UPDATE: US customers no longer earn interest unfortunately. I hope one day they come back to the US market. For those outside of the US, this is still a great option, I'd argue the best option. However,  for US customers, I will be writing a new article for the alternative I switched to.

The power of compound interest is unmatched when it comes to building long term wealth. If you have read any of my other articles, you know my main focus is passive income. This article will be no different. Today I will be talking about Nexo and how if you aren't holding crypto or regular currency with them, you are practically losing money. I had previously written about Nexo, but with all of their upgrades, changes, and new assets, I decided it was time to revamp an article for them to be more current.

Nexo has turned itself into a powerhouse as of late. It has become a full service crypto platform. They now have interest earning accounts, loans, and an exchange. All of that in one place makes it hard to beat, especially when you see the rates you can earn.

Let's dive into the Nexo Earn platform. Nexo has recently added multiple crypto currencies to their supported list, and has also added USD (not the coin, just plain US currency). Below is a list of the assets supported by Nexo,  and to be fair, it seems to be ever growing. 

Crypto Currencies Supported:

USDT, USDC, PAX, TUSD, DAI, HUSD, NEXO, BTC, ETH, XRP, BCH, LTC, BNB, EOS, LINK, XLM, TRX, PAXG, DOT, ADA, DOGE

Nexo also supports interest on the following currencies; USD, EUR, and GBP.

Below is a breakdown of the maximum interest you can earn on each asset. 

Now the reason I said maximum interest you can earn, is due to the fact that Nexo has Loyalty Levels that affect how much you earn. Your Loyalty Level also affects the rate at which you can borrow at. Your Loyalty Level is determined by the amount of Nexo tokens you hold your account. Less than 1% of your account will have you in the Base tier. Between 1%-5% will have you in the Silver tier. 5%-10% will have you in the Gold tier (This is where I currently am, it has fluctuated and I will explain why). Anything above 10% will have you in the Platinum tier, which is the best tier to be in. Your level can fluctuate due to the value of Nexo tokens changing based on the market. For a long time I was in the Platinum tier, however with the recent dip in the market, the Nexo token (Currently at $1.72) lost a lot of value from its all time high ($4.05). I personally believe it will climb back up with the market and think it is currently undervalued. 

Below is a breakdown of each Loyalty Level.

Nexo also has different options for how you earn interest. You can choose to earn your interest in kind (BTC earns BTC and so forth). You can also choose to earn your interest in Nexo tokens. By choosing to have your interest paid out in Nexo tokens, you earn an additional 2% APY on your assets. To increase your interest further, you can choose to lock your assets in fixed terms. These terms range from 1 to 3 months. By creating a fixed term, it earns interest daily, but you get paid out your interest at the end of your term. If you don't create fixed terms, then your assets will be automatically put as a flex term. With Flex terms, you get interest paid out daily. This adds even more power to your compounding interest. 

By storing crypto currencies in your Nexo account, you automatically create a credit line. With this credit line, you can borrow crypto or cash at rates as low as 6.9%. Now the lowest rate is saved for the Platinum tier members, for those in the Base level, your rate is 13.9%. So if you plan on taking out loans through Nexo, you can see how much it pays off to be in the Platinum tier. Just by holding Nexo tokens, you can save 7% in interest on your loans (That is huge!). An advantage to getting a loan through Nexo is that it does not affect your credit score. For crypto loans, your funds are available immediately. For USD loans,  your funds are typically available the same or next business day. You can pay these loans off at any time and there is not a fixed term. You only pay interest on the days your loan is outstanding. There are also no minimums for repayment, as funds can be taken directly from the interest you earn on your available assets. 

Below is some basic information on Nexo loans.

Nexo's addition of an in-house exchange is a game changer. If you like to play the market, you can switch currencies directly in the app or on the website with great rates. Speaking of great rates, Nexo uses a Smart Routing system in the exchange to look for the best rates possible. They even guarantee the best rates. The best part of it is the simplicity. You can even see the breakdown and costs upfront before deciding if you want to complete the transaction. 

Nexo also recently added a referral program. This program is great for both parties. If you use a referral link and deposit $100 worth of assets, both you and the other person get $25 worth of Bitcoin added to your account. Which in turn will begin earning compound interest. So if you haven't signed up and are invested in generating passive income, feel free to use my Referral Link . Also feel free to follow me on Twitter to see some other projects I support.