If you are ierested in deceralized services, definitely name Nexo have you heard Many people believe that the ultimate goal of blockchain technology is to deceralize all deceralized domains. For this purpose, this technology must be able to offer all the services that, for example, a bank offers. Platforms like Nexo pursue the same goal.
In this article, we will check that What is Nexo? And what are the purposes and uses of its famous product Nexo Card. If you are ierested in deceralized platforms or wa to know more about crypto loans, stay tuned.
What is Nexo?
Nexo One Blockchain lending platform for preseation Urge loans With Digital currency support Is. The purpose of this platform is to provide Loanscrypto (including Bitcoin and Ethereum) and Fiat (including dollars and euros) without relying on background and credit checks of people. Nexo from the beginning as Digital currency exchange It started its work and it is still possible to exchange currency pairs in it.
Read more: What is blockchain technology? Zero to hundred concept of blockchain
Launched in April 2018, the platform seeks to promote a model where getting crypto loans is easier than ever. To use the features of this platform, users just need to deposit certain digital tokens io their Nexvi wallet, so that they can immediately receive a loan based on digital currency.
In addition, Nexo allows users to buy and sell tokens and more than 300 trading currency pairs. Also, exchange in Nexo comes with the advaage of refunding up to 0.5% of the total transaction amou.
This platform supports dozens of digital currencies including Bitcoin, Ethereum, Ripple, Cardano and Monero. It should be noted that users can also make their paymes through various currencies such as dollars, euros, bitcoins, ether and the native currency of this platform.
Blockchain technology is the backbone of Nexo's transparency-focused system. Also, this platform uses Oracle called Nexo Oracle to process smart coracts based on Ethereum and store data related to specific loans.
Read more: What is Oracle in blockchain and smart coracts?
Meanwhile, we cannot ignore the importa role of the native token of this platform. This token, which is included in the Security Token category, provides benefits to its owners in addition to payme processes. In the following sections, we will learn more about the features of this token.
Read more: What is a Security Token?
We must meion that the Nexo platform does not serve users living in Iran. This platform has announced on its website that although their product is a global product, they do not provide services to resides of some couries, including Iran (nexo.how).
How does Nexo work?Theslow?
Nexo (nexo.com) loans are deposited io the user's accou within one to five business days (depending on the user's geographic location) after approval through bank transfer networks such as SWIFT. Whether the recipie of the loan is a natural person or a legal eity, he can also use Nexo Card. In the following sections, we will discuss more about Nexo Card.
The loan limit depends on the value of crypto assets in the customer's checking accou. Also, if the price of assets increases with price fluctuations, the user's loan limit will also increase. The ierest rate of these loans is close to zero for some users with specific conditions. In addition, there is no need for background and credit checks or mohly paymes to get Nexo loans.
Oracle Nexo
Oracle Nexo plays the role of the beating heart of this network and manages most of the main processes of the network. Some of the duties of this oracle are:
- Network governance
- Asset monitoring in the shortest possible time
- Data analysis to manage loan disburseme and repayme plans
- Determining the amou of the loan and the amou of the repayme period based on the amou of the user's collateral
Oracle Nexo uses a loan-to-value (LTV) rate that assesses how risky the platform is to offer loans. Thus, this oracle removes the need to check the bank accou to measure the credit of the user.
To get a loan from Nexo, the user just needs to deposit his digital assets io his Nexo accou, and the blockchain will do the evaluation and verification. Then, Oracle Nexo automatically calculates the details of the loan limit and provides it to the user.
After that, the user is asked to specify in which fiat currency he will receive the loan amou. Also, it is possible to choose a Nexo credit card. It should be noted that a special discou of 50% on the ierest rate is applied to users who make the repayme through NEXO tokens.
History and makers of Nexo
If we wa to learn more about the main roots of the Nexo project, we should go back to a company called Credissimo, which started its activities in the field of e-commerce and Fiech in Bulgaria in 2007.
One of the achievemes of this company was the idea of the Nexo project, which was preseed in 2017 by Aoni Trenchev and Kosta Kachev, together with a team of financial experts and digital currency ehusiasts, and in April 2018, its first fruit officially released.
Ahony Trenchoff, co-founder and board member of Nexo, has a long and distinguished history in promoting the adoption of blockchain technology. Between 2015 and 2017, he was a former member of the Bulgarian National Association and tried to impleme blockchain-based solutions in Bulgarian e-governme services.
