Earning interest on Nexo just got way more competitive, so whether or not you’re using
Nexo at the moment, you NEED to hear this.
Nexo has officially enabled the “Earn in Nexo” feature for U.S. users.
This gets users a 2% interest boost on their assets by earning that interest in the Nexo
token, which is a massive boost to their annual rates.
By using this feature, US users can now earn up to 8% on crypto like Bitcoin or Ethereum,
and up to 12% on stablecoins, which are some of the best rates you’ll find anywhere.
This one change fixes almost all of the complaints I had with the Nexo platform, so in this video,
I’m breaking down why this is such a massive update for US residents.
I’ll start by quickly explaining how to turn on this feature in your Nexo account.
But the benefits don’t end there, because unlocking the Nexo token for US residents
creates a lot of opportunities.
I’ll show you how to maximize these opportunities by easily buying Nexo tokens, swapping your
earnings to make more profits and taking out loans for free.
So if you want to earn the highest possible interest on your crypto and get some free
Bitcoin, be sure to stick around.
As mentioned, the main issue I previously had with Nexo was that US users could not
earn in Nexo token, and our interest rates were significantly lower as a result.
That 2% boost is a massive difference, as these rates are often the deciding factor
when choosing between choosing Nexo or another platform.
Furthermore, it was really difficult to buy the Nexo token for US users, as the only option
was to use something like Uniswap, which comes with all sorts of fees just to get your assets
into the Nexo platform.
In all, these problems made it really difficult for US users to get to the platinum status
of holding 10% of your portfolio in Nexo, and enjoying the perks that come with it.
Luckily that is all in the past now, so here’s the best way to start taking advantage of
the Nexo token as a US resident.
First is earning in Nexo, which is the absolute easiest way to start earning more interest
on your crypto.
As we said, choosing to earn your rewards in the Nexo token will boost your annual rates
by 2%, which is a massive increase on some of the base rates.
To start earning in Nexo, you first need to transfer assets into your Nexo wallet.
You can do this by clicking the wallet tab, navigating to the asset you want to deposit
and then hitting “top up”.
Once the assets are confirmed on the network, you’ll begin earning daily interest payments
right into your Nexo account.
However, keep in mind that if it is your very first transfer into the app, it could take
up to 48 hours to earn your first interest payment, after which point you’ll receive
it daily.
By default, your interest payments will be in-kind, meaning in the currency you deposit.
So if you transfer Bitcoin, you’ll earn daily interest in Bitcoin.
But to get those higher rates we need to activate the earn in Nexo feature.
You can do this two ways.
First, when looking at an asset in your wallet, you can tap the interest breakdown tab.
Then, if you scroll down, it’ll show your savings interest preferences.
You can then tap here to switch your preferences from in-kind to in Nexo token.
The second method is by navigating to your profile and then selecting account settings.
Here, you’ll find the same savings interest preferences tab where you can again switch
to earning in Nexo token.
Just like that, you’ll turn on the massive interest boost on your assets and start receiving
daily payouts in Nexo token.
At this time, it is an all or nothing choice, so you either must earn all of your interest
on all of your assets in Nexo, or only earn in kind on all of your assets.
However, I’d argue it’s worth making the switch to earn everything in Nexo, and here’s
why.
With this update, US users can also purchase or swap Nexo tokens within the Nexo app.
All you have to do is navigate to the exchange tab, and select to receive Nexo for the swap.
You can trade into Nexo using Bitcoin, Ethereum, stablecoins or fiat.
You can also do a card, but it’s not recommended as there will be fees.
So once you transfer any of these assets into your Nexo wallet to start earning interest,
you can instantly swap them into the Nexo token without fees.
Likewise, you can swap your Nexo tokens back into these other assets.
And here’s why this is such a big deal for US residents in the Nexo ecosystem.
With this update, users can now effortlessly gain platinum status on Nexo and get all of
the perks that come with it.
And this is a super important status to gain, because while we can all earn in Nexo now,
only platinum users get their earn in nexo interest rates boosted by 2%, as well as higher
base interest rates.
To get to platinum status and maximize your earnings, you need to hold at least 10% of
your portfolio in Nexo.
In my opinion, it’s now so easy to purchase Nexo, that it makes sense to go right for
that 10% level.
There are similar perks for holding between 1 and 10% of your portfolio in Nexo, but the
platinum tier just gives you so much greater benefits.
You’ll get a maximum of 8% interest on most crypto, including Bitcoin and Ethereum, compared
to a maximum of 5% at the base tier, and 12% in stablecoins compared to 8% at the base
tier.
You can take out crypto loans at 0% interest, which we’ll cover more later, compared to
the costly 13.9% for base tier users.
You’ll get .5% cashback, paid in Nexo, when using the swap feature, which is free money
that we’ll also come back to in a minute.
And lastly, you’ll get 5 free monthly withdrawals which should be enough to get you through
any given month.
So here is my suggested process for maximizing your interest through platinum status.
First, deposit your crypto into the Nexo app.
By default, you’ll have no Nexo tokens.
But you can head over to the exchange tab and swap 10% of your assets into Nexo, instantly
boosting yourself into that platinum status.
