If you own crypto, it can be hard to find a place to spend your holdings. Besides that, you might not want to spend your crypto holdings but are facing a serious cash crunch. This is where Nexo comes in. They will allow you to put up your crypto holdings as collateral and offer you a fiat-based loan.
How it Works
Getting a loan from Nexo only takes a few minutes. The registration process is quite easy with only a simple KYC process for those that need a loan. Best of all, your credit score does not matter on this platform. Once your details are verified, you will be able to deposit crypto and request a loan in fiat. This platform is trusted by some of the biggest names in the crypto space such as Bittrex, Coinbase, and many others. Anyone from any part of the world can borrow cash via Nexo. You can also project how much credit you would be granted, by implementing your crypto holdings into the tool below on their site.
What Coins are accepted?
Nexo accepts various crypto assets besides BTC and ETH. These include Nexo, LTC, XLM, XRP, TRX, and BNB. Various tokens are currently being evaluated and added as options for borrowers. In just a few minutes, you could access the cash you need to sort out your bills, or cover other financial obligations without giving up your crypto assets.
The Nexo tool has some great limits. You can borrow as little as $500 or as much as $2,000,000. There is a monthly withdrawal limit of $200,000, which can be increased to $2,000,000 after you fulfill certain requirements.
About the Loan to Value Ratio
The Loan to Value Ratio is an important metric in Nexo. Since cryptocoins are unstable, there is a limit on how much you can receive for your crypto. On Nexo, you can get up to 50% for BTC and ETH, 40% on XRP, 90% on stablecoin, and 15% on Nexo coins. Paying back the loan can be done in ETH, BTC, XRP, USD, GBP, AUD, EUR, stablecoin, and NZD.
How to invest in Nexo
If you own stablecoins, Nexo offers you the chance to make money off them. On the platform, you can earn an annual interest rate of 8.0%. To do this, you only need to deposit your stablecoins into a Nexo wallet. These coins are used to provide liquidity on Nexo, which is how it is able to process loan requests quickly. You are allowed to withdraw your holdings at any time and sell them on crypto exchanges whenever it suits you. Nexo’s assets are insured, which ensures there is no risk that you will lose your investment.
You can also earn dividends by holding onto NEXO tokens. This will allow you to earn a passive income as well as being the holder of tokens with a real-world use case. NEXO pays 30% of the profits from its lending activity to NEXO holders while 70% of the funds are plowed back into the platform to increase lending liquidity. The company already paid out dividends on December 15, 2018, and another payout is expected soon this year.
NEXO is revolutionizing the way people “HODL” their cryptocurrency. Instead of holding your crypto-assets in cold storage and essentially losing money to inflation, you can now earn interest and passive income just by having your crypto sit with NEXO. You can get started today by visiting their website.
Image Source: Nexo Medium Page