Things to know about Nexo Card

Nexo Card to know about

Nexo Card is neither exactly like a credit card nor like a debit card, it is more like a hybrid card. Nexo Card allows users to spend funds without the need to sell their crypto assets. This card holds your cryptocurrency as collateral and you can withdraw your funds using this card without the need to sell your digital assets later you can pay back your bills like you would do with a regular credit card and get back the ownership of your cryptocurrency.

Nexo Card also allows you to earn up to 2% of cash back for every transaction you make. You earn 0.5% cashback if you choose to earn in bitcoin and 2% cashback if you choose Nexo tokens.

How does Nexo Card work?

The main idea behind the Nexo Card was to give users the benefit to use their cryptocurrency to withdraw funds. But unlike other crypto cards, you don’t have to sell your digital assets to get money in return instead Nexo locks up your digital assets as collateral and allows you to withdraw funds. This gives users an advantage, as they can withdraw funds on behalf of their digital assets without the need of selling their digital assets.

Initially, you need to hold some supported cryptocurrencies in the Nexo wallet. Then when you will use the card to purchase anything the cryptocurrencies in your Nexo wallet will be used as collateral. The withdrawal limit depends on the number of cryptocurrencies you own in the Nexo wallet. You can withdraw up to 50% of the total value of your cryptocurrencies stored in the Nexo wallet. That means if you have 1000$ worth of cryptocurrencies you can use the card to withdraw 500$.

The amount that will be kept as collateral will not generate any interest, which gives you a disadvantage. However, if you have used Nexo tokens which is the native token of the Nexo platform as collateral, the exception applies and these tokens will earn interests even when in collateral.

After making the payment through Nexo Card, if you don’t pay your debts, the interest on your dues is accrued every day. The interest charges depend on your Nexo Loyalty Program which will be discussed later in detail.

The loan to value (LTV) ratio is calculated by dividing the loan value by collateral value. That means if your loan value is 100$ and your collateral value is 500$ then your LTV will be 20%. The maximum LTV over Bitcoin is 50%. The higher the LTV ratio the riskier the position, and the lower the LTV ratio safer the position. If your LTV rises drastically Nexo holds the right to sell your collateral cryptocurrencies to revive the amount you borrowed, this is called liquidation. The LTV can rise due to two reasons :

  • Loan value has risen.
  • Collateral value has fallen.

If you keep withdrawing the funds without paying back debts then your loan value will eventually keep rising. To avoid this try to pay some amount of your loan that will improve your LTV ratio. Or if the currency you have deposited as collateral loses its market value then also your LTV ratio will get worse. You can then buy more cryptocurrencies and add them as collateral to improve your LTV ratio.

If you don’t do this, and your LTV ratio keeps rising and crosses the maximum limit, then the Nexo will send you a notification as a warning and then after a few days will sell all your collateral deposits to recover the losses.

Nexo Loyalty Program

Nexo Loyalty Program decides the percentage of interest that will be accrued over your debts on daily basis.

How to avail of the Loyalty Program? Well, the tier of the Loyalty Program depends on how many Nexo tokens you own in your Nexo wallet. The higher the tokens you own the better the loyalty program.

The information for each tier is as follows:

Base tier:

No Nexo tokens are required.

That means if your portfolio compromises no Nexo tokens or less than 1% then you’ll be at the base tier.

Benefits :

Borrow Benefits

  • High LTV interest rate – 13.9%
  • Low LTV interest rate – None.

Exchange Benefits

  • Exchange cashback on Nexo Exchange – 0.00%

Earn Benefits

  • Cryptocurrencies – 4%
  • Fiat currencies – 4%
  • Stablecoins – 8%
  • Nexo Tokens – 7%
  • Earn in Nexo Bonus – 0.00%


If 1% – 5% of your tokens in your portfolio compromise Nexo tokens then you are eligible for the Silver tier.

Benefits :

Borrow Benefits

  • High LTV interest rate – 12.9%
    • Low LTV interest rate – None.

Exchange Benefits

  • Exchange cashback on Nexo Exchange – 0.10%

Earn Benefits

  • Cryptocurrencies – 4.25%
    • Fiat currencies – 4.25%
    • Stablecoins – 8.25%
    • Nexo Tokens – 7%
    • Earn in Nexo Bonus – 0.25%

Gold tier:

If you own 5%-10% Nexo coins in your portfolio then you will get the benefits of the gold tier.

