Borrow on your NFTs with Nexo

The market for non-fungible tokens (NFT) has experienced significant growth over the last few years. There are various applications for your NFT collection and one of them is to use it as collateral to borrow money.

Nexo’s recent developments have created significant popularity among users. The platform, a leading cryptocurrency exchange and lending platform in the industry, has introduced a feature that allows customers to use digital art as security. At the time of writing, Crypto Punks and Bored Ape Yacht Club NFTs can be used as security. Due to the popularity of these two collections, we assume that they chose to start with them to reduce the risk and provide their customers with the best possible service.

Why use NFTs as security?

There are a number of different reasons why you should consider obtaining NFT-secured credit with Nexo. Here are six reasons why you should mortgage your NFTs with Nexo.

Instant liquidity

The first benefit is that you can get funds without having to sell your NFTs. Through this method, you can get cash instantly for your NFT collection. Anyone who has ever sold an NFT object knows that the process can be extremely long, especially for beginners in the NFT industry. If you believe in their potential and want to keep them, it’s incredibly easy to get cash right away on Nexo.

No liquidations before expiration

Although the value of your NFT may change during the course of the loan, you are not required to liquidate it. This is a very attractive feature as it ensures that no liquidation can take place before expiration.

Personal customer service

A dedicated account manager will be assigned to you and will help you get the most out of the Nexo platform. Because this feature is rarely seen on other platforms, it provides a strong assurance that the platform is secure. In addition, with the help of your newly appointed account manager, you will be able to take full advantage of the platform to your advantage.

Web 3.0 Art Funding

You can use this opportunity to contact Nexo’s team of experts to obtain additional funding for the acquisition of premium NFTs. This is another great feature that allows users to get the most out of the platform to its full extent.

No credit check

Users can be accepted without the need for extensive credit review to review their credit history, which would otherwise be necessary. This means that the details of your credit history will not be taken into account when deciding whether to be approved for the loan.

Loans in ETH or Stablecoins

Depending on your situation, you can get NFT-supported credit in either ETH or stablecoins. This gives users greater flexibility.

Nexo loan rates

Nexo is known in the cryptocurrency scene for offering attractive prices as compared to its competitors. Typically, interest rates for non-fungible token borrowings (NFTs) vary between 12-15%. It all depends on the current market conditions as well as your individual NFT.

Based on the price of your NFT, a loan to value (LTV) is used to calculate the amount of credit you can borrow. An amount of between 10-20% of the current market value of NFT can be credited to you.

Once you repay the credit, the platform will instantly transfer your specific NFT to your account. A payment asset will be transferred to Nexo if you do not repay the full redemption amount before the due date. The property will be sent to Nexo as payment.

How to borrow against NFTs on Nexo?

On Nexo, the first step is to create an account. Nexo’s basic and user-friendly user interface should make your job easier. First, check if Nexo is available in your country. To create an account, go to the official Nexo website and click “Create an Account”. Then enter your information and confirm your email address. Your Nexo account is now ready. Also, confirm your identity before proceeding.

Mortgage loans in NFTs is easy with Nexo. Just go to the official Nexo website. Then go to the “NFT Lending” tab. Once there, scroll down until you find the “Apply Now” section. Enter all your information, including your full name, phone number and ID of the NFT you want to borrow. Click “Apply Now” and you should receive a reply from Nexo in good time.

Frequently Asked Questions (FAQ)

Can I get a loan on my NFT?

Yes, it is possible, although it depends on the type of NFT you have. In terms of security, Nexo accepts NFTs from the CryptoPunk and Bored Ape Yacht Club collections.

What are Nexo’s borrowing rates?

Nexo offers a fantastic NFT interest rate that ranges between 12-15% per annum. However, it depends on both the market and the quality of your NFT. Your NFTs will be returned to your account as soon as you repay the debt.

Is Nexo Legal?

Its depot wallet uses cold storage, which is stored in military class III boxes for the highest level of security. The company is audited in real time by Armanino LLP.

Points to remember

  • The market for non-fungible tokens (NFT) has experienced significant growth over the last few years.
  • Nexo, a well-known cryptocurrency exchange and lending platform, now allows customers to use digital art as collateral.
  • Crypto Punks and Bored Ape Yacht Club NFT collections can be used as security on Nexo.
  • Nexo is well known in the cryptocurrency industry for offering competitive pricing; a typical NFT loan rate is between 12 and 15%.
  • Once you have repaid the credit, the platform will immediately put your NFT back in your account.
  • Nexo offers a depot wallet that uses military class III vault cold rooms to ensure maximum safety for its users.

68% of retail investor accounts lose money when trading CFDs with this provider. You should ask yourself if you can afford to take the high risk of losing your money. eToro users in France cannot open positions to buy real cryptocurrencies, all orders are opened as CFDs.

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