Nexo (NEXO) is an SEC-compliant token that is backed by the underlying assets of Nexo’s loan portfolio. NEXO reportedly provides monthly passive income to token holders in the form of 30% from the company’s profits. The token offers discounted interest rates on the Nexo Instant Crypto-backed Loans and are also accepted as collateral on the platform.
Nexo, the world’s first instant crypto-backed platform, is pleased to inform you that the Nexo Wallet’s deposit feature has been available since June 4th, 2018, marking yet another milestone completed on schedule.
The feature makes it possible for all our clients to stake their NEXO Dividend Tokens and is a significant step in our efforts to create the industry’s first institution-grade credit product. Clients still receive their dividends from their Nexo Tokens while keeping them in the Nexo Wallet.
How Does Nexo Work
Nexo brings together instant loans with blockchain technology, resulting in the world’s first instant crypto loan system. Nexo’s innovative business model was created to provide clients with instant crypto loans, being an “automatic, flexible and cost-efficient means of obtaining liquidity that is secured by the value of the client’s digital assets.”
The whole process of obtaining loans is simple and can be done in just a couple of minutes. The primary benefits of using Nexo include: no hidden fees, no capital gains taxes, and no credit checks.
A high level of transparency is guaranteed, since the platform uses blockchain technology, smart contracts, and algorithmic procedures, all of which are performed in its native Nexo Oracle module.
Discounts when repaying loan interest using NEXO tokens
Nexo makes it possible for cryptocurrency holders to unlock the value of their assets without selling. Using them as collateral, they can obtain an instant crypto-backed loan. Thus, they get to keep ownership of their holdings and enjoy the upside of any value appreciation, while gaining access to liquid funds to meet their immediate financial needs.
As an added benefit, Nexo can help clients optimize their taxes since no sale occurs upon obtaining a loan against digital assets.
Loans can be repaid using bank transfer or crypto, including the crypto being used as collateral. When repaying interest with NEXO Tokens, clients receive a 50% discount on their payments.
Deposit Crypto Assets to Your Secure Nexo Wallet
Presently, you can make a deposit, choosing from Bitcoin (BTC), Ether (ETH), XRP, NEXO Tokens and Binance Coin (BNB), with new collateral options being added regularly (you can vote here).
Crypto assets are held in multi-signature wallets and cold storage at Goldman Sachs-backed, SEC-approved custodian BitGo and SEC-approved custodian PrimeTrust.
NEXO is the native security token in the Nexo ecosystem. These are ERC20 standard tokens. Users who hold NEXO tokens in their wallets will be rewarded 30% of the profits that are generated from the Nexo loans. These NEXO tokens can also be used to repay loans at a lower rate than the user would if settling in another cryptocurrency.
Tips for securely storing your Mixin
- Do your own research. Before sending any coins or private data to a wallet, make sure you have researched the wallet provider to make sure everything is above board. Keep an eye out for scam wallets, such as those using URLs only slightly different to the URLs of legitimate wallet providers, and check out some independent reviews for all the pros and cons.
- Back it up. Make use of your wallet’s back-up and restore facility so that if something ever goes wrong with your wallet, you’ll be able to recover your funds.
- Set a strong password. Now is not the time to be lazy when creating a password; take your time to create a strong and uncrackable code.
- Make use of all available security features. Make the most of all the security features your wallet offers, such as two-factor authentication or multi-signature transactions. It’ll offer increased protection for your funds and greater peace of mind for you.
- Update your antivirus software. Take care to regularly update the antivirus protection and anti-malware software on any device you will be using to access your wallet.
- Keep your private keys private. Last but not least, don’t underestimate the importance of your private keys. Store them somewhere safe and don’t share them with anyone else.