Bitcoin Credit - Loan

The crypto platform NEXO offers an innovative way to borrow against cryptocurrencies such as Bitcoin (BTC). This article explains step by step how to access NEXO can take out a loan against your Bitcoin holdings.

What is NEXO?

NEXO is a platform that allows users to borrow against their crypto assets. Instead of selling your cryptocurrencies, you can deposit them as collateral and instantly receive fiat currencies or stablecoins as a loan. This can be particularly useful if you need liquidity but still want to benefit from a potential future increase in the value of your cryptocurrencies.

Prerequisites

Before you can take out a loan on NEXO, you need the following:

1. a NEXO account: Register on the NEXO website and verify your identity.

2. bitcoin holdings: You must deposit bitcoin in your NEXO wallet in order to use it as collateral.

3. 2-factor authentication (2FA): Enable 2FA for additional security.

Step-by-step instructions

1. registration and verification

Visit the NEXO website and register for an account. You will need to confirm your e-mail address and provide basic personal information. To fully verify your account, additional documents such as an ID or passport are required.

2. deposit Bitcoin into your NEXO wallet

After successful registration and verification, you must deposit your Bitcoin into your NEXO wallet. To do this, proceed as follows:

1. log in to your NEXO account.
2. navigate to the Wallet section and select Bitcoin (BTC).
3. click on "Deposit" and generate a Bitcoin deposit address.
4. transfer the desired amount of Bitcoin from your external wallet or exchange to the specified NEXO address.

3. apply for a loan

As soon as your Bitcoin holdings have been credited to your NEXO wallet, you can apply for a loan:

1. go to the "Credit" area in your NEXO dashboard.
2. select "Bitcoin (BTC)" as security.
3. enter the desired loan amount. NEXO will show you the maximum available credit amount based on the current value of your Bitcoin holdings.
4. select the preferred credit currency (e.g. USD, EUR, stablecoins such as USDT or USDC).
5. check the loan conditions, including interest rate and repayment terms.
6. confirm your request

4. have the loan paid out

After confirmation, the credit amount is immediately credited to your NEXO account. You can have the amount paid out to your bank account or an external wallet. Alternatively, you can also invest the loan amount directly on the NEXO platform in other cryptocurrencies.

5. repayment of the loan

The repayment of your loan is flexible. You can repay partial amounts or the entire amount at any time. During the loan term, the deposited Bitcoin holdings are held as collateral. Please note that in the event of a sharp drop in the value of your Bitcoin, additional collateral may be required or NEXO may liquidate part of your Bitcoin to secure the loan.

Advantages of a loan with NEXO

- Instant liquidity: Get cash quickly without having to sell your Bitcoin.
- Flexible repayment options: You can repay the loan flexibly, without fixed monthly installments.
- Competitive interest rates: NEXO offers attractive interest rates that are often lower than conventional loans.
- Further growth potential: Hold on to your Bitcoin and benefit from potential increases in value.

Conclusion

Taking out a loan in Bitcoin with NEXO is a convenient way to get liquidity without selling your cryptocurrencies. With a user-friendly platform, fast payouts and flexible repayment terms, NEXO is an excellent choice for crypto enthusiasts who want to use their assets efficiently.

We ourselves use NEXO since 2022 and use it to finance the continuous expansion of the Green-Bitcoin.Farm

This article is not investment advice, we are merely reporting on our experiences with Nexo. This article contains affiliate links for our recommendation.