In case you’re wondering, stable coins get a better return because of the less risk because of price volatility and make collateral loans cheaper and easier to handle on the other side.
The app works really well and transitions smoothly between screens and to fund your wallet you can choose between 3 options.
- Do so with fiat uploads only available in US and UK
- Send cryptocurrency directly to deposit address generated in-app
- Purchase directly with a credit card — any Master card or visa
I decided to use the credit card option thinking it would be the easiest and I thought I could save on transfer fees buying BTC to send to the app to buy MCO or buying on Binance and sending it to the app.
I first needed to validate my credit card and pay a $0.10 fee to do so, my bank rejected it so I had to call them to remove the block. I then validated the card with the 10 cent fee and I could now buy the MCO tokens I wanted.
I put in an order for 65 tokens around $210 and I had to pay a 7% transfer fee which was slightly annoying but I came this far and it saved me a few conversions so I proceeded.
My wallet was updated instantly and the funds were now available.
Now that the funds are in your account, it doesn’t mean you will be earning interest. You need to tap on the balance and then select the option you would like, either a lock-up for 1 month, 3 months or a flexible option.
I chose the 3-month option since I wanted the best interest rate available to me. Since I only have 65 MCO tokens and took the 3-month option I get a 6% return on my investment.
That’s it, now all I can do is sit and wait to watch the interest I earn accumulate over the next few months.
To pay you a guaranteed interest crypto.com needs to do something with the funds to make money right? Well, they do this by issuing out loans based on collateral in cryptocurrency and also act as a payment method with their MCO cards.
By users offering up capital for them to run their programs and charge transaction fees and interest on loans, you are rewarded for this faith in the system with a nominal interest rate.
Since you do not own your wallet keys and you’re sending your funds to an account held by crypto.com you are completely at the mercy of the company. If the tank or exit scam your funds are not guaranteed and they could be lost forever.
The app does provide you with facial and thumbprint login as well as 2FA via Google 2FA, which offer a slight layer of protection against external attacks on your funds.
If you would like to get on board you can use my referral link in the footer. If you do, you can get an extra $50 credited to your account to use for your investment as will I, win-win for both of us.
Remember the dangers and invest only as much as you can afford to lose.
I clearly indicate the downside and If you’re not willing to accept the risk I suggest you stay away from this investment opportunity.
This isn’t direct investment advice, I am only telling you what I am doing in the crypto space. I felt I would like to take the risk and see what this project can offer me and I’ll report back over the next 3–6 months on how it has performed.