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Every level starting from 3 you'll get some engrams, cryptarch rep and glimmer in the mail. Also The higher his level, the higher the chance that an engram will give you an item equal to or higher than the engrams rarity.
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Not a damn thing. I'm lvl 10, and I decrypt legendary engrams all the time and end up getting super low rare items
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It gives you more chances to get your hopes up and think maybe this time he won't be a dick, only to be let down again and again.
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I hope he stops being such an a-hole soon, mine is level 4 and he just spews hot garbage.
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Nothing, don't level it up.
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my cryptarch is level 17 each time u level him you get a package that can be up to 4 legendary ingrams and you get more exp each time you level him up. I've got 4 one time and 3 legendaries 4x but i don't think it's set for each level up just kinda random but i've gotten 3 complete sets of legendary armor for the character types, 3 exotic armors and 6 legendary weapons and 2 exotic guns working on exotic bounty for the 3rd
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Absolutely nothing
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This is pure speculation, but I think it decreases the chances of legendary engrams decrypting into rare items (which drives me crazy), and increases the chances of your engrams of any type upgrading to a higher level (like an uncommon turning into a rare, etc.) You also get a Legendary package of sorts from the post master when you reach a new cryptarch level, which is also fun. Another thing I've noticed is that you gain more experience from decrypting engrams found in the field, as opposed to spam buying the ones he has in stock.
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after lvl 3 he gives free engrams i got my secondary character, my titan who at the moment is lvl 8, a legendary chestplate from one of the free engrams he gave me
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when u level it up u upgrade ur chance when derypt and items to be rare>legendary>èxotic