Crypto.com warning

I know I sound pessimistic on many things posted on this or any other crypto site, but that may be because I have been burned a LOT in my 53 years. The one thing I have learned above all things is, if it seems too good to be true, it generally is. Which brings me to Crypto.com

Everything of theirs looks legit up until you get to the staking. Not the staking of BTC or ETH or even their MCO as they offer reasonable 4% or so returns. Especially when lending same currencies is at a 9% rate. However, when you look at their CRO, that is only at about .13 per coin yet they offer up to 16% for 3 months of staking, that is when my warning bells go off. Why 4x the bonus of everything else? How easy it would be to get people converting their measly 4% earning cryptos to CRO to get gready, only to watch that crypto get dropped to 0.0. Anyone who sells their BTC or ETH for CRO is asking to take a financial spanking. Be careful.

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Not to be a buzz kill of your fair warning… but isn’t that risk pretty standard in crypto?

Yes, this was my thinking aswell. However, there’s a reason and pretty obvious one. Actually two explanations. 1) staking reward in crypto.com on average considering all assets combined are actually a little bit lower than industry average. Sure enough CRO is much higher. They obviously want to reward their native token CRO. But the average % is not that high when you take all the other coins into the calculation.

  1. yes, you may ask where does this reward come from? DeFi! It’s business, lending money/crypto is a lucrative business and many in crypto business are giving a big portion of it back to the participants, aka crypto stakeholders. This big reward has gone into the wealthy 1% in fiat business.

Jminer,

That was sorta my round a bout warning. I can see many actually trading all their BTC and ETH for CRO in the hunt for huge returns. BTC and ETH are fairly safe, when compared to most other coins. Too many are trying to get rich quick or over night, so my words were just something that hopefully gets stuck in the back of their minds. Not a deterrent to using Crypto.com.

I never invested in CRO because the returns sound too good to be true. I hope it doesn’t cause the entire earn program to collapse. I used earn for half a year but pulled my funds out because it’s too much risk.

I do like the 2% cash back option, but i will pass on something i recently read. The only way your Crypto is safe is once its in a private wallet. If you Stake the coins you are basically loaning them to whoever, and you have a “I OWE YOU”, but you are vulnerable to losing all that crypto. So, dont stake everything you have, but manage risk accordingly. I know VOSK mentioned somewhere about staking your BTC while its still in your wallet, but i cant find the video.

Ugggh. So i started moving my rewards and stuff from the exchange to my connected wallet. Unless you are moving over 100.00 worth of stuff, the percentage is just too high. That’s both ways. So, if you want to save yourself some money, let your coins add up to “at least” 100.00 before sending it over to your wallet.

Sheesh. I just did the maths. For me in South Africa, I have to invest R4k to get R800 back as a reward. That’s not cash I have lying around. Guess I’ll need to hang on a bit