When most people think of cryptocurrency and traditional banks, they often consider the two financial systems to be mutually exclusive. But today, the worlds of crypto and traditional banking are merging, as more cryptocurrency businesses seek banking licences and legacy financial institutions consider how they may utilise bitcoin to improve their current consumer services.
As cryptocurrency is a constantly evolving technology and humans acquire more knowledge and become smarter, so does crypto. Many banks are now implementing these currencies in their financial systems. Banks that offer cryptocurrency-friendly services to their clients include wire transfers, access to crypto wallets, and even the ability to sell cryptocurrency.
Read on to get a better understanding of how a crypto-friendly bank functions.
- Crypto Banks Focus on Convenience
Users of cryptocurrency-friendly banks can manage their digital assets with a clean interface. They can track their cryptocurrencies, conduct transactions, and invest in crypto exchanges through crypto banks. Simplifying the process of moving funds between fiat and crypto balances without the need to use additional tools, crypto banks make it easy to assimilate the protocols surrounding crypto.
- Crypto Banks Prioritise Security
Cryptocurrencies can be hacked in various ways, just like any other form of technology. Therefore, the security of crypto-banking accounts is very important, which is why crypto-banks set up special security systems. To provide secure digital assets to their customers, crypto banks must offer options including cold storage, such as cold wallets and isolated vaults.
- Crypto Banks Have Competitive Fees Similar To Traditional Banks
When dealing with a crypto bank, clients need to carefully consider the fees they are being charged. Depending on the bank, fees will be affordable without sacrificing essential features or jeopardising the security of your digital assets. In some cases, higher fees can get you a better bitcoin wallet, whereas, lower fees can easily expose your assets to hackers. For a better decision-making process, there are several resources to help determine the advantages and disadvantages of crypto banks.
- Crypto Banks Support Multiple Cryptocurrency Exchanges
There are times when crypto-friendly banks stick to only one type of cryptocurrencies, such as Bitcoin or Altcoin, however, other banks offer the option of procuring or storing crypto exchanges using a single platform. The use of various cryptocurrencies is even rewarded by some banks, but usually larger banks offer a higher number of cryptocurrencies in comparison to small banks. Before settling for a crypto-friendly bank, the client needs to research their particular niche and decide on their preferred digital currency.
Cryptocurrencies are here to stay, and even though traditional banks are reluctant to facilitate cryptocurrency, it would be in their best interest to support them. Despite their volatility, cryptocurrencies’ focus on convenience and security, and their high profitability can be a nudge in the right direction for traditional banks contemplating incorporating cryptocurrency into their financial systems.