What is Crypto.com [A Comprehensive Step-by-step Guide]
Crypto.com is a cryptocurrency and payment platform. Its main aim is to promote the widespread adoption of cryptocurrencies. Founded in 2016, Crypto.com already has over 3 million users. The company is headquartered in Hong Kong and is headed by seasoned entrepreneur Kris Marszalek. Along with him, Crypto.com has 3 other Co-founders – CFO Rafael Melo, CTO Gary Or and Head of Corporate Development Bobby Bao.
Crypto.com offers several financial services like:
- MCO Visa Card: Convert your crypto to fiat and spend.
- Crypto.com App: Buy, exchange, send, and track cryptocurrency.
- Crypto Credit: An instant loan product that enables you to get credit to spend on your MCO visa card.
- Crypto Earn: A product that allows users to earn up to 18% interest p.a. on cryptocurrency deposits.
- Crypto.Com Exchange: Powered by CRO, with deep liquidity, low fees and best execution prices, users can trade major cryptocurrencies like Bitcoin here.
MCO and CRO – Crypto.com’s Native Tokens
Crypto.com utilizes a dual-token system with – MCO and CRO.
The MCO token sale took place between May 18, 2017–June 18, 2017. During this time, they raised a staggering $26.7 million and is currently trading on 30 exchanges globally. The utility of the MCO tokens are as follows:
- Allows users to order metal visa cards by staking the MCO tokens.
- Every time you transact with the MCO card, you will receive up to 5% back on all spending (in MCO).
- Upgrade reserved MCO cards to a higher tier by staking more MCO tokens.
- Upon staking, you’ll receive MCO at 6% p.a. for 500 and 8% p.a. for 5,000 and 50,000 tiers
The second token in the ecosystem is the CRO token which allows for cross-asset intermediary currency settlement for the native Crypto.com Chain. It is currently available in 22 exchanges worldwide. Its utility is as follows:
- Cross-asset currency settlement.
- Settle block transaction fees.
- Nodes are rewarded with CRO upon processing and validating transactions.
- Users need to pay minimal transaction fees upon transacting directly with CRO.
- Users can access a 50% discount if they buy cryptocurrencies with CRO in the crypto.com exchange.
- CRO tokens also enable users to gain access to the Syndicate. The Syndicate is a fundraising platform for the most promising crypto projects to list their coins on the Crypto.com exchange. We will talk more about this later.
The beta version of the exchange was launched in November 2019. Now, let’s go through some of the features of the exchange:
- The Vortex Liquidity System allows users to competitive rates and access to a large global platform.
- You can receive a 100% trading fee discount based on your 30-day trading volume and your CRO staking level.
- 10x increase in throughput via a revamped Matching Engine and the Order Management System.
- Ease of use with a unified REST and Websocket API.
- Provides a strong and robust risk engine and high leverage margin and derivatives trading
Crypto.com Exchange markets and sign up
The exchange offers up to 44 markets with BTC, USDT, and CRO pairs.
Crypto.com has two levels of verification on their exchange, Basic and Advanced.
- Basic: This level of verification takes in data such as name, email, and phone number. Following that, users will be able to move around freely and access most of the services.
- Advanced: In the advanced version, you will need to submit identity documents which give you unlimited deposits, and a 100 BTC withdrawal limit.
As explained above, The Syndicate is a fundraising platform for promising projects to list their coins/tokens on the crypto.com exchange. CRO stakeholders will receive priority token allocation for these events at a discount.
Syndicate features are as follows:
- Crypto.com does not charge any listing fees to projects.
- The listing Project will provide an allocation of their own token for sale to Crypto.com Exchange users with a 50% discount.
- All proceeds from the sale will be passed back to the Projects.
- Also, projects will be able to increase their coins’ utility in the following ways – spend via our card, earn interest on their coin, use it as a collateral for instant loans, use it on the Crypto.com Pay network.
The Syndicate Participation
Users will need to sign up as a Crypto.com Exchange user successfully and stake at least 10,000 CRO in the Crypto.com Exchange account to participate in the Syndicate. Details will be published for each event that occurs, including:
- Token information
- Amount of tokens for sale
- Pricing Discount level
- Timelines, including – start/end time of the listing event (“Subscription Period”)
- Maximum CRO contribution
- Allocation and distribution of purchased tokens
Crypto.com Exchange users will be able to buy the Project Tokens only using CRO tokens. Maximum Allocation of Project Tokens will depend on CRO Staked by the user.
If the total pledged amount is above the total project allocation, the user will receive a prorated amount based on the pledged amount.
Crypto.com adopts the highest standards of security philosophy. Let’s go through some of the points:
- Crypto.com is the first cryptocurrency company in the world to have ISO/IEC 27001:2013, ISO/IEC 27701:2019, PCI:DSS 3.2.1, Level 1 compliance and CCSS.
