Remember the old days when your savings account used to offer an interest rate – an annual percentage yield (APY) – as a thank you for allowing them to hold your money? Those days may be long gone in traditional banking, but there are a few financial services companies emerging in the decentralized finance (DeFi) space that are offering exactly that.

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What we’re crazy about & What drives us crazy about Nexo (pros & cons)

Pros:

• Clear overview of our assets and their dollar value – crypto, stablecoins and fiat currencies. It’s very easy to list them and sort them by each coin’s interest-earning potential. 
• Daily notifications of interest earned. So, yes, we’re talking about compounding interest.
• Really easy to buy, trade and transfer crypto coins. It’s equally easy to maximize your APY earn by shifting some crypto assets into “fixed term” plans. 
• Borrow instantly against your credit line. And enjoy low APRs – from 0% to 6.9% for up to one year with no repayment. 
• Licensed and regulated. This is the most un-sexy part of the review, but after the collapse of FTX, you want to make sure your assets are safe.  

Nexo’s email newsletter and blog. They are delightfully digestible, and they have helped us understand the world of DeFi and crypto better.

Cons:

• US residents have restricted access (e.g., Nexo’s Earn Product is restricted in the US.)
• On the flipside, you can access a full listing of licenses and registrations in numerous jurisdictions worldwide including a slew of US states
• Visually confusing dashboard – too much information.
• There’s a bit of everything for everybody, which can be overwhelming (or precarious) for beginners who stumble on advanced features, or frustrating for advanced users who know what they want to do.

Summary:

Nexo is a modern response to the way banking used to be. Not only can you earn up to 12% APY in regular fiat currencies (USD, GBP, EUR), but you can also earn up to 3% and 36%, depending on your loyalty level and the crypto token you’re holding. You can also leverage the value of your crypto holdings to take out low-interest short-term loans. 

Nexo brings a bit of “traditional banking” familiarity to the “wild west” reputation of the decentralized finance space. We appreciate being able to see a list of the countries and US states where Nexo is licensed to provide financial services. Knowing that the total insurance of the Nexo Wallet is $775 million also provides a certain level of comfort.