MCO Visa Card
Asked on 29 May 2020
Am thinking of putting some cash in to earn the high interest...
I personally use MCO Earn, and I think its not too a bad deal.
The primary concern for anyone putting money into MCO Earn would be the value of the cryptocurrency over time. Because cryptocurrencies tend to have more volatile price swings, you might lose more money than the interest rates earn you.
That being said, USDT (a stablecoin that follows the value of the USD), offers a relatively stable price with a decent interest rate. (6 - 10% pa) This could be a good alternative to holding cryptocurrencies with higher interest rates but more volatile price swings. As long as the USD does not fall 6% against the SGD in a year, you'd be at least breakeven.
It really depends on what is your perspective of the cryptocurrency that you put in the MCO Earn. If you believe the cryptocurrency - despite its price swings - will rise in value over time, feel free to some money in to enjoy the interest rates. Otherwise, put your money somewhere else where you feel more comfortable.
If you have the MCO Visa Card already, Crypto Earn is a feature on the crypto.com app that lets you earn interest on cryptocurrencies, not cash. Before you stake your crypto with Crypto Earn, you need to take note of the following:
Duration - you can choose between flexible, 1 month or 3 months. Of course, 3 months earns you the most interest but also gives you the least flexibility. Should you need to sell your cryptocurrency to realise profits or for whatever reasons, you are not able to do so. If you intend to stake a sizeable amount, you can consider a mix of Crypto Earn terms - e.g stake half in Flexible, half in 3 months.
Real value of interest - Interest for Crypto Earn is given in the same currency as the crypto that you have staked, not in cash. In the event that the price of the crypto falls after interest is paid, the real value of the interest is diminished if you were to cash it out at a lower price.
Minimum limit - minimum amount of underlying cryptocurrency to start a term in Crypto Earn
Minimum threshold - In the event you opt for a flexible term - meaning you can withdraw anytime, you can choose to downsize your holding in a flexible Crypto Earn term, subject to a minimum threshold you must maintain to continue earning interest. Take note of what this minimum threshold is.
For (3) and (4), you may wish to refer to the help page here
Timing the market is always difficult.
Eg. Thinking that u are selling high and price goes higher.
Personally, I have planned at least a 2 years holding target (till May 2022) and ignore all mkt price fluctuation during this period and continue to add more crypto along the way.
MCO Earn is the best playform for hodlers but not so much for traders by paying very competitive staking interest rates.
Security wise, all staking at Crypto.com are put in cold wallet storage which is safer and Crypto.com also has a $380m insurance on its cold wallet.
I have no worry staking with Crypto.com.