The crypto banking space is a fiercely competitive environment with multiple providers offering services across the globe to consumers.
I define crypto banks as providers that offer a place to store fiat currencies and cryptocurrencies, allow deposits and withdrawals, offer a debit card of some variety, and likely offer some form of lending or investing with or without staking from their own native tokens. Popular examples are Wirex (WXT), Crypto.com (MCO, CRO), Revolut, Bitwala, and Crypterium (CRPT).
However, for the purposes of HODL-ing for growth, I think Nexo (NEXO) offers a far better opportunity for the following reasons:
SIZE AND AGE
As you can see from this screenshot from the Nexo website, they have a large user base, a massive volume of instant loans processed, a great volume of capital running through their platform, and over a decade of experience.
This is a big confidence builder for anyone depositing money online. This not only is likely to encourage crypto-literate people to use this service, but it is much more likely for non-crypto investors to look at a financial organisation like this.
Does Coca Cola being an enormous business that been running for over 130 years make it the best drink? No.
But would it be a good business to trust and invest in? Absolutely.
INTEREST
Nexo offer the highest interest rate on fiat currencies. It is 8% compounding daily!
This will offer huge appeal to those new to crypto, using high street banks, and who are fed up of extremely low interest in normal online savings accounts. Although they are not backed by the FSCS £85,000 guarantee, Nexo has $100 million dollar insurance on custodial assets from BitGo. They are also a licensed and regulated financial institution and adhere to the strictest KYC and AML global compliance standards used by Coinbase, Revolut, HSBC, Nationwide, TransferWise and Bittrex.
This support will be comforting to those who see crypto as a risky or unsafe investment and is likely to get better adoption from the general population.
DIVIDENDS
This is my number 1 reason for buying, HODL-ing and using the Nexo platform. The company pays a whopping 30% of it's net profit back to the users as dividends. At the most recent dividend payment on August 15th 2019, they paid over $2.4 million back to users. They pay this in two ways - One based on the length of time you have bought and held/staked NEXO tokens for (Loyalty dividend), and a proportional amount based on your holdings (Base dividend).
This is a unique feature which not only gives back and increases your holdings, but will offer familiarity to normal stock and share investors but with a significantly higher dividend proportion than anything you'll see in the FTSE 250, S&P 500 or NASDAQ! If non-crypto investors and skeptics were ever going to invest in something, this is likely a high option on their list.
For a full article explaining this in more detail - Click this link
CURRENT WEAKNESSES
- Limited crypto options - BTC, ETH, XRP, LTC, XLM, BNB, TRX, BHC, EOS and NEXO
- Crypto interest earning not yet available on mainstream coins - Stablecoins only
CONCLUSION
Nexo is currently around $0.14 increasing around 40% in the last 7 days, and has an all-time high of nearly $0.54.
At all-time high prices, I'd still be investing in this token monthly.
What do you think? Have you invested in NEXO? Or are you backing a different crypto bank?
Let me know in the comments!
