I have always wanted a Swiss bank account. All joking aside, I passionately learn as much as I can about the crypto economy alongside my traditional investing ventures. As I grow my crypto holdings and search out the best opportunities, some companies, tokens and projects stick out in a sea of faces so to speak. My plans were to write my next post on staking $TRON with Sesameseed. It is after all a unique compounding opportunity and one that I believe to be worthwhile.
[Swiss-based Nexo,] the world’s biggest crypto lender announced it officially backed its first mortgage using the cryptocurrency so 'Mighty Ducks’ actor Brock Pierce could buy a $1.2 million home. - FOX Business
Before I gathered the time to write that post, however, I learned more about Nexo and evaluated my own investment objectives in the crypto sphere. I have decided to make Nexo my crypto bank. My investment mentor once told me about his 3 bag philosophy, one of which is a liquid cash savings. Outside of my liquid cash and brokerage account, I comfortably call my crypto bank my 3rd bag. It’s a good fit.
Why did I decide to write about Nexo again, aside from announcing that it is my crypto bank? After all, it’s biggest claim to fame is the fact that it is the leading decentralized lender in the world. While that is great, what does it mean for investors looking to earn interest and dividends?
First, I do like the ability to borrow against my assets, specifically with crypto. My mentor once told me any bank will let you borrow against what you already own. I have used that philosophy with my brokerage account, maximizing with margin. I am now using it by setting up my Nexo account as my crypto bank. Nexo provides me with the option of a collateral-backed loan without me having to touch my cash, brokerage account or crypto.
That said, the credit opportunity is far from what has excited me as an investor about Nexo. There are two staking opportunities that I mentioned in a previous post that are very advantageous. One of those opportunities is the ability to earn 8 percent interest on your stablecoins. At face value, that sounds good enough already. But the KEY factor here is that the interest compounds daily.
I tested this once and then kept exploring. As mentioned, I got into staking $TRON with Sesameseed, and I’ve had my hadns in a bunch of cookie jars. Personally, I really like Crypto.com and many other platforms as well. An investor must be decisive and focus his energy on what makes the most sense to him or her. Evaluation every so often is also very important.
I consolidated some holdings and took a closer look at Nexo, an account that I have always been excited about. I decided that my opportunity to earn crypto through writing and other ventures is best served by compounding at 8 percent. The interest shows up in my account each day at 6 pm C/T.
Upon taking this look, I also decided that I wanted to own some actual Nexo tokens. I was not aware of this company in mid to late 2018 when the Nexo token surged and the company started positioning itself to be the industry leader in decentralized lending. Yet that is where the company stands now, and I’m on board.
What’s unique about the Nexo token is that the company pays dividends to its holders. Now, there is no concrete timeline as of right now for these dividends. But the company has paid them, and in fact, they paid a $24 million dollar dividend to token holders in 2019.
For sure, I’m the type of investor that, when talking dividends, likes to see the annual yield and ex-dividend dates along with how often the dividends are paid out, among other data. Keep in mind that Nexo is a fairly new company, financially sound for its stature and seemingly engaged in rewarding its investors.
Primarily, I want to use Nexo as my crypto bank account and stake stablecoins. But the fact that I can invest in the company and receive dividends is a new opportunity in the crypto economy. That’s what I like to call a trifecta.
I have no plans to disproportionately load up on Nexo tokens, but I did make my first purchase. I might consider getting some more by exchanging crypto earnings as I head towards the next company dividend. The daily compounding of interest on the stablecoins is what has my attention for the most part though.
My last post was for the Best DApp contest and was about Compound. You may be wondering why I have chosen Nexo over Compound. I like both platforms and others as mentioned, but to each his own. You have to make your choices, and I was primarily searching for a crypto bank vs a decentralized application.
I have encountered many cookie jars along the way when learning about the crypto world. When I first started diving into the crypto economy, I believe the year was 2014. I wanted to get a Bitcoin wallet, and I wanted a cloud mining contract with Genesis. These days, cloud mining isn’t going to profit you very much, but it is still a worthwhile adventure.
I followed through on starting up the wallet, but I did not purchase a cloud mining contract. I subsequently left the crypto space alone for awhile and then started paying attention once more as some writer friends of mine were looking more closely at the crypto world. I was specifically intrigued by two specific coins: Ripple and Doge.
I didn’t make my first crypto purchase, however, until I started toying with Robinhood’s release of its crypto trading platform. When you buy crypto on Robinhood, you don’t have the ability to withdraw the coins to a wallet, only buy and sell them, making cash withdrawals. That was not how I wanted to play the game. I did, however, trade Doge on there for awhile alongside my other traditional investments.
This last year has been the time when I have really started to heavily research and interact with the crypto economy. I no longer had the BTC wallet, nor did it have any Bitcoin in it anyway. I decided that if I wanted to hold crypto, I wanted the keys and a wallet.
A friend of mine recommended the Exodus wallet, one that I really like. Diving into the flood of ERC 20 tokens and all the crypto opportunities out there, however, I found myself with multiple wallets. I even considered getting a cold storage wallet.
On a side note, that is how Nexo holds its assets, in cold storage, and reading up on the security measures the company takes really promotes confidence in how they do business. Back to my crypto quest for a moment, however, because I’m hoping that telling my story and journey helps provide some direction to someone else out there who may be looking for their place in the crypto space.
I ended up with all kinds of apps and at least four wallets on my phone. This time of research led me to Publish0x, too. I was having a lot of fun, but there came a time when I had built and researched to a certain point, and it was time to evaluate. An investor’s evaluation is always mixed with new opportunities, too.
At that point in time, there were two newer opportunities I was closely looking at, Nexo and Crypto.com. Either of those choices, and others, would have been good. But Nexo was the right fit, and I am really enjoying this learning experience.
The fact that Nexo is the industry leader in decentralized lending enables the company to have the cash flow it needs to sustain its Nexo dividend and its daily interest paid out on stablecoins. That is its philosophy and standing, but I am in no way acting as an analyst and saying that Nexo is a stable company all the way around.
Nexo is a new company, and the crypto economy is volatile, fascinating, in its infancy, intriguing and all things considered, exciting. My mentor once told me that your 3rd bag can be one for speculative investments, new ideas, riskier opportunities and the likes. These investments must be made proportionately of course in relation to your cash flow and net worth.
So that is my journey with the crypto world and how I ended up choosing Nexo as my crypto bank. Do you use Nexo? What has you most excited about this company? I’m primarily excited to continue learning more about the crypto economy, growing my nest egg and sharing with others what I’ve learned. I’m not even close to being as savvy of an investor in crypto as I am with the traditional market.
But I’m passionate and excited about the opportunities, and I will keep learning. When I’m passionate about something, I make like a sponge and soak up all the knowledge I can. Who knows what else I will find by the time I write my next post on Crypto Cranny.