If you’ve been investing in cryptocurrencies for a while, you may be faced with the question: Where is the best place to keep my cryptocurrencies? As governments and financial institutions begin to understand the potential threat cryptocurrencies pose to their power, they are reacting by issuing laws that make it harder to keep your digital assets safe in traditional banks.
So, where can you turn if you need to keep your digital assets safe? Many crypto-friendly banks are ready to welcome your digital assets with open arms.
What are crypto-friendly banks?
Ever since the introduction of cryptocurrency tokens and blockchain technology to the financial world, some banks have adopted them in their operations to better serve their customers. These crypto-friendly banks serve as an upgrade from standard regular centralized banks and work even better than the latter. This is because they enable their customers to conduct monetary transactions using cryptocurrency tokens and fiat currency.
Crypto-friendly banks provide you with services to buy, sell, hold and even save your crypto assets alongside your regular accounts. The crypto section of these banks operates quite differently from the non-crypto section, which is based on decentralized cryptocurrencies. This means that tokens are not under complete regulation or control by a centralized body such as a government.
Unfortunately, since the government does not insure these crypto tokens, it is somewhat impossible to recover lost crypto funds.
Why you should care about them
The many benefits of using blockchain technology in financial transactions have given the technology an even stronger hold on the industry. The management of crypto-friendly banks and their customers stand to gain from cryptocurrency adoption in their operations.
Crypto-friendly banks make it easy for you to transfer money from tokens to fiat or vice versa. This is because crypto-friendly banks consistently maintain their customer’s freedom of crypto and traditional bank account types.
1. Transaction Security
When using cryptocurrencies in crypto-friendly banks, your financial activities are only in your knowledge and cannot be leaked by anyone. Only you can choose who has access to such private and personal information.
Your personal information is not required to create a crypto wallet unless the bank asks for it while opening your account with you. This is because the activity on the blockchain is made accessible to everyone who has access to it; Therefore, it could potentially put its users at risk if their personal information is included.
2. Low Transaction Fee
Every time you make a fiat transfer with traditional banks, they charge you a service fee. This affects your account as the bank deducts service charges from your balance with every transaction.
The amount paid for transfers is less if you use cryptocurrencies in crypto-friendly banks. These banks offer low transaction fees when transferring between crypto wallets and fiat.
Sometimes, some banks charge a maintenance fee from their customers for keeping their registered bank accounts. This fee is waived if you use a bank that supports crypto wallets because the blockchain is self-maintaining.
3. Transparency and credibility of transactions
Cryptocurrency transactions are made public and accessible by anyone connected to the blockchain involved, unlike regular banking, which puts them between the customer and their bank.
This allows you to transact with your wallet and keep track of your financial records at any point of time. Customers can immediately report any errors seen in their accounts to their bank and get things set right.
A look at real world examples
With cryptocurrency providing many benefits to the banking system, many financial institutions have looked, and are still looking, to introduce the technology into their operations. As digital currencies grow in volume and number of participants, there is no doubt that many more entities will adopt the system.
Juno
Juno is an all-inclusive crypto-friendly checking bank account dedicated to helping customers grow their savings and achieve their financial goals more quickly.
It provides services such as buying, selling, and storing cryptocurrencies such as BTC, ETH, and USDC directly in their checking bank accounts. It is an API-based neo-banking platform.
Associate bank
Ally Bank is an online crypto-friendly bank based in the United States. It is ideal for anyone looking for a bank to meet their financial needs including savings, checking and crypto trading.
This bank allows customers to buy and sell cryptocurrencies using Coinbase. This will enable you to use credits to buy bitcoin and other cryptocurrencies through exchanges.