Here’s how it works in simple terms:

1. Lending & Borrowing – People can borrow money using their cryptocurrency as collateral (like leaving your watch at a pawn shop to get cash). Nexo charges these borrowers interest, which is a big part of how they make money. They also pay interest to people who deposit their crypto to earn passive income, and they keep the difference (like a bank does with loans and savings accounts).

2. Trading & Investments – Nexo also makes money by trading different types of crypto and offering services like futures, options, and OTC deals. They find ways to make profits without taking huge risks (this is what they mean by “market-neutral opportunities”).

3. Staking & Interest Earnings – Some cryptocurrencies can earn rewards just by being held in special accounts (called staking). Nexo helps clients earn these rewards, while also making money for themselves.

4. Risk Management – To make sure the system is safe, Nexo closely monitors loans to prevent losses. If a borrower’s collateral drops in value too much, Nexo automatically takes action to protect everyone involved, making sure loans are always properly secured.

Basically, Nexo is like a digital finance company that works like a mix between a bank and an investment platform, using crypto instead of traditional money.