🔒 How to Make Big Money with "NewBanks"

Today we would like to introduce you to the world of “NewBanks”. It is one of the biggest discoveries that we surely made last year. These are banks that allow you to get a 6-8% return compared to the 0.02% of the “OldBanks”.

NewBanks like Voyager, BlockFi, and Nexo have achieved this.

How do these NewBanks work?

From now on, I will talk to you from Nexo’s perspective. One of the most innovative projects and with which you can build a portfolio to generate wealth for the next generations.

These are banks in which you use your crypto as collateral, and you don’t have to get rid of them to meet your daily expenses. An OldBank would give you a credit card and charge you interest for all the money it advances you. In this case, it is very similar, but you can get up to a 12% return on the FIAT money you keep in your account.

This concept is totally groundbreaking. Imagine that a person deposits all his savings in this type of account. At the end of one year, he/she has $50k in expenses. With Nexo, you can get an interest rate of 0-5.9%. Taking into account that the Anchor protocol can give you up to 15% of your savings.

You could be earning about $4.5k a year, which is a 10% discount on your spending over a year.

In addition, these types of cards give cashback for using them, which could mean an additional +2%.

As if that were not enough, they also give a dividend, but we will leave that for later.

So the process used by these NewBanks is as follows:

1. People store both their FIAT money and crypto in their portfolios.
2. People get interest on their holdings.
3. People use this card for their day-to-day life, and it generates a line of credit for them. Using their tokens as collateral.
4. This line of credit has an interest rate between 0-12%.
5. People are free to decide when they want to close the line of credit.

I think it is simply how these NewBanks work. Unlike the OldBanks, everybody wins, and there is no possibility of borrowing money that does not exist (Bank of America is only obliged to keep 10% of the clients’ money in reserves).

Is Lending Safe?

The assets are over-collateralized. This means that they are 90% collateralized in the case of stablecoins, or 50% in ETH and BTC. This implies that in the case of having $10k in BTC, you could not borrow more than $5k. In the event that you had borrowed that loan and the value of BTC dropped to $8k, at that point you would be sold $1.3k in BTC (Approx) to meet your debt. All in Real-Time.

In addition, the platform has several triggers that announce to you that this limit is about to occur.

One of the recommendations we prefer to make is the following. In case you want to use these NewBanks for all your daily expenses, have a good backup of stablecoins or even FIAT money. It is also advisable to re-pay the debt at least once every two months.

Obviously, having the money in a cold wallet is much safer, but the return we can get here is significantly better.

If you have never made a return on your investments, this tool is for you. I’ll tell you why?