It’s important to look at the options available to us to build our wealth and passive income through other means in crypto. One such option I want to talk about today is nexo.io
The core concept behind nexo.io is pretty clever. People can deposit their crypto currency as collateral and take loans in either fiat or stable coins against it. This allows people to hold on to their crypto currency and at the same time have liquidity available to them. The interest rates lenders have to pay start as low as 5.9%. Considering the average increase in value for most major crptocurrencies, this is pretty damn cheap. More exactly, you are going to pay less interest than the expected increase in value for these coins is going to be. Put in other words, if you play your cards right, your collateral is going to pay for these fees itself and you can use the liquidity for what ever you need it. This is obviously pretty cool for anybody that wants to actively work with his capital and is willing to take some risks doing so.
Incidentally, that’s not me. A lot of people still stuck in the conventional financial system certainly have a somewhat different opinion on that matter, but I perceive myself as rather defensive in terms of investments. I don’t enjoy taking overly big risks. That’s not to say I don’t take a shot every now and then if I see a chance, but most of my money goes towards long term earning opportunities. Luckily, nexo.io has me covered on that. Like the traditional banks once did, they not only lend money to people, they also allow you to deposit your holdings and pay out interest on them.
nexo.io accepts both fiat currency and many of the more prominent cryptocurrencies. They have a variable interest rate which is both dictated by the current market situation and also the amount of NEXO tokens you hold. If you don’t bother with these, you currently can earn 8% annualized interest on fiat and stable coins and 5% on all other cryptocurrencies. Personally, I use the service both for some of my fiat as well as for roughly 3 ETH I don’t intend to sell any time soon.
I also hold a minor amount of BTC and BCH on the site. Ever since I’ve joined noise.cash, I’m earning between 1$ and 2$ worth of Bitcoin Cash almost every day. Since I don’t have anything to use it on at the moment, I just put it to nexo.io for some additional interest. As you can see above, interest on nexo.io is paid out daily which is an amazing thing in my book. Not only does that help with compound interest, your funds also are available when ever you need them. There’s no mandatory holding time for the service, you start earning interest right away. If you ever need any of your fiat or crypto, you can withdraw it and receive it immediately (in the case of crypto) or within 48 hours (in the case of fiat).
To me, nexo.io is the perfect way to earn some passive income without taking too much of a risk. Like everything in the digital world, your funds are obviously at risk as long as they are sitting in their wallet. That said, though, depositing crypto as collateral is a great way to reduce the risk of actually loosing money with their lending operations. It’s also worthwhile to take note that nexo.io is a registered financial institution operating from London. That’s not to say there’s no risk left, but in my opinion, it’s manageable. They also require KYC in order to deposit or lend money. While I’m not a fan of KYC, I think it’s acceptable in that case as it adds yet another layer of security for their operation.
nexo.io doesn’t charge any fees for deposits or withdrawals but in case of cryptocurrency, you obviously have to pay the Gas fees. In case of Bitcoin Cash the transaction fees amount to a couple of pennies per deposit so I don’t really care about them. In the case of Bitcoin and Ethereum, though, they are a lot higher. Consequentially, I only move funds to nexo.io that I’m comfortable with leaving there for a long time. In my case, I don’t intend to touch that ETH anytime before 2025 or possibly even later.
All of the above obviously is not financial advise, always to your own research, you know the drill. Point is, don’t let all of your crypto just sit in your wallet doing nothing when you could let it work for you and earn you some sizable interest. At the same time, don’t charge ahead and move all your funds to nexo.io now. Always try to balance things out, spread your risks as much as you can. nexo.io alone is not going to make you rich but it’s another great tool to work towards it.
And that’s all from me for today! Thank you all for reading and see you next time.
Comments are closed.
Get Brave Browser Now
Lost your password?