Nexo launches crypto card…and you don’t have to sell your coins
Nexo, the digital asset lending institution, today launched the Nexo Card. In a partnership with MasterCard, the crypto-powered card boasts the ability to be used to transact with over 90 million merchants.
And the thing that makes it one-of-a-kind? You don’t have to sell your crypto. Which for crypto people, is a very good thing.
Keep Your Assets
That’s because the Nexo Card is linked to a crypto-backed credit line with Nexo, which starts at 0% APR and is capped at 13.9%. So rather than spending your digital assets, you instead use them as collateral – a pretty neat piece of innovation. Furthermore, the collateral mechanism is dynamic, and you can put up multiple assets against your credit – such as a mix of Bitcoin, Ethereum stablecoins and much more.
It’s a product which crypto enthusiasts have long demanded, as to date, similar cards from competitors require you to spend your digital assets. For example, I ordered the Binance card last year, but soon stopped using it as there really was no motivation beyond the gimmick of “paying with crypto”. In fact, that product wasn’t technically even paying in crypto – it was simply converting my crypto to fiat and using that to spend with the merchant.
But here, there is a real motivation to order the card, as now your crypto assets can be used as collateral and allow you to draw down a line of credit.
The APR is advertised as starting at 0%, however in digging into this, the 0%-1.9% bracket is reserved for Gold or Platinum accounts. For this, you require the ratio of Nexo tokens to other assets to be above 5% (for Gold) or 10% (for Platinum). Additionally, your LTV will need to be below 20%.
But it’s important to note that even if these parameters are not achievable for you, the APR is capped at 13.9%, which is below most traditional (fiat) credit cards. All in all, it’s a pretty good deal.
- Zero Fees: There are no minimum repayments for the card. There are also no monthly fees (not to mention inactivity fees, which always strike me as a scam!)
- FX Fees: No FX fees on the first €20,000 exchanged per month.
- 2% Crypto Rewards: Each transaction will garner cashback in the form of Bitcoin or Nexo’s native token. This is capped at 2%.
- Virtual: In addition to a physical card, a virtual card is available. Most admin features relating to the card are available in-app too, such as freezing, adding to Google/Apple Pay, and the addition of more virtual cards. Speaking as a loyal Revolut customer, these options make your life a lot easier.
When the email arrived in my inbox imploring me to sign up for the Nexo Card, I was cautiously excited. Sure, it was a cool concept, but I assumed it would be laced with fees.
However, this really is not the case – the terms are very competitive compared to what is out there. Additionally, it offers a chance to borrow against your crypto assets and draw a credit line, which is pretty cool and very useful.