Cryptocurrencies behave considerably differently from traditional currencies because of their volatility. Despite that, some exchanges are able to keep your crypto in a deposit account that earns interest.
Many online services will also allow you to borrow money using your cryptocurrency as collateral. Nexo is a cryptocurrency platform that offers both interest on deposits and the ability to borrow against your cryptocurrency.
To what extent does this platform differ from its counterparts? Is there a strong reason to prefer Nexo above its rivals? Read below to find out.
What Is Nexo?
Nexo is a blockchain-based cryptocurrency exchange and lending platform, considered the pioneer of crypto-backed loans. The service aims to promote a model in which obtaining crypto loans is simple with no credit checks required.
To get cash or stablecoins loan, users need to deposit crypto assets into their Nexo wallet. Then, they can apply for a loan through Nexo’s platform. More than 40 cryptocurrencies are supported by Nexo, including well-known ones like Bitcoin, Ethereum, Cardano, and Terra.
How To Earn Interest On Nexo?
The first step is to deposit funds. You can do that via bank transfer or direct card payment. Stablecoins pay up to 17% (UST), while other cryptocurrencies pay up to 36% (AXS). You get an interest payment every day and interest is compounded daily. You can withdraw cash at any moment.
Interest rates are also affected by the duration of the time held. If you decide to lock your assets for one month or more, you can earn a higher yield.
How Does Nexo Work?
Neco Oracle is the critical component for the majority of the platform’s functionality. This is because it is in charge of the majority of its operational aspects, such as network governance, real-time asset monitoring, using data analytics to manage loan distribution, and more.
Is Nexo Legit?
As a financial company with millions of consumers and expertise in cryptocurrencies, Nexo has a solid reputation. This is proved by the real-time 3rd party audit of Nexo’s custodial assets by Armanino. Nexo is the first company in the crypto space to have such an audit. It shows that the company’s assets always exceed liabilities. Nexo works with the leading authorities in custody and compliance and offers up to $375 million insurance protection on digital assets. All this makes Nexo a trustworthy company.
What Are NEXO Tokens?
Nexo’s native cryptocurrency is the NEXO Token. Holding NEXO in your Nexo account gives you benefits determined by a tier-based Loyalty Program. Depending on your loyalty tier, you get higher interest rates and five free crypto withdrawals each month. Nexo presently has four tiers: base, silver, gold, and platinum. The loyalty tier depends on how much of your crypto portfolio is in NEXO Tokens. If it constitutes to 10% or more, you get the platinum tier with the most benefits.
What Makes Nexo Unique?
While the mainstream adoption of crypto is still ongoing, early investors have amassed a considerable fortune. The Nexo team encourages investors, entrepreneurs, miners, and average users to benefit from this wealth. Earning interest on Nexo is very easy and automatic – meaning you don’t have to move your assets to different wallets, unlike other platforms.
Nexo intends to speed up the process of providing liquidity on digital currencies by providing instant cash access. As a result, Nexo users will be more flexible when it comes to seizing investment options and satisfying their liquidity demands.
Nexo eliminates credit checks, removing possible credit score difficulties. For this reason, the Nexo team agreed to eliminate all hard credit checks and solely rely on trying to secure crypto-based loans tied to the value of the customer’s digital assets contained in their Nexo account. This also shortens the typical loan approval process.
Lastly, the Nexo platform’s blockchain-based design should ensure loan-related transactions are transparent and unchangeable. Nexo uses blockchain-based loan agreements. The blockchain technology of Nexo ensure that the legal validity of the loans it provides entails full protection. Thus, the platform is safe to use.
Takeaways
- Nexo is a cryptocurrency platform that offers a fast process of buying crypto, interest on deposits, and borrowing against your cryptocurrency.
- Nexo aims to simplify the process of obtaining crypto loans by eliminating the need for credit checks.
- It has a solid security infrastructure and insurance on custodial assets.
- Nexo’s native cryptocurrency is the NEXO Token.