EasyCrypto Overview
EasyCrypto is an FIC-registered institution that applied for preliminary FSCA registration compliance in 2021. Once industry regulation was approved, EasyCrypto served as a legal representative by associating with the listed Purple Group – Easy Equities and providing crypto services. Since then, the EasyCrypto10 (EC 10) model has taken the lead as South Africa’s leading index monitoring tool for cryptocurrencies and is conceptually equivalent to exchange-traded funds (ETFs).
Products and services
Easy crypto offers a variety of services and products to its customers. These services include:
- Investment to the top 10 digital currencies worldwide by market capitalization bundled into a diversified index called the EC10 Bundle.
- Offline storage options and secure custody of crypto assets are provided for user investing and trading assets with the platform
- OTC services: Any digital asset part of the EC10 Index bundle is traded over the counter. The platform facilitates these services.
How the EC10 Bundle works
The EC10 Bundle uses a buy-and-hold method to follow the ten leading and most valuable cryptos according to market cap as a consolidated financial feature. The cryptocurrency assets are kept in cold storage with a licensed, guaranteed trustee and are subject to annual audits. The EC10 Top 10 Crypto Index’s underlying index has a structured, transparent procedure that incorporates inclusion criteria designed to adhere to ideal investment standards and eliminate critical risks relating to storage, liquidity, regulatory obstacles, and other issues. Weekly adjustment and reconfiguration of the EC10 take place. Following the criteria of the qualifying standards, the EC10 employs a proactive market cap-weighted technique to index updating.
Getting started with EC10 Bundle
First, EC10 users must create an account and get verified at the platform following KYC (Know Your Customer) compliance. The process involves setting up an account, depositing funds in your account, and finally deciding on your preferred investment. The process could take up to two working days.
Investing in the EC10 Bundle at EasyCrypto
EasyCrypto does not offer financial advice and will not suggest how much money users should invest. Generally, EC10 edges out Bitcoin; here are some reasons. A majority of experts concur, especially with altcoins during a bull market. Since investors are moving to these altcoins in search of even greater returns than those offered by BTC, many alternative currencies are still in their infancy. Development may frequently be spectacular with returns on investments. The EC10 is additionally susceptible to survivorship perception. As a result, the largest coins in the market cap with ongoing price momentum stay in the EC10 Bundle while the weaker currencies with declining prices drop out.
Precautions and occurrences while investing in the EC10 Bundle
Users should never invest any money they need to have on hand at a specific future date. Since cryptocurrency markets are unstable, consumers can be in a significant downturn when they need their assets back. Another issue that arises with EC10 investing is that Bitcoin and other cryptocurrencies appear to be more expensive than the price quoted at the EasyCrypto platform and other crypto exchanges in South Africa. This price discrepancy is called Crypto Arbitrage. EasyCrypto, however, allocates all ZAR deposits to the applicable rated cryptocurrencies that comprise the EC10 index on South African exchanges, subject to Exchange Control restrictions.
Another common occurrence in EC10 Bundle and general crypto trading is the selling price of assets is lower than the buying price. There will always be a slight difference between the selling and buying prices. The spread is based on the order book liquidity on other cryptocurrency exchanges at that time—the spread increases in proportion to the difference in liquidity between the order books of buyers and sellers. The spread will also be more significant when order books are “thin,” often during the slow after-hours. Additionally, the spread will typically be greater during times of high demand, when there is a large influx of buyers and a small number of sellers.
Security of EC10 assets
The EasyCrypto infrastructure adheres to the cybersecurity standards in the exchange. The bulk of cryptocurrency assets in EC10 are kept in cold storage with a licensed and insured trustee. The investment is also subject to annual audits. Although users are free to purchase the coins they desire, EasyCrypto provides two essential benefits for holding the EC10 Bundle:
- The rated coins are purchased at the lowest cost possible according to the patented EasyCrypto algorithm.
- In the alternative, users would have been required to create secure wallets and guard the secret keys for every cryptocurrency included in the EC10 index. Users can keep assets safe with EasyCrypto when using the EC10.
Deposits and withdrawals
Until the user buys EC10 or another cryptocurrency, their ZAR money remains in their available cash balance. For instance, after purchasing the EC10 package, EasyCrypto immediately accepts the required digital currencies that comprise the index, converting the ZAR to the constituents of the EC10 Index. A portfolio of EasyCrypto receives the corresponding number of EC10 bundles.
Depending on the bank’s turnaround periods, deposits made to EasyCrypto can take up to 48 hours. EasyCrypto does not support debit payments. Customers can also set up recurring buys through their online bank accounts.
For withdrawals, users must first submit a sell order to convert their assets from any specific crypto asset to ZAR before they can withdraw ZAR. The ZAR balance will change appropriately following the successful execution of the sell order, and users can then withdraw ZAR into their bank accounts.
Fees and trading limits
When purchasing or selling any trading pair between cryptocurrencies and fiat currencies, a transaction fee of 0.25 percent execution, 0.075 percent clearance and management inclusive of tax is charged. EFT withdrawals cost R18.42, but deposits are free.
EasyCrypto charges the EC10 bundle holdings the following fees, all crypto bundles are subject to annual maintenance, bundle adjustment, and a storage fee of 2 percent inclusive of VAT. The price of the pack includes this maintenance cost; holders are not charged a separate fee.
The minimal deposit amount on EasyCrypto is R500. Smaller deposits will have an administrative cost; however, they advise doing so with their partner at EasyEquities.