Crypto.com is a safe and highly secure exchange for U.S. investors, backed by institutional-grade security, extensive regulatory licenses, and insurance for cash deposits. While no platform is perfectly unhackable, its use of 100% cold storage for user assets and its proactive response to past incidents make it one of the more reliable options in the market.
The trade-off is that you must manage your own security settings diligently to benefit from these protections. While no platform is entirely immune to risk, Crypto.com employs industry-leading security protocols that make it a viable option for both new and experienced investors who want to learn how to use Crypto.com safely.
This guide explores the exchange’s safety features, its history with security breaches, and how it protects your digital assets.
Key Takeaways
- Cold Storage: 100% of user digital assets are kept in offline “cold” storage to prevent remote hacking.
- FDIC Insurance: U.S. dollar balances are insured up to $250,000 through partner banks, though this does not cover crypto assets.
- Regulatory Compliance: The platform is registered as a Money Services Business (MSB) and holds licenses in most U.S. states.
- Security Track Record: Despite a notable breach in 2022, the company reimbursed all affected users and upgraded its security framework.
What Licenses and Regulations Does Crypto.com Hold?
Crypto.com is registered as a Money Services Business (MSB) with FinCEN and holds Money Transmitter Licenses in nearly every U.S. state. In the United States, the platform operates through Foris DAX, Inc., ensuring it adheres to strict consumer protection and anti-money laundering laws.
In practice, these licenses mean the company is subject to regular state audits and must maintain high standards of financial transparency.
According to Bankrate's analysis of crypto safety, regulation remains a patchwork in the U.S., but platforms that actively seek state licenses offer a higher degree of accountability.
Crypto.com has also achieved high-level security certifications, such as SOC2 Type II and ISO/IEC 27001:2013. These are considered the gold standards for data privacy and information security.
How Does Crypto.com Protect User Funds and Digital Assets?
The platform protects digital assets by keeping 100% of user-owned cryptocurrencies in offline cold storage, while USD balances are held in FDIC-insured bank accounts. This multi-layered approach is why it often ranks highly among the best crypto exchanges currently available.
By keeping assets offline, the company ensures that a digital intruder cannot drain user wallets through the internet.
For cash holdings, the protection is more traditional. If you hold a U.S. dollar balance in your Crypto.com Fiat Wallet, those funds are placed in custodial accounts at regulated banks.
As FDIC guidelines state, deposit insurance covers up to $250,000 per depositor per insured bank. The mistake most people make is assuming this insurance applies to Bitcoin or Ethereum, which is not the case.
What Happened During the Crypto.com Hack History?
In January 2022, hackers stole roughly $35 million by bypassing two-factor authentication, but Crypto.com reimbursed all affected users and overhauled its security system. While the breach was a significant event, the company's response was swift.
They paused withdrawals, audited the entire system, and reimbursed customers out of corporate funds rather than leaving them with losses.
Following the incident, the company launched the World Wide Asset Protection Program (WAPP). This program offers additional protection for users who enable 2FA and use the platform’s security features correctly.
This proactive stance has helped restore consumer confidence in the years since the breach.
Is the Crypto.com App Safe for Beginners?
The Crypto.com app is safe for beginners because it forces high security standards like biometric logins and mandatory 24-hour waiting periods for new withdrawals. For newcomers, the interface embeds security into the daily experience through FaceID or fingerprint scanning.
This adds a physical layer of protection to your mobile device that is hard to bypass remotely.
The app also enforces a “whitelist” policy for withdrawals. When you add a new wallet address, there is a mandatory 24-hour waiting period before you can actually move your money.
This “cooling off” period is designed to give you time to notice and cancel unauthorized activity if your phone or account is compromised.
How Does Crypto.com Security Compare to Coinbase and Binance?
Crypto.com offers security comparable to Coinbase’s high U.S. standards and typically maintains a cleaner regulatory record in the United States than Binance. When comparing these leaders like Coinbase and Binance, Coinbase is often cited as a benchmark because it is a publicly traded company.
However, Crypto.com holds an extensive list of international security certifications that often exceeds its competitors.
To help you evaluate your options, the following table compares Crypto.com’s primary U.S. competitors based on their scale and fees:
| Exchange | Supported Assets | Spot Trading Fees | Learn More |
|---|---|---|---|
| Coinbase | +250 | $0.99 - 2.00% (Standard), 0.05% - 0.60% (Advanced Trade)
For transactions above $200 (standard account): 1.49% fee for using a bank account or USD wallet, 3.99% fee for using a debit or credit card. For Coinbase Advanced Trade: 0.60% for taker trades and 0.40% for maker trades. The more you trade, the lower the fees - can decrease to as low as 0% - 0.05%. |
Read Review |
| Gemini | +150 | $0.99 - 1.49% (Web & Mobile), 0.20% - 0.40% (Active Trader)
For Gemini’s website or mobile app users are charged 0.50% convenience fee For Active Trader, 0.40% for taker trades and 0.20% for maker trades. The more you trade, the lower the fees - can decrease to as low as 0% - 0.03%. |
Read Review |
| Kraken | +300 | 0.40% - 0.25%
0.40% for taker trades and 0.25% for maker trades. The more you trade, the lower the fees - can decrease to as low as 0% - 0.10%. Using GT tokens to pay trading fees offers a 10% discount |
Read Review |
As NerdWallet explains, choosing between these platforms often comes down to the specific security features you value most. What actually matters here is that Crypto.com focuses heavily on mobile-first security.
What Happens If Crypto.com Goes Out of Business?
If Crypto.com goes out of business, your crypto assets could be at risk, though the company provides a Proof of Reserves to show it holds user funds 1:1. One of the greatest risks in the crypto world is “platform risk.”
If an exchange goes bankrupt, users may be treated as unsecured creditors, meaning they could lose their assets.
To combat these fears, the company uses a Proof of Reserves (PoR). This is an independent audit that proves the exchange holds enough assets to cover all user liabilities.
By maintaining a 1:1 reserve, the platform reduces the risk of a “bank run” where users cannot withdraw their funds.
How Can You Secure Your Account from Scammers?
You can secure your account by enabling hardware-based multi-factor authentication (MFA) and setting up an anti-phishing code to verify official emails. Even with the best platform security, the “human element” is often the weakest link.
Scammers frequently target users through phishing emails or fraudulent schemes and scams.
- Enable MFA: Use an authenticator app like Google Authenticator rather than SMS-based codes.
- Anti-Phishing Code: Set up a custom code in the app so you can verify that emails from Crypto.com are genuine.
- Never Share Your Keys: Remember that Crypto.com staff will never ask for your password or your private recovery phrases.
- Use Biometrics: Ensure your mobile device requires a biometric check to open the app or execute any trades.
The Bottom Line
Crypto.com is a robust and highly regulated platform that employs institutional-grade security to protect U.S. consumers. While its 2022 hack serves as a reminder that no digital platform is perfectly safe, its response and subsequent security upgrades have solidified its position.
For maximum safety, you should utilize the app's built-in security tools and maintain a healthy skepticism toward unsolicited communications.
