One of the first things people notice when they learn about the Nexo.io 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.
By: CryptoVantage Staff | Oct 16, 2020 | Modified Oct 16, 2020
|Cryptocurrencies supported:||Bitcoin, Ethereum, Ripple, and 14 other digital assets|
|Rewards:||2% cashback on all purchases|
The Nexo.io 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 Nexo.io Mastercard allows the user to gain instant access to this credit once it is made available to them.
There aren’t many different perks of the Nexo.io 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 Nexo.io 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.
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.
The best way to think about whether or not the Nexo.io 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 Nexo.io Mastercard may not be the best option for you.
The NEXO token does not really have much to do with the Nexo.io Mastercard directly. There are only two different ways in which NEXO is relevant to the Nexo prepaid card offering. First, users can opt to receive their cashback rewards in either Bitcoin or Nexo tokens. Secondly, NEXO is one of the tokens that Nexo.io users can put down as collateral for crypto loans, and there are various perks associated with using NEXO on the Nexo.io platform. In reality, the NEXO token has more to do with the borrowing and lending aspect of Nexo.io.
According to the information available on the Nexo.io website, the fees associated with the Nexo.io Mastercard are still a bit unclear. The site’s help center makes it clear that there are no fees related to account maintenance, inactivity, surcharges on point-of-sale payments, or foreign exchange. It should be remembered that this is still a relatively new card on the market.
The Nexo.io Mastercard is available today, but it is still in the early access phase of development. If you want access to this crypto debit card, you’ll need to download the Nexo app and order the card form there.
Nexo’s entire platform is available in most countries around the world; however, there is a list of 22 countries where the platform (and therefore the Nexo.io Mastercard) is not available:
No, the Nexo.io Mastercard is not anonymous. Users of the Nexo platform must go through a full identity verification process before they’re able to access the services made available by the company.