Switching to Crypto.com from Blockfi, a Misadventure

Cryptozoa
Cryptozoa
Jun 8 · 6 min read
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Take me to your Don Quixote! I want to tilt against windmills…

TL;DR: Moar Interest, Up to 12% on Crypto.com vs. 8.6% on Blockfi. Also, FDIC insured. The “Earn” button doesn’t show on my app. Trusted Centralized Third Parties only work M-F, 9–5. Crypto.com thumbs down!

Switching to Crypto.com

After briefly perusing their website, it looks like the 12% is reserved for those staking 500 of their native coin MCO, which was currently retailing for over $5. $2,500 to get 12%? Seemed a tad steep.

Looking deeper, without the stake you could earn 10%. Still better than Blockfi, which was a massive step up from the half a percent I was getting from my Credit Union savings account.

10% interest per year for letting my USDC lie around seemed like an even better deal.

Oh yeah, if you’re a US Resident, your balance is covered by FDIC insurance, which one-ups Blockfi’s security, which isn’t FDIC insured:

https://crypto.com/en/security.html

Once my 8.6 interest landed on the Blockfi app on the 1st of June, I made the move to Crypto.com.

Oh if it were only that easy!

Crypto Wallet App, and the Crypto App

“Why do they have 2 apps? It looks like the Crypto.com app already has an internal wallet, so what gives?”

I speculated that if I used the Crypto wallet maybe it would allow me to retain my private keys while earning interest. So I sent my Bitcoin there. As a parallel test, I sent my USDC to the Crypto app to compare and contrast.

I should have sent both to the Crypto app. While my Bitcoin landed in the Crypto Wallet app, it would NOT allow me to transfer the coins to the regular Crypto App in order to get interest (which was the point of this exercise).

Weird disconnect on what should have been a no brainer. Do they do no QA testing?

Crypto Wallet Not ready for Prime Time

Anyway, crypto deposited into the Crypto.com app, including 50 MCO tokens — I’m ready for my 10%!

No “Earn” button: No Earning

Nada, zilch, zippo.

Not sure if they were disabling it, or if it was a bug in their app. Questions posed to their chat help went unanswered. Terrible customer service. No number to call either.

…But for 10% interest, I was willing to battle this out.

MCO Credit Card

Their website lists 5 credit card tiers based on the amount of MCO you stake. It was only after some digging that I figured out that the tiers are based on color of the card. I thought at first the colors were just a reflection of your personal preference, not an indication of the level of card.

A bit confusing.

Where’s the mythical “Earn” button?

Blockfi’s got them beat in the usability department for sure.

Cooling my heels for 3 days…

Day 5

After searching the forums it looks like the missing “Earn” button is not uncommon. The solution being to contact support — which I did, four days ago! It always shows that they haven’t even looked at my requests, even though it says it typically only takes a few hours for a response.

Withdrawal issues

Day 6

This worked.

But now I needed to change my USDC back to BTC. The Blockfi mobile app didn’t seem to have a way to trade the USDC into BTC.

Ugh.

Sooo, I tried to transfer the USDC to JAXX to change it back to BTC.

My withdrawal got flagged for some reason, and I had to go through an identity check with my driver’s license and a facial recognition check where I had to turn my head left, then right.

It now says it may take a day to process.

I figure out that the desktop app allows trading, so I cancel the transfer, and trade the USDC back into BTC.

The Weekend

They still use meatheads to approve and disapprove transactions. Wherefore art thou Defi? I’m uncharacteristically hoping for a drop in bitcoin’s price over the weekend.

“Trusted” Third Parties

Monday

Crypto.com verdict

From personal experience, and reading about the experiences of others, needing to be individually approved by Crypto.com before allowing the “Earn” button to appear can be a painful wait. And then adding insult to injury, not allowing BTC to be withdrawn raises suspicions on the reasons for doing so. Is it a bug, or a deliberate attempt to foil withdrawals of the coveted bitcoin?

The USDC withdrawal went off without a hitch, which forced me to trade my BTC to USDC in order to withdraw MY funds. And now trading back to Bitcoin comes with another identity verification delay as the price of BTC fluctuates.

Crypto.com, you have some work to do before I trust my funds with your services. 10%-12% is only tempting when I can actually start earning it.

If you want to get $10 of free bitcoin you can use my refer a friend link: https://blockfi.com/?ref=2bcac01e

While I had issues with the Crypto.com app, the 10–12% interest will be great once it works. My brother experienced no issues. Use my referral link and we can both earn $50: https://platinum.crypto.com/r/huswcm2fyy

Nothing in this article is to be construed as investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.

Cryptozoa

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