Traditional banking takes advantage of choosing cryptocurrency as an asset class. But it is just like drawing a line in the sand because some bank accounts have been closed due to deposited funds to a cryptocurrency exchange.
The count of crypto friendly banks is almost NIL. Despite this, some financial organisations are still ready to support blockchain technology and the crypto industry.
On the contrary, some crypto firms see indeed some trustworthy banking systems that support their need and are ready to deposit their fiat currency holdings. Nerdynator identifies potential trading opportunities in the crypto trading market and then executes profitable trades for its users after evaluation.
Is this factor due to which Bank becomes Crypto-Friendly?
As we can estimate with the name some of the crypto-friendly banks prefer digital currencies and crypto businesses. They also have the option to trade services or aid integration with crypto exchange platforms such as Kraken and Binance. Although it is just a start. Some banks are creating provisions to offer insurance for crypt businesses as well. Some Bitcoin-friendly banks offer debit and credit cards to provide you with a cashback facility on purchases paid in Bitcoin.
Advantages and Disadvantages of crypto Friendly Banks
Before considering the best crypto-friendly banks available, let’s take review their advantages and disadvantages:
An easy way for crypto creation
The crypto space can be confusing and discouraging for the inexperienced. Although self-study is the best protocol applicable for the freshers. But it is not for everyone. Although crypto-friendly banks are ready to disclose consumers to the enterprise from the convenience of being aware of banking systems.
Ramping up without uncertainty
Traditional banks impose some restrictions when there is a need to withdraw don’t currency from the bank account through a cryptocurrency exchange. Moreover, crypto-friendly banks can make corrective decisions about when you should exit from the market and you can calculate your profit or loss.
Provide consent to crypto firms and begin their startups:
Crypto deals still require the involvement of traditional finance for insurance and operating charges as well. Whatever is required to stay in the real world, banks support the crypto atmosphere and give blockchain facilities to all fintech firms.
Your account will never be ignored by the bankers because the crypto market never sleeps. They keep on operating your account without sleeping. In addition to this, crypto banks also have the privilege of mobile apps where users can operate their accounts and can easily track the market’s real position for quick actions.
Unreliable historical data availability
Banks usually do not support volatile digital assets due to their high exposure. Due to this, their reserves remain in high tension and it can end in influences and defaults. We can take advantage of Silvergate and Signature Bank.
High crypto transaction charges
Crypto-friendly banks provide you the privilege to make easy availability of cryptocurrency. For this service, their premium charges are implemented on the crypto-related services which are more expensive than what you have to pay through your wallets.
Low availability of choices as compared to DeFi
Crypt-friendly banks provide fewer functions beyond crypto trading and holdings. However the Defi space is available with more utility and for this, it empowers users to keep their funds with more options such as staking, yield farming, and lending.
Although the core perspective of crypto-friendly banks is to offer the provision of sale, purchase, and even save your crypto assets along with your general accounts.
Moreover, the working criteria of these banks are somehow different from non crypto banks due to their decentralisation. decentralisation means its tokens do not undergo any regulation or control by a centralised authority such as a government body etc.
But one disadvantage due to its decentralised nature is that once the crypto is lost, it is not possible to recover it back. Although it holds a strong grip over the crypto industry.
Therefore the management of crypto-friendly banks makes it convenient to maintain the freedom of their customers as well as conventional bank account types. Moreover, the benefits availed due to blockchain technology in financial transactions have provided the technology for an even stronger hold on the industry. This is how the money can be transferred constantly to maintain the independence of their customers’ crypto and other traditional bank accounts.