Popular, New, News & PR, Explore, and then... NEarnCrypto. If you've been thinking what this is, read on!
N stands for Nexo. This is a centralised finance (Cefi) platform that allows you to earn interest on your crypto. They do require you to perform KYC (know your customer) checks with them before you can deposit your crypto with them. With a tier system of holding their native token, NEXO, you may be entitled to higher interest rates.
Are there fees involved?
There is no deposit fee. On the other hand, there is only 1 free withdrawal per month on the base loyalty tier. It's not meant for you to withdraw frequently as it isn't cost effective to do so.
What crypto do they support?
Disclaimer - what you see below may not be what you get. This is because this is based on the highest loyalty tier. As a new joiner, you won't be able to get this rate unless you bought yourself some NEXO.
Below rates are for earning in-kind (i.e. same as what you deposited):
How do I get a higher interest off Nexo?
Below are 2 factors impacting interest rates - your holdings of NEXO tokens, and choice to be rewarded in NEXO (instead of in-kind, i.e. the same as what you deposited). If you believe in the future of the NEXO token, do consider opting for your interest in NEXO - this allows you to earn 2% more straight up, and also build up your loyalty tier.
But wait, that's not all. Nexo also offers flexi and fixed terms, whereby you can get a little more interest by locking your deposit. For instance, a standard ETH deposit earns you 4% based on the current rates (without considering NEXO boost), and going for a 1-month fixed term gives you an additional 1%. If you trust Nexo to perform KYC with them, why not go for fixed?
What's the catch?
For Nexo to pay us 10%, it probably means they are earning a higher rate elsewhere (it's a business afterall). As with all investments, this comes with a risk as to whether they can continue to pay us interest without hitting into some form of liquidity crisis.
Summary
Rates are not fantastic when you compare against the Defi world (risk level is also higher). If you compare against the rates that traditional banks offer, Nexo's rates are ahead by leaps and bounds. If you want a simple way to earn in crypto (say, buy and hodl), consider putting your crypto into use to generate some interest while you wait for it to appreciate. Of course, it's your choice should you prefer to hold on to it on your wallet (not your keys, not your crypto right).
Do your own research (DYOR), above is not financial advice. Should you be interested to try it out, you can consider using the referral below.
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$10 (paid in BTC) for transferring and holding $100 worth of crypto (1 transaction) for 30 days
Image credit: taken from Publish0x, screenshots taken from Nexo