In July 2020, in line with its goal of bridging the gap between traditional and digital finance, Nexo partnered with Chainlink to leverage Chainlink's Oracle-based solutions for greater efficiency and transparency. It should be meioned that currely, Nexo's head office is located in London; But his activity has reached more than 200 differe places around the world.
What is the purpose of Nexo?
Nexo is an ambitious project and pursues several goals. The main goals of Nexo can be seen as:
- Offering crypto loans that were not very common uil a few years ago
- Deceralized lending without the need for validation and background checks and age restrictions
- Easier and faster exchange of digital currencies to fiat and vice versa
Nexo strives to help users capitalize on the value of their unused assets without having to sell them. The main solution of this platform is the possibility of borrowing instead of selling digital assets. This feature allows users not to miss out on the profit from price changes in the future.
It should be said that not needing to sell assets to use their value in couries with strict tax laws is a very significa advaage; Because users no longer need to pay heavy taxes on their cash assets and can meet their financial needs simply by using the credit of digital assets.
Another importa feature of this platform is the possibility of getting a loan without checking the credit and records of users. This makes the process of getting a loan significaly shorter and more efficie.
In addition, the liquidity of digital assets is not very high at the mome. Nexo aims to eliminate the slow and complicated process of converting digital currencies to fiat money and the limitations of asset withdrawals.
By eliminating iermediaries, this platform reduces the additional fees of banks and trading platforms for converting digital assets io fiat currency and gives users the opportunity to cash out assets in the shortest possible time.
Finally, we should also meion the main infrastructure and architecture of Nexo, which maiains the work and coracts related to loans in this deceralized chain based on the transparency and immutability of the blockchain. Also, the collateral assets of users of this platform are stored in offline wallets, which makes the process of getting a loan very secure.
What is NEXO token?
The NEXO token is the native currency of the NEXO platform, which was first offered in 2018 through an Initial Coin Offering (ICO) and raised a total of $52.5 million in capital in the form of Bitcoin and Ether for the project.
Read more: What is Initial Coin Offering or ICO? Attracting capital through digital currencies
Since NEXO is placed in the category of securities tokens, holders of NEXO tokens will receive 30% of the company's profits relative to their NEXO accou assets. Ierestingly, the user can also determine the type of currency with which the ierest is to be paid.
This token was created based on the ERC20 standard and is compatible with all wallets of this standard. The total supply of NEXO token has been 1 billion units since the beginning. To view the curre price of NEXO, you can use the NEXO price page of the Erzdigital website.
Read more: What is ERC20? All about the Ethereum ERC-20 token and standard
Buy NEXO
The NEXO token, like all other digital currencies, is an independe coin that can be bought and traded (for example, for investme purposes). The performance of the Nexo platform affects the price of its token.
The best way to buy NEXO is to use Iranian exchanges. Unlike foreign exchanges, in domestic types, autheication is unhindered for Iranians and is done with Iranian ideity information.
By searching the term buy Nexo in Google, you will find a list of exchanges that support this coin. You know that autheication is mandatory in Iranian exchanges. So if you haven't done it before, you need to go through this step first.
We also suggest you to use Nexo purchase page of Erzdigital website. Autheication on this page is insta and you will be directly directed to the payme page by eering information such as national code and phone number.
NEXO wallets
The NEXO token was released based on the Ethereum ERC-20 standard from the beginning; But now, in addition to Ethereum, this token is also available on the Binance Smart China network. So all wallets that support these two networks can be used to store NEXO.
What is Nexo Card?
Nexo Card It is a simple credit card with the support of digital currencies, which is in cooperation with the Nexo platform and Master Card preseed. This card can be used for online and offline purchases. Nexo Card allows you to use the value of your digital assets without selling them.
More than 40 million stores around the world accept Nexo Card. It should be noted that in addition to the virtual card that connects to platforms such as Google Pay or Apple Pay, it is also possible to receive a physical card. With a Nexo Card, you can access all MasterCard benefits without the need for a bank transfer.
How does Nexo Card work?
The Nexo credit card works wherever MasterCard is accepted. This card allows you to use the value of your assets in fiat money by holding them as collateral. In fact, when using this card, you use your credit and the main balance of your accou remains iact.
Another poi is that with Nexo Card, users can use up to 90% of the value of crypto assets without having to sell them.
