Overview

1. How Millionaires and Billionaires Bank

2. Traditional Banking vs. Crypto Banking

3. Guide To Banking W/ Crypto Using Nexo

(This article is targeted for beginners.)

                    1. How Millionaires and Billionaires bank

The concept of banking with Crypto is similar to how most Millionaires and Billionaires traditionally managed their funds but with more advantages and security. Traditional banks insure your money up to $250,000; meaning if anything happens to that bank that's all you're getting back. So obviously, it would be pretty risky as a Millionaire to have all your wealth stored there. Instead of having all their money in a bank, they have their wealth spread across a multitude of investments such as stocks, real estate, their own businesses and even in collectibles and precious metals. This not only solves the insurance issue, but also creates what I like to call “Smart Money” which is money that makes you money. What I call “Dumb Money” is money that makes you lose money; for example having money in a savings account that has an interest rate that doesn't beat the inflation rate (As explained in the this article). 

 It’s important to understand this to explain why you should invest your millions so you don't just make tons of bank accounts holding $250,000 or less making all of your wealth “Dumb Money”. You can make the argument that “Smart Money” is risky because what happens if your investments fail? But, if you think about it, isn't it riskier to hold your money in a place where it can only decrease vs. a place where it has the chance to increase? A high chance if you're not blindly investing into companies without researching.

                    2. Traditional Banking Vs. Crypto Banking

Here are the key differences and advantages that come with banking Cryptocurrency. 

The standard insurance coverage on traditional banks is $250,000. Meaning, if you had millions of dollars in a traditional bank account and something were to happen to that bank and your money, you’re only getting back $250,000. Not too great for someone worth more than that, and on top of that the interest rates don’t overcome the inflation rate causing you to lose money. “DUMB MONEY”. A wallet like Nexo can insure your money up to 2 Billion+! More storage and higher interest rates are what we need. 

Transactions are faster and cheaper. No one likes waiting 2-3 days to send or receive your money. Cryptocurrencies like XRP, allow us to send money in less than 3 seconds with very low fees!

Banking with Crypto also provides heavy security for your wealth. Blockchain technology is infeasible to hack and also allows you to be the owner of your money. 

                    3. Guide To Banking W/ Crypto Using Nexo

Here's an example step by step guide to banking with Cryptocurrencies using Nexo.

First you'll need two things. A place to buy and sell your Crypto, (a Crypto exchange), and a place to store your Crypto, (Crypto wallet). Use these links to download Crypto.com, and Nexo. Think of these as your new checking and savings account. After that, set up your information. Crypto.com should take around 24h for verification and Nexo can be set up instantly.

Once Crypto.com verifies you then you'll be able to buy Cryptocurrencies. Buy your crypto on Crypto.com then send and store your coins in the Nexo Wallet. I highly recommend investing in CRO to receive the Crypto Debit card which will allow you to truly use Crypto.com like a checking account. The Ruby Steel Crypto card requires 1000 CRO (about $105) to be held on the account to receive this card. The Crypto card will allow you to cash out your investments straight to your card instantly with many more benefits! I will go more in depth in another Article about the CRO Visa Card.

Nexo offers up to 10% interest on Stablecoins and 5% interest on all other coins. Start making Nexo your new savings account to make "Smart Money." For example, say you have $200,000 in your savings account. If you were to buy 200,000 USDT and hold it in Nexo you receive 20,000 USDT or $20,000 a year passive income. Right now Nexo supports 20 Cryptocurrencies and allows their users to vote for the next coin to be listed on the wallet. 8 Cryptocurrencies are Stablecoins with a total of $8,000,000 insured and able to earn 10% interest and 12 Cryptocurrencies with a total of $1,200,000,000 insured and able to earn 5%. Nexo is one of the few places a millionaire would feel comfortable storing millions in one place.

Nexo also offers collateralized loans on your Crypto, allowing you to spend money while keeping your investments! The best part about this is that anyone around the world can take advantage of this without going through credit checks because Crypto is a global network. The minimum loan you can take out is now $10! and the maximum is $2 million. You can also negotiate for higher loans and longer terms. Loans can be taken out in almost any currency.

So start moving your savings into Stablecoins and researching Cryptocurrencies to invest in. Remember investing is only a gamble if you blindly invest in a company without research.