Nexo: Earn Passive Interest on Your Crypto
Among the best CeFi protocols out there, Nexo undoubtedly stands out for its high compound interest rates and the ability to receive credits on a daily basis. Similar to Celsius Network, in fact, Nexo allows you to earn cryptocurrencies passively, simply holding them inside a wallet without any particular constraint.
Let's see it together!
Nexo: what is it?
Created in 2018 by prominent figures in the fintech world such as Antoni Trenchev, Georgi Shulev, and Kosta Kantchev, Nexo has always been committed to offering convenient and accessible lending solutions to everyone. In fact, the company's mission is to solve inefficiencies in the lending market by leveraging the potential of blockchain and cryptocurrencies.
With more than 1,000,000 customers worldwide and $4,000,000 processed, Nexo positions itself as the world's largest decentralized lending institution. This is due not only to the platform's intuitiveness and very attractive interest rates but also to its extremely high cybersecurity, which protects the user from hacking and third-party theft.
Nexo is a regulated company with as much as an ISO/IEC 27001:2013 license regarding system security and boasts partnerships with market-leading companies such as BitGo, Ledger, TrueUsd, Brave, Swiss Fintech, and The Bitcoin Foundation. Its main operation, like most CeFi protocols, is to offer fast lending solutions using cryptocurrencies as collateral.
In addition, it has recently developed an internal exchange through which you can convert your cryptocurrencies without paying any fees. However, what Nexo has been so successful for is undoubtedly the ability to receive compound interest simply by holding your assets within the wallet.
How Does It Work?
If we wanted to explain how Nexo works in just two steps, we could summarize it like this: you deposit, and after 24 hours you will start earning your interest. It might sound too simple, but that's exactly how it works. The only thing you have to pay attention to is to make sure you have deposited the minimum amount required by the platform, otherwise, you risk not earning any interest.
The peculiarity of Nexo, unlike CeFi protocols such as Celsius Network, BlockFi or Crypto.Com, is that payments are made on a daily basis and, as on other platforms, you can decide whether to receive interest in the form of the deposited asset (deposit BTC, receive BTC) or in the form of NEXO Token.
The NEXO Token, as you can easily guess, is nothing but a digital currency developed by the company itself, which allows you to participate in the Loyalty Program through which you can receive up to 8% interest on your cryptocurrencies, 12% on stablecoins, and 12% on FIAT money. In addition, 30% of the company's net profit is shared with NEXO Token holders in the form of dividends.
Why Trust Nexo?
Nexo is perhaps one of the most secure CeFi protocols around, as it has advanced technologies that protect the user in every way. The company, in fact, boasts an insurance portfolio of as much as $375,000,000 and guarantees digital assets up to $150,000,000 through the support of insurance companies Arsh and Marsh. Moreover, Nexo aims to increase the value of this insurance to $1B by the end of 2021.
Users' funds are stored inside cold-wallets offered by BitGo, a leading digital asset custody company that, not surprisingly, is able to guarantee insurance funds of $100,000,000. Specifically, BitGo offers protection in case of hacker attacks, copying, and theft of private keys, as well as the loss of passwords and possible internal theft by staff.
Moreover, it is possible to use very secure authentication tools such as the classic 2FA and biometric authentication which, together with the internal security systems and the above-mentioned insurances, have made Nexo the most popular CeFi protocol in the world.
Are there risks? Sure. As with any form of cryptocurrency investment and holding, risk can be based on both market performance and eventual company failure. However, interest rates are sustainable, and insurance is important enough to cover a bankruptcy.
How To Register?
Nexo is a CeFi protocol available in both desktop and mobile versions and registering turns out to be very simple. Once you click on the register button and confirm your email, you can already move within the platform. The advice is to do the KYC immediately after registration so that you don't have any kind of restrictions regarding interest, deposits, and minimum withdrawals.
You will also be asked to create a 4-digit password and, if you prefer, you can set up two-factor authentication (2FA). Once you've performed these steps, you'll be on the main dashboard, and you'll be ready to deposit your cryptocurrencies and earn compound interest passively on a daily basis!
How To Deposit On Nexo?
If you have downloaded the mobile version of Nexo, you will find the ''wallet'' button at the bottom. Once clicked, you will find a list with the following cryptocurrencies:
Bitcoin
Ether
XRP
Tether (USDT)
USD Coin (USDC)
Paxos Standard
TrueUSD
DAI
HUSD
Bitcoin Cash
Litecoin
EOS
BNB
Stellar Lumens (XLM)
PAX Gold
Chainlink
Tron (TRX)
In addition, you will find two entries with FIAT money (Euro and British Pound). Through this list, you will be able to see the balance related to each asset and decide whether to deposit or withdraw.
To deposit, simply choose the cryptocurrency you prefer and click the ''top-up'' button. You'll be redirected to a screen where you'll find your address, which you'll need to copy and enter as a recipient in the wallet or exchange you want to move your assets from (Ex. Binance or Coinbase).
