AgFeO2 nanoparticles synthesized via precipitation at room temperature are investigated in Li- and Na-ion cells through electrode coatings with an alginate binder. The electrochemical reactions of AgFeO2 with Li+ and Na+ ions, as well as its role as alternative negative electrode in these cell systems are carefully evaluated. Initial Li uptake causes irreversible amorphization of the AgFeO2 structure with concomitant formation of Ag0 nanoparticles. Further Li incorporation results in conversion into Fe0 nanoparticles and Li2O, together with Li-alloying of these Ag0 clusters. Similar mechanisms are also found upon Na uptake, although such processes are hindered by overpotentials, the capacity and reversibility of the reactions with Na+ ions being not comparable with those of their Li+ counterparts. The behaviour of AgFeO2 at low potentials vs. Li+/Li displays a synergic pseudo-capacitive charge storage overlapping Li-Ag alloying/de-alloying. This feature is exploited in full cells having deeply lithiated AgFeO2 and LiFePO4 as negative and positive electrodes, respectively. These environmentally friendly iron-based full cells exhibit attractive cycle performances with ≈80% capacity retention after 1000 cycles without any electrolyte additive, average round trip efficiency of ≈89% and operational voltage of 3.0 V combined with built-in pseudo-capacitive characteristics that enable high cycling rates up to ≈25C.