- 100% of the funds are stored in cold storage. The exchange uses a cold wallet insurance fund in the event of a loss of funds.
- The coins stored in hot wallets are only corporate funds and ensure that transactions occur smoothly on their network of services.
- If you are an American citizen holding US dollars with crypto.com, up to $250,000 is insured by the FDIC.
- Every single transaction is carefully monitored by Crypto.com to ensure that they are not laundering money for criminals. This level of proactive compliance control prevents criminal behavior, such as money laundering.
- Crypto.com uses a 2FA authentication for both its mobile app and exchange through biometrics or Google Authenticator. Plus, every address that you send your funds to from the exchange has to be whitelisted by you.
- Crypto.com has secured a US $100M direct insurance policy led by Arch Underwriting at Lloyd’s Syndicate 2012. This is the largest coverage that Crypto.com has secured for its cold storage assets on custodial partner Ledger Vault. The new policy brings Crypto.com’s total cryptocurrency insurance to $360M, including direct and indirect coverage via custodians.
- Crypto.com has reasonable maker/taker fees that start at 0.2%
- It employs an open and competitive fee structure.
- You can obtain cheaper fees by staking CRO tokens. Apart from cheaper fees, you’ll also get a 20% ROI on the amount you stake.
Crypto.com’s MCO Visa Cards
MCO Visa cards have several tiers available based on your needs and requirements.
- Midnight Blue card: Firstly, we have the beginner-level MCO card that offers you 1% cashback. You don’t need to stake any MCO tokens. Users have a withdrawal limit of $200, an ATM withdrawal fee of 2%, and interbank fee of 0.5%. Users can exchange up to $2,000 at no cost.
- Ruby Steel card: To get this card, you’ll need to stake 50 MCO tokens. Upon unlocking, this tier gets you 2% cashback on the card and 0.2% on the wallet. Your withdrawal limits will go up to $400 and exchange limits to $4,000. You can get a referral bonus of up to 10%, including an additional $20 for referring up to five additional users. You’ll also get up to 50% discount on investment fees.
- Jade Green/Royal Indigo card: You can unlock this tier by staking 500 MCO tokens. Cashback rewards grow up to 3% for the card and 0.4% for the wallet. Withdrawal and exchange limits have both been raised to $800 and $10,000. You can get a referral bonus of up to 15%, including an additional $40 each for referring up to 10 users. Holders can also use the card to gain access to LoungeKey airport lounges.
- Icy White card: Upon staking 5,000 MCO tokens, you gain access to this tier. Cashbacks will go up to 4% for the card and 0.8% for the wallet. Referral bonus jumps up to 20% and $80 for bringing 50 new users.
- Obsidian Black card: This is the highest tier available, which gets unlocked with a 50,000 MCO stake. The cashback rewards go up to 5% for the card and 1% for the wallet. The card gives you a free transaction limit of up to $1,000. Holders can also get a referral bonus of up to 25% and $100 for up to 100 from bringing new users.
Crypto.com vs Ten X vs WIREX
Let’s compare Crypto.com’s offering with its two biggest competitors – Ten X and WIREX.
Crypto Credit Services
Another product that we should look into is the Crypto Credit services. The idea is to allow users to borrow money from the company and pay the amount off later. The user must stake MCO or Bitcoin. This product also has the following features:
- No repayment deadline.
- No credit check.
- Using MCO tokens leads to lower fees.
- No minimum payments.
Crypto.com Pay will empower businesses and merchants to accept cryptocurrency payments in the store. Merchants will receive 0% processing fees on all the payments settled with crypto and 0.5% fees for payments made via fiat. This is a whopping 80% discount on the fees usually given by other mainstream payment processors. Ledger and WooCommerce stores already accept payments via Crypto.com.
Other Crypto.com Features
Along with the ones mentioned above, Crypto.com also has the following exciting features:
- A wide variety of crypto trading, including margin trading, derivatives trading, OTC trading, and decentralized token swaps.
- Integration of Crypto.com Pay into more websites and addition of more features to its card.
- Support for Latin America and other regions.
- Running different campaigns such as trading contests, quizzes, and other promotions to distribute free crypto to participants.
- Launch its own blockchain, which will emphasize speed, privacy, and more economic incentives for node operators. This blockchain is currently in its testnet phase.
As is pretty evident from the variety of offerings available, Crypto.com is one of the most ambitious organizations in the blockchain space. Their exchange, the Syndicate, the visa cards, there is something for everyone! If you are a newbie investor, then try them out to wet your feet and familiarize yourself with the amazing world of crypto. If you are an advanced investor, use their blockchain portfolio options to take your game to the next level. Regardless, be on the lookout for this fantastic project.
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