Ever wanted to learn how to buy NEXO but don’t know where to start from? Well, you’re in luck as you will soon see. The NEXO crypto was first launched in April 2018. It has experienced remarkable growth. Antoni Trenchev founded it with the goal of eliminating inefficiencies in traditional lending.
However, before you can purchase NEXO tokens it’s important to have a good understanding of the digital currency.
What’s NEXO?
Nexo is a cryptocurrency-based platform for lending that allows you to support more than 30 different cryptocurrencies. You can lend funds using some of the most popular coins, such as Ripple (XRP), Bitcoin (BTC), or Ethereum (ETH). To do this, users have to deposit their tokens on the platform which are then used as collateral for a loan. You can get these loans in both fiat and stablecoins.
The Nexo native token is represented by the NEXO. Those with NEXO tokens have the right to receive discounts on both loan interest and interest payments. Despite this, the NEXO tokens remain locked to the blockchain.
The benefits of buying NEXO Tokens
The NEXO token serves as the native cryptocurrency of the platform and offers a wide range of benefits. For one, holders are entitled to rewards at an interest rate of 12% per annum on the NEXO tokens stored in the Credit Line and Savings wallets of their Nexo account. Apart from enabling crypto-lending, NEXO token holders are also a part of Nexo’s Loyalty Program which has a number of advantages including:
- Returns of up to 50% with Nexo’s Earn on Crypto service
- Nexo Exchange offers cashbacks up to 0.5% for all cryptocurrency purchases
- Five digital currencies free of charge
- You can borrow money at an APR of 0%
- Active contributor to the project’s governance
This is where we remind you that only credible and reliable sources can provide financial advice. Before you trade NEXO, you should also read purchasing guides and consult expert finance professionals.
Pricing Performance
Despite the volatility of the cryptocurrency market, the NEXO prices have remained relatively stable over the past twelve months. It has been between $2.00 to $2.50 per coin in 2022 with a market cap of more than $1.20billion.
There are currently 560 million NEXO coins in circulation. The total supply is capped at one billion tokens. CoinStats lets you keep an eye on the price and availability of NEXO coins.
Nexo Tokens: How do you buy them?
You can’t just start buying NEXO tokens and expect to make money. Every serious crypto buyer must first understand the reasons for holding a coin before they make a purchase. You might be trying to trade NEXO or make a long-term investment. Knowing the reason you’re buying a coin also influences your investment strategy.
So if you want to hold NEXO tokens for the short term, you may just purchase financial products such as CFDs from a broker, which is a much quicker and easier way to trade NEXO.
If you’re in it for the long-term, then you will need a compatible NEXO exchange to acquire NEXO tokens. You’ll also need a dedicated NEXO wallet to keep your digital currency safe. Here are some steps to take in order to purchase NEXO token.
First Stage: Locate an exchange that supports NEXO
It is important to find the right broker for you. Make sure the NEXO exchange you’re considering is easy to use and has the features you’re looking for. To accomplish this, you should evaluate the platform’s costs, fees, customer service, payment options, and user suggestions. Don’t also forget to read all the reviews about your preferred exchange.
NEXO is supported by some of the most popular exchanges, including FTX and Huobi.
Stage 2: Open an Account at Your Chosen Stock Exchange
First, create an account by signing up using a valid email, username, password, and entering your desired platform. It is strongly recommended to purchase NEXO tokens through one of the regulated Exchanges that are supported by Nexo. It will protect your financial information and assets.
Step 3: Complete Identity Verification
Most cryptocurrency exchanges require that you verify your identity in order to deposit money. It is necessary to comply with Anti-Money Laundering and Know Your Customer (KYC), finance laws. It allows crypto exchanges to detect fraud and prevent other criminal activities.
The usual verification procedure involves sharing a photograph ID with cryptocurrency exchanges. To prove your identity, you may be required to use a smartphone or webcam. There are also crypto exchanges which will need you to prove your residence address before you can trade with NEXO. It is recommended to activate two-factor authentication (2FA), after you have verified your identity.
Stage 4: Deposit your Starting Capital
Once you’ve completed the process of creating an account, the next step is to make a deposit. You can deposit money to be used as working capital if you choose to acquire NEXO coins. There are many payment options, depending on which crypto exchange you choose. You have the option to pay with a bank transfer, credit card or debit card and an e-payment system. It’s important that you choose one that is both affordable and convenient.
Keep in mind, however that not all crypto exchanges require a minimum deposit to start trading. If you are looking to acquire NEXO tokens and other cryptocurrencies over a long period of time, then it is possible to link your bank to a cryptocurrency exchange.
Stage #5: Buy Nexo Tokens
After you’ve completed the above steps and are ready to invest in NEXO, it’s time to proceed to the actual buying. Most cryptocurrency exchanges have an easy and intuitive process which allows you to make quick purchases. There are usually two ways to purchase any cryptocurrency.
