What is Nexo? How to use the Nexo lending platform and Nexo Card

If you are interested in decentralized services, definitely name Nexo have you heard Many people believe that the ultimate goal of blockchain technology is to decentralize all decentralized 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 interested in decentralized platforms or want to know more about crypto loans, stay tuned.

What is Nexo?

Nexo One Blockchain lending platform for presentation Urgent loans With Digital currency support Is. The purpose of this platform is to provide Loans crypto (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 into 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 advantage of refunding up to 0.5% of the total transaction amount.

This platform supports dozens of digital currencies including Bitcoin, Ethereum, Ripple, Cardano and Monero. It should be noted that users can also make their payments 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 contracts based on Ethereum and store data related to specific loans.

Read more: What is Oracle in blockchain and smart contracts?

Meanwhile, we cannot ignore the important 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 payment processes. In the following sections, we will learn more about the features of this token.

Read more: What is a Security Token?

We must mention 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 residents of some countries, including Iran (nexo.how).

How does Nexo work?Theslow?

Nexo (nexo.com) loans are deposited into the user's account within one to five business days (depending on the user's geographic location) after approval through bank transfer networks such as SWIFT. Whether the recipient of the loan is a natural person or a legal entity, 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 account. Also, if the price of assets increases with price fluctuations, the user's loan limit will also increase. The interest 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 monthly payments 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 disbursement and repayment plans
• Determining the amount of the loan and the amount of the repayment period based on the amount 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 account to measure the credit of the user.

To get a loan from Nexo, the user just needs to deposit his digital assets into his Nexo account, 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 amount. Also, it is possible to choose a Nexo credit card. It should be noted that a special discount of 50% on the interest rate is applied to users who make the repayment through NEXO tokens.

History and makers of Nexo

If we want 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 FinTech in Bulgaria in 2007.

One of the achievements of this company was the idea of ​​the Nexo project, which was presented in 2017 by Antoni Trenchev and Kosta Kantchev, together with a team of financial experts and digital currency enthusiasts, and in April 2018, its first fruit officially released.

Anthony 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 implement blockchain-based solutions in Bulgarian e-government 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 mentioned that currently, Nexo's head office is located in London; But his activity has reached more than 200 different 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 until a few years ago
• Decentralized 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 countries with strict tax laws is a very significant advantage; 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 important 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 significantly shorter and more efficient.

In addition, the liquidity of digital assets is not very high at the moment. Nexo aims to eliminate the slow and complicated process of converting digital currencies to fiat money and the limitations of asset withdrawals.

By eliminating intermediaries, this platform reduces the additional fees of banks and trading platforms for converting digital assets into fiat currency and gives users the opportunity to cash out assets in the shortest possible time.

Finally, we should also mention the main infrastructure and architecture of Nexo, which maintains the work and contracts related to loans in this decentralized 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 account assets. Interestingly, the user can also determine the type of currency with which the interest 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 current 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 independent coin that can be bought and traded (for example, for investment 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, authentication is unhindered for Iranians and is done with Iranian identity information.

By searching the term buy Nexo in Google, you will find a list of exchanges that support this coin. You know that authentication 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. Authentication on this page is instant and you will be directly directed to the payment page by entering 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 presented. 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 account remains intact.

Another point 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 interesting product and has features that make it stand out from other credit cards. Some of the most interesting Nexo Card services are:

• Nexo application
• Cash back bonus
• Plenty of security
• Savings account
• 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 want 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 prevent your assets from being stolen. As we mentioned 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 spent credit to your account. 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 percentage of NEXO token in their portfolio and at four different levels.

Plenty 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.

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Apart from the possibility of cashback on purchases, you can also earn interest from your Nexvi savings account. 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 advantage of these accounts is their interest, which is calculated daily and the assets are transferred to the user's account. In the meantime, you can withdraw your tokens whenever you want and you don't need to maintain a minimum amount to participate in the profit.

The possibility of receiving a loanThe

As we mentioned, 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 instantly available. If you have a Nexo card, you will no longer need to wait several days for approval and receiving a loan.

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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 interest 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 amount 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 account, users pay a reasonable fee for the Nexo Card savings account and no maintenance fees are deducted from their account.

Proper customer support

According to the Nexo Card website, the customer support team is available 24 hours a day to advise users on investments. This website offers three ways to reach the support team: 1. email; 2. live chat; 3. text message

It is not bad to mention here that the lack of possibility to communicate with the support team by phone is one of the weaknesses that some Nexo critics point out.

Frequently asked questions

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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 different 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 significantly 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 instant 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 brilliant names such as Hodlnaut and BlockFi in order to become the leader.

In the meantime, the point 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.