Author: Dóra Winkler
Publication date: 04.09.2024
In this constantly evolving word of cryptocurrency, investors can hardly follow, which ones have the most growth potential. Among the countless options, there is NEXO, a digital assets institution. Even though NEXO gained a lot of attention lately, the question still arises: Is NEXO cryptocurrency a good investment?
What is NEXO exactly?
Nexo is a London-based digital assets institution, operating since 2018. The company’s main goal is to make crypto easily accessible for everyone. Although they offer their services primarily for businesses, through their website everyone can easily access the market of cryptocurrency, and make investments. As the company supports various cryptocurrencies, it has its own one which is also called NEXO.
What NEXO offers to investors
NEXO as a digital assets institution offers various options for investment, which means that everybody can make their own portfolio the way they want. This includes investing in one or more cryptocurrencies.
NEXO also provides top-tier insurance for it’s customers in partnership with Ledger, Fireblocks and other partners. The company insures it’s customers crypto assets via storing them in various geographical locations, making it hard for outside parties to find, but also keeping the access for the customers flexible.
● Ledger Vault: Ledger Vault stores crypto assets at a safe place, while offering easy and flexible access to them at all times. Ledger Vault has one of the safest hardwares to store your crypto, as it has never been hacked since the founding of the company in 2015.
● Fireblocks: With Ledger Vault storing the crypto at various different places, NEXO needs something to let customers manage their assets easily at one place. That’s what Fireblocks offers. Fireblocks helps customers have an easy overview of their assets.
NEXO cryptocurrency
Making an investment should always be a well thought out decision. There are many factors that investors need to consider before investing in any cryptocurrency. Lets see those factors and how NEXO cryptocurrency performs.
Growth and adoption:
Since the foundation of NEXO it is growing rapidly and continuously, therefore the adoption of both the NEXO platform and the NEXO cryptocurrency is positive.
Staking benefits:
Having NEXO token offers customers higher interest rates and reduces interest rates on loans.
Crypto market volatility:
NEXO token, like every cryptocurrency is highly influenced by the crypto market. Since the market is highly volatile, the value of NEXO token also has its ups and downs.
Investment risk:
Every investment comes with a risk that can be lower or higher. These risks most of the time come from market volatility, regulatory risks, and potential competition. Investing in NEXO token carries some unpredictable risks. However diversifying your portfolio can lower the risks and the NEXO platform offers a solution for diversification as well.
Risks of investing in NEXO
The biggest risk behind a crypto investment is always the volatility of the market, and its unpredictability. Currently the global crypto market cap is increasing, but the total crypto market volume is decreasing. The decrease or increase in most cryptocurrencies' value moves together.
Another potential risk is the regulatory risk that comes with the changing of the law or with other legal actions. This risk is different in every part of the world, since every country has its own laws, and can negatively impact NEXO’s operation, and the value of its cryptocurrency.
Despite these and many other risks, investing in NEXO tokens has many benefits. One of them is obviously the interest that comes with an investment. If the crypto market is growing, investors can get great interest after their investments. Since NEXO’s platform shows continuous growth experts predict that NEXO tokens price will be growing a significant amount by 2025 and even more in the long-term.
Should you invest in NEXO cryptocurrency?
In conclusion investing in NEXO token comes with its risks, that everybody should evaluate before deciding to invest. However if you believe in the long-term growth of the NEXO platform and the NEXO cryptocurrency, as well as their ability to maintain this growth in the future, it can be a good investment.
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