NEXO Lets You Lend and Offers Passive Income

. 4 min read

Cryptocurrency enthusiasts often find themselves in a situation where they need a little extra money in the short term, yet they don’t want to sell their digital assets. Situations like this are what makes Nexo a fantastic tool for the modern cryptocurrency space, reducing the fear of missing out on the next bull run, optimizing your tax situation, and diversifying your investment portfolio.

In this crypto spotlight, we will take a look at Nexo and review what it is and how users can utilize this token in order to profit.  

What is NEXO?

Nexo provides instant credit lines, allowing you to unlock the buying power of your crypto holdings without selling any crypto assets. By using your cryptocurrency as collateral Nexo allows you to instantly withdraw cash in 45+ fiat currencies and stablecoins across 200+ jurisdictions. You can see how easy it is to use Nexo’s lending product in the video below:

The NEXO Token Brings Passive Income to The Community

Even if you don’t need credit, NEXO presents other opportunities as well. Similar to our own LCS Cryptoshares, the company pays out dividends to NEXO token holders from the profits generation on its lending platform. This is a great incentive for people to hold NEXO tokens, giving them value and providing a great option for passive income from a stable and well-run platform.

30% of the profit from the NEXO platform is given to token holders in dividend payments, 70% goes back into the platform to grow its lending capacity.

The first NEXO dividend of close to $1M was distributed on December 15, 2018. The company is about to distribute its second dividend payout this year.

Passive Income Even when You’re Sitting out of the Market

A lot of people often have some of their cryptocurrency reserves sitting in stablecoins or have decided to wait for a certain time to buy and have a lot of stablecoins just sitting in their portfolio. So why not put them to use? With Nexo, now you can.

Nexo allows users to earn up to 6.5% annual interest by depositing stablecoins and even EUR into the Nexo wallet. The coins are used to keep the platform liquid and in return, you will be paid a compounding daily interest, and best of all you are able to withdraw your assets at any time and jump straight back into the market or sell them completely. The choice is yours. You have little to worry about leaving funds with NEXO as they are backed by the European FinTech leader Credissimo and funds on the platform are insured by the Lloyd’s of London to protect users, in any event, making them a very safe place to have your funds appreciate over time without concern.

Alternatives to stablecoins are expected soon, allowing you to earn passive income on your Bitcoin, Ethereum or other cryptocurrencies.

Make sure you also listen to the talk between George Manolov from Nexo and Nathan Worsley from LocalCoinSwap on the BorderlessCrypto podcast where they cover the unique features of P2P trading, as well as the opportunities the partnership between the two companies, creates for people with no banking access.

The Benefits of Using NEXO Over Traditional Lending

Since you aren’t selling your assets, getting a loan using them as collateral shouldn’t trigger a capital gains event. This is something a lot of people like to avoid at all costs, especially in countries like the USA and Australia where holding assets for longer periods significantly reduces capital gains tax on profits.

With Nexo’s reasonable interest rates from 8% per year (APR), it’s easy to see how this can be a preferable choice over traditional lending especially for smaller amounts often taken from payday lending businesses.

There are also no credit checks when using Nexo. Since you provide the crypto assets as collateral there’s no need for trust. There are no hidden fees, everything is very transparent and clear, and there are no minimum repayments on loans.

Multiple Ways to Access Credit

There are two main ways available so far for Nexo users to get access to their loaned funds, one is by transfer to their bank. The second is rather interesting for those requiring a regular credit line, perhaps for a small business, and this is called the Nexo Card.

The Nexo card gives users instant access to their credit line backed by their assets held in their NEXO wallet. Using the NEXO card gives people the ability to spend or withdraw funds without even needing to wait for bank transfers. What’s more, your credit limits are instantly increased the moment your collateral assets appreciate in value, giving you access to even more funds.

Why NEXO is a Great Addition to LocalCoinSwap P2P Exchange

Nexo has proved to be a strong project that is rapidly gaining users. Providing P2P trading for a project like Nexo, which supports cryptocurrency users and gives them an alternative to traditional banks and less savory lenders, is the kind of thing we love to see at LocalCoinSwap.

Services like this are bringing cryptocurrency users far more ability to have complete control over not just their finances but even things like credit. Empowering people and giving people access to quality projects are both important to LocalCoinSwap and we believe NEXO a great addition to the platform. If you like the passive income potential of NEXO tokens, be sure to check out our LCS Cryptoshares that give 100% of the profit from LocalCoinSwap to our token holders.