Nexo is yet another crypto exchange, providing its clients with services such as trading, borrowing, and earning on crypto investments. These actors also seek to connect traditional finance and the application of blockchain technology.

What is the NEXO token used for?

The NEXO token provides more benefits than other platforms, where higher interest rates are offered, loan costs lowered, and a range of loyalty benefits. It is also used in the platform membership system, in which users are categorised in different levels of membership.

How can I earn interest on Nexo?

You can deposit supported cryptocurrencies or stablecoins into Nexo’s savings accounts. The interest is calculated daily and may go up to a rate of 12% per annum depending on the asset and the customers’ membership level.

How do crypto-backed loans on Nexo work?

You can also directly, without identity checks, use Bitcoin to borrow other ‘fiat’ currencies or stablecoins. The amount of the loan you can obtain depends on the market value of your collateral and the loan-to-value ratio (LTV).

Nexo stores 95% of assets in insured cold wallets via BitGo and offers up to $375 million in custodial insurance. It also has provisions for 2-factor authentication and biometric security measures.

Nexo observes the measures of know-your-customer and anti-money-laundering policies, besides adhering to the laws in developed jurisdictions such as the European Union under the MiCA regulation. However, rules vary globally.

Can I withdraw my funds at any time?

Yes, the users are allowed to withdraw both crypto and fiat funds at any time, with some conditions and verification procedures. It means withdrawal times possess a condition that can be influenced by both network traffic and the kind of assets involved.

Where can I buy NEXO tokens?

You can purchase NEXO on Nexo, Binance, Huobi, or other well-known exchanges. This means that customers can pay for these purchases through fiat or other forms of cryptocurrency.

Should I store NEXO on the platform or a hardware wallet?

It is alright to store in Nexo because of the convenience of the platform and the benefits that come with using it. If you’re planning to store your coins for more than a few years, consider investing in a hardware wallet, Ledger, or Trezor.

Is investing in NEXO risky?

Indeed, all cryptocurrencies, including NEXO, are insecure and depend on market characteristics and legislation. It is well fitted for those investors who can afford to take risks as well as those who invest in many securities.

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