Is Crypto.com safe to use? What you need to know

Crypto.com is one of the most popular cryptocurrency trading platforms. Almost everyone knows about cryptocurrencies, and investing in them is becoming more popular. This leads to many people asking: Is Crypto.com safe to use?

Crypto.com allows anybody to engage in a wide range of cryptocurrency trading activities. You can buy and sell cryptocurrencies and stake your crypto to earn rewards on holdings. It also provides a Visa card to spend your crypto in the real world.

We understand that investing can be nerve-racking, mainly when investing in cryptocurrencies. Crypto investments have a reputation for scams, pyramid schemes, and cybercrime. To help you invest securely, we’ve carefully analyzed the platform to determine if Crypto.com is safe.

Keep reading to learn whether crypto.com carries any risks and top tips on staying safe when buying, trading, and storing Bitcoin and other cryptocurrencies on Crypto.com.

What is Crypto.com?

Crypto.com is a one-stop shop for anyone looking to get into crypto. You can trade, stake, and even spend your digital coins. Best of all, it is easy to get started because of Crypto.com’s straightforward interface.

Whether you’re new to the world of investing in crypto or you’re an experienced trader, Crypto.com is well worth considering. The platform makes it easy to buy and sell crypto by attaching your account to your regular debit card or bank account. You can also use Crypto.com to track crypto price changes and access advanced trading tools like limit orders, margin trading, and derivatives trading.

With Crypto.com, you also get secure storage for your coins through their built-in crypto wallet. If you like to have more control, there’s also a DeFi wallet that lets you manage your own keys.

How does Crypto.com secure my account?

To ensure the safety of its users, Crypto.com implements various security measures. Account security features include cold storage, 2FA, anti-phishing codes, and compliance with financial regulations. These measures ensure compliance with anti-laundering rules and help to ensure the safety of user investments.

Below, we have listed the main Crypto.com security measures:

• Cold storage for crypto wallets: Crypto.com stores digital assets in cold storage. Cold wallet storage prevents unauthorized access to investor funds by storing them offline. This reduces the platform’s attack surface, making it less vulnerable to hackers.
• Two-factor authentication (2FA): 2FA ensures users can add protection to their accounts. It requires users to verify their identity by entering a code they receive from a secondary physical device. This removes the possibility of brute-forcing an account by guessing the password alone.
• Compliance: Crypto.com complies with legal standards in all the regions it serves. This includes KYC (Know Your Customer) and AML (Anti-Money Laundering) policies. These compliance protocols prevent fraud and help protect user investments.

What is Crypto.com’s Proof of Reserves?

Crypto.com offers as much transparency as possible because this helps it earn its users’ trust. As part of its policy towards transparency, Crypto.com uses Proof of Reserves. This method allows the company to demonstrate that it physically holds enough total funds to cover the value customers have deposited.

To achieve Proof of Reserves, Crypto.com contracts third-party auditors to check its reserves and check that everything adds up. By investing in regular third-party audits, Crypto.com can prove that it has sufficient assets to back user deposits, which ensures complete confidence in the platform’s financial stability.

What was the 2022 Crypto.com Hack? How did it affect users?

In 2022, Crypto.com experienced a security breach. The hacking incident resulted in losses of $34 million worth of crypto assets.

During the cyberattack, hackers gained unauthorized access to 483 accounts and made unauthorized withdrawals. Although the incident was shocking, Crypto.com dealt with it promptly and effectively. The platform responded by reimbursing all affected user accounts and introducing improvements to account security features that led to the breach.

These updated security measures included stronger 2FA and better account monitoring to detect suspicious activity. While the incident was troubling, it demonstrated that Crypto.com is genuinely dedicated to user safety by reimbursing user losses and upgrading its security accordingly.

