We are making it EASY to invest in Crypto and today we announced our intention of acquiring a controlling interest in DCX Capital - the Crypto startup by former FNB CEO, now venture capitalist Michael Jordaan and entrepreneur Earle Loxton.
To celebrate the occasion, the founders of DCX announced that the DCX10 Index of Top 10 Cryptocurrencies will be rebranded as the EC10 (“EasyCrypto10”) Index from today and that they will continue their journey to making EC10 the first registered and regulated Crypto Asset Index in South Africa.
Further, EasyEquities Australia has achieved registration as a regulated Crypto vendor under Austrac, the Australian body that oversees Crypto Asset Providers, and will shortly be launching EC10 and other Cryptocurrencies in Australia.
So, whether you are one of the thousands of Easy investors who already added some Crypto to your portfolio, or you're still just a little crypto curious, you'll want to know a bit more about the EC10 Index.
What is the EC10 token?
The EC10 token is a crypto token linked to the value of the EC10 Index. The EC10 Index holds the top 10 crypto currencies as assets. It works exactly like an ETF or a unit trust which holds a selection of underlying assets in a fund structure. The difference is that this investment instrument is a token, and does not trade on an exchange.
You’ll be able to invest in this token, the same way you would invest in shares on our platform. With any amount you’ve got, and 15 minute delayed prices.
What’s inside the EC10 Index?
The constituents and weightings can be found here, and are rebalanced regularly.
How much does it cost to invest in an EC10 token?
The price of the EC10 token is based on the value of the underlying cryptocurrencies in the EC10 Index, the same way the price of a unit in a unit trust is based on the underlying assets held in the unit trust.
Here's an example of how that works:
For example, if you wanted to invest R100 in the Satrix Money Market Fund (which is a unit trust) and the units in the fund were priced at R10 per unit, you would receive 10 units. The EC10 Index works the same; if you had R100 to invest in the EC10 Index and the EC10 token was priced at R10 per token, you would receive 10 EC10 tokens. It also works in fractions the same way as ETFs do on EasyEquities; so if you had R1200 to invest in the EC10 Index, and the EC10 token was priced at R25.50, you would receive 47.0588 EC10 tokens.
The fees that you would pay on the value of your transaction are:
- Our normal 0.25% brokerage
- Settlement & admin
- NO securities transfer & tax
This works out to about 38c on R100 investment.
Priced within the token is an annual 2% fee which goes to EasyCrypto, which is kind of like TER on an ETF. You won’t see this in the cost breakdown.
Do I own those currencies if I invest in the EC10 token?
Nope. The same way you wouldn’t own individual shares within an ETF and be able to trade them individually. You also cannot take your token out of your EasyEquities account to trade on a secondary crypto exchange or move to another account.
You invest and make a profit/ loss, and you’d then have to sell to realize that profit/ loss.
What are some of the benefits of investing in the EC10 token?
Crypto is risky, but investing this way means it's diversified. Why? Because instead of holding one crypto asset such as Bitcoin (ie all your eggs in one basket) – you can buy the EC10 token which gives you exposure to the top 10 cryptocurrencies as opposed to just one. Again, a bit like an ETF. So, if the world of Bitcoin experiences a lot of volatility and other cryptocurrencies don’t, your risk is diversified across all 10 cryptocurrencies in the token.
Investing on a crypto exchange can be risky because these exchanges have experienced hacks and fraud. EC10 tokens bought on EasyEquities are held in cold storage by DCX - off the internet and out of reach of scammers.
Read more on the EC10 crypto index in our FAQs.