- The native token, CRO, gives a variety of rewards to its users for staking.
- Anyone who has an account with Crypto.com can access the opportunity to generate passive income with the token.
- A user can get up to 10% APY for staking CRO tokens.
Crypto.com is a crypto exchange that has gained great popularity all over the world. In fact, anyone who is a fan of football or Formula 1, for example, has probably read the name of this crypto exchange more than once.
Crypto.com has become impossible to ignore! By February 2021, the crypto exchange had already surpassed the 10 million users.
Like other crypto exchanges, Crypto.com offers its users advantages when using its native token, CRO and particularly Those who store the token will be able to earn passive income from it, so anyone who has an account at Crypto.com can access the opportunity to generate passive income with the token. But before exploring the various options to do so, it is essential to understand the token and how to acquire it.
CRO and the Cronos blockchain
CRO is an ERC-20 token on the Ethereum blockchain, which provides access to various benefits within the crypto exchange ecosystem. But, beyond that, CRO is used as fuel for Crypto.com’s new blockchain, Cronos, therefore, anyone who interacts with the decentralized applications created in Cronos must pay commissions in CRO.
It is important to note that, according to Yahoo Finance, Cronos Chain plans to close 2022 in the top 5 of public blockchains by TVL. In this waythose who wish to invest in the future of this crypto exchanges must acquire the CRO token to later be able to generate passive income.
Unsurprisingly, the best place to buy CRO is in the Crypto.com app itself. However, since the token has become one of the main crypto assets available, it is also possible to purchase CRO on other crypto exchanges such as Coinbase.
Availability of Crypto.com
One thing to keep in mind is that Crypto.com is not available worldwide. According to its website, for example, its Visa card is available for Asia, the United States, the European Union and Canada and in August 2021, announced the integration of 37 new countries, including Mexico, allowing the transfer of USD from their bank accounts to the platform.
However, for example, the Crypto.com platform is not available to users located in Venezuela.
How to earn passive income with CRO?
CRO staking
Crypto.com has a DeFi (Decentralized Finance) wallet, where users can store tokens and access DeFi projects. Let’s remember that CRO is used on the Cronos blockchain which uses Proof of Stake consensus and as such the CRO token is used to support the network.
Users can support the network by staking CRO at a validator of their choice and passively earn interest from those tokens. It is necessary to keep in mind that the price of the token is currently $0.42 US dollars.
In this way, the APY will depend on the type of staking that the user performs and, therefore, on the time and amount of CRO that they block. The available options are:
- Flexible Participation: It requires a minimum of 500 CRO and offers a 2% APY.
- 1 month participation: That is, for one month, your CRO tokens will be locked. Minimum is 500 CRO and offers 4% APY
- 3 month participation: Again, the minimum is 500 CRO and offers a 6% APY.
- Supercharger: This option requires a minimum stake of 100 CRO which can be withdrawn at any time. However, the peculiarity is that the rewards are not granted in CRO. Also, yields are variable. Generally, this option is recommended for those who want to diversify their wallet with small amounts of different tokens. But it is not the ideal option if the user wants to bet on the future of CRO.
The above options are for the Crypto.com Wallet App. Is necessary to take into account what, the App Wallet is the Crypto.com custodial wallet, while the Crypto.com Wallet is the non-custodial wallet, that is, it is decentralized and the user has full control over their cryptocurrencies.
Bearing in mind the previous paragraph, below are the Options available for staking CRO on the Crypto.com Wallet.
- soft staking: It is a recent way to earn rewards by simply maintaining a balance in the wallet of the crypto exchange. Requires 1,350 CRO minimum with 2% APY.
- 6 month staking: Requires 5,000 CRO minimum and offers 10% APY + some crypto exchange profits.
Clearly, the APY obtained by staking for 6 months in the Crypto.com DeFi wallet is superior to the rest of the options. However, there are some considerations to take into account.
Specifically, the 28-day period you must wait to receive your funds once you decide to stop staking on the network. It is necessary to remember that staking is a process to maintain the network and therefore this lock-up period is intended to prevent people from constantly moving their CRO, which would make the network unusable.
Why is it necessary to take into account this period of 28 days? Well, because in the crypto market that number of days can be eternal, especially when volatility is taken into account.
Refund
Crypto.com offers refunds through your visa card. In this sense, anyone who has an account in the crypto exchange and is in the approved geographical areas can request this Visa prepaid card.
However, there are different types of cards offered by Crypto.com:
- Midnight Blue: Offers 1% cash back on CRO.
- Ruby Steel: Offers 2% cash back on CRO
- Royal Indigo & Jade Green: Offers 3% cash back in CRO.
- Frosted Rose Gold & Icy White: Offers 5% cash back in CRO.
- Obsidian: Offers 8% cashback on CRO.
Probably the most common question is: What do I need to get each of these cards? Well, the easiest to obtain is the Midnight Blue, since the user does not have to stake CRO to obtain it.
For any of the other cards, users will need to stake CRO for 6 months. The amount of CRO blocked will depend on the type of card. For example, Ruby Steel requires the user to lock a stake equal to US$400 in CRO while Obsidian requires a stake of US$400,000.
Below is the table of the benefits offered by each of the Crypto.com cards:
Once again, the staking period is essential because holding a cryptocurrency for six months can result in losses if the market enters a bearish period.
Therefore, the user must make calculations to determine if recovering 1% or 2% of the total of their expenses covers the possible risk of loss of value of CRO.
What happens at the end of the lockout period? Well, it depends on the price of CRO. In the event that the CRO token has risen in price and your investment is higher than the original, you must withdraw the tokens and block them again for the minimum amount of the visa card you have.
While, if the price of CRO has decreased and, with it, your investment, then you should not stop staking because, if you do, you will lose the benefits of your card and you will lack CRO to recover them.
Complete the missions!
At Crypto.com there are a number of missions that users have to accomplish and as a reward they will receive CRO. However, it could be said that this is the least profitable option to obtain passive income.
The reality is that yes it is possible to get free CRO for completing missions, but great rewards cannot be expected.
But where are the missions? Well, it is found by clicking on the Crypto.com logo and scrolling down. However, the user needs to enable quests and they only have one free quest that they can complete every day for 1 diamond by registering on the quest page.
Once you complete a mission it is important that you transfer the obtained diamond to your vault since, after 7 days, it will expire and you will lose it.
What can you do with diamonds? Well, you must accumulate it until you get 25 diamonds and, with them, you can exchange them for a random mystery box. However, rewards are generally less than 1 CRO per box.
A frequent question is: Where are my rewards after opening a mystery box? The rewards are not found directly in your wallet, but you must go to the ‘Missions’ option, then ‘Vault’ and, there, you will find an option called ‘My rewards’ where they will be stored, but you will have the option ‘Withdraw’ to take them to the wallet.
final thoughts
In general, Crypto.com offers a number of incentives for users to maintain their CRO holdings, primarily to support the network.
However, once again, investing in any cryptocurrency carries risk, and no, generating passive income with a cryptocurrency does not necessarily eliminate the possibility of losing money.
Therefore, the above guide on how to earn passive income with CRO is intended for those who trust the token and the project. Since, being so, the generation of passive income is an additional element to your investment.
You might be interested in: