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Nexo: Earn Passive Interest on Your Crypto

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Avatar for michelangelo96r
Written by   2
1 year ago

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!

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Avatar for michelangelo96r
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1 year ago
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Comments

interesting but how much is the minimum deposit in bitcoin cash? 🙄

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1 year ago