If you’re wondering how to make the most of your idle crypto assets and earn high-yield annual interest, you’re in the right place. This guide will walk you through the steps to start earning interest on your crypto investments and provide all the important details to help you get started.
1. How to Earn Annual Interest on Idle Crypto
To begin earning high-yielding annual interest on your crypto assets, follow these simple steps:
- Log in to Your Nexo Account
Ensure that you have an active account on Nexo. If you don’t have one yet, you’ll need to create it. - Complete Identity Verification
If you haven’t completed identity verification, make sure to do so. This is a crucial step before you can start earning interest. You can find more about the verification process on their website. - Ensure Portfolio Balance is Above $5,000
To unlock the ability to earn interest on your crypto assets, your portfolio balance must be valued at over $5,000. This is a requirement to access the interest-earning features. - Transfer Assets to Nexo
Once your account is set up, transfer your crypto assets to Nexo or directly purchase crypto via the Nexo Exchange. This is how your assets will begin to generate interest. - Opt-in to Receive Interest (Optional)
In some regions, you will need to opt-in to earn interest on your crypto assets. Make sure you check if this applies to you and complete the process to start earning.
2. What Affects Your Annual Interest Rate?
Your interest rate will depend on several key factors:
- Loyalty Tier
The more NEXO Tokens you hold, the higher your Loyalty Tier, which can result in higher interest rates. Nexo offers different tiers with specific benefits that affect your earnings. - Interest Payout Currency
You can choose to receive your interest in the same cryptocurrency you deposited (in-kind) or in NEXO Tokens. Opting for NEXO Tokens can provide you with an additional bonus ranging between 0.25% and 2%, depending on your Loyalty Tier. - Savings Preference (Flexible vs. Fixed-Term Savings)
You can choose between Flexible Savings, where you can withdraw your assets at any time, or Fixed-Term Savings, where your assets are locked in for a set period for a potentially higher interest rate.
3. How to Opt-In to Earn Interest
If you are a newly registered client (after January 23, 2025), you must opt-in to receive interest on your assets.
- For New Clients (Post-January 23, 2025)
- Log in to your Nexo account.
- Go to the Savings Hub and select “Earn Daily Interest.”
- Agree to the Terms of Service and start earning interest.
- For Clients Registered Before January 23, 2025
- Go to your Profile settings and choose “Savings Settings.”
- Tap “Renew” to activate the interest-earning feature.
Note: If using the web platform, you can opt-in by navigating to My Profile > Settings > Savings.
4. How to Opt-Out of Earning Interest
You can opt-out of earning interest at any time. Once you opt-out, your daily interest payouts will be discontinued starting the next day.
Here’s how to stop receiving interest on your assets:
- Go to Profile > Settings > Savings.
- Disable the “Earn Daily Interest” toggle.
You can opt-out at any time, but if you have fixed terms in place, they will continue to earn interest until maturity.
5. Understanding Balance Limits
Certain assets, such as BTC, ETH, XRP, and others, have balance limits that affect how much interest you earn. If your balance exceeds the limit for any given asset, the excess amount will earn a lower interest rate.
For example, if you hold 60,000 USD worth of BTC and your Loyalty Tier is Base, you may earn 3% interest on the first 25,000 USD and only 1.5% on the remaining 35,000 USD.
6. How Is Your Interest Calculated?
Interest is calculated differently depending on the payout option you choose:
- In-kind (same cryptocurrency): Uses compound interest, which means the interest earned is added to your principal, and the new total is used to calculate future interest.
- In NEXO Tokens: Uses simple interest, calculated only on the principal amount.
Example:
If you have 1,000 ADA in a Fixed-Term Savings plan and your Loyalty Tier is Platinum, your interest rate could be 8%. This would result in the following daily interest calculation:
- Daily interest rate = 8% ÷ 365 days = 0.0219%
- Daily interest = 1,000 ADA × 0.0219% = 0.2191 ADA per day.
7. How to Benefit from Higher Interest Rates
To receive the highest interest rates, your portfolio must meet certain criteria, such as holding NEXO Tokens worth at least 10% of your total portfolio. This ensures you reach the Platinum Loyalty Tier, which grants the maximum benefits.
8. Currency of Interest Payout
Interest can be paid in the same cryptocurrency as your deposit or in NEXO Tokens, which may offer a higher interest rate due to bonus percentages.
9. How to Activate NEXO Token Interest
If you wish to earn interest in NEXO Tokens, here’s how you can activate it:
- Log in to your Nexo account.
- Ensure that you have at least $5,000 in assets to access the Loyalty Program.
- Go to My Profile > Settings > Savings and choose “Interest Payout in NEXO Tokens.”
10. Tracking Your Earned Interest
You can monitor the interest you’ve earned by checking the “Interest Earned” section on your Nexo dashboard or by receiving weekly email updates that detail the interest accumulated.
11. The Benefits of the Earn Interest Program
The Nexo Earn Interest program offers several benefits:
- Earn between 0.25% and 16% annual interest on your assets.
- Enjoy daily interest payouts, so your earnings grow consistently.
- Flexible withdrawal options—access your funds at any time.
- Overcollateralized crypto credit lines that ensure your assets are well-backed.
12. Minimum Amount to Start Earning Interest
Each asset has a minimum amount required to start earning interest. Ensure that you meet these minimum thresholds to unlock interest-earning potential.
With these steps and tips, you can maximize the interest earned on your idle crypto assets, allowing them to grow over time. Always stay informed of any changes in the platform’s terms and interest rates to continue making the most of your investments!
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