Nexo[referral link] is a platform for users to deposit their crypto and earn interest from. With interest rate up to 12% (or more) for stablecoins and other cryptos. So you put cryptocurrencies into the platform and they pay you interest. For those who would like to get a higher rate of return, they can choose the fixed terms. However if you put your crypto into fixed terms, you cannot take them out until the term is over. You should also check out which coins are being supported by the platform.
Nexo is a lending platform. Think of it as a “bank” so to speak. But it is a better type of “bank”. So users can put their money or crypto into their platform and earn interest. You can also borrow crypto or money as well. They do have a range of credit line and the amount you can borrow is proportional to the amount of crypto you put in. The borrowing interest rate is relatively low as well. And the earning interest rate is pretty good. I mean if you really compare to our conventional banks out there, their rates really shine.
For those who would like to start earning interest, I have done up a quick guide for you to follow. It is actually pretty easy to do. First you will need to do the verification. Depending on which country you are currently in, you might want to complete the advanced verification. However if you just want to put a small amount of crypto into this lending platform, starter verification should be fine for most countries for beginners. If you are doing a lot of transfers, I would recommend you to go for the advanced verification as they offer more “free” withdrawals.
Goto your profile which is located on the top right of the page and choose My Profile. From there you should choose Verification levels.
After that you follow the steps to complete your verification. In most countries, this will be requirement. And for my case it took all but a few minutes of my time. Unlike other platforms, this went extremely smooth. Of course your experience might vary. Once you are done with verification, you are ready to start depositing your cryptos and make some interest. However it is important that understand that these cryptos you are going to deposit will be held at their platform and you will not be able to easily trade them in exchanges until you transfer them back to your exchange or wallet. And if you go for the fixed term deposits, they will be held them until the term ends. So make sure that you are indeed planning to hold on to these cryptos.
So scroll down on your main account page and choose the crypto you would like to deposit. On the right side, you will see an Top Up button. Click on this button. Note that the interest earned depends on the type of coin and also the loyalty level. The loyalty level actually depends on the amount of NEXO tokens you are holding. If you are planning to hold on to large amounts of crypto on Nexo, it might be a good idea to exchange them for NEXO tokens. But please do your own calculations & research first. I am not a financial advisor as I don’t wear a suit.
In this example, I am using Bitcoin. You can see the deposit address. This is where you will send your Bitcoins to. Please be very careful when doing transfers. One mistake and your cryptos might not be able to be recovered. Check whether they are sent in the native blockchain or other network. In most cases, you should transfer using the native blockchain. Read through the information provided first and ensure that you are transferring using the correct network. With some exchanges or wallets they do have support for different networks with the same cryptocurrency. You will most likely lose the crypto if you are transferring using an unsupported network! And the address must be correct – just one letter wrong and it will be gone! If you are transferring a huge amount, I would suggest you to transfer a small portion first. I cannot stress this enough. Please be very careful when transferring cryptocurrencies between wallets! Beware there will always be some network transfer fee (or gas fees). So make sure it is actually profitable for you to do the transfer. Some of those gas fees on some networks (like Ethereum) can be very expensive depending on the traffic.
Anyway once the cryptos have been transferred across, you will start earning interest without doing anything else. The interest you will only start earning the next day. The good thing about Nexo is that you get daily interests and it is compound. $$$$! You will also get an alert on their platform giving you the amount earned. You can of course stop here but in this guide I will go on to setting up fixed terms for my crypto to earn even more interest.
So go back to your accounts page and click on the wallet icon on the right.
Here you will be able to find breakdown of your cryptocurrencies and you can see one with Fixed Terms. Click on that.
So it is now time to create a term. A reminder that once you place your crypto into a fixed term, it cannot be “withdrawn” until the term is over. In most cases, the fixed term period is 1 month. Here you can see there is a “bonus” of 1% interest paid. Note that there is a minimum amount which you need before you can create the Fixed Term. If you are still interested, then proceed to put in the amount and create the term. And that is it. You can optionally choose whether you would like it to automatically renew or not.
That was easy right? Hope this guide helped you in setting up your first interest bearing crypto and make some real passive income! I put about half of my assets I want to keep into Nexo and the other half into Celsius [referral link included]. Take care and stay safe. I have a guide on how to start trading in Binance as well. Also check out how to maximize your interest returns on Nexo.