Nexo Investment Review: The Crypto Way for Dollar Investment?

Nexo seems to be an ideal platform for fixed income dollar investments for Nigerians, especially for me.

After a lot of back and forth, I finally settled for Nexo as my preferred platform to save and invest dollars for better returns.

Here’s the back story.

Recently, I was looking for a way to invest dollars in Nigeria for a guaranteed fixed income.

I was looking to do this traditionally through the banks and other financial institutions in Nigeria.

Unfortunately, the only options available for earning fixed income were through savings accounts that offered less than 1% APR.

Other options, aka mutual funds could earn me an interest above that but the returns were not guaranteed.

I know apps exist in Nigeria that offer dollar investment for fixed income.

Some of them include:

  • Risevest
  • Piggyvest
  • Cowrywise

However, there were issues that I was concerned about. A few of them were offering mutual funds opportunities in form of dollar investments, which brings me back to the issue of wanting a fixed income.

Others were somewhat rigid in their processes or had too many fees attached to depositing and withdrawing dollars from the investment wallet.

More so, I had my concerns with Nigerian fintechs due to the poor regulatory environment and the unstable monetary policies of the CBN.

In Nigeria, the government could wake up one morning and enact a law that effectively wipes out your investment.

So, that justified my looking out for an efficient way to invest in dollars for fixed income.

Introducing Nexo

Nexo is offering the platform to grow your digital assets and earn guaranteed passive income.

All you have to do is deposit a crypto and subscribe to an investment plan.

Interests are paid out daily on your balance, which makes it easy for you to build compound interest.

Nexo also offers options for flexible and fixed terms, which gives me the choice of either investing for the short term or long term.

But to crown it all, there are almost zero fees involved, which makes the whole process of depositing, investing and withdrawal seamless.

How Does Nexo Make Money?

Nexo makes money by lending crypto and NFT assets to collateralized users.

They also make money by DeFi staking, transaction services, and other platform fees.

How to Invest in Nexo

My biggest reason for investing in Nexo is due to their fixed interest rate and the availability to invest in dollar-backed stablecoins.

The cryptos do not fluctuate in price and do not carry any inflationary risk, so they are good for holding funds.

The target then is to buy or transfer USD-backed crypto to Nexo and start earning passive income on my balance.

The good news is that you can buy crypto on the platform with your USD card or make a crypto transfer from any of the major crypto exchanges.

Available USD-backed crypto on the platform include USDT, BUSD, and USDC.

How Much ROI Does Nexo Offer?

Nexo offers varied returns (flex rate) depending on the amount of investment.

For funds under $100k, the flex rate goes up to 8%, while funds over $100k get a 4% return.

Most investors would likely go for the higher flex rate, and that would be what Nexo anticipates, as the varied return is done to curb money laundering.

Is Nexo Legit or Scam?

Nexo seems to be a legit platform.

Firstly, they are registered with the US Financial Crimes Enforcement Network as a money service business.

They also have several Money Transmitter License from several government agencies in the US.

The biggest deal about Nexo is that they have subjected themselves to the highest level of regulatory compliance.

Apart from acquiring more than 50 licenses, their financials are audited in real time by Armanino LLP, a top 25 accounting and consulting firm in the U.S.

What I Like About Nexo

As someone looking for a fixed income dollar investment, I like the fact that I know what I’m getting from the start.

I like the transparency of Nexo and the fact that they charge zero transaction fees.

Also, the daily return is nice, as it is immediately added to your balance, which then increases your ROI going forward.

Now, that’s the power of compound interest.

What I Dislike About Nexo

I will be hard-pressed to find a reason to dislike Nexo.

But if I was to be very critical, I’d say that the zero interest on collateralized assets should be reviewed.

When you borrow on Nexo, whatever part of your balance that is used as a collateral would stop earning interest.

I think that they should at least give something on that collateral since they would still make money from the crypto loan taken by the customer.

Well, maybe that’s one of the ways that Nexo is able to efficiently provide such mouthwatering returns.

Can You Lose Money With Nexo?

Even though I’d like to be modest due to the nature of crypto assets and platforms, Nexo seems to provide sufficient security of funds.

They store the majority of their crypto assets in Class III vaults through some of the best Blockchain security platforms such as Bakkt and Ledger Vault.

These platforms also offer Nexo water-tight insurance via Lloyd’s of London and Marsh & Arch.

To top it up, they boast a ISO/IEC 27001:2013 certificate which guarantees a security infrastructure of the highest standard.

Should You Invest With Nexo?

I’m strongly leaning towards Nexo as a veritable platform for fixed income dollar investments, especially for millennials who do not want to deal with the bureaucracy of today’s banks.

Definitely looking to put some money into this to see how efficient it is.

Nexo it is.




Share This Post: