The Hammers have made a brilliant start to the new campaign, and they are sat in third place in the Premier League table.
However, Nicholas feels that there are still improvements which could be made in a defensive sense at West Ham, even though he admires their attacking mentality.
"It's not been a great start to the season, defensively, for the two full-backs," he explained.
"But I love and really admire the way that the left-back is prepared to say 'I can go myself'. That's clever.
"A lot of other teams would say to their full-backs don't go, but if you don't take the risk you don't get a reward.
"They have the clever [Manuel] Lanzini and [Dimitri] Payet too, and they look a different beast now, with different options."
Cresswell's attacking intent was highlighted at the weekend, when he set-up West Ham's winner against Chelsea.
The full-back raced forward and crossed the ball for Andy Carroll to head home, as the Hammers picked up a 2-1 win at Upton Park.
However, Nicholas' point about Slaven Bilic's men still having room to improve in a defensive sense is a valid one.
West Ham have conceded 13 times throughout the campaign so far, and if they can start tightening up at the back then they would become a real force to be reckoned with.