Interest Rates Are Dropping! This Is What I Do About It

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Disclaimer: I am not a financial advisor. This video, and the ideas presented in it, are for entertainment/educational purposes only and should not be construed as financial or legal advice. You, and only you, are responsible for your investment decisions. This video, post & article should not be construed as investment advice. Capital at risk.
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In this video, I’ll show you how to earn passive income through Nexo by earning interest on both stablecoins like USDT and Bitcoin. With traditional fiat interest rates dropping, crypto interest is becoming even more attractive for regular income. I’ll walk you through my personal strategy on Nexo, the risks to consider (such as platform and stablecoin risks), and why I’m comfortable placing a portion of my funds here. Watch to learn how I leverage Nexo to boost my crypto earnings and passive income.

[@SmartMoneywithKai]

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[@SepehrDev]

using such centralized crypto exchanges for earning interest is a significant risk. learn from past failures like FTX and invest only what you can afford to lose. Im saying even seemingly stable exchanges can face bankruptcy & hacks, or regulatory issues.

[@guycocker]

Agreed. Please don't hold your crypto (including stablecoins) on an exchange. You have absolutely no protection if they go under, which they do with alarming regularity. As Kai says in the video: "16% [APY] is almost quite crazy when you think about it." You might even call it...too good to be true? If you believe in crypto, then you probably believe its growth is going to far exceed 16% per year. So why take the risk of losing it all by holding it on an exchange just to chase a relatively paltry interest payment? Just dollar cost average into your coin of choice, hold it on a cold storage wallet, and sleep at night knowing you might not lose it all because another exchange goes under. As with all things financial: keep it simple, stupid.

[@SmartMoneywithKai]

100% agreed mate but ultimately everything is risk vs reward. For some Bitcoin is too risky. For some Real Estate. This just is yet another option to earn interest, I don’t expect it to grow but pay me interest on part of my emergency fund holdings well knowing that it is at a higher risk but at 13-16% I am ok with it. Majority I will of course continue to keep on my Ledger 👌 Thanks for watching and sharing your thoughts 🙌 Cheers

[@SmartMoneywithKai]

Fully agree with you hence I mentioned it multiple times that it does involve risk and it’s ultimately up to each person to decide with how much risk they feel comfortable but definitely putting all your money there would not be a smart move for sure 👌

[@redaalzeer8656]

Hey Kai, awesome video! Nexo is definitely my go-to crypto exchange as well! I’m curious, how do you handle organizing taxes across all the different platforms you use?

[@SmartMoneywithKai]

Thanks a lot, great to hear 🙌 Great question, in the past would just pull end of year tax forms which most of those platforms provide and you submit it to your tax authorities and they calculate the taxable amount. Now, I am a UAE tax resident so luckily now no more taxes 🙏 Cheers mate

[@redaalzeer8656]

@@SmartMoneywithKai But since you verified your Nexo account in Europe, aren't you require to use it with European banks? (It's also not available in UAE). How could you verify your identity with a European ID then pay taxes in UAE?

[@SmartMoneywithKai]

I opened it when I used to live in EU but now I am no more.

[@veo7097]

I use Nexo since 2 years, but ngl i am afraid losing it all every day. :D

[@SmartMoneywithKai]

😂 I feel you on that 😉👌

[@rein2523]

I wonder if it's even been rewarding to get paid in NEXO and to hold part of it as the value of this coin is dropping

[@SmartMoneywithKai]

I get where you’re coming from. Getting paid in NEXO can feel rewarding, especially if you’re earning good interest on it. But if the value keeps dropping, it can wipe out those gains. It’s a bit of a balancing act. I’d say, if you’re worried about the price going down too much, maybe hold less of it and move some into more stable assets. That way, you’re still earning but not risking as much if NEXO keeps losing value. Cheers

[@BobDoe_69]

Seems like we are both in the same boat, mid 4 figures amount kept for 6 months expenses without a home to earn some interest. Tough to find any crypot options in the Uk right now, its all illegal pretty much

[@SmartMoneywithKai]

Hi and yes, heard the UK has been cracking down quite a bit on all those good crypto platforms which is a shame, hopefully eventually they will change their stance and let more players in. I think you can use Coinbase in the UK, they do offer some decent interest as well 👌

[@John-ju8kp]

Hi Kai great video. I love Nexo and I am surprised that you haven't got more money invested there! One thing to note is the spread that Nexo charges of approximately 1% on euros to usdt and usdt to euros. Worth noting.

[@SmartMoneywithKai]

Thanks for the support and for the insight on Nexo. I agree, Nexo has some great features, but I like to stay diversified across different platforms. That 1% spread on euros to USDT and back is definitely something to watch out for, as it can add up if you’re moving money frequently. Appreciate you pointing that out. Cheers 👋

[@rein2523]

Any better tricks to get usdt on Nexo from euro with less fees?

[@SmartMoneywithKai]

You could buy it on another exchange and then send it to Nexo but then you will pay transfer fees so in the end I guess will be similar.

[@nicolasdemeyere5032]

Hey Kai, I love your content, but I think your blinded by the yield this time. This smells like a classic crypto yield scam. Whenever higher then market yields, tokens and locking your crypto is mentioned, this should raise major red flags. Most probably the high yield is coming from the crypto investors that are coming in. Then that stops and your tokens/ interest gets lowered, but your crypto is stuck. Most of us have been there and lost some money. Loads of examples like Pluto, etc Keep pushing out your content though, please :)

[@SmartMoneywithKai]

Thanks a lot and good point. I agree-high yields should always make you cautious. What I like about Nexo is that you don’t have to lock up your funds, so you stay flexible and can withdraw anytime, which is what I recommend for most users. You also don’t need to use Nexo tokens, so you can stay on the base level, avoiding being trapped in the system. Nexo has been paying these high interest rates for years, even during the FTX collapse, so I don’t think it’s a pyramid scheme. Their strong collateralization is reassuring. While I wouldn’t do this in a bear market, the current situation makes me comfortable with the risk. That said, it’s not for everyone, and that’s perfectly fine-it’s just one option for generating additional interest income. Cheers

[@DungeonMasterGod]

What I find critical here is explaining where the money comes from, and you only mentioned it in less than two seconds. If you cannot answer it in detail it most likely is a pyramidal scheme and you will lose everything eventually. That's my opinion.

[@SmartMoneywithKai]

Thanks for your comment. It’s a valid concern, and transparency is key. Nexo generates interest by lending out the crypto that users deposit, often to institutions or individuals who post collateral to secure the loans. This is a common practice in traditional finance, and not a pyramid scheme. That said, there are always risks in any investment, especially in crypto. Diversification and understanding those risks are essential. I’m sharing what works for me, but everyone should do their own research before investing. Cheers

[@DungeonMasterGod]

@@SmartMoneywithKai True. I wished I would know in detail who is taking the loans and how, so I could learn the risks involved. Thank you for your great great videos! Love them. Keep it up!

[@SmartMoneywithKai]

Great point, and I totally understand the need for more clarity on this, I would wish for the same 💯 Hopefully Nexo will come out with more details on that in the future. Thanks for your support-glad you enjoy the videos 🙌

[@tharg330]

Those interest rates are very tempting, but as you mentioned, there are exchange risks and there is USDT linkage risk. Tether has refused audits so nobody knows if they have the USD cash to back up the peg to the USD. As the old saying goes - not your keys not your coin. When you hand over crypto to an exchange they own your keys, and they own your coin.