borrowing fiat currencies with crypto as collateral also carries risks due to the volatility.
Always ensure you do your own research and consider whether utilising crypto backed loans is suitable for your financial situation. If in doubt, seek professional advice from an Accountant or Financial Adviser.
However, if you are ready to start receiving interest payments from lending out your crypto, exploring the nexo card or finding out more about Nexo tokens, then continue reading this Nexo review for answers.
Nexo Buy & Sell
Nexo has a very simple user interface which is extremely appealing to new investors. The Nexo exchange facilitates the option to buy, sell and swap over 40 different crypto assets. It will be entirely your choice around which assets to trade. Nothing in this review is financial advice.
You can buy or sell digital assets via Nexo instantly. You can either buy directly using a credit or debit card, or by funding your account through a bank transfer. The bank transfer method will take slightly longer, however will have lower fees incurred.
A cool feature within Nexo is that Nexo token holders can gain extra utility while using the platform. If you hold Nexo tokens you will be rewarded with 0.5% instant cashback of your purchase provided you hold 1% of your portfolio in Nexo tokens. This is a great way to add utility and value to holders of Nexo tokens.
Additionally, users can swap over 300 currency pairs with Nexo exchange. All new assets received through swaps are stored directly in your Nexo wallet and will start earning interest immediately. Interest rates will vary on different assets, so make sure you check the Nexo interest rates often to ensure you are getting a great deal.
Nexo Exchange Review – Nexo Wallet
The Nexo wallet is a hot wallet provided to all account holders. It is also a custodian account, which means that Nexo holds the assets on your behalf. Custodian accounts upset some cryptocurrency die hard fans as you don’t technically hold the keys to your crypto.
If this is something that concerns you, then you should look into cold storage or self custody wallet solutions like Ledger or Trezor wallets.
The Nexo wallet allows you to hold fiat currency and your digital assets in the one place within the Nexo app. The great thing about the Nexo wallet is that unlike BlockFi, you don’t need to do anything to start earning interest. Your assets are automatically stored in an interest account and you will start accumulating interest the instant assets are deposited.
Given Nexo is primarily a crypto lending platform, this is where they really shine. Nexo offers users the ability to earn interest seamlessly by just depositing eligible assets into their wallet. This works just like Celsius does.
The interest rates offered by nexo will constantly change to reflect market sentiment and supply and demand. However the interest rates available are very decent so far. Also similarly to Celsius, the more Nexo tokens you earn the higher your loyalty tier.
The higher your loyalty tier the higher the amount of interest you can earn on your assets. While it could be enticing to go hard and be in the higher loyalty tier, you must weigh up the potential that the Nexo token devalues. If this happens it could wipe out any potential additional interest you would stand to gain.
Nexo is able to make money by lending out your assets to other institutional investors or protocols for liquidity. In return they earn interest, keep a small amount and then return the rest to their users.
The Nexo token is the native utility token to the Nexo cryptocurrency exchange. Native tokens have become great ways to add extra value to users and also efficient ways of raising capital for businesses that offer them.
Nexo rewards users that hold Nexo tokens in a few different ways. Token holders will receive higher interest rates on the digital assets they lend. Additionally they will receive a higher amount of cashback on crypto investments.
Similarly, token holders will receive discounted borrowing rates and higher interest rates on the Nexo tokens they hold. Not to mention holders get rewarded with more free monthly withdrawals.
Adding value like this is a great way to stimulate the value and utility of the token and therefore increase its price. In doing so, token holders and the platform generate more capital, which can be deployed. Nexo is currently in the process of buying back $100million worth of Nexo tokens as part of a buyback scheme.
Similar to a stock buyback program, this demonstrates the business has a strong belief in themselves and is prepared to spend their capital and back their business for greater future growth.
The Nexo card is currently only available to users based in Europe, however I hope it comes to Australia soon. As it has some pretty awesome features.
The Nexo card enables users to spend, without selling the crypto. This is huge, as it means you don’t trigger any CGT event. The card is tied to Nexo’s instant crypto credit lines. This means all purchases are deducted automatically from your available credit line, while your crypto portfolio remains intact.
Additionally, users can earn up to 2% rewards in crypto on all purchases made. This is all while there are no account minimum or maintenance fees. I love the sound of this card as I want to continue accumulating my assets and earn crypto rewards!
Another feature from Nexo is the ability to borrow fiat currency against your digital assets. You can borrow fiat currency or stablecoins against your crypto. This is similar to what
There are risks involved with borrowing, especially using such a volatile asset as collateral. So make sure you are sure with what you are doing if this is something you are exploring.