Nexo Card services
Nexo Card is an ieresting product and has features that make it stand out from other credit cards. Some of the most ieresting Nexo Card services are:
- Nexo application
- Cash back bonus
- Pley of security
- Savings accou
- The possibility of receiving a loan
- Multiple supported tokens
- Small fee
- Proper customer support
In the following, we will take a closer look at each of these features.
Nexo application
The user-friendly Nexo application allows you to experience a safer transaction by creating a new virtual card every time you wa to shop online. Also, this application has a special option to lock the credit so that if your card is stolen or you come across something suspicious, you can preve your assets from being stolen. As we meioned in the previous sections, it is also possible for users to get the physical version of Nexo card.
Cash back bonus
Every time you use Nexo Card, this platform returns 2% of the spe credit to your accou. You can receive this reward in the form of Nexo tokens or Bitcoin. Also, if at least 10% of your balance is in the form of NEXO tokens, you can get back 0.5% of the cost of buying digital currencies.
It should be noted that the more loyalty you have to the network, the more money you will get back. The level of loyalty of users to the network is evaluated based on the perceage of NEXO token in their portfolio and at four differe levels.
Pley of security
Nexo Card claims on its website that this credit card has “very strong 256-bit encryption” security. Also, according to this website, Nexo uses a 24-hour monitoring mechanism to ensure the safety of its users' assets.
accouThesize
Apart from the possibility of cashback on purchases, you can also earn ierest from your Nexvi savings accou. This plan includes 34 digital currencies, including 6 stablecoins, and the profit rate for the selected digital currencies is a maximum of 36% and for stablecoins a maximum of 17%.
Another advaage of these accous is their ierest, which is calculated daily and the assets are transferred to the user's accou. In the meaime, you can withdraw your tokens whenever you wa and you don't need to maiain a minimum amou to participate in the profit.
The possibility of receiving a loanThe
As we meioned, on the Nexo network you can use your digital assets as collateral to get crypto loans. Once the loan is approved, your digital assets will be instaly available. If you have a Nexo card, you will no longer need to wait several days for approval and receiving a loan.
tokenTheSupportThehas been numerous
Nexo Network accepts several top cryptocurrencies as collateral. These currencies include Bitcoin, Ethereum, Ripple, Litecoin, Monero, Binance Coin and native Nexo token.
Small fee
Apart from the ierest and credit that will be given to you, the use of this card will not involve any additional fees or costs. All necessary costs are simply deducted from the credit, and the amou of these costs is much lower compared to traditional credit cards or even other digital currency credit cards.
Users who withdraw their digital assets only pay the trading platform's fees and do not need to pay any transaction fees. Similar to a traditional bank accou, users pay a reasonable fee for the Nexo Card savings accou and no maienance fees are deducted from their accou.
Proper customer support
According to the Nexo Card website, the customer support team is available 24 hours a day to advise users on investmes. This website offers three ways to reach the support team: 1. email; 2. live chat; 3. text message
It is not bad to meion here that the lack of possibility to communicate with the support team by phone is one of the weaknesses that some Nexo critics poi out.
Frequely asked questions
no This platform also supports fiat currencies such as dollars and euros.
no Our coury, Iran, is in the list of couries that Nexo does not provide services to.
The minimum amou you can borrow from Nexo is $50 in crypto and $500 in fiat. The maximum amou you can receive is $2,000,000 per day.
TotalTheclassification
In this article, we got to know Nexo exchange and lending platform and followed its main goals. Then, we reviewed some details related to the way it works and the differe options that Nexo provides to its users. Next, we provided information about the NEXO native token and got to know the features of the NEXO credit card.
Nexo has grown significaly since its inception. By 2021, this protocol was able to increase its assets to more than 12 billion dollars and establish its position as one of the best lending and earning platforms. Also, the utility value of this platform has grown rapidly by offering insta loans and the unique Nexo Card feature.
However, Nexo is not the only lending platform with special privileges; Because with the expansion of digital currency acceptance, more platforms are added to the list of premium facility providers to digital currency users every day. Nexo has to compete with other brillia names such as Hodlnaut and BlockFi in order to become the leader.
In the meaime, the poi that makes some people look at this platform with pessimism is that Nexo has not provided users with an official map of the road ahead; Therefore, only the practical actions of this platform in order to attract more investors can determine the future possibilities of this platform.
