Borrow on your NFTs with Nexo

The non-fungible token (NFT) market has seen significant growth in recent years. There are several uses for your NFT collection and one of them is to use it as collateral to borrow money.

The most recent developments of Nexo have brought considerable 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 artwork as collateral. At the time of writing, Crypto Punks and Bored Ape Yacht Club NFTs can be used as collateral. Due to the popularity of these two collections, we assume they chose to start with them in order to reduce risk and provide the best possible service to their customers.

Why use NFTs as collateral?

There are several reasons why you should consider getting NFT secured credit with Nexo. Here are six reasons why you should pledge your NFTs with Nexo.

Instant liquidity

The first advantage is that you can raise money without having to sell your NFTs. Through this method, you can get instant money for your NFT collection. Anyone who has ever sold an NFT property knows that the process can take an extremely long time, especially for newcomers to the NFT industry. If you believe in their potential and want to keep them, it is incredibly easy to get instant money on Nexo.

No liquidations before maturity

While the value of your NFT may change over the life of the loan, you do not need to liquidate it. This is a very attractive feature as it ensures that no liquidation can take place before maturity.

Personal customer service

A dedicated account manager will be assigned to you and will help you get the most out of the Nexo platform. Since this feature is rarely seen on other platforms, it provides a strong guarantee that the platform is secure. Plus, with the help of your newly appointed account manager, you can fully leverage the platform to your advantage.

Web 3.0 Art Finance

You can use this option to contact Nexo’s team of experts to obtain additional financing for the acquisition of premium NFTs. This is another fantastic feature that allows users to get the most out of the platform.

No credit check

Users can be accepted without the need for an extensive credit search to review their credit history, which would otherwise be required. This means that the specifics of your credit history are not taken into account when determining whether or not you will be approved for the loan.

Borrow in ETH or Stablecoins

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

Nexo loan rates

Nexo is known in the cryptocurrency scene for offering attractive rates compared to its competitors. Typically, interest rates for non-replaceable token loans (NFTs) range between 12-15%. It depends entirely on current market conditions and on your individual NFT.

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

Once you have refunded the credit, the platform will immediately transfer your specific NFT to your account. A payment instrument will be transferred to Nexo if you do not repay the full redemption amount by the due date. The accommodation will be forwarded to Nexo as payment.

How to borrow against NFTs on Nexo?

On Nexo, the first step is to create an account. Nexo’s simple and easy-to-use user interface should make your work easier. First check if Nexo is available in your country. To create an account, go to the official Nexo website and click on “Create an account”. Then fill in your details and verify your email address. Your Nexo account is now ready. Please also confirm your identity before proceeding.

Loan against NFT collateral is easy with Nexo. Just go to the official Nexo website. Then go to the “NFT loans” 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 wish to borrow. Click on “Apply Now” and you should receive a response from Nexo in due course.

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. As for collateral, Nexo accepts NFTs from the CryptoPunk and Bored Ape Yacht Club collections.

What are Nexo’s loan rates?

Nexo offers a fantastic NFT 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 once you have repaid the debt.

Is Nexo Legitimate?

The custodian wallet uses cold storage, which is kept in military grade Class III safes for the highest level of security. The company is monitored in real time by Armanino LLP.

Points to remember

  • The non-fungible token (NFT) market has seen significant growth in recent years.
  • Nexo, a well-known cryptocurrency exchange and lending platform, now allows customers to use digital artworks as collateral.
  • Crypto Punks and Bored Ape Yacht Club NFT collections can be used as collateral on Nexo.
  • Nexo is known in the cryptocurrency industry for offering competitive rates; a typical NFT loan rate is between 12 and 15%.
  • Once you have refunded the credit, the platform will immediately transfer your NFT back to your account.
  • Nexo offers a custodial wallet that utilizes cold storage in military-grade Class III vaults to ensure maximum security for its users.

68% of retail investor accounts lose money when trading CFDs with this provider. You have to 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 crypto assets, all orders are opened as CFDs.

This article is presented to you in French in consultation with our partner crypto-academy.org

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