You’ll also want to switch on the earn in Nexo setting to get as much interest as possible.
Now understandably, some people might not want to hold all of their earned interest
in Nexo tokens, especially if they want to acquire more coins of a different asset.
But here’s where the swap benefits come back into play.
Whenever you receive your interest payouts, you can swap them into the asset of your choice.
The best part is, you’ll be earning .5% back on all of these swaps, which could actually
end up earning you even more money, as long as the spreads aren’t too big on your trading
pairs.
You’ll just have to make sure you keep your Nexo allocation above 10% to maintain your
platinum status and keep earning the highest rates.
But by using this strategy, you can earn some of the highest rates available on your crypto,
and then effectively choose what asset you want to collect those rates in by using the
Nexo exchange feature.
The Nexo exchange has a monthly volume limit of $100,000, which should be more than enough
to accommodate all of the necessary swapping for most users.
There’s one more detail I found out that adds another whole layer to this, and that
has to do with the Nexo loans.
As we know, when you are a platinum tier user on Nexo, you can borrow cash or stablecoins
against your crypto at 0% interest, assuming you keep your LTV ratio under 20%.
You can pay this back anytime, so you can essentially borrow money for free as long
as you’d like, as long as you maintain your platinum tier status.
There are tons of reasons you might do this, and you can check out my crypto loans video
for more details there.
However, the biggest consideration when taking out crypto loans is that your assets used
as collateral will not earn interest.
So if you choose to borrow against your Bitcoin, you’re not going to earn daily interest
on the balance you lock up as collateral.
But, Nexo does something incredibly rare here.
While all other crypto assets will not earn interest when used as collateral, the Nexo
token will.
And this is huge because you can continue earning daily interest on your Nexo tokens,
while also taking out a loan against it and investing it elsewhere or simply earning interest
on the stablecoin balance.
In all, this just gives you so many more ways to earn on Nexo without missing out on any
interest.
And here’s how you would go about this.
First, you’ll need to move your Nexo balance from your savings wallet over to your credit
line wallet.
You can do this by navigating to your Nexo balance and then tapping “manage NEXO wallets”.
Then, you can instantly transfer Nexo tokens from your savings wallet to your credit line
wallet.
Again, Nexo is the only asset you can hold in your credit line wallet that will be able
to earn interest.
These interest payouts will still be paid daily, and are distributed to your savings
wallet.
The only thing you’re missing out on here, is that while in the credit line wallet, you
cannot lock your Nexo tokens for a fixed term interest rate boost, so interest on this balance
will top out at the 7% rate for platinum users.
Furthermore, any assets in your credit line wallet still count towards your loyalty tier,
so you can lock the entire 10-plus-% in your credit wallet and still maintain platinum
status.
With your tokens in your credit line wallet, still earning interest, you can tap the borrow
button on the main page and take out an instant loan against your Nexo balance.
But you have to be careful here as it’ll show you a total available credit line based
on your entire account balance.
If you exceed the loan amount that you can take on your Nexo tokens, it’ll move your
other assets from your savings wallet into your credit line wallet to make the loan possible.
So, to make sure you only borrow against your Nexo tokens and don’t lock up other assets,
you need to keep an eye on how much you can borrow against the Nexo balance in your credit
wallet.
Currently, the Nexo token has a maximum LTV of 15%.
This is historically low, and low compared to other assets on the platform.
And this is because Nexo lowered the rates to protect users amidst recent volatility
in the Nexo token.
It’s possible that it could go back up to 20 or 25% in the future, but for now, you
can only borrow a maximum of $15 for every $100 of Nexo tokens you hold.
So you simply multiply the dollar value of your Nexo credit line wallet balance by 15%
and you’ll get the maximum amount you can borrow.
Given that this is under the 20% LTV ratio required for 0% loans, you’ll be able to
borrow that money with no interest payments required.
Then, it’s really up to you how you use that extra balance.
You can hold it in stablecoins to earn interest, you can put it back in the Nexo token to compound
your Nexo earnings even further, or you can invest it elsewhere to add a small amount
of leverage to your portfolio.
In any case, you will want to make sure it doesn’t throw off your platinum tier status
as you will start to owe interest payments if you slip into a lower tier.
As you can see, this one update added a huge amount of value for US users.
Thanks to earning in nexo, I can now earn the highest rates possible on my assets, even
higher than other interest platforms.
Then I can easily swap my earnings into whatever asset I choose, earning an additional .5%
back in the process.
While I still need to dig a little deeper into the Nexo token to determine whether I
want to hold more than 10% in my portfolio, the incentive to hold Nexo and use it as loan
collateral is massive.
With continued interest earnings and no interest payments, Nexo is literally paying users to
borrow against their tokens.
So I’m really excited to take advantage of these features moving forward and maximize
the interest I’m earning on my crypto.
If you’re not on Nexo yet, be sure to use the link below to get $25 in Bitcoin when
you deposit your first $100 of assets onto the platform.
And for a more in-depth look at the Nexo platform, check out my previous comparison between Nexo
and Celsius, but do keep in mind that the earn-in-Nexo feature changes some of the info
I covered there.
I’ll see you next time.