Nexo is a blockchain-based and crypto-backed lending platform that provides instant loans to its clients. The platform offers both traditional and crypto-backed loans. It aims to provide crypto holders with cash in a matter of minutes, regardless of where they are located.
In this Nexo review, we will discuss the basics of this platform and its earning option.
What is Nexo?
Nexo is a platform that offers loans in fiat currency, backed by cryptocurrency collateral. It aims to provide crypto holders with cash in a matter of minutes, regardless of where they are located. Nexo was established as a joint venture between Credissimo and Secured Automated Lending Technology (SALT), two companies that offer similar services.
The company has raised $52 million from investors including Tim Draper and other prominent VCs such as Bitmain founder Jihan Wu and Binance CEO Changpeng Zhao (CZ).
Benefits of using Nexo:
Fast approval process – Get an instant loan approved within minutes! No documents are required for approval; all you need is your email address and your wallet address;
Low interest rates – From 6% per year for USD loans up to 12% for EUR loans;
No hidden fees – There are no hidden fees or charges handling fees when using Nexo;
Flexible payment schedule – You can choose between monthly repayment plans or one time payments.
How does Nexo work?
Nexo is a platform that allows you to get your hands on cash in exchange for your cryptocurrencies. It is similar to traditional exchanges, except instead of selling your digital assets to other users, you can use them as collateral in order to receive a loan. The loan amount is based on the value of your collateral and the interest rate is adjusted according to the market.
Nexo was founded by Credissimo, an online lending company with over 3 million customers worldwide and $1 billion in assets under management. Credissimo is regulated by the Central Bank of Ireland, so this is not some fly-by-night scheme.
After registering for an account on Nexo’s website and uploading some identification documents, you will be able to deposit your crypto assets into your Nexo Wallet.
After that, you can choose how much money you want to borrow and how long it should last (the maximum period is 1 month).
When you are ready, click “Apply Now” and fill out the application form. Once approved (which takes less than 24 hours), you will have access to your money within minutes.
The company uses its own virtual currency called the Nexo token (NEXO) as collateral to provide loans, which can then be used for various purposes.
What is Nexo Token?
Nexo tokens are used as collateral on the Nexo platform. The company has created its own cryptocurrency called the Nexo token which is used as collateral for all loans taken through the platform.
Nexo is an instant crypto-backed loans platform. Nexo’s unique business model allows users to profit from the difference in the value of their assets and their loans.
Nexo’s native token can be used for a wide range of purposes, including:
-Lending: Nexo operates as a lender, offering collateralized and uncollateralized loans backed by blockchain assets. You can earn interest on your crypto holdings and instantly borrow funds against them.
-Investing: NEXO tokens can be traded on major exchanges, providing exposure to cryptocurrencies and fiat currencies. The market price of NEXO will rise as more people use it as a stable store of value.
Earning interest in Nexo
In order to earn interest for your crypto holdings, you need to transfer them to your account on the Nexo platform. You will then be able to earn interest on these assets by holding them in your wallet.
The Nexo system rates you on how active you are as a NEXO token holder, giving you an opportunity to earn more interest. The longer your loan is active, the higher your interest rate will climb. However, if you can not repay your loan in a timely fashion, then the opposite happens, and you face the possibility of negative interest. Overall, Nexo does well in terms of interest rate and trustworthiness.
The interest rate paid on these assets varies from 2% to 12%, depending on how much risk the lender takes on when making a loan. The higher your risk tolerance, the higher the interest rate you can expect to earn from the platform.
Nexo has definitely found a niche in the crypto-investing world. They offer higher interest rates on their lending product than Bitbond, but their early investor stage is quite lengthy. This is likely to prevent new users from signing up, but it ensures that Nexo will have a solid user base for the long term. In other words, it is a win-win for everyone involved.
Is NEXO a Safe Platform to Earn Interest on Crypto?
Yes. With the above information in mind, we believe that NEXO represents a reliable lending platform to earn interest in crypto. One thing is for sure – by offering a solution that combines fiat loans with crypto assets, NEXO will likely find plenty of appeal in its target market.
All things considered, NEXO is an excellent program because it allows borrowers to earn relatively high interest on their crypto assets, especially given the current low-interest environment. The platform also makes for a secure place for crypto investors to store their assets and earn interest on them without any threat of risk as they do not have to worry about theft or loss.
So far, the platform has a good reputation and no major red flags to speak of, but it is important that users be aware of the risks associated with this type of loan. However, for those who are hoping for more yield from their cryptocurrency holdings, an investment in NEXO can not hurt!
How to earn maximum interest on Nexo?
To earn maximum interest on this platform, you need to be on the top tier which is the platinum tier, as interest/benefit increases with each tier.
Nexo platform has a four tier system:
Base: One needs zero NEXO tokens to be part of this tier. Users from this tier are provided with 1 free withdrawal per month.
Silver: This tier is for users holding 1%-5% of their portfolio in the form of NEXO tokens. Users from this tier are provided with up to 2 free withdrawals per month.
Gold: You need to be holding 5%-10% of your portfolio in NEXO tokens to be on this tier. Users from this tier are provided with up to 3 free withdrawals per month.
Platinum: Users on this tier have more than 10% of their portfolio as NEXO tokens. Users from this tier are provided with up to 5 free withdrawals per month.
We enjoyed researching NEXO. It appears as though they are legit, and there have not been many complaints about the platform so far. We found the user dashboard to be simple to use and understand, which is a big plus because it means non-technical users get a handle on everything they need quickly, but there are advanced areas that experienced traders will be able to take advantage of. The mobile application is slick, and all of the features work smoothly.
If you are investing in cryptocurrencies and looking for a secure lending platform with a respectable return, NEXO may indeed be a good fit for your investment strategy. With its operating history, it has a track record of delivering as promised on its interest generating offers.