Once you've performed these steps, all you need to do is wait 24-48 hours to start receiving your first interest. To view all your credits, you can always do so via the ''wallet'' section by clicking on the two arrows in the top right corner. We recommend, as mentioned above, that you deposit the minimum amount required so you don't have any problems.
When you want to withdraw, simply click on the ''withdraw'' button, which is located below the ''top-up'' button. Depending on the level you have acquired in the Loyalty Program, you will also be entitled to 1 or more withdrawals with no fees at all.
Conclusions
Now that you've discovered how secure Nexo is and how easy it is to use, you're finally ready to earn interest from cryptocurrencies in a totally passive way.
CeFi, not surprisingly, is becoming more and more successful, as it offers very intuitive and definitely more convenient solutions than traditional banks. If you are among those who, rather than performing very risky operations, prefer to hold their funds safely, a platform like Nexo or Celsius Network is definitely what you are looking for.
However, we always recommend differentiating your investments in order to reduce risks and maximize profits.
If you have any doubts, clarifications, or opinions, don't hesitate to leave a comment!
Bitcoin Fees and Ethereum Fees. The Difference
If you are used to using cryptocurrencies such as Ethereum, you surely know that the cost of commissions per transaction has recently skyrocketed. But have you ever wondered, exactly, why the cost to pay is so high compared to that of Bitcoin? And most importantly, have you ever wondered what the differences are between Ethereum fees and Bitcoin fees? Well, in this article we will find out together!
Fees and commissions: the basics
Before we look in detail at how the fees of the two best-known cryptocurrencies in the world work, it's good to do a little introduction on what commissions are and why they have to be paid compulsorily.
If we wanted to put it in simple terms, we can compare the fees for cryptocurrencies to those that must be incurred when a bank transfer is made. If, for example, you want to send €100 to your friend, you may have to pay €1 or €2 depending on the payment circuit you use.
Similarly, the moment you send, convert, or sell cryptocurrencies, you will have to incur fees that help confirm the transactions within the blockchain. These fees, in technical terms, are called fees, and how they work varies based on the type of asset you're using.
Specifically, a quick way to understand how fees can work is to illustrate the difference between fees to be incurred for ETH and those to be incurred for BTC. Once you understand how they work, you'll have a much clearer picture of how cryptocurrencies work.
Bitcoin fees: how do they work?
To understand how Bitcoin fees work, it is important to understand the figure of the miner. The miner is the one who, by offering computing power, helps the blockchain to confirm new blocks, to which transactions are added. The moment a block is confirmed, the miner receives a reward, to which are also added the fees paid by those who have used the network to make transactions.
So, if you're wondering where the fees go, part of it goes to the miners who, by the way, can decide to consider one transaction over another depending on the amount of fees that will be paid. Bitcoin fees, in fact, can vary not only based on the size of the transaction, but also based on what the miner prioritizes.
Not surprisingly, the Bitcoin fee system is referred to as an auction system. Since each block can contain a certain amount of transactions, the miner will give preference to transactions with the highest fees, which will be added to the blockchain sooner than those with the lowest fees. If, for example, there is high traffic within the network, the fees will definitely be much higher.
Why is the transaction not processed?
Situations may happen where the transaction is not processed and even after a few days, the Bitcoins do not arrive at their destination. This can happen often, especially if the network is clogged. However, one of the main reasons why a transaction fails is the cost of Bitcoin fees, which might be too low. Let's try to explain it further.
If, for example, the average Bitcoin fee cost at a busy time is 100 satoshi per byte and you are only paying 20 satoshi per byte, your transaction will be confirmed later than the others. Also, if the fee price doesn't fall below 100 satoshi per byte anymore, your transaction might risk ending up in the mempool, which is a kind of memory for all transactions that are not confirmed.
Is it possible to estimate the Bitcoin fees to be paid?
To understand approximately how high the Bitcoin fees are right now, you can use this tool, where the cost in satoshi per byte is shown. It's worth noting that, in a 100-byte transaction for example, you'll have to multiply the number of bytes by the satoshi/byte. So, a 100 byte transaction with fees of 100 satoshi/byte would cost 0.00010000 BTC.
Ethereum fees: how do they work?
In the same way as Bitcoin fees, Ethereum fees are used to confirm new blocks to validate transactions, and upon validation of each, miners receive rewards, also known as block rewards. The key difference is that while Bitcoin calculates fees in satoshi/bytes, the unit of measure for Ethereum fees is gas.
Gas is used to determine the computing power that needs to be used to perform certain operations on the Ethereum blockchain, be it transactions or smart-contract executions. Unlike Bitcoin, whose fees are only paid to execute monetary transactions, the Ethereum blockchain is able to give terms, making it useful for property exchanges as well.
In the case of a smart-contract, in fact, a seller can set certain conditions that the buyer must meet before confirming a transaction. This is precisely why decentralized finance is so successful, as no intermediary such as a lawyer or bank is needed.
How is the cost of a transaction determined?
As mentioned above, the cost of Ethereum fees is determined based on the amount of gas needed for a given transaction. For a transaction, for example, 21,000 gas is needed which, then, must be multiplied by the number of Ether a miner requires per gas. So, if a miner sets a cost of 0.00000005 ether per gas, a transaction would cost 0.00000005 x 21,000, or 0.00105 ether. Simply put, transferring money, at the current price, would require a fee of €1.70.
