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Before you invest your cryptocurrency, you should always do research on the company you plan to invest with. You should not have to search high and low to find a Nexo review, so we have gathered the most important information about the platform in one place. This way, you can make an educated decision before making an investment.
Basics of Crypto Lending
Crypto lending allows you to make a profit from your cryptocurrency by letting someone else borrow it. In return for lending the cryptocurrency, you earn interest. You can find a borrower yourself or use a peer-to-peer lending platform. There are also managed crypto lending accounts that help you earn interest via professionally managed lending and other strategies.
Warning!
A lack of regulatory clarity led cryptocurrency lender Nexo to withdraw from the U.S. market; the company announced on Twitter on 5 December 2022.
Nexo.io Review
The Nexo.io platform offers you the ability to exchange, earn, or borrow cryptocurrency. If you are interested in lending, the earning options are likely the most appealing to you. The exchange controls your cryptocurrency and lends fiat to make a profit.
You can automate crypto trading with Haru Invest
Enjoy the highest earning rates in the market with top performing trading strategies.
You can automate crypto trading with Haru Invest
Enjoy the highest earning rates in the market with top performing trading strategies.
It has been around since 2018. While this is a fair amount of time, it is still new. Some relevant figures to give you more peace of mind about Nexo include support in more than 200 jurisdictions, support for more than 45 fiat currencies, and a loan volume of $1.5 billion.
If you are wondering if Nexo is legit, the answer is yes. The company has a satisfied customer base and offers various features. Our research for this Nexo review focused on cryptocurrency earnings. The company lets you earn up to 8% interest with most cryptocurrencies or up to 12% with stablecoins. That interest is paid daily and compounds.
If you review the Nexo lending website, you will notice that they say you can withdraw or add funds whenever you want, and there is a “unique” daily payout model. However, these two features are not as unique as the platform wants you to think. You can take advantage of both with Haru, as well.
Custodial Crypto Lending
Nexo offers custodial crypto lending, meaning that it controls your assets. It actively manages your crypto, lending it out to gain that interest. Essentially, Nexo pools its client assets (crypto and fiat) and then actively manages them.
As mentioned, Nexo offers fiat loans with crypto collateral. The platform also offers crypto loans with crypto collateral. The platform uses a low collateral ratio, which makes the loans more appealing to borrowers.
Risks Associated With Nexo
There a few important risks to keep in mind if you choose to invest with Nexo. The first relates to crypto custody. It uses BitGo multi-sig wallets with total insurance of $100 million. This cap is the maximum coverage for all clients, not per client. Additionally, the insurance only applies to crypto in the cold wallet, but Nexo needs to keep some crypto in hot wallets, so it can lend it.
Another risk is the lack of legal entity information regarding Nexo. There is no mention anywhere on the website or the privacy policy of a legal entity that controls Nexo. This minimizes confidence in the brand.
Automating Crypto Trading with Haru Invest Instead of Crypto Lending
After looking at all the information in our Nexo review, it becomes clear that Haru is a better option. While Nexo is legit, Haru has several very important advantages over it.
Security
Haru Invest directly manages all our customer’s deposits with our in-house trading team and global asset management partners. We do not rely on external CeFi or DeFi platforms. Regardless of the rapidly changing crypto market, our in-house trading team has steadily increased our members’ assets with our strategic trading partners who have undergone thorough evaluation.
Ensuring zero financial risk for our members is our first priority–which is why we don’t apply any high-risk strategies subject to the price fluctuations of the market. We don’t apply any high-risk strategies subject to the price fluctuations of the market. Instead, we implement mid-high frequency trading, focusing on the absolute number gain of your crypto assets, operating strictly according to compliance standards, and carefully monitoring all possible risks.
Strategy
At Haru Invest, our mission is to help you make smarter financial decisions through innovative crypto experiences. Guiding our investment strategies to achieve this mission is algorithmic trading, to the practice of programming a computer to automate customized trading strategies.
We deploy three core algorithmic trading strategies to drive profits for investors:
- Arbitrage Trading that leverages the price gap between crypto exchanges,
- Market Neutral Strategy based on the price stability mechanisms at crypto futures exchanges,
- Spread Trading that focuses on the volatility of BTC/ETH futures contracts.
Our in-house trading team understands investment strategies used by global asset management partners for a distribution purposes to lower risk and has a good level of knowledge to check whether their strategies have been well implemented.
