Crypto.com DeFi Wallet is a user-custodied wallet where you are the custodian. This means you get full access and control of your crypto private keys. You have complete ownership of your crypto when they are stored in the Crypto.com Wallet, unlike a centralized custodian on the Crypto.com App. You do not need a Crypto.com account to store, send and receive crypto in the Crypto.com Wallet.
Due to the decentralized nature of the wallet, all the transactions are processed on-chain and require network fees to incentivize the transaction confirmation on the corresponding token/coin’s Blockchain network. Please note that network fees might vary based on the Blockchain network traffic and Crypto.com does not charge any network fee.
E.g. you need ETH as network fees to send/swap/deposit USDT as it is a ERC20 token.
See here to learn more about on-chain transactions.
On the other hand, Crypto.com App is a digital currency brokerage that acts as a custodian and stores your cryptocurrencies for you. Through the Crypto.com App, you are able to instruct us to handle your crypto on your behalf, but you do not control the private keys to your crypto. What are the benefits? You can easily manage and exchange your cryptocurrencies to fiat currencies without worrying about losing your private keys. Also, you can enjoy quick access to our wide range of financial products to help trade, grow and spend your crypto. View here to find out more.
ADVANTAGES & DISADVANTAGES
You have 100% control over your crypto and your private keys.
We do not require you to provide your identity so risk of data breach is lower.
If crypto transfers are made within Crypto.com ecosystem, you will not be charged any fees.
No major effect if you lose your private keys or recovery phrase, easy to regain access again via our support team.
You need to pay transaction fee as the transactions are on-chain and you have to wait for the transaction to be confirmed.
If you lose your recovery phrase, you will not be able to access your wallet and crypto.
You need to prove your identity and perform KYC (know your customer, ID verification).
Your wallet is not fully decentralized as Crypto.com is the wallet custodian.