How to get a crypto loan on Nexo

Understanding Crypto Loans on Nexo

Crypto loans on Nexo allow users to borrow fiat or stablecoins using their cryptocurrency holdings as collateral. This service is designed for individuals who want liquidity without selling their digital assets. When users deposit supported cryptocurrencies into their Nexo wallet, they can instantly borrow against them. The platform supports a wide range of assets, including Bitcoin (BTC), Ethereum (ETH), and several other major tokens. The loan-to-value (LTV) ratio determines how much can be borrowed, with typical maximums ranging from 20% to 50%, depending on the collateral type. Interest rates are dynamic and vary based on the chosen loan currency and LTV.

Creating and Verifying a Nexo Account

To begin the process, users must first create an account on the Nexo platform. This involves visiting the official Nexo website or downloading the mobile application. During registration:

• Provide a valid email address and set a strong password
• Confirm identity through a verification email
• Complete Know Your Customer (KYC) procedures by uploading government-issued ID and proof of address
• Submit a selfie for facial recognition matchingVerification typically takes a few minutes to several hours. Once approved, users gain full access to borrowing, staking, and trading features. Without completing KYC, borrowing capabilities are restricted.

  Depositing Cryptocurrency as Collateral

  After account verification, the next step is depositing crypto to serve as collateral. Supported assets include:
• Bitcoin (BTC)
• Ethereum (ETH)
• Binance Coin (BNB)
• XRP, Cardano (ADA), and othersTo deposit:
• Navigate to the 'Wallet' section in the Nexo app or website
• Select the desired cryptocurrency
• Click 'Deposit' and copy the unique wallet address provided
• Transfer funds from an external wallet or exchange to this addressEnsure the correct network is used (e.g., ERC-20 for ETH-based tokens) to prevent loss of funds. Deposits are usually confirmed within minutes, depending on blockchain congestion. Once confirmed, the assets appear in the user's Nexo wallet and are eligible for collateralization.

  Initiating a Loan Request

  With crypto deposited, users can proceed to request a loan. This is done through the 'Borrow' tab in the Nexo interface. Steps include:
• Select the loan currency (e.g., USD, EUR, USDC, or other stablecoins)
• Choose the collateral asset to use (e.g., BTC or ETH)
• Adjust the loan amount using a slider or manual input
• Review the estimated interest rate, LTV ratio, and repayment termsNexo provides real-time updates on the maximum borrowable amount based on current collateral value and LTV. For example, with $10,000 worth of BTC and a 50% LTV, up to $5,000 can be borrowed. Users can opt for instant disbursement upon confirmation.

  Receiving and Managing the Loan

  Once the loan is approved, funds are credited instantly to the user’s Nexo account. The borrowed amount can be:
• Transferred to a linked bank account (for fiat loans)
• Used to purchase other cryptocurrencies within the Nexo ecosystem
• Withdrawn to an external crypto wallet (for stablecoin loans)Interest accrues daily and is calculated based on the outstanding balance. Users can monitor their loan status under the 'Loans' dashboard, which displays:
• Current LTV ratio
• Interest accrued
• Collateral value
• Repayment optionsPartial or full repayment is allowed at any time without penalties. Repaying reduces the LTV and interest burden. If the LTV exceeds the threshold due to market volatility, Nexo may issue a margin call or automatically sell part of the collateral to maintain the required ratio.

  Repaying the Loan and Withdrawing Collateral

  To close the loan and reclaim collateral:
• Go to the 'Loans' section
• Select the active loan
• Choose 'Repay'
• Enter the repayment amount (partial or full)
• Confirm using the preferred method (e.g., bank transfer, crypto transfer, or internal wallet balance)After repayment, the corresponding collateral remains in the wallet and can be withdrawn or reused for another loan. Withdrawals are processed within minutes for crypto and up to several business days for fiat, depending on the destination. Ensure sufficient funds are available to cover accrued interest to avoid delays.

  Frequently Asked Questions

  Can I use multiple cryptocurrencies as collateral simultaneously? Yes, Nexo allows users to pledge multiple assets as collateral. Each asset contributes to the total collateral value, which is aggregated to determine the maximum loan amount. The combined LTV is calculated across all selected assets, and users can adjust the mix in the borrowing interface.

  What happens if the value of my collateral drops significantly?If the LTV ratio exceeds the maximum threshold (e.g., 75% for some assets), Nexo issues a margin call. Users receive notifications and have a grace period to either deposit more collateral or repay part of the loan. If no action is taken, Nexo may liquidate a portion of the collateral to bring the LTV back within limits.

  Are there any fees for taking a crypto loan on Nexo?Nexo does not charge origination or maintenance fees for crypto loans. However, interest is charged daily based on the loan amount and selected currency. Rates vary—for example, USD loans may have an annual rate between 5% and 12%, depending on LTV and user tier.

  Can I repay my loan in a different currency than the one I borrowed?No, repayment must be made in the same currency as the loan. For instance, a loan taken in USDC must be repaid in USDC. Attempting to repay in another currency may result in failed transactions or additional processing delays. Users can exchange currencies within Nexo before repayment if needed.