Within the Crypto.com ecosystem, you’ll find the mobile app, exchange, and the latest addition, the Crypto.com Decentralized Finance (DeFi) cryptocurrency wallet.
While both the exchange and mobile app are custodial in nature, the Crypto.com DeFi Wallet stands out as a non-custodial solution. These three applications seamlessly integrate with each other, offering a unified experience within the ecosystem.
In this guide, Cryptocurrency NZ will dive into the features and the basics of Crypto.com DeFi wallet – and help gauge if this cryptocurrency wallet is best suited for kiwis.
What is Crypto.com DeFi Wallet?
The Crypto.com DeFi Wallet is a secure wallet that allows you to have complete control over your cryptocurrencies and access a range of Decentralized Finance (DeFi) services, all in one convenient location. With this cryptocurrency wallet, you can manage over 100 different tokens, including popular ones like Bitcoin, Ethereum and Dogecoin.
Is Crypto.com DeFi Wallet Safe in NZ?
Crypto.com DeFi Wallet is designed to prioritize security. However, it’s important to note that no crypto wallet can be considered completely immune to risks. Consider theses:
Security Features: Crypto.com DeFi Wallet offers features like two-factor authentication (2FA), biometric authentication, and encryption of private keys to enhance security.
Non-Custodial Wallet: The Crypto.com Wallet is a non-custodial cryptocurrency wallet, which means you have full control over your private keys and funds.
Personal Security Practices: While Crypto.com Wallet provides security features, it’s crucial to ensure that you maintain good personal security practices. This includes creating a strong passwords, a mix of upper and lowercase letters and numbers.
Research and Reputation: It’s advisable to research and review the reputation of any cryptocurrency wallet provider before using their services. Crypto.com is a well-known and established platform in the cryptocurrency industry but always DYOR!
DeFi Wallet vs App Wallet
The Crypto.com DeFi Wallet differs from the Crypto.com App Wallet in terms of its decentralization. As the name suggests, the DeFi Wallet operates in a decentralized manner, without a central authority overseeing it such as crypto.com.
However, in the Crypto.com App Wallet, your wallet is managed by Crypto.com, an incorporated and regulated entity. This is commonly referred as a custodial wallet.
CNZ believes if privacy is a priority for you; the DeFi Wallet is ideal as it allows you to create wallets and conduct transactions anonymously. Conversely, creating a centralized App Wallet requires valid identification, linking transactions to your real-world identity.
What are the Fees Involved?
When it comes to moving funds within the Crypto.com ecosystem, there are no extra fees to worry about. However, it’s important to be aware that all transactions occur on chain.
For instance, if you’re using Ethereum, transaction fees can vary depending on the network congestion. In some cases, fees can range from $5 to $50 for a single transaction.
Fortunately, the Crypto.com DeFi Wallet offers a useful Ethereum gas tracker, allowing you to stay informed about the current ETH fees. This feature helps you choose the right time to make transactions when the network is less congested, enabling you to save on fees.
Pros and Cons of Crypto.com DeFi Wallet
✔️ Pros of Crypto.com DeFi Wallet
Decentralization: The DeFi Wallet operates in a decentralized manner, giving you full ownership and control over your funds. This aligns with the core principles of cryptocurrencies and provides enhanced security against potential hacks.
Privacy: The DeFi Wallet allows you to conduct transactions anonymously, offering a higher level of privacy compared to centralized alternatives. This can be beneficial for individuals who value their privacy and want to keep their financial activities private.
Access to DeFi Services: As a dedicated DeFi wallet, it provides seamless access to various decentralized finance services within the Crypto.com ecosystem. This enables you to explore and participate in decentralized lending, borrowing, staking, and other DeFi activities, empowering you to make the most of the growing DeFi landscape.
❌ Cons of Crypto.com DeFi Wallet
Higher Responsibility for Security: With the DeFi Wallet, you are solely responsible for the security of your funds. If you lose access to your wallet or fall victim to hacking attempts, there may be limited recourse or support available to recover your funds.
Potential Complexity: DeFi protocols and interactions can sometimes be complex, especially for users who are new to the DeFi ecosystem. Engaging in DeFi activities through the Crypto.com DeFi Wallet may involve navigating various decentralized platforms and understanding smart contract functionality.
Network Congestion and Transaction Fees: Like many other blockchain-based applications, the Crypto.com DeFi Wallet operates on-chain, which means transaction fees and network congestion can impact the cost and speed of your transactions.
Alternative Cryptocurrency Wallets
If you’re considering alternative wallets to the Crypto.com DeFi Wallet, there are a few options worth exploring. One popular choice is MetaMask or Trust Wallet.
If your after Hardware Wallets two great options are Ledger and Trezor these bad boys are like Fort Knox for your crypto, offering the highest level of security for long-term storage.
There’s no one-size-fits-all when it comes to digital wallets, so don’t be afraid to explore different options and find the one that best fits your needs. Read more about wallets.
Cryptocurrency NZ Final Verdict
TLDR – We recommend using MetaMask over Crypto.com DeFi Wallet.
Cryptocurrency NZ believes that the Crypto.com DeFi Wallet is a robust and feature-rich wallet that offers significant benefits to the average New Zealander. With its decentralized nature, the cryptocurrency wallet provides users with complete ownership and control over their digital assets, aligning with the core principles of cryptocurrencies.
However, it’s important to note that connecting the DeFi Wallet to centralized entities can compromise privacy, which goes against the fundamental nature of cryptocurrencies. Users should carefully consider the trade-off between convenience and privacy when deciding to integrate with centralized services such as crypto.com.
One Final aspect to keep in mind is that Crypto.com does not currently support off-ramps to New Zealand dollars (NZD). This means that converting cryptocurrencies to NZD within the Crypto.com ecosystem may not be possible, requiring users to explore alternative platforms such as Easy Crypto NZ or New Zealand Peer-to-Peer Marketplace.
