People can borrow money from a bank right?

Well, imagine doing that, but with cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH).

That’s what crypto lending is all about.

One of the places to do this is called Nexo.

In this article, we’ll talk about:

• How Nexo works
• Some of Nexo’s safety features
• Why it might be the best crypto lending platform
• How to earn interest from your crypto

What Are Crypto Loans?

Before we get into Nexo, it’s important to talk about crypto lending.

When you lend or borrow money with cryptocurrency, it’s called crypto lending.

People can enter into crypto loans using their cryptocurrency as “collateral.”

Consider collateral as a safety net for the lender, just like when you borrow money from a bank and offer your house or car as security.

How Nexo Works

So, what is Nexo?

Nexo is a place where you can get an instant crypto loan or earn interest by lending out your cryptocurrency.

Let’s say you own Bitcoin but don’t want to sell it.

You can use Nexo to borrow against your crypto.

This means you can get money without selling your crypto.

Nexo lets you borrow or lend cryptocurrency quickly and easily.

Here’s how it works:

1. Deposit your cryptocurrency (like BTC, ETH, or others) into Nexo.
2. Borrow money using your crypto as collateral.
3. You don’t have to sell your cryptocurrency. You pay back the loan later.

Nexo even offers instant crypto loans—meaning you can get the money you need immediately, without waiting.

Remember to repay your loan on time or risk losing the crypto used as collateral.

Is Nexo Safe?

All right, now that we know what crypto lending is and how Nexo works, let’s discuss some of its safety features.

Security is a big deal when it comes to lending in cryptocurrency.

Nexo takes safety seriously by having security measures in place.

They have insurance to protect your cryptocurrency, so you don’t have to worry about losing it.

“Through custody partners such as Ledger Vault and Fireblocks, among others, Nexo has a comprehensive network of custody and insurance providers. Collectively, they provide insurance protections on custodial assets via Lloyd’s of London, and Marsh & Аrch.”

They also use top-notch security account management tools to keep your account safe:

1. Two-Factor Authentication

To authenticate logins, withdrawal requests, or settings changes.

• Authenticator App: They use Google Authenticator, Authy, or another app to authenticate logins, withdrawal requests, or settings changes.
• Email: Receive a code via email to log in to your Nexo account
• SMS: Receive a code via SMS sent to the phone number you used for account verification (USD500 minimum balance required for activation)

2. Anti-Phishing Code

Verify the authenticity of all emails you receive from Nexo.

• An Anti-Phishing Code is a unique code you create, which will be included at the bottom of every email you receive from Nexo. It’s an extra security layer to help you tell if the email is really from Nexo or if it’s a phishing attempt.

3. Address Book

Manage your crypto addresses or improve the security of your account even further by enabling Address Whitelisting.

• Enable Whitelisting: Having whitelisting enabled allows you to make easy crypto withdrawals to already existing addresses in your Address Book. Once turned ON, you will NOT be able to withdraw any crypto assets for which you have not added a withdrawal address in the Address Book.

Why Use Nexo for Crypto Loans?

You might wonder, “Why should I use Nexo for a cryptocurrency loan instead of just selling my Bitcoin?”

Here are a few reasons why Nexo potentially stands out:

• Keep your crypto: Instead of selling your BTC or ETH, you can borrow against it and keep your crypto for the future.
• Low interest rates: Nexo offers some of the lowest rates in the industry, making it one of the best crypto loans available.
• Instant access: Need money fast? Nexo lets you get an instant crypto loan without long waits.
• No credit checks: Since you’re using your cryptocurrency as collateral, Nexo doesn’t need to check your credit score.

What Makes Nexo the Best Crypto Lending Platform?

Nexo is regarded as one of the best crypto lending platforms for a reason.

Here’s why over 7 million people have used it since 2018:

1. Ease of use: Nexo’s platform is simple and easy to navigate, even for beginners.
2. Instant loans: Get access to funds quickly with Nexo’s instant crypto loans.
3. Multiple currencies: Nexo supports a wide range of cryptocurrencies, giving you flexibility in what you can borrow or lend.
4. Earn interest: Not only can you borrow money, but you can also earn interest on your crypto holdings.

Earning Interest From Your Crypto

Besides borrowing, Nexo allows you to lend your cryptocurrency and earn interest.

It’s like earning money while your crypto sits in your account.

There are three ways to earn interest on Nexo:

• Savings: Keep your crypto on the platform and watch it earn interest for you every month. The starting rate for USDT is 9% while BTC is 3%.

• Fixed interest: Unlike the savings option, you’ll need to lock in your crypto for a month but instead of earning 3% on your BTC for example, you’ll be earning 4%.

• Dual investment: An investment strategy that allows you to buy low and sell high on BTC or ETH at high yield interest depending on how long you are willing to lock in your crypto assets on the platform.

Nexo offers competitive interest rates, which makes it one of the best crypto lending platforms for earning interest.

You can boost your interest earnings further by joining certain Nexo Loyalty Tiers.

Here’s what you can earn with Nexo:

• Up to 12% interest on stablecoins (like USDC or USDT).
• Up to 7 to 8% interest on popular cryptocurrencies like BTC and ETH.

Visit Nexo to see a further breakdown of the different cryptos and their corresponding savings interest rates.

It’s easy to start earning—deposit your crypto into Nexo, and you’ll begin collecting interest right away.

Who Should Use Nexo?

Nexo is perfect for people who:

• Own cryptocurrency but don’t want to sell it.
• Need quick access to cash through an instant crypto loan.
• Want to earn interest on their crypto instead of letting it sit unused

Whether you’re looking to borrow against crypto or earn interest by lending your digital assets, Nexo has something for everyone.

Are Crypto Loans Taxable?

Now don’t rush into things quite yet.

One of the common questions people have about crypto loans is whether they are taxable.

The good news is, in most cases, crypto loans are not taxable.

Why?

Because when you borrow cryptocurrency, you aren’t actually selling or getting rid of your crypto.

You’re just using it as collateral to borrow money.

However, if you fail to repay the loan and your crypto is sold to cover the debt, that could be a taxable event.

Always check your local tax rules, as they can vary depending on where you live.

Are Crypto Loans Worth It?

So, are crypto loans worth it? The answer depends on your needs and financial situation.

Here’s when crypto loans can be a great option:

• If you need quick cash: You can get an instant crypto loan without selling your cryptocurrency.
• If you believe in your crypto’s future value: Borrowing against your crypto allows you to keep your digital assets while using the borrowed money for other purposes.
• If you want to avoid selling your crypto: Selling your crypto might result in taxes or missed future profits, so a loan lets you keep it and still access funds.

However, it’s important to manage your loan wisely and ensure you can pay it back.

If the market drops and your crypto loses value, you might have to add more collateral or risk losing your assets.

So, crypto loans can be worth it, but only if you understand the risks and benefits.

Check NEXO to see if this platform is right for you.