Crypto.com is this a scam? Review and Customers Reviews

The company Crypto.com was created in 2016 under the name Monaco Technologies. Chris Marszalek, the founder of the project, assembled a team to create a product that allows you to spend cryptocurrency anywhere. In 2017, the company had its own MCO token. It raised $26 million from private and institutional investors.

In 2018 the project Monaco Technologies was rebranded and turned into Crypto.com. Not only the logo and name have changed, but also the functionality. Now it is a voluminous platform offering almost all popular services of the cryptocurrency market. The company has about 900 employees and the number of clients has exceeded 10 million people. But isn’t it a scam cryptocurrency exchange crypto.com? Let’s try to figure it out.

 

Why Crypto.com?

Crypto.com is a combination of several products offered under one brand. The flagship remains the crypto exchange. It is a centralized platform with a daily volume of $150 million. It supports 50 currencies and 120 trading pairs. The main flow of transactions on cryptocurrency trading accounts for BTC/USDT (28.3%). The second most popular pair is ADA/BTC (8.5%). The third place goes to ETH/BTC (6.8%). Pairs with internal CRO token collectively rank third in terms of volume, trailing only Bitcoin and Ethereum.

The exchange is available on the web version, as well as on Android and iOS mobile devices. In addition to classic spot trading, traders can conduct margin trading with leverage. The size of available leverage depends on the client’s deposit, the number and frequency of his transactions. On the website crypto.com there is also a market for derivatives. Crypto.com offers staking within the site, as well as farming DeFi projects. Interest rates within the wallet are slightly higher than the market average. The company’s website states that investors can earn up to 14% per annum in Stablecoin. By comparison, the closely related Nexo project yields 12% in such coins as USDCoin, DAI, and Tether.

There is a DeFi section for working with ERC20 tokens. Users can store tokens, exchange them in the Swap section, send them to an exchange for sale and invest them. Loans secured by crypto-assets are provided. The collateral rate is 50%. This means that by placing a collateral of $10,000, the client can borrow $5,000. 2,000 in the account, respectively, gives the opportunity to borrow 1,000 dollars. In parallel, the company is developing a business line. It has services to accept payment in cryptocurrency, available to entrepreneurs. But these products are still in development or in test versions and have not yet entered the broad market (How to Make Money on Cryptocurrency?).

Visa card

Crypto.com was one of the first major projects to launch its own debit cards. They can be used to withdraw money from ATMs or pay at stores that accept Visa. The card balance is directly linked to the wallet balance. But it’s not direct spending in cryptocurrency – the funds will first be converted from crypto to fiat money, and then transferred to partner banks.

The cards are offered in five variants. They differ not only in appearance – the cashback and limits increase. The first level is free with the dark blue card. The maximum Obsidian status can be opened by depositing 5,000,000 CRO tokens into the balance. The customer will receive a stylish black card, discounts on flights, Netflix and Spotify subscriptions, and a number of other perks. Unfortunately, for CIS users, Visa Crypto is only available in the European Union, North America, and some countries in the Asia-Pacific region. Citizens of Russia can get such a card only if they have proof of residency in the supported countries.

 

How to exchange cryptocurrency on Crypto.com platform?

To exchange cryptocurrency on Crypto.com, user needs to go to Exchange section. In the top menu you can choose the methods of transactions. But if you are interested in the usual exchange of altcoins at current prices, without the use of leverage, choose the Spot menu item. The deals page opens. On the left side there is a price chart from TradingView. On the right is the Depth of Market. A little lower is the order form. There are three tabs here:

• Limit. The trader himself sets the price at which he agrees to perform the exchange.
• Market. Here, the price is selected taking into account the current offers on the market.
• Advanced. In this tab the user can configure the exchange parameters – stop limit and stop loss.

For example, a client wants to buy Bitcoin for Tether. In the Limit tab, he can specify a suitable price for the cryptocurrency in the Price field, and in the Amount field – the number of coins to buy. Just below there are switches from 25 to 100%. They allow you to quickly put a certain amount of all the coins in your wallet into an order. That is, from 25% balance to 100%. After setting the parameters, you should press Buy to send the order. Using the Market tab, the trader does not need to set the price. It will be automatically selected from the offer window. It is only necessary to specify the amount of cryptocurrency to be sold or coins to be bought. The exchange has good liquidity, so transactions are fast. As soon as the order is executed, the proceeds will be credited to the client’s wallet.

 

Verification on the platform

Identification is a mandatory procedure for the site crypto.com. Without it, the client will not get access to the site and will not be able to make a deposit. Given the variety of functions, verification affects access to a set of internal products. As mentioned above, the user will not be able to get a Visa card if he opened an account as a citizen and resident of Russia. At the same time, residents of the U.S., Canada and some Asian countries cannot use cryptocurrencies because of regulators’ rules.

