The Easy CryptoBooster offers a quick and user-friendly
way to execute leveraged crypto purchases on the Easy
CryptoExchange with up to $250,000 per single booster
transaction – with no limit on the number of transactions
you could make.
In effect, Easy Cryptouses your existing crypto holdings,
or such converted into your selected “Receive currency”,
plus the newly-acquired asset as collateral to give a
crypto-backed credit to finance the acquisition.
You can execute a booster using a single asset or
different assets.
Boosts 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.
Boosts with two assets
Boost a
cryptocurrency from 1.25x to 3x its value and receive the
boosted equivalent in another cryptocurrency. Example:
Boost BTC to get ETH.
The whole Booster flow is intuitive and user-friendly. All
you have to do to boost your assets is:
-
Open the Easy Cryptoapp, click on the Exchange tab and
choose the ‘Booster’ option.
-
Select the currency you want to leverage against, the
leverage percentage (from 1.25x up to 3x) and the
asset you want to acquire.
-
Click on “Profit Projection” – a handy tool that lets
you see your potential earnings by projecting possible
price movements of your boosted asset.
-
Tap “Exchange” and you’re done. The newly-acquired
assets will be added to your Credit Line Wallet as
collateral for your booster transaction.
-
Once you repay the outstanding crypto credit, you get
to retain the difference between the sale price of the
assets you borrowed and your original investment.
Note: You can use crypto,
stablecoins, USDx, EURx, and GBPx for the “Pay with”
currency, but you cannot select any fiat or stablecoins
for your “Receive” currency. The Easy CryptoToken is
excluded from the Easy CryptoBooster altogether – you
cannot pay with or receive NEXO.
Fees for the Easy CryptoBooster are factored into your
outstanding credit and constitute a percentage of the
value of the additional assets we purchase in your name.
There are three different fee tiers based on the LTV of
your booster transaction:
-
Up to 50% LTV: 1% Booster fee
-
50-60% LTV: 2% Booster fee
-
60-70% LTV: 3% Booster fee
The Booster LTV is calculated as the ratio between your
outstanding credit and the value of the collateral used
for the transaction.
Keep in mind that you can use the Easy
CryptoBooster even if your Credit Line LTV is above 70% – for example if you've taken out a crypto credit
in stablecoins with 90% LTV.
Example
Let's say you want to boost $1,000 worth of Ethereum
and you want to purchase more ETH. This is a single
asset boost but the same principles from this example
apply to dual asset boosts with the difference that the
asset you receive will be different than the one you
start off with and there is one extra exchange
transaction in the background of your boost.
In this example, let’s say you want to boost your 1,000
USD worth of ETH to the factor of 2. Here’s a breakdown
of what you’d get after finalizing your boost:
Initial assets: $1,000 in ETH
-
Outstanding credit: $1019.99 (the extra $1,000 for the
2x boost, plus a 2% fee)
Loan-to-value: ~ 51%
-
Assets Collateralized from the Boost: $2,000 in ETH*
So post-boosting, you end up with $2,000 in Ethereum
collateralized in your Credit Line Wallet and a credit
of $1019.99 to pay off – this last sum is what you’ll
accrue interest on. You can then repay the credit once
ETH reaches your price target and benefit from the price
growth.
Note: Needless to say, the market
never moves in a single direction. Similarly, as a
leverage product, the Easy CryptoBooster can work in both
ways – it amplifies your gains when the chosen asset
appreciates, yet magnifies the losses when prices fall. In
order to make an educated decision, you need to have a
thorough understanding of how the loan-to-value (LTV)
ratio and price-based margin calls and liquidations work.
For further details visit our Help Center.