The original idea of cryptocurrencies as an alternative global means of payment has evolved into the idea of creating an alternative to the traditional financial system. If 7-8 years ago, the possibilities of earning on cryptocurrency were limited to trading and hodling, today lending services and deposits in crypto are already available in the cryptosphere. Getting a loan is not much more difficult than exchanging GBP to TRY at an exchange office.
What is Nexo (NEXO)
Technically, the idea of crypto loans was realized in 2018, when the first crypto credit lines were launched. Loan services for the value of certain assets have existed for a long time and have proven themselves quite well in the traditional financial system.
The Nexo team was the first to transfer proven mechanisms to the blockchain, and thus laid the foundation for the practice of crypto lending. Crypto asset holders can receive instant loans in stablecoins and fiat currencies against the value of their crypto assets while retaining ownership. You can get a loan secured by Bitcoin, Litecoin, Ethereum or Ripple. Lending and loan management processes are based on smart contracts.
A native NEXO token has been created for settlements within the platform. It is used to calculate interest payments on deposited assets. Token holders receive dividends from the platform’s profits and can enjoy a discount when paying interest accumulated on loans.
Like any other cryptocurrency, NEXO can be used for savings as an investment tool or for active trading. At the time of writing, the token is ranked 73rd in terms of market capitalization. The easiest way to buy NEXO is on the Binance exchange, which accounts for over 20% of the total trading volume.
Why verification is needed
Advances in technology are gradually removing geographic and language barriers that traditionally make doing business difficult. However, new opportunities are used not only for good purposes. For the purposes of financial security and countering terrorism, the authorities seek to control big business.
These threats have become the impetus for the creation and implementation of special regulatory rules: anti-money laundering (AML) directives and Know Your Customer (KYC) methods for determining the identity of a client.
Any business organization must comply with the KYC standards of the jurisdictions with which it operates. The basic legal requirements in different countries are very similar, although today there are still some differences. In the face of global threats, the requirements are gradually unified and their observance becomes mandatory.
Where to buy NEXO anonymously
One of the key principles of the functioning of cryptocurrencies is the ability to remain incognito and cryptocurrency exchanges are still finding compromise solutions. Identity verification on many trading platforms so far concerns only large clients and is not mandatory for users operating with small amounts.
However, it is worth remembering that anonymity on any centralized crypto exchange is very relative. The weak link in this system is the deposit and withdrawal of funds in fiat currency with the direct or indirect use of bank cards.
Binance is the most famous and largest among the current cryptocurrency exchanges. NEXO is available for purchase with USDT, BUSD and Bitcoin. So far, Binance is loyal to unverified users, although not all the functions of the site are available to them and there are restrictions on withdrawals.
Gate.io is one of the industry veterans. At the same time, the site is developing quite quickly and has many useful options for beginners and experienced traders. Account verification is not required, but unverified users get limited access to the platform’s functionality. NEXO is traded in tandem with USDT, but the trading volume for it is small.
The main specialization of the trading platform is cryptocurrency perpetual contracts with Bitcoin, Ethereum, Ripple, EOS. Nexo is traded in tandem with USDT. If you do not plan to work with fiat, verification is not required.
The MEXC team has created a one-stop trading service. Spot trading, margin trading, futures trading, leveraged ETFs are available on the platform. You can replenish the deposit and start trading without verification, but you will need it to withdraw funds.
LetsExchange is an instant cryptocurrency exchange service. To buy, sell and exchange cryptocurrencies, you do not need to register an account, so the question of verification does not even arise.
After placing an application for an exchange, the search for available deals, their comparison and selection of the most advantageous offer is performed automatically. The platform supports more than 1900 cryptocurrencies and works without any restrictions on the amount and number of transactions.