Crypto passive income streams is a series of articles about the best ways to make passive income with cryptocurrency and high-yielding cash.

In today’s post I’m reviewing the ‘Crypto Earn’ product offered by Crypto.com. I’ve decided to make a test transfer of 100 EUR and see how easy the process is.

I chose EURO because SEPA bank transfers in Europe are the cheapest and the fastest option at my disposal, as a European citizen. Using TransferWise as my bank account I only paid 0.63 EUR in commissions, so I received 99.37 EUR in my Crypto.com wallet.

I made the transfer Thursday evening, and Crypto.com confirmed the money in their account first thing Monday morning. Crypto.com claims that SEPA transfers take on average 2-5 business days to appear in the wallet so my experience is up to the expectation so far.

If you are a US citizen, then you can deposit via ACH. Note that the USD and EUR bank accounts are for deposits only, withdrawal is not possible. You can withdraw only cryptocurrencies.

The passive income investment

My main purpose with Crypto.com is to earn passive income on my cash. That’s why I’m converting EUR to a stablecoin like USDT or USDC. Both USDT and USDC are meant to mirror the value of the US Dollar. US Digital Dollar if you will. USDT is the most traded stablecoin and USDC it’s on the second place. By using stablecoins you don’t risk the volatility of cryptocurrencies and the value will be the same in stablecoins or cash.

Passive income streams: tokens in Crypto Earn

This is the passive income you can earn from Crypto.com for stablecoins:
– 6% per year if you choose the flexible plan that gives you access to your coins at any time
– 8% per year if you choose to lock your coins for 1 month. That means you won’t be able to withdraw your funds while they are locked by this investment.
– 10% per year if you lock your stablecoins for 3 months.

For comparison, Celsius Network offers 7.51% per year on stablecoins without any locking period. Plus, if you choose to receive the interest in their own token, CEL, you get 5.12% interest on that as well.

But I like to diversify. That’s why I use Celsius Network for the flexibility and Crypto.com for the higher returns, by locking the funds every 3 months for the 10% per year gain.

You can earn up to 12% per year with Crypto.com, but that involves investing in and holding their token – MCO. A minimum of 500 MCO is required, which at the time of writing this post it’s valued at 2815 USD.

So if you want to invest and hold 500 MCO you will benefit from these returns:
– 8% per year if you choose the flexible plan where you have access to your coins at any time
– 10% per year if you chose to lock your coins for 1 month. That means you won’t be able to withdraw your funds while they are locked by this investment.
– 12% per year if you lock your stablecoins for 3 months.

In case the 500 MCO would have no value after one year, the extra 2% would break you even for a minimum investment of 140,750 USD. I’m not saying this will happen, I just put things in perspective. It is also possible that the price of the MCO token will go up and you can benefit from both the increased interest and the MCO appreciation. It’s your decision to make based on your portfolio size and risk management.

Crypto passive income with simple interest

If you decide to deposit your stablecoins with Crypto.com your earnings will be credited to your wallet every week. I should note here that the interest is not compounding, which means that you will only receive interest on the amount you deposited.

For example, if you deposited 1000 USDT and earn 10% per year; after a week you will have 1001.92 USDT. Compound interest would earn you 10% per year on the 1001.92 USDT (principal + interest of the previous week). Unfortunately that’s not the case, so you only receive interest on the 1000 USDT, no matter how much interest you earn during the year. If you decide to deposit another 1000 USDT, you will then earn interest on the 2000 USDT. Always on the amount you deposit, the earnings are not taken into consideration.

Recently Celsius enabled compound interest on their platform, another good reason for diversification.

I was not aware of the 250 USDT/USDC minimum required amount for earning interest, therefore my initial deposit of 100 EUR is not enough. I’m going to make another deposit and then come back with a step-by-step guide of how to make a passive income with Crypto.com.

UPDATE 03.03.2020

The same day I made another deposit and I received the money in my Crypto.com wallet the following day. I decided to make a video tutorial and show you a step-by-step guide of how to use the application to earn passive income on your stablecoins.

Sign-up with my referral code 03ylgzpzp4 and we both receive 50$ when you steak 50 MCO.

Your friend,
C.


Crypto Grubber

DISCLAIMER: I'm a crypto enthusiast and I believe the blockchain and cryptocurrencies are here to stay and make a big impact on the world. However, the advice here given is not financial advice even though my excitement might make it look like such. The content on this website represents my personal opinions that are for educational purposes only. Trade and invest at your own risk.