You are able to borrow without any credit checks and get money instantly. The benefit of this is for people that may otherwise have struggled to access loans in traditional finance. The rates vary based on your loyalty tier and the LTV. The higher the loyalty tier and lower LTV mean you can get rates as low as 1%.
If you are an NFT investor and happen to have a Bored Ape Yacht Club or CryptoPunks NFT then you can also provide them as collateral. This is a pretty unique feature if you need cash flow, yet don’t want to sell your NFT assets. You are able to borrow up to 20% of the value of the NFT and it must be worth over $500k.
Nexo prime is their institutional grade trading platform. It offers advanced trading functionality and features and offers institutional grade custody solutions. It includes military grade class III vaults. This feature is only available for institutional investors and not individual users.
Nexo Review Australia- Education
The cryptocurrency market can be quite confusing, especially for newcomers to the industry. With lots of different terms, definitions and slang used it can be hard to understand. That is why I place a lot of value on strong educational platforms.
Nexo does a good job with their educational platform. There is quite a bit of content on their blog, although it isn’t laid out in the easiest of ways. They have specific posts explaining different aspects of the Nexo app, as well as broader explanations on interest and crypto backed loans to name a few.
Nexo does a good job at providing educational content for new investors and current users. They have this content kept on their blog/education page. My favourite educational platform among the cryptocurrency industry has to be Swyftx.
I would love to see all crypto platforms improve their educational content, but Nexo’s does get my tick of approval.
Nexo Review Australia- Fees
As well as using educational content as a good test, fees should be considered even more importantly when choosing a crypto exchange. Here I will review and discuss the trading fees charged by Nexo.
Nexo generates the majority of its revenue from lending assets out, which means they don’t make much from transaction fees. In fact, they offer cashback rewards to their users when they make transactions. Nexo prides itself on its Zero fees policy.
Nexo exchange charges no transaction fees, but does have a rough 2% spread on investments. If you are buying crypto directly from a debit or credit card then you will be charged 1.49% if you live in Europe or 3.49% if you live outside of Europe.
Some other areas where fees are charged are withdrawals of assets from the platform. This is just a network fee with a variable price. This can be adjusted depending on your loyalty tier.
Another area where fees come into play is with borrowing from Nexo. You will obviously need to pay off your loan, plus any interest where applicable. So this is something to manage and will depend on your circumstances.
Additionally, if you have access to their Nexo card, you could have fees to pay on your credit line. So make sure you check this and manage accordingly. Otherwise Nexo does live up to its zero fees policy. Although their spreads of 2% are rather high, this is something to consider.
Nexo Review Australia – SMSF
Self Managed Super Funds have a lot of compliance and reporting requirements for trustees to stay on top of. Investing in Crypto makes this a bit more complex, and as such looking for a crypto exchange that makes it simple is crucial.
The Nexo exchange is based in Switzerland, with a heavy focus on European users. While the Nexo wallet app has great functionality for Australian users it is fair to say they aren’t specifically targeting SMSF users.
It is possible for users to set up a Corporate account with Nexo, and will require more screened ID verification along with certified documentation. This means if you have a corporate Trustee you can set up an SMSF with Nexo.
Although I would question why you would use a non Australian exchange for your SMSF. Given there are platforms like Digital Surge and Swyftx that target SMSF users specifically. The reporting provided by nexo would likely not be up to Australian standards and will only make it more difficult.
Nexo Review Australia- Tax Reporting
Capital gain events are triggered anytime you “dispose” of an asset. This means anytime you sell a digital asset with Nexo a capital gain event occurs. If your trading strategy includes active trading then this can get quite complex to track.
The Nexo exchange facilitates crypto loans, meaning you can borrow fiat currencies or stablecoins with a credit line. This combined with active trading can be very difficult to track accurately.
Fortunately, Nexo integrates with one of my favourite crypto tax reporting platforms Koinly via API. This means you can get automated tax compliant crypto reports for a small price.
For a small fee you can save time and money on managing your Crypto tax affairs. If you want to manage your Crypto tax affairs correctly it could be worth checking out Koinly.
Nexo Review Australia – FAQ’s
Hopefully you are enjoying this Nexo review so far. In case you had further questions regarding Nexo Australia and what the platform is about I have compiled a list of FAQs below.
The Sign-up Process
The sign up process to Nexo was extremely simple for an individual account. I could set up an account within seconds. Once I had an account set up I then needed to verify my ID before being able to use any functionality of the platform.
I thought this was a good way to set up the sign up process. Enabling potential users to check the platform out first and see its user interface before inputting all their ID details. After verifying my ID I was able to fund my account and start buying and earning interest on my assets.
