Mastercard Review

One of the first things people notice when they learn about the Mastercard is that it allows users to gain 2% cashback rewards on all purchases without involving some sort of scheme where a proprietary token must be purchased and held for months on end. However, this is still a catch with this card due to the fact that it is only available to Nexo users who are borrowing fiat currency against their cryptocurrency holdings. That said, the card can be a useful option for anyone who wants to gain access to the value of their crypto portfolio without actually selling the underlying assets. Additionally, the Nexo app provides a number of different useful features for card users.

Nexo Mastercard

Nexo Mastercard Credit Card

Nexo Mastercard

  • Lets you spend while retaining your cryptocurrency
  • Solid 2% cashback across the board
  • No fees
  • Accepted everywhere Mastercard is available

Nexo Mastercard Pros & Cons

The Benefits PRO's
  • Works like any other card from Mastercard and is accepted at more than 40 million merchants worldwide
  • Control the card from the Nexo app with features like single-tap card freezing and instant notifications on all transactions
  • 2% cashback on all purchases
  • Virtual cards can be created for safer online shopping
  • There can be tax-related benefits to borrowing against your crypto holdings instead of selling your Bitcoin for cash
The Downside CON's
  • It’s not a Visa card
  • Can only be used by borrowers on the Nexo platform
  • Still in an early access phase Mastercard at a Glance

Card type: Mastercard
Cost: Free
Funding methods: Cryptocurrencies
Cryptocurrencies supported: Bitcoin, Ethereum, Ripple, and 14 other digital assets
Rewards: 2% cashback on all purchases
Physical card: Yes
ATM Fees: Unknown
Proprietary token: NEXO
Issuing bank: Unknown

What is the Mastercard?

The Mastercard is more of an add-on to the greater Nexo platform than a standalone service. In fact, this card is only useful to Nexo users who are borrowing fiat currency against their crypto holdings. Having said that, there are a number of different situations where someone may want to borrow against their Bitcoin and other crypto assets at a competitive rate, and the Mastercard allows the user to gain instant access to this credit once it is made available to them.

What are the Benefits of the Mastercard?

There aren’t many different perks of the Mastercard to cover, as the only rewards associated with the card are 2% cashback on all purchases. This cashback incentive must be viewed in the context of the overall Nexo platform. After all, the user is effectively paying interest on the money that is being sent to the card in the first place.

Besides the 2% cashback rewards, most of the benefits of the Mastercard can be found in the Nexo mobile app. Users have extensive control over their card via the app, which includes features such as the ability to instantly freeze the card in a situation where it is lost or stolen, issue virtual cards that can be used for better privacy and security for online purchases, and instant notifications on any transaction that takes place using the money on the card.

The biggest benefit for the type of person who uses this card is likely the ability to gain instant access to funds that have been borrowed using crypto holdings as collateral. Instead of waiting days for this borrowed money to show up in a bank account, the user is able to start using that money as soon as the loan is granted. Additionally, there are tax-related benefits associated with borrowing against your crypto holdings instead of selling them and triggering potential capital gains taxes that must be paid.

Potential Mastercard Dealbreakers

It’s unclear if you really want to call it a dealbreaker, but this card is mainly for people who are already users of the Nexo platform for other reasons. If you’re not someone who is interested in borrowing fiat currencies against your crypto holdings, then this will not be the right card for you. The main purpose of this card is to give Nexo borrowers the ability to instantly access their line of credit without having to wait for a bank transfer or some other slow, costly form of payment. Having said that, if you’re interested in the ability to borrow against your cryptocurrency holdings rather than selling the cryptocurrencies outright for your local currency, then this will be the perfect option for you.

Is the Mastercard Right for Me?

The best way to think about whether or not the Mastercard will be the right crypto debit card option for you is to think about how you want to access the value associated with your cryptocurrency holdings. As mentioned previously, there are tax benefits to simply borrowing against your Bitcoin and other cryptocurrency holdings instead of selling some Bitcoin every time your balance on your card gets a little low. But of course, you are still paying interest on these loans, despite the fact that your potential to default is basically non-existent, as Nexo will simply seize your crypto holdings if you do not pay back the loan.

If you’re someone who is more interested in just having a simple crypto debit card that you can use to sell some Bitcoin and access the associated dollars, euros, or other fiat currency from the sale via a prepaid card, then the Mastercard may not be the best option for you.

Nexo Mastercard Frequently Asked Questions

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