Earn interest by depositing your euros and cryptos
You can deposit your euros, dollars, cryptocurrencies and stable coins on Nexo to earn interest ranging from 4% to 12% per annum under certain conditions:
- The type of currency being deposited
- Your loyalty status (Basic, Silver, Gold, Platinum)
- Whether you agree to hold the money for 3 months
- Whether or not you agree to payment in Nexo tokens
This table gives an overview of the interest paid:
|euro or dollar||4%||4.25%||5%||6%|
|Fee in Nexo Tokens||+0%||+0.25%||+1%||+2%|
|Money blocked for 3 months||+4%||+4%||+4%||+4%|
For example, a Euro deposit reimbursed in Euros (and not in tokens), blocked for three months and with a Silver loyalty status, the return will be 8.25%.
Where do these interests come from? Simply the interest paid by borrowers. In reality :
- The euros and dollars you deposit are pledged to someone who needs cash, as we explained in the previous section.
- The deposited cryptocurrencies will also be lent by Nexo, specifically in Defi.
Other features offered by Nexo
Buy and trade cryptocurrencies
Nexo is also a marketplace for buying and exchanging cryptocurrencies, as offered by its competitors coinhouse or bitpanda for example. It currently offers about forty of the most solid and widespread cryptos (Bitcoin, Ethereum, Avalanche, Tether, Binance Coin, etc.)
Nexo also allows you to exchange cryptocurrencies, a much more efficient, faster and cheaper process than through FIAT currencies. Nexo is a great way to invest in cryptocurrencies.
The Nexo card, our take on this crypto card
It is a virtual crypto card that allows you to spend your digital assets. How ? Very easy by converting your cryptos into euros at the current exchange rate.
The Nexo card can be used on online e-commerce sites, but also in physical stores thanks to the Apple Pay or Google Pay functionality. The Nexo card is linked to Mastercard, one of the largest payment networks in the world. It can therefore be used with the millions of merchants who accept Mastercard.
In addition, Nexo offers you 2% cashback on your purchases! You will be paid in Token Nexo, which you can exchange with another currency (euro, dollar, bitcoin…) if you wish.
The JepargneEnLigne team’s opinion on the Nexo map
The Nexo card is very practical to spend your digital assets easily, too bad it’s not available in physical version. An important point of attention: for the French tax authorities you are capital gains tax due from the moment you convert cryptos into euros† Using the Nexo card converts your crypto into euros, so you are theoretically liable for tax. How do I declare capital gains on a series of purchases? This is a real headache that annoys many crypto card users. To date, there are no easy solutions and Nexo offers no solutions to help calculate the tax.
What is the Nexo Token?
Nexo’s first tokens (also called tokens) were launched as part of an ICO (initial coin offering) and paid out to early investors and users.
What is the Nexo token used for?
The Nexo platform is largely automated. For example, it is programmed to send the money to the borrower as soon as he puts his cryptocurrency in pledge; the same applies to alarm procedures and the release of collateral in the event of a fall in the LTV, which does not require human intervention.
To make this automated mechanism work reliably and securely, Nexo uses the Ethereum smart contract blockchain. Simply put and without going into the technicalities, the Nexo token is the gateway between Nexo and Ethereum. It is thanks to him that the instructions are sent to the blockchain and then executed.
The Nexo token is essential for the proper functioning and security of the platform. Nexo therefore has a great interest in many users who invest in its token.
Today there are more than 560 million Nexo tokens in circulation and the price has risen sharply since 2020:
Chart taken from CoinMarketCap
What are the benefits of owning Nexo tokens?
Nexo tokens offer you many benefits: Higher returns on coins invested, cashback offers, lower borrowing rates, etc.
They depend on the status you have (base, silver, gold, platinum), depending on the share of Nexo tokens you hold:
- Basic status if you have less than 1% Nexo tokens in your wallet
- Silver status if you have between 1% and 5% Nexo tokens in your portfolio
- Golf status if you have between 5% and 10% Nexo tokens in your portfolio
- Platinum status if you own more than 10%