Warning! This is just my sharing of my financial journey, not a financial advice; however, feel free to take my journey as a use case reference to chart your own financial planning journey. And if you have a better idea, feel free to share your knowledge and we can compare notes and make our money earn for us together!
The time has come!
Finally after many moons of micro blogging in noise.cash and occasionally write here in read.cash + able to redeem some intial investment tokens from testing beta release games, I am ready to test the Nexo's minimal credit line!
Patiently waiting for the compounding in Nexo tokens to earn a good credit score for me to borrow some tangible money to earn more with all the crypto (including my hard earned BCH) as collateral is definitely no easy task.
Patience and perseverance are definitely greatly tested!
But why create a credit line?
Instead of using off my earned BCH to buy other tokens / property that yields interest, I will loose my BCH itself. With the almost 7 months compounding in $NEXO tokens, it is now ready to be used as interest payback for credit line borrowing; and whenever I choose to payback my loan in interest using $NEXO tokens, my BCH is untouched, while I have my extra credit to own a long-term income generating token (property).
Something I learn from Rich Dad Poor Dad...
HOWEVER!
That being said it doesn't mean I must borrow MAXIMUM of my credit line. One must NEVER borrow 100% of available credit line so that if your BCH value drops, your collateral liquidation risk is minimal.
Yes, this means, if you can't pay back in time, your BCH will be ALL GONE, absorbed by your lender!
That is why I have decided to test the almost minimal credit line ($50) for the first try, just to make sure I can pay back interests that is less than $1 in a month's time.
Was it easy to borrow?
Through the Nexo app on my phone, it is relatively straight forward. In your dashboard you can already see your credit line and a BIG BLUE BUTTON for you to press to borrow money from Nexo.
It will then ask you to choose between USDC and USDT. Then you head over to next and agree the Nexo Crypto Credit terms before you click to withdraw.
The interesting part why it is NO FEE is because Nexo actually places your credit back into your wallet; before you choose to withdraw (now limit to 2 free withdrawals a month because of my portfolio is not yet gold) to your desired wallet.
So what did I use my Credit for?
Just so happened that RealT actually has a tokenised property on sale, and being an almost 1 year occasionally Dollar Cost Average token investor in the platform (see my first review about it when I first started investing using my real money), this is the perfect time for me to try out if purchasing directly the token from Nexo (using the credited USDC) is possible.
Checking out directly from the site with the choice of payment in USDC was relatively simple, because it requires the USDC in ERC-20 token form (and not other L2 chains), Nexo's zero fee withdrawal becomes easy.
However you can't use the QRCode that was generated from the RealT Check out! You will need to copy the wallet address and manually key in the amount of the total token price you are purchasing.
Once you have keyed in the right amount, simply press the "Withdrawal" button.
Go through both 2 step authentication and email verification...
And your withdrawal is on its way.
Surprisingly, thanks to the recent greatly reduced gas fee on the Ethereum network, the entire process is done within 15 minutes.
And I became a happy customer here, writing a review on how easy it is to create a minimal credit line (once your savings reaches above $500 USD worth) with, now successfully owning 1/10,000 of a piece of a property in USA in token form on the blockchain!
Of course, after I signed the legally generated purchase agreement through the service HelloSign with RealT.
How about you?
Do you think using your hard earned BCH (when reaches $500 USD worth) as collateral to invest on stable yield tokens backed by real property worth dipping your foot into?
Feel free to share your thoughts here or in noise.cash where I will be posting this article's link there for discussion!
(I'll be more active in Noise.cash though)
how awesome! i never thought something like this is available in the crypto world.. how much is the interest for borrowing the minimal amount?was it less than a dollar? and do you pay it from the collateral itself or you have to add funds again? sorry for the noob questions