Crypto.com: A 2024 Review of the Crypto Exchange

This was originally posted on Planner Bee.

Disclaimer

The Monetary Authority of Singapore (MAS) requires us to provide this warning to potential digital payment token (DPT) service customers.

Take note of the following before you sign up with any DPT service provider or purchase any DPTs:

1. Regardless of whether your DPT service provider is licensed by MAS to provide DPT services, please note this does not mean you will be able to recover all the money or DPTs you paid to your DPT service provider if your DPT service provider’s business fails.
2. You should not transact with a DPT service provider you are unfamiliar with. In general, transacting DPTs may be unsuitable for you if you are unfamiliar with them.
3. Be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into them.

Cryptocurrencies experienced a meteoric rise in 2021 and have continued to grow in popularity and value. This is despite some regulatory challenges and market volatility.

The series of bankruptcies among cryptocurrency companies throughout 2022 marked the onset of a “crypto winter,” characterised by a sustained period of price weakness.

This has led to a prevailing question: Is it still worthwhile to engage in token trading on alternative platforms such as Crypto.com in 2024?

What is Crypto.com

Founded in 2016, Crypto.com is a cryptocurrency exchange that allows users to invest, trade, send, and stake crypto assets and blockchain-related products. Crypto.com currently supports slightly over 250 different cryptocurrencies and 20 fiat currencies. The company also offers a crypto wallet, non-fungible token (NFT) marketplace, cryptocurrency Visa debit card, and other services.

Crypto.com provides its services across three platforms: Crypto.com, the Crypto.com exchange, and its DeFi (decentralised finance) Wallet app. The main app is designed for beginners while the Crypto.com Exchange and the DeFi Wallet app are geared towards active traders.

Unlike the other two apps, users on the DeFi Wallet app trade on a decentralised exchange, which gives them complete control over their assets.

What is CRO

CRO is the native token on Crypto.com’s blockchain. CRO is a utility token that gives users access to various benefits within Crypto.com’s ecosystem.

Read more: Buying your first Bitcoin? Here’s what you need to know.

Fees and charges

Crypto.com has a complex fee structure. Here are some of the main fees and charges you should know about:

These rates are obtained from Crypto.com and are subject to future changes.

Pros and cons of Crypto.com

Pros

1. Easier way to transact via Crypto.com Visa card

One of Crypto.com’s main selling points is its Visa card. This card allows you to spend your cryptocurrencies both in-store and online. The Visa card comes in different tiers. To unlock higher cashback and access more benefits, you have to stake more CRO tokens.

Staking refers to investing your cryptocurrencies to earn interest on them.

While Crypto.com is still widely known for its Visa cards, one notable change in terms of benefits going into 2024 is the limits placed on the cashback on subscriptions to the first 6 months for Royal Indigo/Jade Green and below cardholders.

2. Earn high interest by staking CRO tokens

Accurate as of early January 2024*

Another popular feature is Crypto.com’s Earn Programme where users can stake their cryptocurrencies to earn up to 12% per annum for Tier 1. There are three timelines to choose from: Flexible, one month, and three months.

The longer the staking duration, the higher the interest rate. The flexible option gives you the lowest rates but allows you to withdraw the staked assets at any time, while the three-month option locks your cryptocurrencies for three months in return for the highest rates.

A higher Visa card tier also offers you higher rates.

3. Be rewarded for owning CRO

Crypto.com holds supercharger events on a regular basis. These events allow you to earn other cryptocurrencies using your CRO token.

Charging Period: This is the period when users deposit at least 100 CRO to participate. The amount awarded is based on the total amount deposited and the duration charged. Different events have differing charging periods.

Reward Period: This is the period where users are awarded other cryptocurrencies. You will receive payouts daily over a fixed period of time. You have to manually accept the reward or you will not receive anything.

The supercharger rates are extremely low compared to the Earn Programme. But it is still a way to earn cryptocurrencies. All you need is a small number of CRO tokens.

4. Make purchases with cryptocurrencies

Users can use their cryptocurrencies to buy gift cards from brands such as Adidas and Grab without converting them into fiat money using Crypto.com’s Pay feature. You can also transfer your cryptocurrencies to other users via the Crypto.com Pay feature.

Since the introduction of the Pay feature, Crypto.com has improved the shopping interface and introduced new items, with the most exciting addition being Ledger. This aligns seamlessly with the wallet extension to support Ledger.

5. Be rewarded for logging in

Missions is a loyalty programme that encourages users to log onto the app every day. There are a variety of tasks that users can complete to earn “Diamonds”. These diamonds can be exchanged for mystery boxes that contain varying amounts of CRO tokens.

Cons

1. Large spread

Crypto.com does not charge any trading fees, but it has a large buy-sell spread compared to other exchanges.

The higher the spread, the more you are paying to buy the same amount of tokens. This is a small issue for beginners or users trading small amounts, but it can be costly for those who make sizable and frequent trades.

Here is our tip if you plan to use Crypto.com: Spreads are different based on the time of the day. Look at the trading history to find out when is the best time to trade.

2. Fees from using debit and credit cards

Crypto.com charges a fee of up to 4% if you buy cryptocurrencies using a debit or credit card. There is also a 1% fee if you top up your Crypto.com card with a credit card. These fees add up and eat into your returns.

There are ways to bypass these fees. There are no fees if you use a debit card to top up your Crypto.com card. You can also use StraitsX, a regulated payment infrastructure, to fund your account and buy cryptocurrencies with no fees.

3. Limits that comes with staking

To enjoy Crypto.com’s card benefits, users have to stake their CRO token for at least six months. You cannot sell your stake even if you urgently need to cash out. The value of CRO tokens also depends on the market six months later.

How to open an account

Opening a Crypto.com account is easy. After you submit the relevant documents, your account will be approved within two to three working days.

If you want to avoid paying fees from debit or credit card payments, you also need to set up a StraitsX account, and link it to your Crypto.com account.

Is Crypto.com safe?

Crypto.com has put in many security measures like multi-factor verification and anti-phishing warnings.

Notably, it is the first financial technology company to receive the Singapore Data Protection Trust Mark. Users’ assets are kept in cold storage ledger vaults and inaccessible to hackers. The company has a team of security experts that monitor the platform round-the-clock to identify potential threats.

Why use Crypto.com

With its wide range of products and services, Crypto.com is suitable for both beginners and professional traders.

Crypto.com is a good entry point for new cryptocurrency traders. The main app is user-friendly and intuitive. The company’s other two platforms, the Crypto.com Exchange and the Crypto.com DeFi Wallet, have enough complex features and insights catered to active traders.

Conclusion

Remember, cryptocurrencies are considered high-risk investments. Be sure to do your research into the right tokens to buy, and which exchanges offer the lowest fees.

Once you’ve done that and have made the decision to take on the new asset class, Crypto.com’s exchange is one of the safest in the world to use.

Read more: Best Platforms To Buy Cryptocurrencies in Singapore