How To Buy Cronos (CRO)
Crypto.com has become a high-profile player in the world of cryptocurrency, earning name recognition via celebrity endorsements from the likes of Matt Damon and purchasing the naming rights for the former Staples Center in Los Angeles. This publicity blitz has created a surge of interest in Cronos (CRO), Crypto.com’s native token.
How to Buy CRO
CRO runs on Crypto.com’s blockchain, which is also called Cronos. The CRO token is fairly easy to buy, here’s how to get started:
1. Open an Account with a Cryptocurrency Exchange
2. Link Your Payment Source
You have a few ways to buy CRO, depending on what’s available with your exchange. The simplest way is to transfer fiat currency, like U.S. dollars, onto your exchange that you can then use to buy CRO directly. If you already have crypto, you may be able to transfer these coins onto the exchange and then trade them on directly for Cronos tokens.
You may also be able to finance purchases with a debit or credit card, though this will likely be the most expensive way to purchase crypto. Not only will you pay higher fees than you would otherwise on the exchange, but you’ll also probably be charged fees from your credit card company, making such purchases pricey and risky.
3. Purchase CRO
Once you’ve funded your account or set up a payment method, you can then purchase CRO. The exchange you use should give you the option to search for CRO, decide how much you want to buy and then view the cost to buy.
Once you click buy, the coins will be available on your account on the exchange.
An important point to keep in mind: It will typically be much cheaper to buy any crypto from a crypto exchange’s trading platform over its beginner platform or quick/instant buy options. For instance, the fees for Coinbase are considerably higher than they are to perform the same transaction on Coinbase Pro, its advanced trading platform that is also free to use.
4. Transfer CRO to a Wallet
This last step isn’t mandatory but can be a smart idea if you’re planning to hold your CRO for the long term. By moving your coins off of an exchange and into a separate crypto wallet, you help better protect your investments. Not only does this reduce your risk if your exchange of choice gets hacked, but if you pick a “cold,” or offline, wallet, your crypto becomes virtually unhackable, though you will generally have to pay a small withdrawal fee to move your coins off of the exchange.
If you’re only planning to keep your CRO for a short amount of time—or simply don’t want to put up with the hassle of withdrawing your crypto—you can keep your crypto on the exchange you purchase it from. The vast majority of reputable exchanges now store most customer assets offline and have insurance to cover any coins lost to hacks.
Advantages of Buying CRO
- Strong growth potential. CRO could have strong potential thanks to its parent company’s extensive marketing campaigns. “CRO is a cryptocurrency still in relative infancy, although it has shown strong growth since launching in 2018 and is currently ranked 17th overall in terms of market cap,” notes Shaun Heng, vice president of growth and operations at CoinMarketCap, a price-tracking website for crypto assets. If Crypto.com’s name recognition remains strong, so could the future growth of its token.
- High staking APY. As of February 2022, the staking APY for CRO is 10%. This is the return you would receive (in CRO) for putting up your CRO to help run the Crypto.com blockchain. In comparison, the ETH staking APY at competitor Coinbase around 4.5%.
- Lower trading fees on Crypto.com. If you hold CRO in your Crypto.com account, you may qualify for lower trading fees. This is particularly helpful for large-volume traders.
- CRO cashback. The Crypto.com Visa debit card offers very generous rewards, like up to 8% back on your purchases paid in CRO; free subscriptions to Netflix, Spotify and Amazon Prime; and free airport lounge access. The more CRO you stake with your Crypto.com wallet, the more rewards you receive.
Risks of Buying CRO
- Highly volatile. Like most other cryptocurrencies, the price of CRO can fluctuate dramatically any given week. Cryptos can be high-risk, high-reward investments so investors must be prepared for losses, especially in the short term.
- Vulnerable to negative publicity surrounding Crypto.com. Since CRO is the native token of the Crypto.com, its success is tied to exchange’s. For example, in January 2022, Crypto.com faced a hack where $33 million was stolen, which also led to a drop in the market value of CRO.
- Rewards depend on locking up your investment. To qualify for higher rewards with Crypto.com, you need to stake your CRO with them for six months at a time. As a result, you can’t quickly cash out. You also only qualify for the top reward rates by staking over $400,000.
Should You Buy CRO?
CRO has a number of advantages compared to the typical cryptocurrency, especially considering the substantial marketing resources of Crypto.com.
If you are already using the Crypto.com exchange, CRO could be worth buying and holding since it would give your account extra benefits, like the reduced trading fees and the chance to earn CRO through the company’s debit card.
Given that CRO can have significant price swings, however, it may be best to follow a dollar cost averaging strategy, where you make multiple purchases spread over months versus all at once. Also, keep in mind that you shouldn’t devote a substantial portion of your investment holdings to any one cryptocurrency to begin with.
Buying any cryptocurrency involves risk, and even if you’re the world’s biggest Lakers fan, you should only invest money you can afford to lose with Crypto.com.
FAQs About Cronos
What Is Cronos?
Cronos is the native token for the Crypto.com blockchain. First known as Crypto.com Coin, in February 2022, it was rebranded as Cronos, though it still trades under the same CRO abbreviation.
How Does Cronos Work?
“CRO works essentially as a way to secure and expand the Crypto.com network,” says Heng.
You can buy CRO tokens for your investment portfolio, exchange them for other currencies and tokens or use them to make purchases. You can also earn CRO as a reward when you make purchases with the Crypto.com Visa prepaid debit card or receive CRO cashback for sending CRO to friends.
In addition, investors can stake their CRO with Crypto.com to help the network verify transactions. In exchange, they receive interest as well as additional account benefits, like a rebate on trading fees.