Is Crypto.com 100% Safe & Trustworthy? (2020)
Due to Crypto.com being a relatively new company, like almost all cryptocurrency-related companies, many people are not too sure if they’re truly trustworthy or if they are unsafe to use and not to be trusted with your funds or information.
While we’ll go more into detail below in the article we know many folks just want a quick answer, so we’ll give it up here:
In our view crypto.com is a relatively safe and trustworthy company that’s definitely legitimate, and on the same level as companies like Coinbase — which we’d classify as very trustworthy and Legit. This does NOT mean you should trust them with all your funds — we’ll explain why below.
Why You Shouldn't Trust Crypto.com With All Your Funds:
Before we get into why we think Crypto.com is trustworthy we want to make sure you understand the business model of Crypto.com and the risks associated with their products/services. We aren’t saying using them is risky mind you, just that there are inherit risks in using them due to them being a centralized company. This is no different than the risks of using a bank such as Bank of America or Chase Bank, so don’t be spooked, just understand the risks and how to mitigate them.
If you’re using Crypto.com to simply buy cryptocurrency or use their crypto debit cards there’s little to no risk — much like Coinbase and other large well-known exchanges Crypto.com uses multi-sig cold storage so funds should largely be safe from any potential hack or security breach.
However if you’re lending your Cryptocurrency out, remember they aren’t literally printing money and handing it to you. You can’t print extra bitcoin. It has to come from somewhere — generally this comes from them lending it out to special partners as well as potentially engaging their selves as market-markers arbitraging or even trading your cryptocurrency when you put it in their lending system. This obviously can end very badly if their performance is bad or if a black-swan crises hits and wrecks cryptocurrency: think Ethereum being hacked. Likely? No. But possible? Technically yes. If this occurs they might lose all your crypto and be incapable of paying it back.
So what the hell does all this mean?
Don’t trust Crypto.com with all your funds. Not because they’re untrustworthy, but just like a bank or other large crypto companies like coinbase, it’s still possible for them to go bankrupt, and if they do you might be completely screwed and lose everything you had with them. Because of this we’d never keep more than a few thousand dollars of Cryptocurrency on Crypto.com’s exchange or wallets, and as for the lending services, we’d only put at most 30-40% of our crypto in such a program, although personally we don’t lend out our crypto currently.
The rest we’d opt to put in a Ledger Nano S or similar hardware wallet, as this is the safest easy to set up place to put your cryptocurrency currently.
Why Crypto.com is Definitely Legit and Trustworthy:
I don’t know how to put it simpler than they don’t really have the ability to Exit-Scam like genuine scams like Bitconnect, not to mention they have MUCH greater reason to stick to remaining legitimate as they have much more to earn by doing so.
There’s also the fact that Crypto.com was the first crypto-related company to achieve the very hard to achieve ISO/IEC 27701:2019 Certification and Crypto.com has recieved numerous audits by 3rd-parties, has insurance in case they’re ever hacked, and all sorts of other things that indicate they’re absolutely legitimate.
My only real concern is that when you lend through them there’s risk if cryptocurrency crashes or spikes up very very quickly. As a result we personally choose to simply avoid that service they offer, however we do use them for their credit-card options as their exchange products on occasion.
Should You Use Crypto.com?
I can’t really give more input on this for you than I have already, as I don’t know your personal situation and risk-profile.
Personally we’d say it’s worth signing up for Crypto.com simply because they offer a signup bonus of $50 in MCO tokens if you sign up through a promotional link like this one right here — if you want to learn more about that you can read more on this page of our site.
But beyond that reason Crypto.com doesn’t’ have much of a benefit over other exchanges like Coinbase or Binance in our view. I suppose they’re a bit safer, and have a bit lower fees, but these benefits aren’t very large so really what exchange you buy/sell at should be whichever you prefer the interface of and just feel more comfortable with using on a daily basis.