If you’re new to crypto, you likely don’t know how to earn interest from your staked crypto. There are now many opportunities to earn passive income from your crypto holdings. One of the more accessible and more lucrative opportunities comes from Nexo. Let’s look at the crypto interest enabled by Nexo and how you can earn passive income on the platform by staking your crypto in the Nexo wallet.
Nexo Earn Crypto Interest
Earn Interest on your Crypto
About Nexo
Nexo is a high-interest cryptocurrency wallet with a built-in exchange. While it’s nominally a wallet, it also provides an exchange and several other additional features. As a platform, Nexo offers lucrative opportunities for producing crypto interest.
Nexo was founded in 2018. Since then, the business has taken on over $13 billion in assets under management. They focus on a secure and straightforward way for any crypto holder to earn passive income through interest.
Apart from the interest-producing activities, Nexo also has its own in-wallet exchange. You can deposit, borrow and lend crypto, or just use your account as a wallet and exchange. They also offer the Nexo Card, which you can manage from your mobile app and use to make purchases that will be deducted from your account to earn cashback rewards.
In this review, we will have a closer look at passive income and how Nexo enables you to earn interest on your crypto coins.
Can You Earn Interest on Your Crypto?
Yes, there are a few ways to earn interest on your crypto. Typically, there are two ways most people earn interest on crypto:
- Crypto lending
- Crypto staking
With Nexo, earning interest is extraordinarily simple. You can earn compounding interest with daily payouts by simply hodling. That way, you can earn some more crypto in interest while you wait for price increases.
How to Earn Interest on Your Crypto on Nexo
At a glance, Nexo offers to get your idle digital assets to work for you. They certainly follow up on the promise, with several options that can net users anywhere from a 1% to 20% APR. These are compounding interest opportunities, where rates vary according to the crypto you’re storing and the payment method. There is also a tier system used to determine interest rates and how many free withdrawals users get per month.
To start earning interest with Nexo, you need an account and some assets with them. The entry bar isn’t high; you can start earning interest with as little as a $1 investment. All you need is a supported asset, and no further action is necessary.
How Does Nexo Pay Interest?
Payouts in the Nexo platform are daily but based on annual yield. Rates are typically quite high, especially for NEXO Token holders, with a few notable exceptions such as DOGE. However, stablecoins and Bitcoin can be stored for a strong 6% interest rate. To make matters better, there are no set lockup periods, so you can enter or leave at any time to earn compound interest on your crypto assets.
How Much Interest Can You Earn on Nexo?
The interest rate you will be paid depends on:
- Which asset you hold
- Whether you’re earning in-kind or you want payouts in NEXO Token
All assets’ interest rates start at 6% for in-kind payouts, except DOGE. DOGE pays out 1% in-kind, or 3% in NEXO. All others, including Bitcoin and Ethereum, yield at least 6% annually. The highest possible rates you can receive are 20% for NEXO payments for MATIC. There are several other options that net you 12% in NEXO or 10% in-kind.
These are some of the highest available interest rates on the market. They are all the better, considering how little effort it takes and how small a balance you need to get started.
Nexo Earn Crypto Interest
Earn Interest on your Crypto
Is Nexo a Safe Way to Earn Interest on Crypto?
Nexo also likes to boast of the “without the risk” aspect of their offer. For those holding assets for interest, there is indeed a minimal risk.
The risk for the typical user is reduced to almost nothing due to Nexo’s business structure. Crypto borrowers can be individuals, but most are wealthy individuals or institutions. In the case of Nexo, borrowers have to accept more risk by providing collateral and accepting reasonable but not negligible interest rates. Most institutional borrowers can take this risk, which benefits the average user.
Nexo has a strict policy of not lending without collateral. This is worth mentioning explicitly. Unfortunately, Nexo isn’t insured by traditional banking insurance such as the FDIC. So, they take the alternative route of:
- Collateral requirements for borrowers
- A $375 million insurance savings through their own funds and partnerships with BitGo, Ledger Vault, and a few other custodians
Reducing risk in the same way that traditional banks do is not yet possible in crypto. However, Nexo is regulated/licensed by traditional and crypto institutions. Given its unique position, Nexo has gone the extra mile to meet all relevant regulations and standards while ensuring adequate insurance is available just in case.
Overall, Nexo is a safe way to earn interest on crypto.
How You Can Get Started Earning Interest with Nexo
To get started, you need to sign up for Nexo and open your account and wallet with them. Opening an account is easy.
- Go to the Nexo Website and click “Create Account”
- Provide your email and create a new password
- Verify that you are not a robot with a quick test
- Click “Sign Up”
- Verify your email address
- Set up two-factor authentication
Now that you have a Nexo account, you just need some assets to earn interest on. You can top up your wallet by sending crypto to it. If you don’t have the assets you need yet, you can purchase them on the Nexo Exchange. Using the exchange doesn’t require any extra steps, and you have full access to it with your account.
Before making a purchase, you should have a look at the APYs offered for each digital asset. Rates vary from 1% to 20%. All rates are displayed transparently, and you can earn 6% in-kind, paid out daily on some of the most popular cryptos like BTC and ETH.
Other Products Nexo Offers
Nexo offers several other products that can be used alongside their crypto interest-earning feature.
Nexo Crypto Exchange
The Nexo Exchange is where you can buy, sell, or swap your assets. Nexo’s exchange is much like most other exchanges, except they take a few extra measures to ensure fairness for its users. When you lock in an exchange, you always get the rate you see. That way, you don’t have to deal with the kinds of surprises other exchanges put you through.
Nexo Crypto-Backed Lines of Credit
Nexo is also a lender. You can borrow money from Nexo by using crypto as collateral. If you’re interested, you can use their calculator to see what your collateral requirements would be.
Nexo Earn Crypto Interest
Earn Interest on your Crypto
