The short answerNexo's card can spend on credit against your crypto collateral rather than selling it, which is genuinely useful for anyone who does not want to realise gains at the till. It also means a market drawdown can liquidate the collateral behind money you already spent, and the company settled with US regulators over its Earn product in 2023.
Best forSpending against collateral without selling
True all-in costweight 25%
7.5avg 7.3
Issuer stabilityweight 20%
6.5avg 6.6
Coverageweight 20%
7.0avg 6.8
Rewards valueweight 15%
7.0avg 6.5
Custody & termsweight 10%
6.0avg 6.7
Supportweight 10%
7.0avg 6.4
this service category average across 15Score = Σ mark × weight. Usable, but there are better options for most people. Methodology.
| Criterion | Mark | What we found | Source | Checked |
|---|
| True all-in cost | 7.5 | not sourced yet | not sourced yet | — |
| Issuer stability | 6.5 | not sourced yet | not sourced yet | — |
| Coverage | 7.0 | not sourced yet | not sourced yet | — |
| Rewards value | 7.0 | not sourced yet | not sourced yet | — |
| Custody & terms | 6.0 | not sourced yet | not sourced yet | — |
| Support | 7.0 | not sourced yet | not sourced yet | — |
What we liked, and what fell short
Liked- Credit mode lets you spend without triggering a disposal
- Dual credit and debit modes in one card
- Reasonable cashback without punitive staking
Fell short- Spending on credit means a market fall can liquidate your collateral
- The company settled with US regulators over its Earn product in 2023
Why the marks landed where they did
The dual-mode card is Nexo's differentiator: debit mode sells crypto to fund a purchase, credit mode borrows against it. For a holder with unrealised gains, borrowing avoids a taxable disposal in many jurisdictions and keeps the position intact.
The risk people underestimate
Credit mode means your groceries are collateralised by a volatile asset. If the market falls far enough, the loan-to-value ratio breaches the threshold and collateral is liquidated — potentially selling at the worst possible moment to cover spending you did months ago. Maintaining a large buffer is not optional if you use this feature.
Fees and rewards
No monthly fee, with interest applying in credit mode at rates that depend on your loyalty tier. Cashback is reasonable without requiring the punitive staking that Crypto.com's tiers do, though higher tiers do depend on holding NEXO tokens.
The regulatory record
Nexo settled with the SEC and state regulators in 2023 over its Earn Interest Product, paying penalties and discontinuing it for US users. The card is a separate product, and the episode is relevant to assessing the company as a counterparty.
Who should use it
Holders who want to spend against collateral rather than sell, with a conservative loan-to-value ratio and an understanding that liquidation is a real outcome. Anyone who would be alarmed by a margin call should use debit mode or a different card.
FAQ
How does Nexo credit mode work?+
Purchases are funded by borrowing against your crypto collateral rather than selling it, which avoids a disposal in many tax jurisdictions and keeps your position intact.
Can my collateral be liquidated?+
Yes. If the market falls far enough to breach the loan-to-value threshold, collateral is sold to cover the loan — including money you spent months earlier.
What happened with Nexo and regulators?+
In 2023 it settled with the SEC and state regulators over its Earn Interest Product, paying penalties and discontinuing it for US users.
Does Nexo require token staking for rewards?+
Higher tiers depend on holding NEXO tokens, though the requirements are less punitive than Crypto.com's staking tiers.