Benefits :

Borrow Benefits

  • High LTV interest rate – 8.9%
    • Low LTV interest rate – 1.9% (up to 15% LTV)

Exchange Benefits

  • Exchange cashback on Nexo Exchange – 0.25%

Earn Benefits

  • Cryptocurrencies – 4.50%
    • Fiat currencies – 5.00%
    • Stablecoins – 9.00%
    • Nexo Tokens – 7%
    • Earn in Nexo Bonus – 1.00%

Platinum Tier:

If you have more than 10% Nexo tokens in your portfolio then you will unlock the platinum tier.

Benefits :

Borrow Benefits

  • High LTV interest rate – 6.9%
    • Low LTV interest rate – 0% (up to 15% LTV)

Exchange Benefits

  • Exchange cashback on Nexo Exchange – 0.50%

Earn Benefits

  • Cryptocurrencies – 5.00%
    • Fiat currencies – 6.00%
    • Stablecoins – 10.00%
    • Nexo Tokens – 7%
    • Earn in Nexo Bonus – 2.00%

If you are at the platinum tier you will avail the best benefits. When you are at the platinum tier, the interest accrued will be 0% till your LTV is under 15%. For example, if your collateral value is 10000$ and your loan value is 1500$ then your LTV will be 15%. Even if you don’t pay the debt, your debt value will be fixed to 1500$ and no interest will be charged. However, if your LTV rises more than 15% then a 6.9% interest will be charged on your loan value.

There is no way to buy the tiers for cash. The only way to unlock a new tier is to own more and more Nexo tokens.

When to repay your Loan value?

There is no set duration to pay your loan. You can pay your loan whenever you wish to. Unlike regular credit cards where there is a repayment period, Nexo Card doesn’t come with any fixed period to repay. However, it is wiser for you to pay your debt as quickly as possible because the Crypto market is highly volatile which can lead to a drop in the value of your collateral will result in a higher LTV ratio. Also unlike traditional credit cards where interest is accrued on monthly basis, on Nexo Card the interest is accrued on daily basis.

You can pay your bill using the Nexo app.

How to get Nexo Card?

Getting a Nexo Card is very which. Just make sure you have some deposits in your Nexo wallet and you are good to go.

  • Download the Nexo app.

First thing, you need to download the Nexo app by which you can use your Nexo Card in virtual mode. The Nexo app is available on Google Play Store and Apple App Store.

  • Log in and fill up your details on the Nexo App
  • Go to the card section of the Nexo App. The option is located in the bottom right corner of the Nexo app.
  • Tap Activate, the Nexo comes with instant issuing for a virtual card. So, you will instantly get the privilege to use the card.
  • Add your issued card to Apple Pay or Google Pay, and you are ready to make your first transaction.

Now, if you want to have a physical Nexo Card. You can go to the card section and swipe left and place an order for your physical Nexo Card.

You can change your pin, see your transaction history, limit your transactions, select your cashback type (Bitcoin or Nexo tokens), and see your card number, all under the card section of the Nexo app.

Merits of Nexo Card

  • No monthly or annual fees.
  • No foreign transaction fees (up to 20K euros)
  • Up to 2% cash back rewards on every transaction.
  • Instant access to funds without the need to sell your cryptocurrencies
  • Potentially really good perks if you are using Nexo tokens as collateral security.
  • The virtual card can be easily used through Google Pay and Apple Pay.

Demerits of Nexo Card

  • Interest is accrued daily.
  • Needs some cryptocurrency as a deposit.
  • Collateral cryptocurrencies don’t earn any interest (except Nexo tokens)

The Nexo Card offers one of the best benefits out there, now one can withdraw funds using their cryptocurrency without actually selling their cryptocurrency. Where a person has to sell their cryptocurrency permanently to get money in return this new innovative way allows the user to temporarily use their cryptocurrency as collateral and withdraw money in the time of need and then pay back and get their cryptocurrency back as well. This gives the user advantage as they get both money they needed and their cryptocurrency is also with them. However, one should not forget that the interest is accrued every day which might be tedious but if you can repay in time then this card will prove best.