Editorial Review

Crypto.com Interest Account: High Rates for Hoop Jumpers

Crypto.com is a fast-growing company with a lot of potential, but in order to unlock their best interest rates, you are going to have to buy into their system.

March 1, 2020

Our Take

4.0
Editor's rating
Crypto.com Logo

Crypto.com Earn

4.0 Editor's Rating
on Crypto.com's website

Crypto.com Earn

4.0 Editor's Rating
Availability
Worldwide, excluding: Hong Kong, Switzerland, Malta, Bulgaria
Interest details

Compounding

Paid weekly

Terms: Flexible, 1 month, 3 month

Security score
4.0
Interest rate

BTC: 6%

ETH: 6%

USDC: 6%

Pros & Cons

Pros

  • Crypto.com Earn boasts one of the largest range of supported cryptocurrencies for interest earning
  • High maximum deposit for big time spenders with MCO tokens
  • Higher than average interest rates for users with MCO tokens
  • Crypto.com has strategic partners which seamlessly integrates your Crypto.com wallet to many third-party vendors.

Cons

  • To get higher rates, you must have MCO tokens and/or have your assets locked up for 1 or 3 months.
  • Crypto.com offers no insurance on your deposits
  • The company is registered in the Cayman Islands with limited regulatory oversight

Crypto.com Basics

Crypto.com's interest pays out weekly and does not compound. Interest is paid out in the currency you are earning interest in. Minimum deposits come out roughly to the equivalent of $250 for each asset with a maximum total deposit of $500,000 (maximum deposit increases if you own MCO, Crypto.com's in-house token). Crypto.com supports many assets for their interest bearing account, including BTC, ETH, XRP, LTC, EOS, BNB, PAX, DAI and a few stablecoins.

Rates

Crypto.com offers an array of rates depending on which extra hoops you are willing to jump through. If you agree to have your assets locked up for either one month of three months, or if you agree to use MCO then you will enjoy higher rates. The following rates assume you neither locked up your assets nor opted into their MCO coin.

  • BTC: 0.5% paid annually, (0.05 BTC minimum) Opting into all requirements gives you a 5.5% annual rate.
  • ETH: 1% p.a., (1 ETH minimum); maximum rate = 4% p.a.
  • LTC: 1% p.a., (1.5 LTC minimum); maximum rate = 4% p.a.
  • Stablecoins: 6% p.a., (roughly $250 minimum); maximum rate = 12%

Withdrawal Policies

There is no information for specific fees associated with withdrawing funds from a Crypto Earn account, so we must assume their withdrawal fees are platform-wide. Below are the withdrawal fees associated with each asset:

  • BTC: 0.0003 BTC
  • ETH: 0.003 ETH
  • LTC: 0.001 LTC
  • USDC: 1 USDC

Assets can be withdrawn at any time but utilizing this feature results in lower interest rates. Locking up your assets gives a user higher annual yields.

KYC Policies

You will need to submit the following information to Crypto.com in order to use their platform:

  • Full legal name
  • Picture of government-issued ID
  • Selfie
  • address
  • email
  • phone number

It takes Crypto.com about one day to verify all of this information.

UX

Ironically, Crypto.com's website is simply a place the company presents information. If you wish to start earning interest on your cryptocurrencies, you must download their app. Fortunately, the app is available for both iOS and Android users.

What Crypto.com Does Well

High Rates

If you choose to opt into Crypto.com's MCO token and their asset lock up, you can receive some relatively high rates. 5.5% on BTC is especially high while 4% on ETH is also on the other larger side.

Strategic Partnerships

Crypto.com has recently announced their partnership with travel agency Travala. Travala is a crypto-friendly agency which has now integrated Crypto.com's platform into their site. Partnerships like this give Crypto.com users some external functionality and some tangible use cases. Crypto.com has an online store where you can spend money from your Crypto.com wallets. There's only three items available for purchase at the moment (t-shirts and hoodies), but online stores and partnerships like Travala give users options and it's a step in the right direction. Of course, for an interest bearing account user, the idea is to save money over long periods of time so these benefits probably do not apply to you.

Privacy

Upon entering Crypto.com's site, you are immediately asked to switch on their cookies. Clicking on their pop-up menu brings you to a list of their cookies, most of which are automatically disabled except for the cookies the site needs to function properly. It's a nice touch to have a website/company be so upfront about their third-party cookies, especially when the default setting is to have them disabled.

Security

Crypto.com uses a TOTP (Time-based one-time password) for their 2FA. You will need to download a key generator such as Google Authenticator or Authy to enable this feature. You can also enable biometric security in the form of Face ID and Touch ID for an added layer of protection.

Why You Might Want To Choose Another Service

Legitimacy

Unfortunately a prevailing theme in this space is lack of legitimacy. On the surface, Crypto.com seems very reputable. Their site is polished, their offerings plenty, but upon reading their terms and conditions you learn that Crypto.com is actually MCO Digital Asset Group, a company incorporated in the Cayman Islands. The Cayman Islands is a great place to go to avoid income taxes and hide assets from regulator's view, so companies incorporated in this jurisdiction should be approached cautiously. Who knows what might happen to a company like this when the U.S. government starts buckling down on crypto-companies.

Within the crypto space however, Crypto.com is among the most reputable companies you may find. They deliver on their products, what you see is what you get, and they're very transparent with all of their policies and requirements. Crypto.com has high ratings on some online review sites and its many third-party partnerships are testament to its business integrity.

Lack of Insurance

Crypto.com, unlike many of its competitors, does not offer insurance of any kind on your deposits. This is a large set back in terms ease of mind. Insurance for custodial services is a relatively new offering so Crypto.com may be working on it but until then be weary that if Crypto.com loses your assets or if anything happens to the company itself, your assets are gone forever.

Prohibited Uses

If you are a resident of Bulgaria, Malta, Hong Kong or Switzerland, you may not use Crypto.com's interest bearing accounts. If you live in any of those areas, you will have to find another service to use.

To Wrap It Up

Crypto.com seems like a blend of the regulatory world of traditional finance and the Wild West of cryptocurrency. Crypto.com is KYC/AML compliant, but they're registered in the Cayman Islands. They have legitimate partnerships with reputable third-party vendors, but their own online store has a laughable selection of shoddy t-shirts. It seems like a mixed bag with Crypto.com but this is definitely a company to keep an eye on.