Instant Buy
This option is available on almost all exchanges. This feature allows you to purchase NEXO immediately at a fixed price. The process is fast and simple, but you must pay the price.
Spot Market
You can set a price for NEXO. This is the best way to purchase digital currency. The convenience of instant buy makes it easy, while spot market allows you to have affordability without the need for waiting.
You Have the Choice of Your Wallet
It is important to keep in mind that your NEXO coins will be stored on a NEXO wallet. A crypto wallet can be used to secure store NEXO tokens, just like a purse or wallet to hold fiat currency. Two types of wallets are available:
Hardware Wallet
Hardware wallets are physical devices that look like flash drives. This is where you store your private keys, which give access to your NEXO tokens. They are isolated from the rest of the world in order to protect you against any hacking attempts. Ledger Nano S or Trezor are the most popular hardware wallets that you can use to keep your NEXO currency coins.
Software Wallet
The software wallet can either be an app, or integrated into cryptocurrency exchanges. It can store NEXO tokens. Software wallets can be connected to the internet to quickly and easily access the coins, unlike hardware wallets. However, hackers can exploit this feature.
Buying NEXO Coins on the NEXO Exchange
The NEXO platform is the most effective and efficient method to purchase the native token. The NEXO exchange is a simple and affordable way to buy native tokens. This is how it works:
- To log in, create a NEXO profile and then use the Exchange tab.
- Now select the “Buy” option and choose your preferred fiat currency.
- Select NEXO Token to be the digital currency that you wish to purchase.
- Select your debit or credit card from MasterCard to Visa.
- Fill in your card information to confirm your purchase
Buy NEXO Cryptocurrency
You may already own a cryptocurrency, such as Bitcoin (BTC) and Ethereum (ETH), which you can use to buy NEXO tokens. First, create an Huobi exchange account. Then deposit your digital currency to your account. You can view a list of all supported cryptocurrency by visiting the wallet screen. You can then select the one you want to use and click on “Deposit”.
A unique address will be displayed to you. You’ll need to copy it and put it in the wallet that holds your crypto tokens. NEXO tokens should appear in your Huobi Account within a few hours, depending on how fast the exchange is processing.
NEXO Investment Strategies
NEXO is available in a range of investment options. Here are some examples of common investment strategies.
Buy and “Hodl”
The term “HODL” was coined in 2013 by an angry bitcoin investor who went on the internet to vent his rage over bitcoin’s lack of widespread adoption. Because of his belief in the decentralized blockchain’s ability to substitute fiat currencies, the stated buyer made a promise to continue to “hodl” bitcoin despite the currency’s lack of popularity at the time. Buying and holding NEXO is a sign that you believe in both the long-term viability and the NEXO token.
Day Trading
The inverse of ‘hodling’ is day trading. You don’t have to hold your NEXO tokens for long periods of time. Instead you can buy and sell them quickly and reap the immediate benefits. This is similar to investing in forex or equities on the open markets. Rather than waiting for long-term returns, the objective is to take advantage of the asset’s price volatility.
Swing Trading
The trading style is very similar to that of day trading but lasts for longer periods of time. It can take anywhere from one to two weeks. This approach requires a precise technical assessment of the indicators.
Costs and fees for buying NEXO
No fee structure is required to buy a cryptocurrency, such as NEXO. This will depend on the country you reside in and a range of other factors, including exchange policies, payment methods, and the amount of NEXO that you wish to buy.
A bank transfer is usually the most cost-effective payment option. However, it is slow. It is comparatively slow, however. If you want to get funds quickly processed, it’s better to use a credit/debit card that will only cost you between 5%-10% of the amount. For profitability, you need to keep your costs in check so they don’t exceed your profit margin.
The Best Time to Purchase NEXO
NEXO is the native token for one of the most innovative crypto-lending platforms. However, no one can provide financial advice regarding the timing and cost of your purchase. You will have to decide for yourself. Keep in mind that with cryptocurrencies like NEXO, the price increase isn’t the only way to gain profit. You can also benefit from specific interest rates, which will increase your overall profitability.
Long-term investments are more likely to yield profits, as a general rule. The NEXO project, which is part of Decentralized Finance or DeFi Movement, has an opportunity to expand with the crypto-lending industry. Learn more about DeFi here.
Last Word
Nexo makes it easier to obtain a loan. It also adds security with a smart contract. Its borrowers don’t have to undergo lengthy, rigorous background searches like traditional businesses. It’s safe to say that Nexo is on the path to establishing itself as one of the world’s major crypto-lending platforms if DeFi use continues to rise.
Nexo needs to keep innovating in order to stay ahead of its competition. This could mean higher interest rates and/or dividends. Because as we all know, the value of Nexo’s dividend-paying native token NEXO will only rise if the company is successful.