Can I trust Nexo?
Nexo is registered in Australia with ASIC and AUSTRAC, which means it must comply with Australian common law. Additionally it is regulated across 200 jurisdictions globally. Nexo takes security seriously as such they have military grade vaults and external custodians managing assets.
They also have real time audits conducted by Armanino, ensuring the hold they assets they should. Additionally, some of the assets are insured for up to $375million, adding another layer of security and trust.
Who is Nexo for?
Nexo is for any crypto investors looking to earn interest on their crypto holdings. It is also a great option for anyone wanting to borrow fiat currencies or stablecoins via crypto backed loans. Additionally if you live in Europe and want to access a crypto credit card where you don’t have to sell your assets, Nexo is a great option.
Is Nexo a wallet?
Nexo offers users their own digital wallet to store crypto assets. The Nexo wallets are hot wallets, however they keep some crypto assets in cold wallets. They are not a self custody wallet. So if you are looking for greater security and peace of mind than the Nexo wallet, you should look into a Ledger wallet or a Trezor wallet.
Is Nexo legitimate?
Nexo is a legitimate global business that is Australian registered with ASIC and AUSTRAC Regulatory Authority. Therefore they must adhere to Australian consumer laws to protect Australian users.
How do I trade on Nexo?
You just need to create an account and fund it. Either through a debit/credit card or bank transfer. Once funded you can buy a select few cryptocurrencies. Otherwise you have the option to swap other assets.
Is Nexo good?
Nexo is one of the best crypto lending platforms around. They offer users excellent interest rates on their crypto holdings. Not to mention for European users a pretty great deal on their credit card too. If you are after a wide variety of assets to trade though, this is probably not the best platform for you.
What is the best crypto exchange in Australia?
Does Nexo have an app?
Yes it does. You can use Nexo on either desktop or as a mobile app. It is available in all app stores.
Is Nexo Safe?
Yes. The assets held on Nexo wallet are insured for up to $375 million by BitGo, Ledger and Bakkt. While this doesn’t cover all the assets on their platform it does offer some piece of mind. It would also be highly unlikely that the entire exchange was hacked and all assets were stolen.
Is Nexo Australia Worth It?
Hopefully you have found this Nexo Australia app review helpful and it has provided you more information regarding the platform. Given Nexo’s ‘no fees’, high interest rates and flexible loyalty program I think it is worth checking out. Especially if you want to earn interest, or potentially borrow stablecoins with your crypto as collateral.
If you live in Europe and want a crypto credit card the Nexo credit card also sounds like a great option. I can’t wait for it to become available in Australia to test out myself. It fits the bill perfectly, let me accumulate crypto, while spending, with no fees or CGT event!
If you want to be able to play around with some alt coins or have a wide variety of assets, then Nexo won’t be worth it for you. If you require a platform that provides interest on bitcoin or Ethereum you could check out Celsius. Or if you want an alternative to trade and
Nexo Review – Pros & Cons
- No fees
- Good educational content
- Great interest rates
- Nexo token adds utility to users
- Crypto credit card
- You can borrow against NFTs
- Adjustable loyalty program
- No ability to
- High spreads
- No demo account
- Limited assets to trade
- Crypto card isn’t available in Australia yet
Nexo Review Australia – Alternatives
The Nexo Australia app offers its users great interest rates on crypto assets. As well as many other features, like crypto backed borrowing, the Nexo Token and military grade security to name a few. It does, however, have a couple of alternative options. Some of these platforms to check out are Swyftx and Celsius.
Swyftx is one of the best Australian based crypto trading platforms. It provides users with the ability to earn daily rewards on their crypto through staking. Additionally users can trade over 280+ supported cryptocurrencies.
You can check out my Swyftx review here if you want to see why it is my favourite Australian cryptocurrency exchange.
The other alternative is
Check out my
Nexo Review Australia- Conclusion
Hopefully you have found this Nexo review insightful and have a better understanding of the features on offer. I have found Nexo to be a great solution for investors seeking interest on their crypto holdings. However, I would love to see their educational content improve, although I am pretty happy with it.
I like the fact that there are no trading fees, although do watch out for the instant funding fees with a card. Speaking of cards, I would love to test out their crypto credit card as it sounds just like what I need. No fees, accumulate crypto and have a line of credit against your assets.
Hopefully this Nexo review has highlighted the pros and cons of the platform. All in all I think Nexo is a great option to be considered for your crypto portfolio.
Sign Up Bonus
If you enjoyed this Nexo review and want to earn interest, use their crypto credit card, wallet or make a crypto backed loan. Then you can sign up here and earn $100BTC if you deposit $1,000 into your account.