Nexo Guide: A Full Suite of Crypto-Focused Retail Banking Services - OhNo WTF Crypto

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Nexo Guide: A Full Suite of Crypto-Focused Retail Banking Services

#OhNoCrypto Nexo

Despite the tumultuous year we had in 2020, cryptocurrencies have still managed to surface as one of the best-performing asset classes.

Considering this rising popularity, there are numerous solutions emerging that allow you to grow your digital currency holdings.

If you have cryptocurrencies sitting idle in your wallet, it might be the right time to consider other monetary possibilities. Instead of merely holding on to them, you can capitalize on your digital coins by obtaining financing.

Nexo is one such fintech solution that allows you to build on your digital assets holdings by giving you instant access to cryptocurrency-based loans.

In this review, we explore the ins and outs of what Nexo is and how you can make the most of its services via the NEXO token.

Visit Nexo

Nexo Overview

Launched in 2018 by Credissimo, Nexo is one of the world’s first crypto credit providers. It has already processed over $5 billion in crypto loans for over 1 million users in 200+ jurisdictions.

What makes Nexo different from other lending platforms is that you don’t have to go through any credit scrutiny or mention the purpose of the loan in order to obtain approval.

On Nexo, by collateralizing your current crypto holdings, your loan will be instantly approved, and the money will be deposited directly to your bank account. You can borrow as little as $10 and up to $2 million, depending on your collateral amount.

Nexo also allows you to earn daily compounding interest on your crypto or even fiat currency. You can earn up to 10% interest annually and withdraw your capital at any time at zero fees.

To further expand the utility of your crypto-assets, Nexo has also introduced a Nexo Card that you can use to spend your digital coins without having to sell them.

Nexo Token

One of the most popular endeavors of Nexo is its native ERC20 utility token. The NEXO token is deemed the world’s first compliant and asset-backed digital currency that also gives you access to dividends.

The main attraction of NEXO is that it allows token holders to receive discounts on the platform and also gives you the ability to more interest on fiat and cryptocurrency deposits.

Nexo Token
Nexo Token

Here is a quick look at the benefits of holding a quantity of NEXO tokens:

  • 30% of NEXO’s profit is sent out as dividends to NEXO token holders. As of now, over $9.5 million has already been distributed over the past three years.
  • Saving your NEXO tokens can get you a 50% discount on the interest you pay on crypto loans,
  • NEXO tokens also allow you to receive a higher rate of interest of up to 25% on your idle digital assets.
  • Additionally, you can also make up to three crypto withdrawals per month.

How to Buy NEXO

If you believe in the prospect of NEXO, there are three ways for you to get your hands on NEXO tokens:

  • By buying the token from a cryptocurrency exchange. The coin is currently listed on several popular platforms, including Huobi Global. HitBTC, UPEX, and more.
  • By reaching out to the Nexo OTC desk. This is primarily for large purchases exceeding $100,000.
  • By using a Changelly credit card to obtain NEXO tokens as rewards. However, take note that Changelly charges high fees on such transactions. If you are signing up for Changelly only for NEXO tokens, it is recommended that you consider buying directly from a supported exchange.

NEXO Token Dividends

NEXO dividends are rolled out to all holders, no matter the number of tokens you hold or how long you have been holding them. However, you need to meet two conditions – you should have completed the KYC verification process and you should hold your tokens in the NEXO wallet.

NEXO employs an advanced distribution methodology to reward long-term investors for their confidence in the company. In addition, this approach will also decrease market volatility during the ex-dividend period.

Based on this strategy, NEXO is able to provide dividend profit-sharing in two different ways:

  • Base Dividend: is paid to all eligible token holders in proportion to your NEXO holdings.
  • Loyalty Dividend: is paid out for each NEXO token you have held in your wallet from one dividend date to another. This is calculated as 1/3rd of the total dividend amount distributed.

The dividends are calculated in US dollars and will be added to your Nexo wallet in NEXO tokens.

According to NEXO, such a methodology ensures that there is fairness in the dividend distribution. Moreover, it also helps to prevent market and price manipulation, as seen with other dividend-yielding instruments.

Nexo Loyalty Program

One of the main perks of holding NEXO tokens is that you get to take part in the NEXO loyalty program.

Loyalty Programme
Loyalty Programme

The program is split into four tiers – based on how many NEXO tokens you hold.

The requirements for each tier is as follows:

  • Base – Zero NEXO tokens are needed
  • Silver – A minimum of 1% of your portfolio balance should consist of NEXO tokens
  • Gold – A minimum of 5% of your portfolio balance should consist of NEXO tokens
  • Platinum – A minimum of 10% of your portfolio balance should consist of NEXO tokens

The higher tier you fall in, the better the loyalty benefits. This includes reduced borrowing rates, increased yields on your crypto deposits, and an increased number of free crypto withdrawals.

For instance, if you are on the Platinum tier, you can get a lowered interest rate of 5.9% on your crypto loans. On the other hand, when it comes to deposits, you can earn up to 10% in interest and an extra 2% in NEXO tokens.

The loyalty program is aimed to help you build on your digital asset holdings in the long run.

NEXO Fees

The only fees you are liable to pay on NEXO are withdrawal fees. As we mentioned earlier, you get up to three free withdrawals a month. When this limit has been reached, a gas fee will automatically be charged.

NEXO Security

Nexo is compliant in all 200+ jurisdictions in which it operates. The security of clients’ funds continues to be a priority for Nexo. Currently, the company has partnered with Ledger Vault for the safety of wallet funds and has an insurance portfolio worth over $3 billion.

Furthermore, its partnership with BitGo ensures that you are protected in case of any third-party hacks, loss, or theft of your private keys.

The company also subjects itself to regular internal and external audits, and maintains high-level IT security policies for data protection and encryption. Overall, the system appears to be sound in terms of safety.

NEXO – The Verdict?

As an instant crypto lending pioneer, Nexo continues to offer the best rates in the market for both depositors and creditors. Today, it holds the position of the largest lender in the crypto industry.

However, what makes this project even more appealing is the NEXO token. Its unique tokenomics means that you can earn double-digit dividends. As such, its usability in the NEXO ecosystem puts forth an enticing offer to consider holding this digital currency.

In this review, we explore the ins and outs of what Nexo is and how you can make the most of its services via the NEXO token.

Visit Nexo

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OhNoCryptocurrency via https://www.ohnocrypto.com/ @Kane Pepi, @Khareem Sudlow