Tips to stay safe on Crypto.com

If you are a Crypto.com user or want to start trading using the platform, you must protect your account correctly to avoid having any funds stolen. Below, we have included a list of tips and tricks we recommend for keeping your Crypto.com as secure as possible:

1. Create a strong password: It is vital to use strong passwords that mix letters, numbers, and symbols. A truly secure password should be more than 15 characters long and random, making it practically impossible to remember.
2. Enable 2FA: You must leverage a secondary layer of protection to secure your account against unwanted intrusion. This is why you should enable 2FA as soon as you create an account.
3. Beware of phishing scams: It is important to double-check all the emails, SMS messages, social media messages, and other communications you receive. The rise of AI allows hackers to create better fake emails and cloned websites that seem legit. This is why you must never click links in unsolicited messages. You can also set up an anti-phishing code in the Crypto.com app to protect yourself against fake messages.
4. Monitor your account: By regularly monitoring your account and any transactions that occur, you can help spot unauthorized activity quickly. This can reduce the damage and ensure that your account and funds are secured against unauthorized access as quickly as possible.

Is Crypto.com better than other exchanges?

In this section, we have highlighted some of the main factors you must consider when deciding which exchange is better for your investment plan.

When comparing Crypto.com to exchanges like Coinbase and Binance, we must consider several key factors. Below, you can see our main list of considerations. You can use this information to pick between Crypto.com and its main competitors:

Crypto.com vs Coinbase and Binance

1. Cold Storage

Crypto.com, Coinbase, and Binance all use cold storage for most of the assets they control. This minimizes the threat of cyberattacks by keeping most of its financial liability stored in wallets that are less vulnerable to hackers. All three platforms are secure and equally safe in this area.

2. Insurance Coverage

Crypto.com is known to offer robust insurance coverage. However, it is not as forthcoming with details as Coinbase, which might deter more cautious investors. Coinbase is recognized for its transparency regarding insurance policies, making it more appealing to risk-averse users.

1. Crypto.com provides insurance for user funds stored in cold storage. It offers coverage for up to $750 million, making it one of the most extensive insurance programs in the industry.
2. Coinbase provides insurance for customer deposits and all user funds stored in cold storage.
3. Binance established its Secure Asset Fund for Users (SAFU) in July 2018 as an emergency insurance fund to protect users. As of April 18, 2024, the SAFU fund wallet comprises 1 billion USDC, which should theoretically protect the platform against liability in a large hacking incident.

3. Compliance standards and security

Crypto.com, Coinbase, and Binance all comply with KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations. However, Crypto.com puts extra emphasis on its security features.

• Two-Factor Authentication (2FA): Available on all three platforms, but Crypto.com has streamlined 2FA to make it more user-friendly.
• Withdrawal protection: Crypto.com provides withdrawal whitelist features. This adds an extra layer of protection against unauthorized transactions. This feature is also available on Binance but it is a bit harder to use and setup.
• Proof of Reserves: Crypto.com focuses on transparency through regular Proof of Reserves audits. Coinbase is a publicly listed company, which means it publishes quarterly financial disclosures. Binance is less consistent in providing proof of reserves.

4. User experience

Crypto.com is known for its easy-to-use mobile app and straightforward interface, which caters well to beginners. Coinbase is similarly beginner-friendly, with an intuitive design, but Binance can be overwhelming for new users due to its wide range of features and complex interface.

Coinbase is often seen as the most beginner-friendly platform, focusing on providing educational resources and tutorials to help new users understand crypto investing.

Binance offers the most features, including margin trading, futures, and an extensive range of altcoins. This can make it more appealing to advanced traders.

5. Fees

Crypto.com generally offers competitive fees, especially if you use and stake their native token, CRO, to get discounts. However, Binance often has the lowest fees among major exchanges, which makes it a better option for anybody engaging in frequent or high-volume trades.

Coinbase is known for having higher fees, particularly on its standard platform (though Coinbase Pro provides more competitive rates). This makes Crypto.com more appealing than Coinbase for those looking to minimize costs.

6. Altcoin availability

Binance wins when it comes to the variety of altcoins available for trading. It has hundreds of coins and trading pairs, which gives you access to almost every major cryptocurrency and niche token. This can be advantageous for investors who do a lot of research and want to invest in lesser-known altcoins that hold promise (such as gaming-related coins or other niche altcoin markets).

