Use your crypto as collateral and earn 2% cashback

Specially issued crypto cards are becoming the wildly popular standard as they allow users to cash out their digital assets and spend them at thousands of accepting merchants around the world.

Nexo card

These cards solve one of the biggest drawbacks of cryptocurrencies, namely the inability to use them in everyday life with the same ease as traditional currencies.

Earlier this year, the leading crypto lender Nexo has partnered with payments giant Mastercard and DiPocket to launch the the world’s first “encrypted” payment card.

This guide will introduce our Nexo card review, highlighting its fees, rewards and benefits before showing you how to set up your own card – all in minutes.

Fast facts

The Nexo card is basically a normal Mastercard credit card, accepted almost everywhere, but with a twist. For many, the appeal of the Nexo card is the ability to retain ownership of their crypto assets, rather than selling them.

Simply put, Nexo gives you the fiat money you need to spend and in return you provide the crypto as a money back guarantee – and all of this happens in the background every time you make a purchase.

Nexo Card, which has been made available in some European countries to begin with, allows users to spend without having to sell their digital assets. Essentially, the card offers users a line of credit that allows them to leverage their cryptocurrency as collateral to secure the credit extended.

Main advantages of the Nexo card

The Nexo card not only allows you to “hodl”, but also to earn nice bonuses with every purchase or ATM withdrawal. Additionally, each card transaction is associated with instant crypto cashback that can be paid out in Bitcoin or Nexo’s native NEXO token.

Nexo Card does not require any minimum repayment, monthly fees or inactivity fees. There are also no exchange fees up to €20,000 per month.

How it works

The card is linked to Nexo’s Instant Crypto credit lines. This allows you to use your digital assets as collateral without a credit check while spending their fiat value at millions of merchants worldwide. All purchases are automatically deducted from your available line of credit as long as your wallet remains intact.

The line of credit can use one or more assets as collateral, allowing you to spend up to 90% of the value of your crypto without selling it.

This unique feature is aimed at cryptocurrency investors who often dream of potentially dizzying appreciation in the value of their holdings. In other words, those interested in the Nexo card probably don’t care what their rewards are worth at the time they are earned.

To see your card number, expiration date and CVC, go to the Card section and tap “Card Details”. You can also freeze or unfreeze your card, reveal or change its PIN, view your transaction history, track your monthly transaction limits, and change your reward currency – BTC or NEXO.

Spend with 0% interest

Unlike traditional high-cost credit cards, the Nexo product offers a range of annual percentage rates (APR) starting at 0% and never exceeding 13.9%. To set up and configure the zero interest feature, go to the Card Settings menu in the Card tab, then look for the “Buy with 0% APR” option.

Once activated, Nexo will transfer just enough collateral to keep your LTV below 20% so you can qualify for 0% interest – provided you have enough assets in your account.

Fiscal advantages

This is not related to a Nexo card feature, just be aware that if you sell your crypto for profit, you may owe capital gains taxes.

Most countries now classify cryptocurrency as property and therefore related transactions are taxable like any other asset class. Taxes are due when you trade or sell cryptocurrency in any way and recognize a gain. The Nexo card allows you to spend without selling your crypto, so no taxable event will occur.

Virtual card version

With a Nexo card, you don’t have to wait for your physical card to arrive. You can activate your virtual version with just one click and start spending instantly with your phone.

Once connected to Apple Pay or Google Pay, the virtual card works just like the physical card – you can even make contactless withdrawals at most ATMs.

Security

Nexo raises the bar for the entire blockchain space using the most rigorous KYC and AML policies, impeccable risk assessment, data protection and strong cybersecurity.

The financial services company also qualifies as a licensed virtual asset service provider due to its status as a regulated platform. All digital assets held in your Nexo account are backed by $775 million of insurance by industry-renowned custodians in the event of hacking, theft or loss of private keys by third parties.

Nexo Card is also equipped with many security features, including the ability to freeze your card if lost, change the PIN at any time, and track transactions with instant notifications.

Awards

Depending on the loyalty level, cardholders can earn additional cashback on every purchase or ATM withdrawal. Rewards are paid out in Bitcoin (up to 0.5% return) or NEXO Tokens (up to 2% return). You also have the option to change your reward currency at any time.

Each loyalty tier has its own crypto rewards rate, here is the breakdown:

  • Platinum: 2% in NEXO tokens or 0.5% in BTC
  • Gold: 1% in NEXO tokens or 0.3% in BTC
  • Silver: 0.7% in NEXO tokens or 0.2% in BTC
  • Base: 0.5% in NEXO tokens or 0.1% in BTC

Eligibility criteria

Currently, only citizens of the European Economic Area (EEA) can order a Nexo Card. On top of that, to be eligible for a virtual card, you must maintain a wallet balance of at least $50. This threshold increases to $500 in addition to having a Gold or Platinum loyalty level to order a physical card.

Costs

Depending on your loyalty level, you can enjoy up to 10 free withdrawals. Once the free withdrawal limit is reached, you will automatically be charged €1.99 per additional withdrawal until your monthly limit is reset again.

You can also enjoy up to €20,000 in free exchange transactions per month. Once you reach your exchange limit, you will be charged a modest 0.5% fee on foreign transactions.

Keep in mind that there are monthly and daily transaction and withdrawal limits on your Nexo card.

  • Monthly: up to €60,000
  • Daily: up to €10,000
  • Per single transaction: up to €10,000

ATM withdrawal limits:

  • Monthly: up to €10,000
  • Daily: up to €2,000
  • Per single withdrawal: up to €600

Support

Nexo’s customer service team is available via email and live chat to current and potential investors. The crypto lender also maintains official accounts on major social media platforms like Facebook, Twitter, Instagram, Telegram, YouTube, and Reddit.

Conclusion

Nexo was one of the main forces behind the decision to allow crypto holders to earn a return on their holdings, and now they are looking to push the space forward once again via the Nexo card.

Since you don’t have to sell crypto to borrow, you avoid a potentially taxable event.

As for the usefulness of the Nexo card, card purchases are instant and the maximum is $5,000 with a monthly cap of $10,000. And there are even more benefits you can enjoy:

  • No minimum monthly repayment
  • No monthly, annual or inactivity fees
  • No exchange fees up to €20,000 per month
  • A generous monthly withdrawal limit of up to €10,000.
  • Get up to 10 free ATM withdrawals every month.
  • Free Additional Virtual Cards
  • Accepted by over 90 million merchants worldwide.