Making Bank Day Trading…What's Nex ?

What do you do with your idle digital assets?
About two years ago, my uncle gave me 200 XRP under the instruction not to sell until it was greater than $10 a token.

I said thanks and immediately set off in search of ways in which I can stake or enable the asset to multiply itself.

I eventually came across a platform called NEXO.

For those unfamiliar with it: NEXO is a digital asset custodial platform based out of Switzerland that enables you to reap a full gamut of advantages of the legacy financial services with your digital assets. 

Mainly borrow against and earn interest on, and facilitate real world use through a credit card.
They have since expanded their services to now offer an array of leveraged services, which I admit that I have yet to explore.

How does NEXO generate revenue?

NEXOs main revenue streams, I imagine are from the interest payments/liquidations that occur on these loans that they provide.

Another major revenue stream is from their own $NEXO token, which incentivise platform users to maintain a given ratio of their portfolio in $NEXO by granting them more generous interest accrual rates and more advantageous interest rates on loans (highest tier I believe enjoys 0%).

I originally did not purchase any $NEXO tokens and opted to receive an additional 2% interest rate boost on my assets by opting to receive the interest in $NEXO until my portfolio achieved platinum tier (10% in $NEXO).

NEXO also gives you a boosted interest rate if you elect to lock your tokens up for a fixed term…
Greater the time span the more significant the fixed term interest rate boost.

Then for a while I continued to collect the boosted interest rate in $NEXO and convert the $NEXO into $XRP at the end of the fixed term period, usually every month.

I suspect that another of NEXO's revenue streams are that they would then do whatever staking or DEFI with your assets, or just be a liquidity provider.
As their interest rates for other assets have consistently been lower than those attainable for "stakable assets" e.g., ADA.

However, NEXO boasts to have insurance coverage of up to $775 M on custodial assets.

I have recently switched my interest back to accrual in $NEXO after I found out that NEXO is planning to expand their platform into being a full fledged exchange (spot, margin, and futures), with the launch of NEXO Pro.
Which will increase the utility of $NEXO and possibly demand.
Along with adding another revenue stream…
admittedly, I refrain from using NEXO Pro, due to their exorbitant fees. 

I gather from their youtube channel that they are positioning themselves to mimic the business model / tokenomics of Binance /$BNB in that holders share in the platform's revenue.

This is why I classify $NEXO amongst the class of REAL YIELD tokens and not driven mostly by "ponzinomics" . 

What value NEXO provides to the day trader 

Now that I am dealing mostly with stable coins I enjoy a 10% "Flexible" Interest rate on my dry powder.

All NEXO interest eligible assets accrue and compound daily.

What's the catch?

Like all things that offer rewards, there are risks attached, and Uncle SAM doesn't allow its citizens to participate/benefit in the collection of these rewards.

Yes, there are your regular run of the mill risks that come with all custodian services: 
• Smart Contract risks
• Hacking 
• Etc.

But over 5 million users worldwide have trusted NEXO with custody of their digital assets.
Plus, with a 4 year track record of smooth operations.
I did not hesitate to open an account for my father this last week

NEXO:
• easily survived the LUNA collapse despite having had exposure to the ecosystem,
• is domiciled in Switzerland a country that prides itself on its robust financial institutional services
• has me so pleased with their platform that I'll even promote it without my referral link

Just sharing what I am doing

DYOR

Banter On, Banter Strong!
✌️