Crypto Credit, Loans & Savings
Diversification is key. We have searched for and been testing platforms on different blockchains and platforms that offer profitable ways of saving your crypto. Some offer credit, loans and other incentives to save your crypto with them. One of the first words that everyone will get to know is hodl, slang in the cryptocurrency community for holding a cryptocurrency rather than selling it. A person who does this is known as a hodler. It originated in a December 2013 post on the Bitcoin Forum message board by an apparently inebriated user who posted with a typo in the subject, “I AM HODLING.”
Nexo is one of the first well established crypto savings platform with years of experience that I sent some of my crypto. They also have their own token that is a governance token with which they provide extra rewards for the members who hodl their Nexo token. The higher your member level, the better your rewards.
Receive 2% extra on the money you save with Nexo, with up to 14% PAY on certain currencies if you receive your interest in Nexo tokens that can be exchanged for any other crypto at any time. You can also exchange some of your crypto for Nexo tokens, or, you can buy Nexo tokens and other cryptos directly on the site with with your card through on the site through Changelly.
Nexo also offers immediate crypto loans up to 30% on the crypto that you save with them. The minimum loan amount is $500. So, you have to have at least $1500 in crypto to qualify for an immediate loan with no termination date, provided that you keep up the reasonable interest payments on the loan.
Having at least 10% of your crypto in Nexo tokens immediately places members in the Platinum loyalty level that offers the highest returns on your savings, with the lowest borrowing interest rate and 5 free withdrawals a month. As a governance token, token holders form part of the community and have a stake in the platform, thus, they also have the opportunity to vote on major decisions.
Many people take a loan, save it on Nexo as a stablecoin that returns the highest interest in Nexo. Over time, they are able to pay back their loan from the interest made on saving it on with Nexo. All these incentives to hodl your Nexo tokens helps provide stability and keeps value high because the market is not flooded by unwanted tokens. Lastly, one of the best features on Nexo is that your interest is compounded automatically from day one without you having to do anything.
Unlike Nexo, BlockFi, does not have its own token, but it is another very good place to buy on, or to send crypto to for some good benefits and services.
You can earn daily interest on your BlockFi account, with a 2% APY bonus on your stablecoins, or borrow against your crypto with a loan at affordable rates. Enjoy trading bonuses and more.
Apply for a Visa approved BlockFi credit card and get 1.5% of all your purchases back in Bitcoin (up to $100 every month). There is no annual fee and your credit score is not affected before you accept the card.
Compound finance is less involved than the other platforms that we have discussed in this blog, but it does also have its perks as a borrowing and lending platform. It is a good place to hold some of your crypto on in aid of diversification and earning from as many different sources as possible and to minimise big losses in one go.
You can earn some interest with Compound Finance for supplying any of the available coin on the platform. You earn some of the same crypto that you supply and you also earn some the Compound (COMP) governance token.
