Nexo Review
If there is a website or a company which offers your a passive income with cryptocurrency with a guaranteed interest up to 8% per year, you won’t believe it. “Oh, come on! it is too good to be true”
But, it is really too good and REAL
Welcome to the world — with Nexo.io
What’s the Nexo
In this environment where cryptocurrencies begin to be a real reality, a need for a service such as Nexo has emerged. Say you’re a long time on cryptocurrency. It’s very long. Let’s just claim that you’ve got 10,000 euros in BTC. You’re really hanging on to a dear life? What if you want some liquidity, but don’t want to sell your BTC? This is where Nexo is coming into action.
If you buy cryptocurrencies, you will pay your crypto investments to Nexo for leverage and get a credit line towards them. Nexo takes your crypts, places them in a cold storage tub, and you get a deposit.
With us taxpayers, we’re going to be the ones that fund those loans, with the cryptocurrency being the leverage.
Nexo Background
Nexo ‘s origins lie in Credissimo-a publicly traded consumer lending firm established in 2007. Nexo was created and spun off Credissimo 10 years later , in 2017. It is now a distinct legal body. According to Crunchbase, Nexo has raised more than EUR 50 million.
Like Credissimo, Nexo is constantly audited by Deloitte. That really says something, that someone who’s trustworthy is really monitoring what Nexo is doing and offering vouchers for their activities.
How to Start Earn Interest From Nexo
Really simple! You can start earning interest on Nexo, by do these three steps:
Step 1: Register
Go to nexo.io and create an account.
Step 2: Verify
There are two procedures to check your identification. Basic authentication only gathers your personal details such as name, address and phone number. However, Advanced verification is needed for you to potentially do something useful on Nexo. To complete advanced authentication, you can for example upload a photo of your passport.
Step 3: Deposit
Finally, once verified, you can deposit funds to your Nexo account by beginning the procedure from the main tab.
For now, the top-up minimum is €1,000 and oddly, the cap is €2,000,000 per move. There are no extra fees paid by Nexo.
Interest rate at Nexo
Nexo pays 8 per cent interest on the trust deposits. You can still deposit so-called stablecoins, but what I’m really looking forward to is depositing cryptos and getting a return on them. That ought to be occurring at some point.
Although 8% isn’t huge, it’s better than your bank account. With the Nexo card around the corner, I’m always dreaming of getting my cash on Nexo instead of conventional bank account.
Bad Scenario Staking in Nexo
- Crypto Declining in Value
Let’s just claim that you lend against bitcoins. What if the value of the BTC fell below the level of the loan? The borrower no longer has any reason to repay the loan. Ok, Nexo has always planned for this. Next, Nexo’s Loan-to-value is 50 percent, meaning there’s plenty of space for cryptos to fail until the loan becomes under-collateralized.
Nexo also tracks this and demands that the creditor raise their margin by buying back more of the principal. If they refuse to do so, Nexo will go on to sell the coins after three warnings to avoid capital loss.
So, unless there is a sharp drop of more than 50 per cent, Nexo should be able to fund enough to pay back the principal.
- Getting Hacked
The crypto community has come a long way since the crash of MtGox in 2014. Did you know that MtGox.com was named after ‘Magic: Gathering Online Exchange’ The website was initially set up to exchange Magic cards like stocks. The domain was then used for a different reason, until it eventually became a bitcoin exchange that people remember. Against this backdrop, are you shocked that 800,000 BTC have been robbed, presumably right out of the hot MtGox wallet?
Nexo uses BitGo to store crypto currencies stored in cold wallets. The BitGo platform is SOC 2 Type 2 certified, which means it’s really secure. So, if Nexo gets compromised, they’re still not allowed to have access to the crypto properties, as that aspect is done by BitGo. Also, there is a $100 million insurance fund for Nexo’s digital properties stored at BitGo, granted by Lloyd’s. Review the connection and see what it covers.
