Crypto.com, a crypto exchange based in Hong Kong, launched in 2016. It was relatively unheard of in the west for a few years. But in 2021, the exchange surged in popularity, as did the value of the CRO token, the native coin of the exchange.
On Christmas Day, 2021, the Staples Center in Los Angeles (home of the NBA's Lakers) changed its name to the Crypto.com arena. This is the largest sporting sponsorship deal to date, making CRO one of the best new crypto tokens, as it shot into the top 20 most valuable cryptocurrencies.
Bu the sponsorship deal isn't the only reason to invest in crypto assets like CRO. Savvy crypto enthusiasts know that they can set up a CRO validator node, helping them to earn passive income in the Defi ecosystem.
But what is a CRO validator node, and why is this a great new crypto to invest in? Keep reading below to find out how to invest in crypto nodes today.
CRO was formally known as the Crypto.com Coin. Today, it goes by the name of Cronos, and it's the official cryptocurrency of the Crypto.com exchange.
The coin launched to the public in 2018, but it wasn't until 2021 when Crypto.com started spending serious money on sponsorships and advertising, did the token surge in value.
Before talking about using CRO to set up a validator node, you need to understand the mechanics behind the coin. Currently, there are two versions of CRO.
The original CRO coin is actually a token built on the ERC-20 format. That means it's currently an Ethereum-based token, rather than a coin on its own blockchain.
But Crypto.com has released its own blockchain, referred to as the Crypto.org Chain, or the Chronos Chain.
On this new chain, CRO will exist in its native format rather than the Ethereum chain. This is beneficial, as transaction fees on the Ethereum blockchain are very high due to heavy use.
CRO can be converted from one chain to the other to be used for various purposes. When it comes to setting up a validator node, we will be talking about CRO in its native format, on the Crypto.org blockchain, arguably the best new crypto to buy.
What Is a CRO Validator Node?
The Crypto.org Chain is a Proof-of-Stake (POS) blockchain, unlike bitcoin, which uses a proof of work mechanism. Proof of work requires miners to compete in order to create new blocks in the blockchain, writing the transactions into each block.
Proof-of-stake requires the use of validator nodes to confirm transactions in each block on the chain. Each node maintains a full record of transactions on the network.
The more nodes there are around the world, the more secure the network is, as more and more nodes agree on the transactions in the ledger.
If you're looking to make a crypto investment, you have two options. You can either set up a validator node, which is costly, time-consuming, and comes with some risk.
Or you can stake your CRO coins, which is the process of delegating your CRO to an existing validator node.
Delegating CRO to Validator Nodes
Staking your CRO is extremely easy to do. You just need to delegate some or all of your CRO to an existing validator for a specified amount of time. In return, you earn interest in the form of block rewards.
To do this, you'll need to have your CRO coins in the Crypto.com Defi wallet. From the Defi wallet, you can delegate your CRO by selecting a validator with whom to stake your coins.
By researching the list of the top 100 validators, you can find reliable validators with 100 percent uptime. Bonus points if they charge 0 percent commissions. You'll also see the APR you will receive by delegating your stake with that validator.
You can stake or unstake CRO at any time. But when you unstake, your CRO will enter a 28-day unbending period where it won't accrue any interest.
But if you move your CRO from one validator to another, it isn't subject to the unbending period.
Setting Up Your Own Validator Node
Many people are able to set up a CRO validator node from scratch. But it's costly and time-consuming to manage.
Luckily, there's another option to participate in the node creation process with an app called Cronodes. It's a Defi-as-a-service platform that makes the node creation process simple and affordable, similar to the original node service STRONG.
To launch a node with Cronodes, you'll need 20 CRN tokens. CRN is the Cronode token, different from CRO, the Cronos coin.
In Q1 2022, the CRN has fluctuated between about $5 to $55 apiece. Therefore, a node can cost between $100 and $1,100 to set up.
To get CRN tokens in order to launch your node, you'll need to Cronaswap.org. This is a decentralized crypto exchange (DEX) based on the Cronos chain.
There, you can swap your native CRO coin for CRN.
You'll need to have a browser wallet installed, like MetaMask. You can then add the Cronos Chain to your MetaMask wallet. This will allow you to move CRC-20 tokes around with ease.
With CRN tokens in your wallet, visit the Cronodes website, authenticate your wallet, and create your node.
By setting up a node, you will receive a 5 percent daily ROI and your node will active indefinitely. Rewards will hit your wallet every 24 hours. To claim your rewards, there's a 10 percent tax.
Your rewards are not automatically compounded. But since you receive 0.5 CRN tokens per day, it would take you 40 days to recoup your investment and to launch another node using your rewards.
While the amount of CRN tokens you earn is fixed, the amount of money you actually make largely depends on the current value of the token. If the tokens' value drops, you will earn less. This is a good time to lt your nodes compound in anticipation of the price of the token going back up.
CRO: The Best New Crypto Blockchain
Cronos is definitely one of the best new crypto investments. Crypto.com has grown tremendously and has invested heavily into sponsorships. They aim to take center stage in the crypto world.
As a result, setting up a CRO validator node, and making other investments on the Cronos Chain, is likely a good idea.
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