We have come to the exciting part of our mini-series, where we look at how anyone can use the Crypto.com App to stake and earn interest payments in cryptocurrencies over time.
Although staking and earning are very similar in the sense that they both allow the user to earn periodic rewards, they are fundamentally different. Before we begin, let’s get some definitions, terms and conditions out of the way first.
Staking vs Earn
Staking has been a keen topic in the last one year and is fast becoming a feature of many exchanges for a while now. Briefly, staking involves locking a certain amount of Proof-of-Stake cryptocurrency in a wallet to support the security and validate transactions on that blockchain network. Users or stakers are rewarded for committing the crypto in their wallet.
Another topic that has been getting a lot of attention these days is Decentralised Finance, or DeFi. DeFi Lending is a recent phenomenon in the cryptocurrency space that creates liquidity for loans to be made out to borrowers. Users provide their crypto to offer such lending, and interest payments from such loans are shared and distributed out to crypto users. These interest payments are made possible via Earn on the Crypto.com App.
Now that we understand the difference between Stake and Earn, let’s look at the inherent terms of Stake and Earn in the Crypto.com ecosystem.
A. Stake, Lock Period and Interest Rates
Staking on the Crypto.com App is only possible with Crypto.com Coin, or CRO.
STAKING CRO on Crypto.com App:
- Lock Period: 180 days
- Interest Rate: 16% per annum (at least 10,000 CRO staked)
18% per annum (at least 100,000 CRO staked)
- Payout: Weekly
- Minimum Amount: 1,000 CRO
The amount of CRO staked also determines which tiered CRO VISA Card you will receive from Crypto.com. The more CRO staked, the higher the tier of the debit card, the higher the cashback rewards and privileges, the higher the Earn interest rates (see Earn, Lock Period and Interest Rates below).
To view the card tiers and required CRO stake:
B. Earn, Lock Period and Interest Rates
EARN on Crypto.com App:
- Lock Period: Flexible, 1 month, 3 months
- Interest Rate: lower interest rates with 0 – 5,000 CRO staked
higher interest rates with 10,000 or more CRO staked
- Payout: Weekly
- Minimum Amount: Varies according to crypto being locked
To check the list of cryptocurrencies that can be locked for Earn, go to:
C. Staking on Crypto.com App
Before you can begin staking, you will need some CRO. The amount of CRO you will need will depend on which card tier you are applying for. Refer to Part 3 on how to buy CRO on the App.
For the example below, we will stake 100,000 CRO to obtain the Icy White VISA card. Note that the following procedure applies for other tiered cards and other CRO stake amounts.
To begin staking CRO:
D. Earn on Crypto.com App
For staking CRO and supporting the CRO network, Crypto.com reward users with higher interest rates on their Earn platform. Refer to Step B3 above to see how the interest rates change between 1,000 or less CRO staked, and 10,000 or more CRO staked.
You can lock any of the listed crypto on Earn and earn an interest return paid in the same crypto. Interest payments are deposited in the wallet every 7 days.
We will use the example of placing 1,000 XRP on Earn for 3 months to earn 3.5% per annum.
To begin Earn:
True Passive Returns
Stake or Earn, both methods yield true passive returns for the Crypto.com App user. The cryptocurrencies received can be traded at their current market values upon weekly payout, or they can be retained to be sold at a higher future price.
To check the Earn payouts for the XRP placed in Earn above:
NOTE: The Earn APR interest was converted from 3.5% in D8 to 5.5% in E4 above after 10,000 CRO was staked on the Crypto.com App. Note that staking 10,000 or more CRO activates a higher APR rate on the Earn platform and takes effect from the date of staking even for cryptocurrencies that are already currently on Earn.
You can also view your crypto interest payouts in Main Menu > Wallet and then select the crypto.
One quickly sees that Stake and Earn is really a two-tier profit gain – accumulate additional quantities of crypto, and then gain capital appreciation on both principal and paid interest crypto on the day of cashing out either via the card or on the Exchange.
Crypto Dust Conversion
If you have used Binance, you may be familiar with the Convert to BNB feature. On the Crypto.com App, small amounts of crypto less than 0.003 BTC in value, aptly termed Crypto Dust, can be converted to the native CRO token for spending. If you use CRO on the Visa debit card, this is a useful feature.
We will convert ETH, BCH and BAT crypto dust to CRO in the following example.
To convert your Crypto Dust:
In Part 5. Crypto.com – Quick Start, we wrap up everything we have discussed in the last 4 parts and outline what we did to capitalise on the Crypto.com App and Exchange for maximum profits and earnings.