Unlike Bitcoin fees however, where the price varies basically based on traffic within the network, with the Ethereum blockchain you can set a gas price and a gas limit. With gas price, we mean the amount of gas you are willing to pay to perform a certain operation. By gas limit, instead, we mean the maximum amount of gas that you are willing to pay for an operation.
Furthermore, when executing a transaction, the miner may have 3 different options, especially in the case of transactions that have not yet been confirmed. In the first case, it may simply decide to accept the transaction as-is, charging the user the fee amount they selected.
Secondly, the miner may decide to give back part of the fees to the user, because the required computing power was less than the selected gas limit. However, the miner is free to reject the transaction the moment the user sends an amount of gas that is too low compared to the average market cost, just like it happens with Bitcoin fees.
In the latter case, the user will not receive the full amount back, as a small part will be retained by the miner to compensate for the power used for the process.
What are gwei?
To simplify the process of calculating Ethereum fees, the figure of the gwei, or the infinitesimal unit of Ether, has been introduced. One gwei is equivalent to 0.000000001 Ether, a bit like satoshi for Bitcoin. In this way, you can figure out how much a transaction can cost in terms of money even before you execute it.
To do so, you can use tools like Ethereum Gas Station, where the average recommended cost for a transaction, measured in gwei, is shown. In addition, the Ethereum fees to be paid for fast transactions, and those to be paid for standard transactions are illustrated. Obviously, you'll have to multiply the number of gwei by the gas required for a transaction and, if you prefer, consider the market value of the coin.
What about ETH 2.0?
With ETH 2.0 the situation is very similar, but there are some small differences. If in the system we have just seen the miner can decide which transactions to prioritize based on the cost of the fees, with ETH 2.0 a basic fee is taken into account that, depending on the average consumption of gas for each transaction, can go up or down.
Specifically, if the average gas consumption is greater than 10,000,000, the cost of the BASEFEE increases. Conversely, if the average consumption is less than 10,000,000, the base fee goes down. In this way, the system is able to self-regulate, avoiding that the miners set too high prices which, as it is easy to understand, vary only on the basis of the traffic within the network.
Conclusions
Understanding how Bitcoin fees and Ethereum fees work can be very complicated, especially for those who do not know certain technical terms.
However, once the mechanism is understood, it is possible to make an estimate of the commissions to be paid before making a certain operation.
Obviously, this does not happen in the case of exchanges, as each of them has different commissions.
In any case, keeping up to date can only benefit your mind and your portfolio, especially during periods of very high traffic like this one.
My first post on readcash
Hi everyone, Michelangelo here!
I am an Italian boy who recently discovered the crypto world. I have always been interested in online ways of earning and I tried different ways during the last year.
Firstly, I joined mainstream survey platform which rewards you with very little amount of money, so I tried to have a mixture of surveys and pay-per-click platforms hoping to get some extra money at the end of the month. Unfortunately, most of these sites are often scam or are just a waste of time since you have to struggle a lot to reach the minimum payout. With surveys, for example, most of the time I was kicked out from the session because I didn't match their requirements.
Afterwards, I tried to follow the path of digital marketing and social media managing. This was a way more interesting and interactive way to make money. Plus - the part which I liked more - the amount of money I could earn was virtually unlimited. However, it took me a lot of time to work on it (like 18 hours per day) because I had to create a community from scratches, I had to post every day (like on Instagram and Facebook) scheduling and managing everything to the smallest detail. That's because depending on the time you post something on social media, you can get more or less engaging, likes, views and comments. However, I think this job was not for me because I had to invest a relatively large amount of money to start, specifically:
70€/month for the platform which I used to create websites, landing pages and more
100€-500€/month to create advertising campaign on Facebook or Instagram (I could even use less money, but I wouldn't get any results
Some would think that this amount of money is not huge, but for me (an unemployed teenager) is a lot! I earned something, but my ROI was negative, so I decided to stop even if I love digital marketing field.
After some months and having done some full-time jobs during the summer, I started being more and more interested in cryptos, reason for which I started with opening my first wallet (Coinbase) and reading articles and ways to earn cryptocurrency without investing money. Two-three months are already passed, and I earned around 150€ without spending 1 cents! I couldn't believe this was possible and I think some of you still can't!
That's why, now, I want to start posting and bloggin on readcash about my experience and my stories in earning crypto with no investing. I just want to help you people earn something like I did just by using your smartphone/PC not more than 1 hour a day.
Most of the tools I use are faucet, bots and semi-automated method which allows you to collect cryptos and withdraw whenever you want. It's true that most of the faucets give you not more than some cents but, mixing all of them and diversifying your assets is the best way to earn and lower the risk of losing your money due to the market prices at the same. That's also the reason why I started blogging here, adding a new income to my collection and help people to find new ways of earning money!
Just let me know if you want me to continue with my stories and I will be really glad to provide you interesting and high-quality content! Let's help each other :)
@michelangelo96r