Safely investing in crypto.
That there is a lot of money to be made in crypto is obvious. But you can also lose money just as quickly in the crypto world. Therefore, many people are still skeptical about crypto because the prices can tip so quickly. However, there are ways to make a lot of money with crypto in a reasonably safe way. I myself compare trading crypto somewhat to trading on the stock market. On the traditional stock market I prefer to invest safely and therefore choose mainly ETF shares. For crypto I have found a way to make good money with stablecoins.
That there is a lot of money to be made with crypto is obvious. But you can also lose money just as quickly in the crypto world. Therefore, many people are still skeptical about crypto because the prices can tip so quickly. However, there are also ways to make a lot of money in a reasonably safe
way with crypto. I myself compare trading crypto somewhat to trading on the stock market. On the traditional stock market I prefer to invest safely and therefore choose mainly ETF shares. For crypto I have found a way to make good money with stablecoins.
What are stablecoins?
Stablecoins are cryptocurrencies that track the dollar. You have some very well-known ones such as Tether ( USDT ), USD Coin ( USDC ), Pax Dollar ( USDP ), TrueUSD ( TUSD ) and Dai ( DAI ). All these coins have a value of $1. However, it is possible to earn interest on these coins and the interest on them can be huge. On Tether I have 16% interest per year and for all other coins I have 14% interest. You can get interest on your stablecoins at many exchanges, but you only have these high values at Nexo. I myself have been with them for several years now and have found a very strong yet safe way to make good money on these stablecoins.
How can Nexo give such high interest rates?
I myself had already had my coins on a hardwallet for about four years and in fact had not earned much on these coins. By doing some searching on the internet I noticed that it is possible to get interest on cryptocurrencies so I started looking into this. There are several exchanges that can offer interest but I noticed that the earnings at Nexo were a lot higher than at other exchanges. It felt like a scam so I stayed away from it. However, Nexo kept attracting my attention so I started studying them. I scrolled through a lot of reviews and found mostly positive reactions from their users. They had +2 million users ( nowadays +6 million users ) so I started testing them out with a small amount of money. Every month my interest came in nicely so I was satisfied. However, the interest rate was still not what they indicated. And here is the catch.
How do interest rates work at Nexo?
If you sign up with Nexo today and start with, say, Bitcoin and Ethereum as the coin you want to take interest on, you will initially get 4% interest on Bitcoin and 5% on Ethereum. However, their promotions state that you can get 7% interest on Bitcoin and on Ethereum it should be 8%. How this is possible has to do with their “Loyalty Level.” Nexo has its own cryptocurrency under the name “Nexo”. When you have x number of % of this coin in your wallet, you rise in their Loyalty Level. If you have 10% or more of your total wallet in their coins, you can earn the maximum interest. Currently, I am at their maximum Loyalty Level for over 1 year, which earns me a lot. Below is a picture of exactly how their Loyalty Level works.
As you can see above, there are 4 levels you can enter. If you have less than 1% of your wallet in Nexo coins, you fall into the Base Level. If you have between 1 and 5% of your total wallet in Nexo coins, you are in the Silver Level. Between 5 and 10% of your wallet puts you in the Gold Level and if you have more than 10% of your wallet in Nexo coins, you are in the Platinum Level. With each higher level, the interest earnings are higher and higher.
It is also the case that you get an additional % interest when you let them pay you in their own Nexo coin. If you fall into the Platinum level and have your coins paid out in Nexo, then you fall into the highest scale which earns you 16% interest per year on Tether.
How to proceed safely?
I myself want to go for the highest possible interest rate and so I get paid out in Nexo, additionally I have more than 10% of my wallet in their coins. This means I receive the maximum interest for each coin. Super so.
Nexo pays out daily, however, you don’t have the paid out coins in your wallet yet. You have two ways to receive interest on your coins. The first way is with a Flex term: (Your coins remain in your wallet, you can trade them daily if you want, but the interest income is lower). The second way is with a Fixed term: ( You fix your coins for a certain time. You can’t touch your coins during that time, but the interest earnings are higher ).
I myself had about 10 different crypto ( no stablecoins ) that I thus earned interest on at Nexo. In the last few months all cryptocurrencies have risen tremendously and I suspect a very strong correction is coming. In fact, I even hope for it a bit. So what did I do? I exchanged just about all my cryptocurrencies for Stablecoins. That is, I took my profits on crypto and have now put them pretty much safely into stablecoins. The interest rate on stablecoins is also a lot higher, so I now grab 16% on my Tether every month and 14% on the others.
Also just mentioning that you can put regular fiat ( Dollar, Euro, British pound ) into your Nexo account, on which you get 15% interest. So I spread between the above stablecoins and fiat money. All payouts are in Nexo. So every x amount of time I get a full payout in and since my wallet is now above 20%, I keep selling my incoming Nexo coins for new stablecoins or fiat money which I then start a new interest plan for. I have been applying this tactic for some time now and it is paying off for me quite a bit.
Additional profits on interest.
About one Year ago, the Nexo coin stood at about 60 cents. So daily you get a payment that is not paid out in full until your Fixed period has expired. However, it does calculate daily how much interest you just received since the market can fluctuate so much. When the value of Nexo was around 60 euro cents, I had a daily yield of about 3 Nexo coins. So daily about €1.80 in interest. However today the Nexo coin is at €1.30. Since I still have these coins and am only now selling them for stablecoins, today those coins have the value of €3.90 per day. Since Nexo is now quite high in my opinion, I want to reduce my total wallet Nexo coins to around 12%. So I can still sell some Nexo coins for stablecoins. Therefore, my hope is that there will be a strong correction. My Nexo wallet will drop as a result ( hopefully to 5% ). I then fall back into a lower Loyality Level, but then I will convert back some stablecoins to Nexo coins so that I fall back into the Platinum Level and then I can also buy some other crypto that I strongly believe in. Then let these crypto rise again to the point that the hype is well established, they rise tremendously as you see now and then I sell again and take profits again.
This tactic ensures that my crypto is safe during hypes, the interest payout is tremendously high and that when strong corrections occur there are lots of great buying opportunities for other crypto coins.
Dangers here?
Of course, there are always dangers when investing, including in crypto and with these tactics. First of all, Nexo is an exchange. Any exchange can be hacked, your account can be hacked and as a result you may lose everything. The main rule here is to go with a strong and reliable exchange and secure your account to the maximum. Nexo continues to grow and is worth $750 million, so it is certainly not a small player that will go bankrupt overnight. My account is also well secured with the two-step verification so that’s already pretty good for my liking.
If you want to take maximum interest you should work with a Fixed term. This means that you cannot reach your coins for at least 1 month and a maximum of 1 year. If in this period your coin drops completely you cannot sell quickly. This is only possible when you have coin back from the Fixed period.
Stablecoins can also die. That is why I always look at the market cap of these coins. For example, Tether is the 3rd strongest coin on marketcap level with a value of 104 billion Dollars. This is ridiculously high which also means that this coin will not disappear or fall overnight.