Cryptocurrency investors often don’t want to sell their coins when making transactions – they would rather keep them, so that they can grow in value over time. However, it can be difficult to use cryptocurrency for small, everyday purchases – and especially impossible to do so if you travel frequently or reside in countries with poor banking infrastructure. Luckily, the team behind Nexo has come up with an ingenious solution to this problem: the Nexo Card, which allows users to spend their crypto balance without ever having to sell it. Let’s take a closer look at how this innovative payment system works!
The Problems With Today’s Cryptocurrency Cards
Today, there are a lot of cryptocurrency cards on offer. However, they all have some problems in common. In most cases, you need to spend or sell your crypto immediately after making a purchase with these cards. Otherwise, you will pay exorbitant fees and may not be able to buy anything at all - depending on which card provider you use. Besides that, there is another problem - cryptocurrency cards don’t always work globally or even where you live! Nexo changes all that! It’s a different kind of cryptocurrency payment card - one that doesn’t require selling or spending your digital assets when you make purchases. Instead, it uses an advanced system of fiat currency credit lines backed by cash reserves from our lending partners (similar to PayPal Working Capital). This means that users can now truly enjoy worldwide acceptance for their blockchain assets without having to compromise on control over their private keys. But what makes Nexo so special? How does it solve existing problems with other crypto cards? Let's find out!
What Is Nexo?
Nexo is a financial service that offers credit facilities backed by crypto collateral. This means, in exchange for their crypto holdings, Nexo offers clients access to instant cash loans, serving as an alternative to selling out at low market rates or waiting months for mainstream lenders. As of writing, Nexo has already issued several million dollars worth of loans and on its way to doing $1 billion in 2018. It's definitely a name you should keep an eye on if you want to be able to spend your crypto without having to sell it first. How Does Nexo Work?: The process is relatively simple. First, investors must have an account with one of Nexo’s partners, which include some of the largest exchanges in cryptocurrency like Binance and Bitfinex. Once signed up with one of these platforms, investors can then deposit their coins into a dedicated wallet associated with their account (this can take up to 24 hours). Once deposited, users will receive a loan offer from Nexo which they can accept or decline—if accepted, funds are transferred over to cover interest payments while repayment begins once those interest payments have been made (the average time between acceptance and repayment is around two weeks). If declined, funds are returned within 24 hours.
How Does The Nexo Card Work?
Unlike many cryptocurrency payment cards, which necessitate selling your cryptocurrency upon making a purchase, Nexo offers an alternative. Customers can withdraw fiat currency against their crypto holdings by taking out a loan, much like you would with a credit card. And just like other card purchases, users are only paying interest on money they borrow (i.e., taken out against their crypto balance), not money they spend. The Nexo card also allows users to make payments with five cryptocurrencies - Bitcoin (BTC), Ether (ETH), Dash (DASH), Ripple (XRP) and Litecoin (LTC). In addition to charging no additional fees or commissions for using crypto as collateral, Nexo is offering a 0% fee on all transactions until July 2018. Interest rates vary depending on each user's country of residence, but generally range from 6.5-20%. Users will have access to full reports detailing activity in their account via a digital dashboard available 24/7 through any web browser. They'll also be able to adjust settings for automatic repayment of loans based on changes in market value of assets deposited as collateral or exchange rates used by Nexo. Lastly, Nexo promises it won't take possession of its customers' assets if there is default in payments. Rather than seizing collateral and selling it off at market value, Nexo will repossess them and continue charging interest while holding onto them indefinitely until repayments resume—then release them back into users' accounts once fully repaid.
Other Features Of The Nexo Card
You’ll be glad to know that Nexo does not necessitate selling your crypto at any point in time. It gives you access to instant cash by creating a fiat currency credit, which is made possible by holding your crypto as collateral. Since it acts as a credit card and uses your crypto as collateral, there are no ATM fees, unlike with some other cryptocurrency payment cards on the market. Another benefit of using Nexo is that it will allow you to withdraw up to $2 million per month from ATMs anywhere in the world. This makes your crypto easily accessible for daily use, something many other similar services do not offer. The maximum amount of money you can withdraw from an ATM per day is $10,000 USD or equivalent in local currency (depending on where you live). The limit for withdrawals can vary based on where you live and what type of bank account or card you have linked to your Nexo Wallet. Withdrawals may also be limited depending on your level of verification; however, if they are limited they will still count towards your monthly withdrawal allowance.
Can You Really Earn Interest On Your Crypto Holdings?
One of the biggest hurdles facing cryptocurrency adoption is how to use it as a daily means of payment. Debit and credit cards serve as one of, if not THE most popular form of payment worldwide; however, there's no crypto card that allows you to use your crypto holdings in lieu of fiat currency. The Nexo card does just that by allowing you to take out a line of credit against your cryptocurrency assets without having to sell them first. You can then spend your funds anywhere debit or credit cards are accepted. This allows you to earn interest on your crypto holdings while using them for everyday purchases.
Time To Get One Of These Cards For Yourself!
If you’re a cryptocurrency holder, then it’s time to invest in one of these cards. It lets you spend your cryptocurrencies anywhere VISA is accepted – which is pretty much everywhere you can think of! If you’re traveling to a country that has banned all forms of cryptocurrency, then your worries are solved. You won’t have to worry about exchanging your crypto for local fiat at an exchange booth or ATM – instead, just load up your card and pay! And on top of all that, they are rolling out crypto-backed lending services as well. This means that you will be able to borrow money against your existing crypto holdings. This service will let you enjoy great interest rates while still being able to use your coins as collateral. All in all, Nexo is a very exciting company with many potential use cases for its products and services. The future looks bright for them – so get yourself a Nexo card today!