• Crypto.com also offers a wide selection, but it doesn’t match Binance in terms of variety.
• Coinbase offersaccess to fewer altcoins than Binance and Crypto.com. However, it has a strong vetting process, which means the tokens it lists are considered less risky. This makes it a good option for beginners looking to start investing with less exposure to questionable cryptocurrencies.

What are the main downsides of Crypto.com?

Crypto.com has some drawbacks that users complain about. Before using Crypto.com as your exchange or crypto storage solution, these downsides are worth considering.

The first drawback is the complexity of its staking rewards. To get the best rates, users need to stake their custom altcoin CRO. This can be off-putting for users who want a simple experience that gives them the best rates. We also find the terms for its staking rewards too confusing, especially for newcomers. This complaint is often mirrored in online forums.

Another issue is the fee structure. Unless you are willing to stake CRO (which offers fee discounts), trading fees on Crypto.com can be higher than those on competing exchanges. This means you must get comfortable converting crypto into CRO for transaction purposes. Trading CRO will give you much better rates, but it adds an extra step many users prefer not to deal with.

Transparency is another reason some users criticize Crypto.com. While it is true that Crypto.com pays for regular Proof of Reserves audits, its financial disclosure lacks transparency compared to some competitors like Coinbase (a publicly traded company). This can be enough to put some risk-averse investors off.

Finally, some users complain that Crypto.com has a steep learning curve. This is due to its abundance of features, which makes it feel overwhelming for beginners. However, there will always be some learning curve when trading crypto. Compared to Binance, Crypto.com remains much more straightforward.

It is also worth noting that Crypto.com’s customer support response times can be slow. Plus, some features may be unavailable based on your location, so do your research before opening an account if you need access to niche features like margin trading. (More on this below.)

Do I need a VPN to use Crypto.com in New York?

Yes. If you visit New York for work or vacation, you can use a VPN to access Crypto.com. Crypto.com is currently unavailable in New York because of local regulatory restrictions that prevent the platform from offering its services in the state.

Suppose you’re visiting New York but are typically based in another region where Crypto.com is fully accessible (such as Europe or another US state). In that case, you can easily use a VPN to change your IP address to a location where Crypto.com is available.

Using a VPN is an easy way for users to continue accessing their accounts without interruption, managing their investments as they usually would outside New York. Although it is possible to unblock Crypto.com in New York by using a secure VPN, it is essential to consider the potential downsides:

Using a VPN to bypass geographical restrictions goes against Crypto.com’s terms of service, which could result in account suspension or penalties if detected. Additionally, using a VPN to bypass local restrictions and trade using Crypto.com in New York could violate local laws, potentially resulting in criminal liability.

For this reason, it is vital that you carefully consider why you are accessing a Crypto.com account from New York and whether it is a good idea to do so. We are not attorneys, and nothing in this guide should be taken as legal advice. Always do your own research, and remember that using a VPN to trade crypto is at your own discretion and risk.

What are the best VPNs for Crypto.com?

Using a VPN enhances your security and privacy when accessing Crypto.com, especially if you’re in a region with restrictions.

Here are the best VPNs for Crypto.com:

• NordVPN: Best VPN for Crypto.com. Offers strong encryption and a strict no-logs policy, ensuring your crypto transactions remain private. With servers in 100+ countries, it provides fast and reliable connections.
• Surfshark: A budget-friendly VPN. Allows unlimited device connections. It includes features like CleanWeb to block ads and malware, enhancing your security while accessing Crypto.com.
• ExpressVPN: High-speed servers in over 100 countries, ExpressVPN ensures smooth access to Crypto.com. Its TrustedServer technology operates on RAM-only servers, meaning no data is written to a hard drive, enhancing privacy.
• CyberGhost VPN: Provides user-friendly apps and dedicated servers optimized for streaming and security, making it a solid choice for accessing Crypto.com abroad or a work.
• IPVanish: Offers a balance of speed and security with a strict no-logs policy, ensuring your crypto activities remain confidential.
• ProtonVPN: Focuses on security with strong encryption protocols and a strict no-logs policy, making it a reliable choice for accessing Crypto.com securely. Perfect for users who want to torrent.
• PureVPN: Provides a wide range of servers and robust security features, ensuring safe access to Crypto.com from various locations.

Frequently Asked Questions