As the first cryptocurrency-backed loan system to hit the market, Nexo is a unique project that could have a bright future.
Compare where to buy Nexo Token, and open an account
Read on to find out about Nexo and how it works or jump ahead to our step-by-step buyers guide if you’re ready to buy Nexo.
What is Nexo?
Developed by FinTech company Credissimo, Nexo claims to offer the world’s first instant crypto-backed loans.
Blockchain technology’s disruptive potential is widely touted in relation to all manner of industries, especially the finance sector. So the fact that Nexo is the first crypto project to make a convincing foray into the loan space marks it out as something of a trail blazer.
How does Nexo work?
Nexo allows cryptocurrency to be used as collateral if you want to take out a loan. So, rather than the usual loan criteria – credit ratings, personal finances, employment and property status etc. – the amount you can borrow from Nexo is entirely determined by the size of your security deposit, which is payable in popular cryptocurrencies.
Typically, you’ll be offered 50% of the value of your deposit if using Bitcoin or Ethereum. You can withdraw your Nexo loan in as many as 45 supported fiat currencies, should you agree to the terms of the loan of course.
NEXO (Nexo’s native token) holders are granted dividend payouts in the form of 30% of the company’s profits (in August 2019 the total payout was reported to be $2,409,574.87) and discounted interest rates on Nexo loans.
How to buy NEXO online – step-by-step guide
Step 1. Get a suitable wallet
It’s a good idea to get your NEXO coins out of the exchange as quickly as possible so they’re safe from security risks like hacking or theft. Having a wallet ready is therefore wise. You’ll need an ERC20-compatible wallet to store your assets after you buy NEXO.
- Ledger Nano X: One of the safest options for storing your NEXO tokens is the Nano X hardware wallet from Ledger. It’s not the cheapest wallet out there, but if you’re serious about security, it’s one of the best.
- Nexo Wallet: Nexo’s official wallet is now available as an app for iOS and Android devices. The wallet gives you full access to the Nexo instant loan system and allows token holders to make passive income through dividend payments.
Step 2. Find an exchange to buy Nexo
The next step to securing those NEXO tokens is to find an exchange. There are plenty to choose from, so to narrow your search and save you some time, we’ve picked out a couple of our favourite places to buy NEXO. Note that most NEXO exchanges will require you to trade with another crypto (like BTC or ETH) rather than a fiat currency.
- Changelly: If you’re looking a quick and easy way to buy NEXO, then head on over to Changelly for some of the best prices and one of the most user-friendly interfaces around. It’s also the automatic choice of exchange if you buy through the Nexo app.
- Coinswitch: Coinswitch is essentially an exchange marketplace that compares rates then allows you to buy without signing up to the multiple accounts. Simply go to the website, find NEXO in the dropdown and away you go. Coinswitch will help you track down a fiat currency to NEXO exchange if you’d rather not trade with other cryptocoins.
Step 3. Withdraw your NEXO
It’s a good idea to withdraw your coins from the exchange as soon as you buy Nexo – it’s much safer to keep Nexo in a digital wallet than on an exchange.
How to trade NEXO – step-by-step guide
If you’re only interested in trading rather than buying NEXO tokens, then there’s no need to set up a wallet. You’ll simply be speculating on NEXO’s price fluctuations.
Step 1. Find a broker to trade NEXO
Finding a broker is easy if you know where to find them and what you’re after. However, it’s well worth having a look around and doing some research before you commit to one as they all offer different perks and levels of support.
Step 2. Deposit money
Once you’ve chosen a broker, you’ll need to put some cash down as a deposit. The process is fairly straightforward and minimum deposit requirements are usually pretty low, so you can start with a relatively small bankroll.
Step 3. Decide how you’d like to trade
There are two main ways to trade cryptocurrencies: spread betting or CFDs (contracts for difference). While there are some differences, both methods require you to take a position on whether you think the price of your chosen cryptocurrency will rise or fall over a set period of time. If you’re just starting out, it might be worth doing some research on crypto spreads and CFDs before you jump in.
Step 4. Start trading
Once you’ve put down a deposit, you’ll no doubt be raring to go, but we recommend you set up a demo account with your broker before you start trading for real. It’s easy to win and lose money very quickly when trading, so it makes sense to get a feel for the platform you’ve chosen as well as the ebb and flow of the cryptocurrency market.
In essence, all you need to do is take a position on whether the price of your cryptocurrency will increase or decrease. If you think it will increase take a long position (buy) and if you think it will decrease, take a short position (sell).
You may opt to take advantage of leveraged betting, which is a feature of most trading platforms. Leverage enables you to put down a fraction of your trade’s total value as a type of deposit called a ‘margin’. However, this is a high-risk strategy, so it’s probably not for beginners. Experienced traders understand this, and use stop loss orders to mitigate risk.
- Nexo is the world’s first US SEC-compliant asset-backed token
- Nexo advisory board includes prominent industry leaders
- Dividends for token holders
- Instant crypto credit line
- Short-term loan model could put borrowers under financial pressure
- Competitors beat NEXO on interest