Nexo lending platform offers its customers crypto loans without a credit score check.
Nexo lends money, which is backed by deposits of cryptocurrency. Off and on, it comes into the debate that Blockchain Technology and cryptocurrency will disrupt the flow of most other industries such as finance, social media, traditional money, and real estate. The cryptographic revolution will change the way we see these conventional systems.
Nexo, in the ever-growing DeFi world, allows you to get financing for a security deposit, which will be converted into digital currencies such as Ethereum and Bitcoin. You will get to borrow the amount, proportionate to the size of the security. The online platform also allows you to borrow funds in real-world money such as EUR, USD, and GBP. Nexo supports over 40 fiat currencies, which means that the platform targets a global audience, which is why it is the best for cryptocurrency trading.
One of the top benefits of using the Nexo platform is that it is easier to liquidate cryptocurrency holdings even if you don’t sell them. Once you have repaid the loan, you will qualify for the same amount of cryptocurrency. This will allow you to remain in the market while you also can spare some cash for other necessities. Once you sign up on an exchange, you can buy ChainLink or whatever form of cryptocurrency you want to trade.
Assessment of your loan
Nexo doesn’t traditionally grant loans, which means that your credit card rating doesn’t affect the assessment. You won’t be required to unveil any data about your finances. Nexo calculates its financing amounts by analyzing the value of your security deposit. Mostly, you can borrow 50% of the total market value of the security deposit if you invest in Ethereum, Bitcoin, or Tezos. Let’s say that you want to invest 1 BTC as security. If the value of the BTC is $8,000, this means you have a holding of $8,000. In this scenario, Nexo allows you to borrow $4,000 against the 1 BTC security deposit.
Transferring security deposit to Nexo
To transfer the security deposit to Nexo, head over to the deposit page when you logged on your Nexo account. Once you have selected the digital currency that you like to use as security, you will see a unique deposit address. Copy that address to the clipboard and navigate to your private wallet. Paste the Nexo address in the private wallet and complete the transfer of funds. The funds will be displayed in your Nexo account after the blockchain concerned validates your transaction.
Cost of Nexo loans
You have to pay fixed interest rates, which makes Nexo different from traditional lenders that take into account the duration of repayment and the size of loans when they are calculating the interest. The interest rate at a Nexo loan depends on whether you are using the platform’s native token. If you pay the loan with the token, the fixed rate will be 5.9% APR. Otherwise, the rate will be a fixed 11.9% APR.
How do you repay a Nexo loan?
Even though you possess a security deposit at Nexo, you ought to take the borrowed funds as financing agreement. You will be required to repay the amount you withdraw. When it comes to making monthly repayments, you are not required to do this in the currency you have received the funds. Instead, you can make repayments in EUR, USD and GBP. You can transfer funds to Nexo through your bank. You also have the option to settle the payments in a supported cryptocurrency as well.
If I explain it in simple words, I should take the example of a real-world loan. You can only withdraw your security deposit when you have repaid the funds you had borrowed. Nexo works in the same fashion.
When the security deposit has been added to the Nexo account, you will get to see the available line of credit. If you want to access the line of credit, you can request a withdrawal to a local bank account in the form of fiat money. The funds arrive in your bank account in a few days, depending on the funds’ transfer criteria of the bank.
Earn passive income with your crypto assets
Nexo offers interest rates better than any bank account.
You can earn up to 10% annual interest on your fiat currencies and stablecoins, and up to 5% on cryptocurrencies, with compounding interest, paid out daily when you have your assets deposited on the Nexo platform.
Nexo is a Licensed & Regulated financial institution that has a $100 million insurance on Custodial Assets.