Happy Wednesday everyone
Today I'm writing about Nexo. It is a crypto lending platform, witch allows you to lend your crypto assets to the platform and earn interest in those assets. Witch they lend to other users and earn slightly higher interest, with which they pay you - the lender - and keep the difference as profit. You can borrow money against your crypro assets. You can convert tokens in their exchange function. You can deposit fiat via bank transfer or with a credit/debit card but in the latter case you pay a fee witch is why I don't do this. I rather wait a day for my funds to arrive and pay zero fees as these fees add up sooner or later. You can also buy and sell your crypto easily, and Nexo even pays from 1 up to 5 withdrawals a month depending on your loyalty tier, witch I will touch a little bit later. They also offer a Nexo MasterCard (virtual and physical).
Today I wish to focus on the lending feature witch is what I am using the most and its what pays me passive income, witch is compounded daily.
Nexo pays interest on 33 different digital assets and on fiat currency as well. The interest rate depends on witch asset you chose and weather or not you decide to lock up your assets (the longer the lock period the higher the interest rate, note: you will not have access to your locked up funds and interest earned from those funds for the duration of the lockup period, the good thing is that the interest is compounded during this process). You can increase your interest by setting your earnings to be in Nexo token (platform's native currency). It means that all of your assets, be it BTC, ETH, USDT,... and fiat will be earning interest in Nexo tokens.
Now lets talk about loyalty tiers and the final way to maximize your interest. Loyalty tier depends on the amount of Nexo tokens you are holding on the platform.
If a 0-1% of your portfolio's value is held in Nexo tokens you are in the lowest Base tier, highest Base interest rate is 8%
1-5% in Nexo is a Silver tier, highest Silver interest rate is 8.5%
5-10% is the Gold tier, highest Gold interest rate is 10%
10% and above is Platinum witch is the best tier with the highest rewards, the highest Platinum interest rate is 12%
I started with Platinum but am now currently in the Gold because the value of my portfolio went down with this bear market and Nexo fell quite low. It might be a good time to buy more Nexo tokens, but there are so many other coins and tokens that are now available at a nice discount and I have very limited amount of money to invest right now.
Another thing that helps maximize your interest are special promotions, that last limited amount of time. Nexo will sometimes offer extra long lockup periods for a limited time frame in witch you will be able to gain even greater interest, or sometimes when they list a new cryptocurrency they set its starting interest rate really high to attract more users.
I personally wouldn't buy a specific crypto just for the interest rate but if you are holding that crypto anyway, you might as well do it on Nexo.io for that compound interest.
I earned a little bit above $30 worth of interest in about 3 months time with $1500 held on the platform, and additional $25 in Bitcoin for signing up via a referral link.
Here is a screenshot of a fixed term that payed me the highest reward
One thing to keep in mind is that your assets on Nexo, like on all other centralized exchanges are not FDIC insured and will be lost if the company goes bankrupt. So I wouldn't keep more than 10% of my net worth on this platform even though they really offer great interest rates. On the other hand since the fiasco with Celsius has happened, they firstly offered to buy out Celsius' loans and secondly they upgraded their insurance and are promising that all of their assets are overcollateralized.
photo here
Which makes them look like a solid company and they seem confident that what happened to Celsius won't happen to them, I still hope that Celsius situation gets resolved since they disables withdrawals and I have some of my crypto on their platform.
Here are photos of my current portfolio and the interest payouts
If you wish to sign up to Nexo you can do it with my referral code and we both get $25 worth of Bitcoin after you deposit $100 and hold it on the platform for 30 days, link: https://nexo.io/ref/ikecdxjbjq?src=android-link
My other referral links:
- Cryptotab browser: https://cryptotabbrowser.com/32773432
- Sweatcoin: https://sweatco.in/i/crossedmat
- Crypto.com: $25 worth of CRO https://crypto.com/app/2pkg558ccm
- Coinbase: $10 worth of Bitcoin https://www.coinbase.com/join/gorjan_q?src=android-link
- Crypto.com exchange: $10 - $2000 in CRO https://crypto.com/exch/2pkg558ccm
- BlockFi: $10 worth of Bitcoin https://blockfi.com/?ref=0bf7c8f9
- Coin app: 1000 coin that can be redeemed for XYO, Bitcoin, Ethereum or physical merch https://coin.onelink.me/ePJg/lwd5mvgw
None of what you read here is financial advice, just sharing my own opinions that's all. If you seek financial advice please contact a professional to help you out.
I hope my content is valuable to you, have a great rest of the day :)