Verification begins when you create your account. Here you need to enter your first and last name, date of birth and nationality. Below – your email address, password and its confirmation. If you want, you can enter a Referral ID – a special code from the user who invited you. It will be necessary to verify your cell phone number. After confirming the e-mail, a form for entering the number will appear. On it will be sent a message with a code. Please note, if you enter a mobile number of unsupported country, the system will not allow to register it and will give an error. After registration, the client can go to the verification section through the profile settings.

Confirmation of identity consists of three steps:

• Filling out the form. It is necessary to specify the passport data using the Latin alphabet. The correct transliteration can be seen on your passport, driver’s license or bank card.
• Download scans. You need to select the type of document (passport, ID-card or driver’s license) and send a scan. It is recommended to use a foreign passport or other document in Latin alphabet.
• Selfies with a document in hand and a paper with an inscription. At the last step the client is required to take a photo. It must show the user’s face, the paper labeled “Crypto.com” and the document uploaded in the previous step.

After sending the files, the application will go for review. This will take from one hour to one day. Verification status can be checked in the profile settings on the site crypto.com. Before December 1, 2020, document verification was optional, but it affected deposit and withdrawal limits. Information about name and citizenship, entered during registration, was enough to make a deposit up to 5,000 USD and withdraw a similar amount. Now there is no such division – all users have to upload papers to use the platform even for minimum volumes.

 

Deposit and withdrawal of earnings in Crypto

Crypto.com does not accept fiat money to deposit crypto exchange balance. It is possible to make a deposit only in cryptocurrency. But users can use debit and credit cards to deposit funds into Crypto Wallet. Then you can exchange fiat to crypto and send to the exchange in the form of digital assets. To do this, go to the Deposit wallet section and select Fiat. A list of available transaction methods will appear. You can choose card or bank transfer. When selecting Card, the system will ask you to enter the card number, expiration date, holder’s name and CVV code placed on the back side. First the card will be verified – the amount equivalent to $0.10 will be debited. If the debiting is successful – the user can deposit larger amounts. It is possible to deposit money to the exchange account for trading by two methods:

• Transferring cryptocurrency from the Crypto.com wallet to the exchange balance. It will be necessary to go into the wallet menu, Trade section. Then Withdraw – Crypto – Crypto.com Exchange. Enter the name of the cryptocurrency and the amount. Transfer takes place instantly and without commission.
• By sending crypto from an external wallet to the exchange. To do this, go to your cryptocurrency account, click Balance, select the asset of interest and open Deposit. This will create an address to receive external payments. Copy the address and use it for the transaction from the external wallet.

Transaction speed depends on the specific cryptocurrency and the required number of confirmations from the network. Crypto.com doesn’t charge for depositing balance. But external wallet may charge a fee for sending funds. Take it into account when planning the payment. Withdrawal of funds from the account on the exchange is available only in cryptocurrency. All transactions are made through the Balance menu, the Withdraw item. User can send Bitcoins or altcoins to external wallet or Crypto.com wallet. In the first case it is necessary to choose External Wallet Address. In the form that appears, specify the address of the external storage and the number of coins to be sent.

For transfers within the ecosystem use Crypto.com App. You will need to select the cryptocurrency, the number of coins to be sent and confirm the transaction. Already inside the wallet customers can convert cryptocurrency to fiat and send to the bank account. To do this, go to Fiat Wallet, find the Balance item and click on Withdraw. Add the bank account and specify the amount of the transaction. The money will be credited within three working days.

Cryptoexchange Commissions

Crypto.com fees are flexible and depend on the type of transaction and volume of the client. Credits to the crypto exchange are conducted without commission. Transfers between the wallet system and the trading balance are free. There are six levels of commission. The main criterion for the rate is the volume of client’s transactions over the past 30 days:

• Trading volume from $0 to 250 thousand dollars: commission maker – 0.10%, taker – 0.16%
• 250,001 – $1 million: 0.09% maker, 0.15% taker.
• 1,000,001 – $20 million: 0.08% – 0.14%.
• 20,000,001 – 100 million: 0.07% – 0.13%.
• 100 million to 200 million: 0.06% to 0.12%
• 200 million and above: 0.04% maker, 0.10% taker.

There is a fee for forced liquidation in the contract market. So perpetual BTC/USD will be covered with a fee of 0.50%. Each registered user can open the Fees section and see what commissions are applied to his trades.

How do I get a discount on commissions?

In addition to building up volumes, there is another way to reduce commission costs. This is withholding on the balance of the CRO, the tokens of the site. A progressive system works here; the more tokens a trader holds, the greater the discount he receives. The first discount of 10% from the charged commission can be obtained by placing 5,000 CROs on the account. For 10,000 CROs there is a 20% discount, 50,000 will give a 40 percent discount. The 90% discount is valid for a balance of five million tokens. By placing 50 million tokens on the account, the trader can trade for free, with no commissions.

