I've been earning around $4-5k per month in interest alone on my cryptos that I've been holding for since 2015. I find it too good to be true, but in more than a year so far it's all been good. For ex - I have tried to withdraw some amounts at times and it was always smooth. Does Crypto.com have belly to support these kind of interest rates? or are they going to go bust eventually? It's pretty large at this point I think. I think they earn quite a lot from their spreads and withdraw fees, so may be it's okay? Wanted to ask the community if there are red flags with this company. #crypto
It is risky and it can go to ZERO! It’s not FDIC insured. I have a 7-figure crypto portfolio, but I am not willing to put in a meaningful amount into any of the passive yield products. There are a few different options: 1) Central exchanges: They can go under or declare bankruptcy anytime with no recourse to your funds. They have been investigated, fined and even restricted from offering their products in some states like New York & NJ. 2) Staking: You can stake proof-of-stake coins like ETH 2.0, BNB, SOL etc. with validates. This is the least risky option in my opinion. 3) DeFi platforms like Compound, Aave, Uniswap, PancakeSwap etc. You can get 20-30% APR. The may not have central risk, but they do have security risk. They can be hacked, and many such platforms get hacked and the funds are stolen. 4) New DeFi protocols like OlympusDAO & Iron Finance: they offer insane APY like 500% or even 50000%. They are often short lived, their APYs plummet quickly as the volume picks up and many get rugged or hacked.
It’s sustainable. Crypto.com makes a profit on the crypto thru defi