Have you heard of Nexo? If you’re into crypto, you should probably know about it. You may find that it offers you some unique benefits that other crypto-related entities don’t.
We’ll talk about Nexo in the following article. You may want to learn more about it based on what you hear from us.
What is Nexo?
Nexo advertises itself as an all-in-one crypto platform. You can store all your digital assets there, but you can also sell or trade them. You can even borrow against them, which not every crypto platform allows.
Nexo credit lines start from 5.9% APR, which is pretty reasonable if you want a guaranteed loan that you base on your crypto collateral. It’s a blockchain system, so it comes with all the security features that make that technology so attractive.
You can also use Nexo to trade your crypto in for fiat currency, like the US dollar, whenever you need it. That flexibility should make you feel better about storing your crypto there.
Nexo Means You Can Bank with Your Crypto
Lack of regulation is part of what some people like about crypto. There’s an issue with no regulation, though. You don’t necessarily get the same protections you do with banks that allow you to store your fiat currency there.
Banks have been around for centuries, while crypto remains a relatively new technology. That means you don’t always have the same security guarantees with banks that you do with crypto platforms.
Nexo operates similarly to a bank, though. For instance, you can get or use almost all of the same bank benefits that exist, but you’re using crypto to fund the account.
For instance, you can borrow money against your crypto the same way you would if you had collateral and needed a bank loan. You can generate interest through your crypto as well. You can even lend your crypto if you have enough of it and do not feel like you’ll need it for anything soon.
You can also get fiat currency without relying on credit scores. Investors who don’t have the best credit will probably enjoy that feature.
How Many Crypto Forms Can You Use on Nexo?
Nexo deals in 35 crypto forms at the moment. They let you buy, sell, or trade Ethereum, Bitcoin, XRP, Cardano, and many others. They will probably start allowing more crypto forms soon, even the more obscure ones.
The platform also has NEXO tokens you can use for payment in USD, BTC, ETH, or EUR. Those remain some of the more popular ones, so you should find one you want to use if this feature interests you.
You might want to know more about Nexo loans if you’re going to start using the platform. We’ll run through some of the basics.
You will need to sign up for an account before you can apply for a loan. That’s not challenging to do. If you’re at all tech-savvy, you can sign up for an account and have one open within a few minutes.
Once you’ve got an active account, you can deposit any crypto assets into it that you’d like to store there. The longer the platform stays active, the more coins you see show up on their site. In addition to those we mentioned, you can also store BNB, TRX, LINK, EOS, and BCH.
If you want to take a fiat loan against your crypto, you must cover at least 50% of that loan with crypto collaterals. You might use ones like ETH or BTC. You need to do that to prevent any money laundering allegations.
The Next Steps
To continue applying for the loan, you’ll need to do an advanced verification in the “My Profile” section. Don’t worry, though. It’s a quick and painless process.
You don’t need to go through a credit check like you would with a regular bank. Instead, you get instantaneous fund dispersal once you’ve filled out all of the relevant information. There’s only one other thing the site might need.
It may ask you to provide supporting documents that testify regarding your fund’s origin. All you do is say you obtained that money through legal means.
Now, you’re all set to withdraw funds from the credit line. You can see the available loan amount in the section called “Withdraw Funds from Credit Line.” You have two asset class finance possibilities. You can get that loan in a fiat currency like US dollars, or you can get it through Tether or USD Coin.
If you go with USDT or USDC, you’ll need to provide a loan address in Stablecoins. If you don’t have enough collateral in the credit line to support the loan amount you want, you might see crypto assets transfer from a savings wallet to a credit line wallet. If you know that’s going to happen, though, and you’re okay with that, you can proceed.
You can spend from that credit line up to the amount Nexo allowed. You get 5.9% APY, and that will not change at any time. You can repay that debt any time you choose, though you should understand that Nexo will keep running the interest till you pay it all back, the same as you’d see with a traditional bank or credit union.
Should You Set Up a Nexo Account?
If you want to try crypto trading, selling, buying, etc., you can certainly try Nexo or a similar platform. The loans set this one apart, though, since not all platforms will let you borrow money in fiat currency or crypto like Nexo does.
Nexo seems like one of the most stable and well-regarded options if you want to dip a toe into the crypto world. They have excellent customer support and get consistently rave reviews from their users.
They have been around since 2018, but they seem poised to grow exponentially in the coming years. You might want to go with a company on the rise like this one.