Withdrawal fees

Crypto.com charges relatively little money for withdrawing cryptocurrency assets to external wallets. Here are the rates for the most popular destinations:

• Bitcoin: 0.0004 BTC.
• Ethereum: 0.001 ETH.
• Tether: 9.0 USDT.
• Litecoin: 0.001 LTC.
• Ripple: 1.0 XRP.
• USDCoin: 9.0 USDC.
• Stellar: 0.1 XLM.

 

Bonuses crypto.com

Crypto.com is not very active in various bonuses or promotions. At the dawn of the project, back under the Monaco brand, the company launched incentive contests, but later abandoned such promotion methods. As such, only active traders can get bonuses in the form of commission discounts. As well as high-level Visa Card holders – they receive increased cashback, discounts on cryptocurrency exchange, increased withdrawal limits for fiat money and bonuses from partners, like discounts on AirBnb or Amazon Prime.

Other customers can participate in the Private program. These are additional features for holders of CRO tokens in the amount of 5 million or more. The privilege package includes the ability to participate in over-the-counter transactions to buy cryptocurrency. As well as a subscription to an exclusive newsletter from the Crypto.com team, which explores promising altcoins and forecasts markets.

Referral program

Clients can participate in The Syndicate program. This is a kind of alternative to the affiliate program. Here active inviting users get up to 2000 USD bonuses, as well as up to 50% from the commission of the invited participant.

 

Complaints about Crypto.com

Perhaps the main reason clients complain about the company is the strict and incomprehensible restrictions related to the client’s place of residence. For example, an investor can go to the staking section, place his assets, but interest does not accrue. When requesting the support service it turns out that staking is not available for the investor’s compatriots and refunds are possible only through the support team.

Another reason for complaints is the cards. Despite the fact that the Visa Crypto product promotion started back in 2017, the first working products were delivered to traders only a year and a half later. At the same time, the list of countries where the cards are available is also narrow. Analyzing reviews, you can notice that most of the problems are related to customers from the USA, CIS and countries where Crypto.com officially does not work. So, we recommend to specify in the support service what products are available specifically for you, taking into account your citizenship and place of residence.

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Crypto exchange regulation

Like most international large companies, Crypto.com is a complex structure, legally scattered around the world. It is known that the holding company is located in the Cayman Islands, and the management is headquartered in Hong Kong. Operating firms are established in Malta and Ireland. Accordingly, when disputes arise, legal procedures will take place in these states. Officially present in the US, UK and Japan, Crypto.com undertakes to comply with the laws of these states as well. This means that account and transaction information will be recorded in accordance with OECD, CRS and FATCA standards. The data may be requested by tax and law enforcement authorities during investigations and audits. The Exchange is committed to monitoring suspicious transfers and combating money laundering and tax evasion.

Read the privacy policy at crypto.com

Crypto.com User Agreement

Since the platform’s products are managed through separate legal entities, the user agreements are different. The user automatically agrees to all of them when registering. The main document can be considered the Terms and Conditions published by CRO DAX Limited. It is offered for familiarization when opening an account at the exchange.

The main interesting points of the agreement:

• The user undertakes to use only personal accounts for transactions. All transactions and operations are carried out in their own name. Except when the profile is in the name of a legal entity. This means that clients are prohibited from transferring the account to third parties and depositing from other people’s accounts.
• The client confirms that he is engaged in honest transactions and does not use funds obtained illegally. The Exchange may block the account and freeze accounts if there is suspicion of money laundering.
• The user determines their own tax jurisdiction and declares all income received.
• All service is accepted “as is”. Technical errors and imperfections on the platform are possible, the administration is not responsible for monetary losses.

Clients should also understand that they are taking their own financial risks by entering into transactions or investing in any of the assets presented on the platform.

Customer Service

The main way to support users is a detailed FAQ on each of the products. It can be accessed by clicking the “Support” link on the company’s website. If the customer needs to contact the support team directly, they can send an email to [email protected]. You can also contact support via the mobile app and on the app download pages in Google Play Market and AppStore. You can get a response on Twitter, Facebook, Instagram and on Reddit and Telegram.

 

Is Crypto.com a Scam?

Crypto.com – is one of the first major startups that decided to combine all the features of the cryptocurrency market in a single shell. The company received solid investments and attracted more than 10 million users. Every day, traders conduct $150 million worth of transactions here, which shows great confidence in the exchange.

CoinMarketCap gives the exchange a score of 6.2. CoinGecko gives the company a 10 confidence rating, noting that Crypto.com has no high-profile negative incidents like fraud, theft or hacking. Cybersecurity by Certified is a maximum of three stars.

 

Conclusion

There are enough competitive products on today’s cryptocurrency market. Many of them are superior to individual solutions from Crypto.com. This applies to decentralized finance, cryptocurrency storage, and bank card issuance. But if you need a single account that solves several problems at once, CryptoCom can be considered.

Users from the Russian Federation, Belarus, Ukraine, and Kazakhstan will find it difficult to try all the products due to geographical restrictions. We hope the situation will be corrected in the future and the troubles related to legal complications will be eliminated.