Over the last couple of weeks I have been trying to understand cryptocurrency, what is it and what is its future. While there is still a hell of a lot I still don’t know and understand, the general idea is that I should not ignore it. While I don’t think cryptocurrencies such as Bitcoin, Ethereum etc are going to completely replace our current currencies around the world, they could act as legitimate value assets and facilitate transactions.
It is thought that some cryptocurrencies such as Bitcoin could act as a store of value as they are due to have or have a finite volume. This means that there is only a specific number of coin in circulation or that can be mined, therefore, the value of the coin cannot be debased by inflation like common fiat currencies. Additionally, utility tokens are tokens that when you hold them give you access to services supported by that block chain, so the more people that use it the greater the value.
What is crypto.com?
Crypto.com is a platform that provides a range of services to facilitate a crypto / fiat financial services. It has an exchange platform so you can buy and sell different cryptocurrencies, an earn function where you can earn interest on a range of currencies and a visa debit card scheme. Crypto.com also has investment and loan services so all in all it is like an intermediary bank bridging the crypto / fiat divide.
The debit card
This is a really exciting part of the crypto.com platform, it offers a Visa debit card that you can fund with cryptocurrency. Plus it comes with some incredible rewards depending on which card you get. Depending on what card you get (there are 5 tiers) you can get up to 5% cash back on purchases paid is Monico (MCO) to your wallet. Also as the second and third tier cards offer 100% cash back on Spotify and Nexflix with the forth tier giving 100% cash back on Amazon Prime.
The first tier card is free but in order to get the other higher tiers and the rewards you have to stake a certain amount of MCO tokens for at least 6 months. So if you wanted the second tier card you would need to stake 50 MCO (£221.74*) which would give you 2% cash back and 100% back on Spotify. You still own the MCO and can withdraw it at any time, but may lose the benefits if you do.
*at time of writing
Earn up to 18% interest
The earn part of crypto.com is personally my favorite. It allows you to save and earn interest on your cryptocurrency on either a flexible, 1 month or 3 month basis. The interest you earn is paid to your every 7 days in the currency you are saving in. If you stake 500 or more MCO you can get access to higher interest rates, but even without staking you can make amazing gains.
Crypto.com offers up to 6% pa on supported coins (Bitcoin, Litecoin etc) and up to 10% on stable coins (TGBP, TUSD etc). But if you save using crypto.com’s own utility token, CRO, you can get up to a massive 16% interest. While this sounds too good to be true, I currently have 5,000 CRO earning me 14% pa interest on a 1 month term and am being paid the interest every 7 days.
What I will caution you on though is that the value of the coin you save in can still fluctuate during your saving period. So if the value of CRO, for example, falls so too will your locked away savings. But that should not stop you in my opinion as you have to option to saving in stable coins. Stable coins such as TrueGBP (TGBP) are crypto coins that have a 1 to 1 parity of fiat currency they are mirroring. So 1 TGBP is worth £1. If you are worried about the value of your saving fluctuating relative to your national currency, you can save in crypto GBP, USD, CAD and AUD.
So if you save 200 TGBP for 3 months at 10% pa you will revive 0.38 TGBP every 7 days, or 4.88 TGBP (£4.88) total over 3 months (90 days). I challenge you to find a bank that will offer that level of interest to savers.
I think that crypto.com has a bright future with products that have great real life application and rewards. I will continue to use them for the foreseeable future.
None of the content in this article should be considered financial advice, I am not a financial advisor and you should always do your own research prior to investing. These are my opinions only.