Nexo is one of the most popular lending platforms. The latter offers you the possibility of depositing your cryptocurrencies in complete safety while generating interest on them. Nexo also allows you to borrow cryptocurrencies with just a few clicks. Discover now our tutorial to use Nexo with ease.
Generate interest on your cryptocurrencies with Nexo
Welcome to our tutorial dedicated to Nexo . Nexo is a cryptocurrency financial services platform . You can buy and sell cryptocurrencies there, exchange them, but its main interest lies in its credit system .
Everyone can borrow and lend their crypto-currencies there, against a generally very attractive interest rate. There are many cryptocurrencies such as Bitcoin, Ether, stablecoin DAI, XRP from Ripple, ADA from Cardano and many others…
You can invest your cryptocurrencies there to receive interest ranging from 8 to 12% per year. You can also borrow cryptocurrencies or classic money there, by pledging your own cryptocurrencies. These are much more attractive returns than what banks or the stock market can offer in 2022.
Nexo is a regulated platform . It is controlled by numerous US state financial authorities, as well as European regulations. It is one of the largest and most popular platforms for cryptocurrency finance today.
We sometimes read that Nexo is a DeFi platform, the acronym for decentralized finance. This is not entirely true, in the sense that Nexo is a traditional centralized entity, with which one opens an account. DeFi involves interactions with a wallet belonging to you, your account is not on the platform.
However, the appeal of DeFi is the same as that of Nexo: being able to make your cryptocurrencies work for you and being able to borrow liquidity.
Nexo is therefore an opportunity to invest your wealth and generate potentially very interesting passive income , compared to the investments offered by traditional banks. Nevertheless, like any tool related to cryptocurrencies, it is important to understand it well before starting to use it.
In this tutorial you will learn how to create an account on the Nexo platform , how to secure it and how to carry out current operations and investments/borrowing.
Complete tutorial – How to use Nexo?
Access to the Nexo platform is open to everyone and is very simple. Once your account is open, all you have to do is deposit funds in it to be able to immediately start earning interest, borrowing money by placing your cryptocurrencies as collateral, or even exchanging your cryptocurrencies for others (such as on a classic cryptocurrency exchange platform).
Let’s see in more detail how this platform works and particularly how to generate passive income with its cryptocurrencies.
How to register and secure your account on the Nexo platform?
Nexo is a cryptocurrency financial services platform with a centralized architecture that complies with the financial and audience regulations of the American and European administrations.
This makes it a “hybrid” between traditional online financial services such as online banks or investment service providers, and platforms purely focused on cryptocurrency, often specific to one or more blockchains, whose ergonomics for the general public is often criticized.
Registration on the Nexo platform is done at https://platform.nexo.io/ .
As it is a “classic” platform, registration simply requires an email address and a password. You can create an account without holding any cryptocurrency.
Once your account is validated, it is very important to secure your account through two-factor authentication (“2FA”).
By clicking on the icon at the top right, we find the security page
Two-factor authentication adds verification to your account to make sure it’s really you accessing it. To do this, download the Google Authenticator or Authy application on your phone, and follow the instructions. Enabling two-factor authentication unlocks the use of most of the platform.
It is very important to use this extra level of security , not only with Nexo, but in general, because data breaches including passwords associated with certain email addresses are very common. This is all the more important if you use the same password on several sites (practice that we do not recommend).
According to the legislation in force within the European Union, when it comes to buying cryptocurrencies with euros (or other fiat currency), you will need to complete the KYC (Know Your Customer) process in order to verify your identity. . This step is not mandatory if you do not intend to use the platform to buy cryptocurrencies with fiat currency or to withdraw euros.
How to deposit and withdraw cryptocurrencies on Nexo?
Once your account is created, you can fund your Nexo account by sending your cryptocurrency to it.
Let’s say for example that you want to transfer 1 BTC to your Nexo account. To do this, simply scroll the main page until you find the list of assets supported by the platform.
It is via this table that deposits and withdrawals of crypto-currencies are made
The “ Reload ” button opens a window indicating a Bitcoin address. You can send BTC to this address, it is your Bitcoin wallet at Nexo.
The ” Withdrawal ” button opens a window allowing, in the opposite direction, to withdraw cryptocurrencies held on your Nexo account. You fill in the wallet to be credited and confirm the sending.
