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.