Following from our previous article, we’re here again with a double-dose of Why Nexo. In this edition, we explore the incredibly exciting topics of consolidating your debt and minimizing your taxes with the Instant Crypto Credit Lines™. Because who isn't moved by discussions of taxes and debt?
Jokes aside, this topic is really worth your while if you’re keen on saving.
Shrink Your Taxes
No, we don’t mean sending your taxes (or accountant) to therapy.
The Instant Crypto Credit Lines™ are much more tax-efficient compared to selling your crypto and pocketing the profits. This is because the profit of selling digital assets is taxable – it is, essentially, income. In contrast, cashing in on your crypto by using it as collateral for a credit line does not qualify as income, because you accrue interest on a loan, rather than make a profit.
This approach is not unique to crypto. It has been tried and tested over the years and is integral to the billionaire’s approach: borrowing against your wеаlth to make more investments and cover costs, while decreasing your taxes. So in true “fake it till you make it” spirit, try aiming high and borrowing against your crypto rather than selling it.
Decrease Your Long-Term Debt
If you have debt that’s slowly amassing interest while you work it off, naturally, you want to repay it as soon as possible and pay less in the long-run. You can do just that with the Instant Crypto Credit Lines™.
It sounds simple, and it really is. The interest rate on loans is, on average, in the ballpark of 10% and may sometimes be as high as 36% for individuals with weaker credit scores.
In contrast, Nexo offers an APR starting from just 0% and never exceeding 13.9%. Our rates are based on the amount of NEXO Tokens each client holds in their account, which allows us to eliminate credit scores as a criterion for APR rates (#CreditScoreNoMore!). It, therefore, makes much more sense to extinguish any traditional, high-interest loans using the Instant Crypto Credit Lines™ as, over time, you will pay less interest.
Even better, with Nexo, you don’t need to commit to monthly repayments or deadlines and are free to repay your credit at any time at no cost other than the accrued interest. In the meantime, should your crypto rise in value, its higher price can cover or even exceed your accrued interest, thus helping repay your credit and bringing you extra profit.