In my last article, I wrote about my experience with Rari Capital. Although my money was growing with them, I was not happy with the ever changing interest rate and 20% fee on any interest earned. Sure there were times my interest rate was over 12% but it felt like more often than not, I would check and it would be in the single digits. I left my money with them until I found a better option.
After combing through different crypto sites, apps, and reviews, I decided to give Nexo a try. However, this time I did my research before switching my currency over so I was not going to be caught off guard.
When you browse Nexo's website, you are bombarded with pictures showing that you will earn 10% APY paid out daily on your crypto. What is often left out of those pictures, is that you CAN earn 10% on SOME crypto currencies.
The base interest rate is 8% on stablecoins like DAI, Tether, USDC, TUSD, PAX, and HUSD. The other coins supported are Bitcoin, ETH, BCH, XRP, LTC, EOS, LINK, XLM, and TRX. Those coins start at 4% interest.
The way that you qualify for 10% on stablecoins and 5% on the others is by purchasing Nexo Tokens. If you maintain 10% or your wallet value as Nexo tokens, you are automatically upgraded to the higher interest rates. Another perk about having the Nexo Tokens is that you get a significantly lower borrowing rate. Your borrowing rate drops from 11% to 5.9%. The Nexo tokens do not earn you interest, however, you do earn dividends. Nexo splits their profits with Nexo Token holders and the holders receive 30% of the profits.
After completing my research, I pulled my funds from Rari Capital as DAI so that I could reinvest with Nexo. I transferred the DAI and immediately began earning 8% interest, but I wanted that 10%. So I opened a Coinbase account to purchase more DAI. I then went to CoinSwitch to convert some of my DAI to Nexo tokens. I wanted to be sure to keep 10% of my wallet as Nexo to ensure I maximized my passive growth. For some reason, my Nexo tokens were not showing up in my account even though COINSWITCH showed it had been sent.
I immediately went to Nexo's customer service instant message option and informed them of my issue. I sent them the ticket information and they immediately corrected it while talking with me. When I closed the chat, my Nexo tokens were there and my DAI had been upgraded to the 10% rate.
After one day had gone by, I noticed I had earned more in interest per dollar than I had using Rari. I also like that my money is insured. I have added more funds since and have enjoyed the benefit of watching my account compound daily. The interest is paid out in the specific currency you have in your wallet. So my DAI earns DAI, my BTC earns BTC and so forth.
Since I created a COINBASE account, I took advantage of the Coinbase Earn option and transferred the XLM and EOS I Iearned there into my Nexo wallet and have it growing as well. For those using Apple, Apple does not allow the Coinbase Earn option as of now. So use your browser if you want to earn free crypto from Coinbase.
And remember, I am not a certified financial advisor and am only speaking of my own personal experiences with products.