Nexo is the first in the crypto sphere to offer instant cash by using your crypto assets as collateral. If you are like me and have tied up most of your spare income into crypto investments, being able to liquidate quickly in an emergency or to take advantage of last minute opportunities is important. What makes Nexo’s model interesting, is that you can get that cash instantly without giving up your crypto holdings.
Nexo offers instant cypto overdrafts, which means if you own of digital currency, you can have access to cash without having to sell your crypto holdings. The process of selling, and transferring your holdings back into fiat takes time, but it also requires you to pay exchange fees and is susceptible to capital gains tax. Nexo’s overdraft solution will eliminate the exchange fees and taxes.
It works like this: deposit the crypto currency you are willing to use as collateral into your Nexo wallet. Nexo then calculates your overdraft limit based on the market value of your crypto-assets. It’s similar to the way credit card companies leverage your annual income to calculate credit limits. Cash is then instantly available to you via their own credit card.
Remember, Nexo is a type of credit service so it is important to behave responsibly. The way Nexo makes money is by charging interest on the cash you withdraw, so be sure to factor that into your overall cost.
Nexo uses an automated system providing users with overdrafts and managing their repayments called Oracle. Oracle uses smart contract technology—self-executing, self-enforcing contracts with the terms of an agreement between buyer and seller directly written into lines of code. They render transactions traceable, transparent and binding.--
Holders of Nexo’s U.S. SEC compliant token will see benefits in the form of 30% dividends on Nexo’s profits, discounts on overdraft repayment interest, and a higher overdraft limit. Nexo is backed by Credissimo. A European based financial technology company founded in 2007 that specializes in providing financial solutions (loans) for their customers. Learn all about Nexo by checking out their website: https://nexo.io/
The information provided in my blog is for informational purposes only. It should not be considered financial advice.
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