If you are looking for a place to park your crypto to wait out the current bear market, I do think that Nexo [referral link] is a decent choice. It offers pretty good returns (savings) and if you are looking to borrow on your crypto, the interest rates there are good as well. Of course this is assuming that you are holding a decent portion of Nexo tokens in your Nexo wallet. If you are not at all interested in holding Nexo tokens, then the interest rates are just normal throughout the various lending platforms. But I think their loyalty program is something to look at. For me, I will try to get the maximum returns, so all my savings returns are paid in Nexo and I do hold a good portion in Nexo tokens.
However do note that not all cryptocurrencies should be placed into such lending platforms. There are other options which give better returns – such as staking and yield farming. For example, some of the Binance staking of ADA gives up to 17% APY as compared to the Nexo’s up to 5% APY (or up to 8% APY if in Nexo tokens and for locked periods). Of course staking ADA rates will vary quite often and they would require you to keep logging back in to do the staking once the staking period is over. However the Nexo tokens themselves do have good returns as well. Their returns are the same as stablecoins – up to 12% APY. So you should do a little research before putting your cryptos into such lending platforms. I normally only put those tokens which do not have that much yield elsewhere into Nexo.
Just recently there were some changes to the Nexo platform. The first is that the Nexo token will give the same return savings rate as stablecoins. In the past, Nexo token holders will be given a “dividend” every month. If I am not wrong, the amount is 30% of the monthly profits shared among the holders. I guess if the issue is that there will be a sudden spike in the price of Nexo tokens every month since the company will need to purchase tokens on the open market. And with the Nexo token now available on more and more exchanges, the Nexo token might be even more volatile then before. I do think it is a good move on their part. And this will done and approved via the “governance vote”, which is kind of cool if you ask me.
The next major change was the additional of ADA and DOT into their platform. So users can put their ADA and DOT into the Nexo wallet and earn interest or borrow on these cryptocurrencies. Another win for Cardano and Polkadot! Another important change in Nexo is the “Exchange” feature. Now users can swap cryptocurrencies at any time. Is this a extremely useful feature for users. Users will no longer need to transfer cryptos to an exchange when they want to trade for another cryptocurrencies. Not only do you save time, you also save in transactions fees. As to whether their exchange rate for those cryptocurrency pairs is good….well…..
These are pretty good changes in my opinion. Hopefully it will help Nexo grow, especially seeing that the bear market is coming very soon. As for me, I will probably stick around with Nexo for the time being. I don’t see any reason for me to change. But of course I do not recommend users to just stick with one lending platforms. I do have some of my portfolio in Celsius as well. And of course a portion in Binance. And once again, I am not a financial advisor. Please do your own research to where to put your money. Take care all! If you would like a guide on how to start with Nexo, please take a look at my post here.