Ways you can use the Nexo Booster
In this article, Nexo will cover the ways you can use the Nexo Booster:
- Boosters with two assets
- Boosters with a single asset
- Setting up Take profit and Stop loss exit conditions for Booster orders
- Important notes
1. Boosters with two assets
Select your input cryptocurrency, the desired scale of magnification (from 1.5x to 3x), and the asset you wish to receive. The input currency (boosted) amount will be exchanged for the selected output asset.
For example, you can boost ETH to get BTC. To better illustrate this, here are the specifics:
- BTC price: $20,000, ETH price: $2,000.
- You set the Pay With amount to 10 ETH and the scale of magnification to 2x and choose BTC as the Receive currency.
Therefore, the initial value of your 10 ETH will be $2,000 x 10 = $20,000. By boosting it with 2x magnification, you will double the input value: $20,000 x 2 = $40,000.
Your initial ETH balance covers half of the boosted amount, and the remaining $20,000 will be sourced as a loan. As a result of this Booster transaction, you will receive $40,000 in BTC (or 2 BTC in this example), which will be immediately collateralized to back the borrowed amount of $20,000.
Assuming there is no other collateral in your Credit Line Wallet, the After purchase page will show a Loan-To-Value ratio of 51% and Borrowed funds of $20,400 ($20,000 loan + 2% booster fee of $400).
2. Boosters with a single asset
Select your input cryptocurrency and boost its value from 1.5x to 3x. Receive the boosted amount in the same cryptocurrency.
For example, you can boost BTC and get more BTC. To better illustrate this, here are the specifics:
- BTC price: $20,000.
- Suppose you set the Pay With amount to 1 BTC and the scale of magnification to 2x and choose BTC as the Receive currency.
Therefore, the initial value of your 1 BTC will be $20,000. By boosting it with 2x magnification, you will double its value: $20,000 x 2 = $40,000.
Your initial BTC balance covers half of the boosted amount, and the remaining $20,000 will be sourced as a loan. As a result of this Booster transaction, you will receive $40,000 in BTC (or 2 BTC in this example), which will be immediately collateralized to back the borrowed amount of $20,000.
Assuming there is no other collateral in your Credit Line Wallet, the After purchase page will show a Loan-To-Value ratio of 51% and Borrowed funds of $20,400 ($20,000 loan + 2% booster fee of $400).
For detailed information about the Nexo Booster, please visit the dedicated article.
3. Setting up Take profit and Stop loss exit conditions for Booster orders
With the Nexo Booster, you can confidently set your exit strategies from the comfort of the Nexo app. You can choose your ideal profit target using a Take profit (TP) order or lower your potential losses using a Stop loss (SL) order.
Understanding Take Profit and Stop Loss orders
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Take Profit (TP): A TP order automatically sells the asset you acquired when the target price is reached, enabling you to exit with a profit without constant market monitoring.
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Stop Loss (SL): An SL order automatically sells the asset you acquired when the target price is reached, helping to minimize potential losses during unfavorable market conditions.
Note: Take profit and Stop loss orders are only available for Booster orders where the Pay with asset is a stablecoin. Learn more here.
4. Important notes
- Currently excluded from Nexo’s Nexo Booster product per the Nexo Earn Interest Product General Terms and Conditions and the Nexo Exchange Service General Terms and Conditions, as amended on occasion, are citizens or residents of Bulgaria, the United States of America, Canada, and Australia, as well as of other jurisdictions subject to certain limitations or restrictions as may be applicable at times.
- Residents of EEA countries cannot select USDT as the Pay With currency for the Nexo Booster.
- Setting Take profit and Stop loss orders for Booster pairs is unavailable to residents of the United Kingdom.
Ways you can use the Nexo Booster
There are two ways you can use the Nexo Booster:
-
Boosters with two assets
Boost a cryptocurrency from 1.25x to 3x its value, and receive the boosted equivalent in another cryptocurrency.
Example: Boost ETH to get BTC.
Detailed example:
BTC price: $40,000, ETH price: $4,000
You select to receive BTC with 3x leverage and decide to pay with 10 ETH of your own. These 10 ETH worth $40,000 you put forth are sold for 1 BTC. For the remaining 2 BTC, we issue you with a loan for $80,000 sourced from your Available Credit Line. As a result, you receive $120,000 in BTC which in this example is 3 BTC. The “After Purchase” page will show an LTV ratio of 68.66% and Borrowed Funds of $82,400 ($80,000 loan + $2,400 booster fee).
-
Boosters with a single asset
Boost a cryptocurrency from 1.25x to 3x its value, and receive the boosted equivalent in the same asset.
Example: Boost BTC and get more BTC.
Detailed example:
BTC price: $40,000
You select to receive BTC with 3x leverage and pay with BTC of your own. The 1 BTC you put forth is evaluated at $40,000 and then we issue you with a loan for $80,000 sourced from your Available Credit Line. As a result, you receive $120,000 in BTC which in this example is 3 BTC. The “After Purchase” page will show an LTV ratio of 68.66% and Borrowed Funds of $82,400 ($80,000 loan + $2,400 booster fee).
For detailed information concerning the Nexo Booster, please refer to the dedicated article.