Crypto.com, formerly known as Monaco, is a cryptocurrency platform that allows its users to buy, sell, trade and stack crypto. Crypto.com has a growing number of services with two services focused on investment: the Supercharge and Earn.
Note: This article is brought to you by Crypto.com. Cryptocurrency investments carry an inherent risk. Do your own research and never invest more than you can afford to lose. This article does not constitute an incentive to invest.
Since 2018 the concept of staking has become one of the most important factors when comparing different cryptocurrency platforms. In fact, some platforms, like Celsius, have moved to staking completely and no longer specialise in trading.
A number of companies have therefore started offering staking services to their users. For instance, Binance came out with an impressive selection of flexible, locked or even Ethereum 2.0 staking opportunities, some of them for an indefinite period.
This is where Crypto.com’s Earn feature comes into the picture. In fact, everything always depends on the profit percentage, and many hodlers see staking as a unique way to ensure passive income, and even increase the amount of cryptocurrency without actually putting any more fiat in.
With Crypto.com’s Earn, it is currently possible to stake more than 40 cryptocurrencies, which is far superior to some competitors like Blockfi or Nexo.
How staking works on Crypto.com Earn
In order to stake via Earn you need an account on Crypto.com. Once it is created and funded with Fiat or crypto by transfer or a direct purchase through the platform, it is possible to stake your coins.
There are 4 parameters that influence the return rate:
- The type of cryptocurrency
- The amount of coins in USD value
- The staking period
- And most importantly, how much CRO (Crypto.com token) in USD value you have on your account.
As a matter of fact, the more CRO you have, the higher the return rate is. It can reach up to 14.5%, which is much higher compared to 4-8% on the majority of competing sites.
To explain it further, we’ll look at several scenarios to see the impact of each factor on the return rate:
a. Stake Bitcoin (BTC) for a short and flexible period without CRO
If we deposit US $2,000 worth of Bitcoin for a flexible period with 0 CRO, we’ll enjoy a rate of 1.5% per year or 30 dollars a year which is $0.58 per week. A rate quite close to that of other staking offers on the market, or even better than some — like Nexo.
b. Stake Ethereum (ETH) for a medium period with $4,000 dollars worth of CRO
If we deposit $2000 worth of ETH for a period of three months with $4,000 in CRO, we get a rate of 6.5% per year, or $130, which is $2.50 per week. A rate already well above the average.
c. Stablecoin (SBC) deposit for a medium period with $4,000 worth of CRO
If we deposit $2,000 in a stablecoin, for a period of three months with $4,000 in CRO, we get an annual rate of 12%, or $240 per year, which is $4.62 per week. An extremely high rate, which will rise to 14% if we also stake more than $40,000 worth of CRO.
We understand therefore that Earn becomes an extremely competitive option for staking your crypto, and especially its stablecoin offering, which guarantees near zero volatility, something that can’t be said about Bitcoin and other speculative altcoins. If we compare the rates offered by banks with their traditional savings accounts, the difference is staggering. In addition, there are a lot of options for stablecoin staking, including TrueAUD, TrueGBP and TrueCAD.
How staking CRO boosts APY on Earn
When you want to stake CRO on Crypto.com, you usually have to do it for a period of 6 months, which may seem like a disadvantage. However, Crypto.com has managed to turn this restriction into an advantage.
Essentially, after a certain period, the user becomes eligible for the Crypto.com Visa cards. These cards are usable everywhere and, unlike the vast majority of banks, offer a cashback of 2% or more. This cashback is immediately paid into your crypto.com account in the form of CRO and can be used directly.
It is therefore very useful to consider Crypto.com Earn and Visa Cards as two complementary products, as staking more CRO both helps make a higher profit and get a useful crypto bank card, which is delivered for free, making all these services far superior to any bank offer, including some premium ones. The Crypto.com card can even get you a place in an airport lounge for free — something that is unimaginable in traditional finance.
Earn is different from Supercharger. Similarly to Earn, Supercharger is a financing tool that uses crypto, but Supercharger is temporary and focuses on cryptocurrencies that don’t have staking.
With Earn, a user is guaranteed to get profits from cryptocurrency staking, and it is even possible to get an extra 2% stake bonus in CRO when a user stakes more than $40,000 worth of the token.
The Earn feature of Crypto.com is therefore the ultimate tool for all hodlers, allowing them to steadily grow their crypto holdings through a high return that can also be conveniently spent with the Crypto.com card — without having to do numerous transfers between exchanges, payment gateways and traditional banking services.
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