What is Nexo (NEXO)?
is a platform where you can find loans. It is possible to use this platform as a lender or borrower. When you want to borrow crypto on Nexo's platform, you will need to put up collateral. This is only possible in the form of cryptocurrencies such as Ripple, Bitcoin, or Ethereum. In this way, you demonstrate that you are creditworthy and can repay the borrowed amount.
Because the blockchain is a peer-to-peer technology, there are no central authorities that can check the creditworthiness of users. Therefore, it is necessary to put up collateral. This is how you demonstrate your reliability.
Nexo has also issued its own credit card, which you can use to pay in stores. Before you can use this payment card, you will need to put in crypto as collateral.
This project runs on the blockchain of Ethereum. This makes you partly dependent on the transaction fees and processing times associated with this platform.
What can you use Nexo (NEXO) for?
Nexo is a crypto project that is primarily used as a platform for fiat loans. In addition, Nexo has issued a number of other interesting products.
Taking out a loan
You can lock cryptocurrencies into a smart contract
on Nexo's platform and then receive fiat currency as a loan. This way, you can get money without having to sell assets to get it. This is useful when you need money but don't want to give up your positions.
The moment you have paid off your loan, you will receive the cryptocurrencies back. Paying off can be done in a number of ways:
- You send fiat money to Nexo via bank transfer;
- You repay the borrowed amount with NEXO tokens and receive a discount on the interest;
- You pay with a portion of the cryptocurrencies you have used as collateral.
After payment, the protocol automatically sends the held cryptocurrencies from the smart contract to the wallet address they came from. When a user fails to repay their loan, Nexo will sell the held cryptocurrency to pay the lender.
You can earn money (in the form of interest) by lending money to other people. You do this by depositing fiat currency on the Nexo platform. The amount of interest can vary, but is always many times higher than the interest you receive on a savings account. This is why it can be interesting to lend money on the Nexo platform.
Nexo has issued a credit card that allows you to pay in stores. Before you can use the payment card, you need to set crypto as collateral. Each time you pay, a fiat amount is reserved. You will have to pay back these reserved amounts, as with any credit card.
The moment you don't repay the debts, Nexo will sell the cryptocurrencies you've secured as collateral. Also, with this credit card, which is issued in partnership with Mastercard, you have to guarantee your creditworthiness by using crypto as collateral.
The NEXO token
Nexo has its own NEXO token
. This token can be used in different ways within the Nexo ecosystem. Anyone using the NEXO token within the Nexo platform pays lower transaction fees. So, it can be advantageous to own the NEXO crypto when you want to use Nexo.
All owners of the NEXO token will be paid a dividend. In this way, Nexo wants its users to benefit from the growth the platform is experiencing. 30% of the profits are shared with the NEXO token holders.
Of course, you can also use NEXO as an investment. By buying and selling NEXO at the right time (for a higher price), you could make a positive return on your investment. However, it is also possible to lose money on an investment in the NEXO crypto, so we always recommend doing proper research before investing.
NEXO is an ERC20 token that runs on Ethereum's blockchain. There is a total maximum inventory of 1 billion NEXO tokens. Not all tokens are in circulation yet. As of May 2022, 560 million tokens were in circulation (56%). NEXO is distributed in the following way:
- 52.5% (525 million) - Public sales;
- 25% (250 million) - Reserves for negative credit position;
- 11.25% (112.5 million) - For founders and the team behind Nexo;
- 6% (60 million) - For community development and airdrops;
- 5.25% (52.5 million) - For advisors, legal fees, and marketing.
Where to buy NEXO crypto?
Do you want to buy the NEXO crypto
? The best place to do that is at Coinmerce. Here you can buy NEXO from the Netherlands or Belgium with iDEAL, credit card, MyBank, Giropay, or SEPA. For the use of these payment methods, you don't pay any additional deposit fees. Instead, you only pay low transaction fees. Fees are charged by the blockchain for sending NEXO to other wallets. Coinmerce has no influence on the amount of these fees.
Don't have an account at Coinmerce yet? You can create one here! This is because you need a verified account before you can buy NEXO.
In which crypto wallet should I store NEXO?
You can store NEXO in any crypto wallet that supports ERC20 tokens. In fact, NEXO uses the ERC20 protocol. Coinmerce's wallet offers support for NEXO. Your NEXO tokens will be moved directly to this wallet after purchasing from Coinmerce. It is also possible to send NEXO from an external wallet, such as Metamask or Fantom Wallet, to your Coinmerce wallet.
It is also possible to keep NEXO in a hardware wallet like Ledger or Trezor. To do so, you send NEXO from your Coinmerce wallet to the wallet address of your hardware wallet.