How to generate interest via the Nexo platform?
Once you have purchased cryptocurrency on the platform, or transferred it from another wallet, interest is generated automatically.
You have nothing to do !
All cryptocurrencies (and coins) in your Nexo account are automatically staked. Once your account is funded, it starts earning compound interest paid daily. This allows you to easily develop term savings , without having any constraints on withdrawals when you need cash.
This applies to all cryptocurrencies deposited on the platform, but also Fiat currencies such as the euro and the dollar. So, if you load your account with euros, you may start earning interest before you have decided which cryptocurrency you want to invest in.
Nexo insists and has fun with this simplicity: their video tutorial “how to generate interest on Nexo” only lasts 14 seconds!
How to exchange your cryptocurrencies directly on Nexo?
The Nexo platform incorporates a cryptocurrency exchange feature , which allows you to easily exchange one cryptocurrency for another.
This can be interesting in many scenarios: when you anticipate a rise in a particular cryptocurrency or when you want to make a withdrawal in another cryptocurrency.
In this example, we can exchange Ether (ETH) for MATIC
The exchange is done directly. You can instantly get the cryptocurrency of your choice. There are no fees that apply or limits to the amount of cryptocurrencies you can exchange for each other.
You will also notice the functions for buying and selling cryptocurrencies, in the same drop-down menu. These are limited to users who have completed the identity verification procedure, as required by European regulations.
How to borrow crypto through Nexo?
To be able to borrow cryptocurrencies on the Nexo platform, you must first of all credit your account in order to be able to provide collateral. That is to say, a sum of cryptocurrency that you will allocate to your “line of credit” in order to be able to borrow a certain percentage of this sum (depending on the collateralized asset).
On the main page, there is the “ Borrow ” button . At the first job, you will be asked to put collateral in your “ line of credit ”
Naturally, once the loan has been taken out, you must keep an eye on your ability to repay. The “Reimbursement” button allows you to repay a loan contracted on the platform.
What are the platform fees and what is the Nexo token?
Nexo does not charge any direct fees for using its platform. It is remunerated, much like a traditional credit organization would, by playing on interest rates.
The cryptocurrencies entrusted to it are thus placed in order to generate a return which makes it possible to remunerate the users of the platform at rates higher than the banking market.
We better understand this mechanism when we look at the NEXO token. When you stake your cryptocurrencies on the platform, interest is generally paid in this same cryptocurrency, at a rate of up to 8% or even 12% on certain assets .
Nexo offers the so-called “Earn in Kind” option , which means that your interest will no longer be paid in the cryptocurrency you deposited, but in NEXO tokens. If you choose this option, your interest rate is automatically increased by 2%, as shown in the screenshot below:
For example here, the user is offered to stake their ETH for a variable rate currently at 4%. If he chooses the “Earn in Kind” option , his interest will be paid to him in NEXO with a bonus of 2% (on the converted sum of the deposited cryptocurrency).
What is the Nexo card and how do I get it?
The Nexo credit card is available to all platform users who have completed the highest level of identity verification. This card allows them to spend the balance of their line of credit.
It is a useful and practical addition for investors wishing to use their cryptocurrency earnings and interest to make their daily purchases.
Your Nexo credit card is linked to the mobile application, in order to manage its availability, its line of credit, and its staked cryptos in real time
For example, you add 1 Ether to your line of credit in order to borrow about 50% of the value of one ETH in euros. For example, let’s say it’s $2,000.
Thanks to the Nexo card, you will be able to withdraw or spend these €2,000 as with any bank card.
Our opinion on Nexo
The Nexo platform offers very solid services in order to earn interest on its cryptocurrencies and use them as collateral. It allows the purchase, sale and exchange of cryptocurrencies, as would a traditional exchange platform.
With its very simple interface and its very clear dashboard, it is relatively easy to use the Nexo platform . Everything is done to welcome the new investor and help him find his bearings immediately.
Much more accessible than decentralized finance (DeFi) applications, Nexo is therefore an excellent way to make your cryptocurrencies work for you . In addition, the platform is regulated in many countries, subject to audit, its solidity and seriousness are therefore widely demonstrated.
Finally, Nexo has a fast and intuitive mobile application on iOS and Android. These work in the same way as the platform on the Web, follow the steps in this tutorial to get started with Nexo’s mobile applications.
