You can invest in cryptocurrency on EasyEquities via the EC10 digital token.
The EC10 crypto token is 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 is a Digital Token?
A digital token is the digital representation, using cryptography, of a particular asset or collection of assets that usually resides on a blockchain. The assets represented can range from commodities to property to even other cryptocurrencies. A blockchain is a digital chain of information stored in blocks on a distributed and decentralized public ledger. For a more in-depth explanation of a blockchain take a read through this article here.
What Digital Tokens are available on EasyEquities?
At present we have the EC10 Token
available on EasyEquities. This digital token represents an index made up of the top 10 digital currencies based on market capitalisation. Digital tokens may not be transferred to or from EasyEquities, to other providers or Exchanges. You will only be able to buy and sell Digital Tokens through EasyEquities.NB:Digital Tokens are only available in your EasyEquities ZAR account.
Can I purchase a fraction of a Digital Token?
Yes, Digital Tokens by their nature are fractional. You can invest any amount into a Digital Token and become the beneficial owner of that Digital Token. Digital Tokens bought and sold through EasyEquities will be subject to our normal settlement period of 5 business days. For more information on our settlement process, please see this article here
What risks are involved with purchasing Digital Tokens?
As digital tokens and cryptocurrencies are a new form of asset class, they are highly volatile. You should exercise caution when investing in digital tokens and at no time invest funds that you may require in the immediate future. Please ensure you understand the risks involved with digital tokens and Cryptocurrencies before purchasing a digital token.
Why can I only purchase Digital Tokens up to a certain value?
Limits are applied to digital tokens to ensure you receive the best possible price in the market at the time of your transaction. Should you wish to make a single transaction for an amount greater than the limit, please do multiple transactions should you wish to purchase more. Alternatively, contact our trading desk
How is the price determined for the EC10 Digital Token?
The rand price (ZAR) for a digital token is calculated by using the US Dollar (USD) value of the underlying assets divided by the number of tokens in issue. This is then converted to a ZAR value at the relevant exchange rate.
How are my Digital Tokens protected?
The underlying assets of the EC10 Token are transferred off the relevant exchanges and placed in secure offline digital wallets. For more information on this process please see this article here
A small portion will be kept on exchanges to provide liquidity to the EC10 token. These amounts can be verified at any time on the EasyCrypto Transparency Dashboard
How does tax work for Digital Tokens?
At present SARS will continue to apply normal income tax rules to digital tokens and expects taxpayers to declare gains and losses as part of their taxable income. For this reason, any gain or loss will be stated on your tax certificate issued by EasyEquities under income and no part will be stated under capital gains or dividends.
Can I convert my Digital Token for the underlying assets?
Unfortunately, you will only be able to buy and sell digital tokens through EasyEquities and cannot convert the digital token to any of the underlying assets.