One of the most common thoughts among new and experienced crypto enthousiasts is that they have no intention of selling their coins. Even when they are in need of cash in order to settle any of their financial matters, they prefer to use alternative ways other than selling. HODL is the moto they use; as it is widely believed that the value will only increase in the long run, so selling one bitcoin now could lead to extensive potential loss of profits.

This seems not to be a problem any more, as a new company has arrived with the aim to solve these hesitations. Now, the crypto hodlers may enjoy their crypto wealth, without selling, without loosing future gains.

With 100% access to cash, while at the same time keeping their long hodling coins, Nexo’s innovative model comes to offer a fast and flexible way for crypto-hodlers to obtain liquidity for their crypto assets.


Whitepaper

Transparency is guaranteed through the use of blockchain technology, smart contracts and algorithmic processes executed by the Nexo Oracle.

Let's see some frequently asked questions that can help us understand how this will work and why it seems to be an a priori successful business model.

What do I have to do to get instant cash?

The process is very simple and fast. The client transfers their assets into an Overdraft Wallet (free of charge). The cash is available instantly.

How was this possible until now? Was it really?

Actually there have been a few platforms offering peer to peer loan services. However in that case the borrower should be matched to a willing person to lend, so it could take time to happen. On top of that, the transaction was not secure.
With NEXO, the process is automated, there is no waiting time and no fees to pay.

Where is the cash available?

You can use your (free) Nexo Credit Card or Transfer the cash amount to your bank account.

How is this amount repaid to NEXO?

The client has the ability to repay the amount in a very easy and user-friendly way, actually as Nexo sais “It will take one click to arrange”

• The Client can repay with their local, FIAT Currencies (Euro etc)
• There is the possibility to repay with Nexo Tokens. This will actually offer a discount for the amount to be repaid
• Alternatively, a sale of the cryptocurrency already in the wallet could be accepted.
  A partial or full repay of the overdraft will cause the next overdraft limits to increase.

How is the Crypto Overdraft secured?

After transferring the crypto assets to your overdraft wallet, the market value of your digital assets secure the Crypto Overdraft.

How is the ownership of my assets secured?

Nexo guarantees the ownership of the customers by implementing transparent overdraft contracts. These contracts will be stored on the Blockchain.

When is the amount repaid?

This is up to you, depending on the repay time the percentage of AR might increase.

Yes, but HOW will it work in reality?

Let’s see an example and feel free to visit Nexo Website and do your own research.

1. Assume you are in need of one thousand dollars ($1.000,00) to pay some bills.

2. You can choose the crypto coin (currently only BTC & ETH) and see the minimum amount you will need in your wallet.

Minimum amount is $1.000 and Maximum $1.000.000. In the next months currencies to be added are EUR, KRW, JPY.

With the $1000 Euro, a minimum 0.23 BTC is needed which is (at the current rates $2.031,516 - double the amount of the loan) (Current rate of BTC is $8.832.68)

_{The Minimum Wallet Balance amount is dynamically determined by the Nexo Oracle algorithms, depending on the current and historical volatility and market liquidity of the asset}

3. Select Overdraft Duration

There is a sidebar with duration from 1 month until 24 months. In this example we have selected the 12 month option which equals to a 12% APR an extra $66.2 to be repaid on top of the $1000

4. Why is Nexo Overdraft better than if you sold crypto of $ 1000 value?

There is a sidebar that you can slide to see the different result. Assuming that the BTC price will rise by 34% in the next 12 months, your BTC profit would be $340.87 (deducing the overdraft cost of $66.2).

If on the other hand, you would sell the BTC worth of $1000, you would have a ZERO BTC profit and there would be an extra cost of $73.43 "Assuming you bought BTC at 50% of current market prices and 20% long-term capital gains tax rate"

5. Are you ready to receive your $1000?

The Process will be as simple as that. You can now choose if you will receive the amount via Instant Virtual Nexo Card of Physical Card (with a 3-5 days waiting time) or via Bank Transfer.

So what do you think? Would it be worth it to have double the amount you wish as a minimum security in your overdraft wallet in return of a potential profit due to crypto rates raising?

Who is the company behind Nexo?

Nexo is powered by Credissimo, which is an awarded¹ European Company active and successful in Consumer Lending and E-Commerce Financing for over a decade.

The Technology behind Innovation

Nexo uses cutting-edge technology, having developed a software system which supports full automation of its processes.
Nexo Oracle plays an important part of the Nexo technological model. It is an automated system that maintains the wallet maintenance, real time, asset monitoring, fund distribution, data analytics, automated notifications and repayment analytics (Find more about it at page 35 of WhitePaper)
Overdraft and Smart Contracts facilitate the relationship between the Customer and Nexo.

According to Nexo’s Roamap

April 2018

The First Airdrop Campaign has just ended (pitty, huh?) and in April the NEXO will be listed on Exhanges. The Crypto Overdrafts will be launched initially in USD and secured by BTC and ETH.

June 2018

The Currency Support will include Euro and in..

July 2018

Nexo Credit Card will be launched.

Make sure to check the detailed roadmap until 2019 presented in the Nexo WhitePaper

Nexo is a company that seems to have a glowing future in the cryptocurrency economy. It offers a solution and a persuasive reply to many crypto investors questions. As there is a renowned company behind it, the know-how and the business core creates a safe environment that will certainly serve a lot of purposes. Feel free to read more about Nexo and perform your own research if you plan to invest or use their services.

[All screen shots by nexo.io website or created by me using Nexo's elements]

More Information
Nexo.io Official
Medium.com – Get Instant Loans by Nexo
Press Release – Credissimo wins Forbes business awards

nexo2018

Disclosure: The information in this article serves solely informational purposes and is not intended as trade recommendation or investment advice. This post serves as an entry to the writing contest hosted by Nexo and @originalworks

Thank you very much for reading! I hope you found this info useful, please feel free to comment below and if you would like to stay in touch – click the links to follow me!

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