Almost all cryptocurrency holders and traders keep their coins in crypto wallets like Coinbase, Crypto.com Defi Wallet, and Coinbase dApp Wallet. At some point they start to wonder, are these the only options for crypto coin storage? Is there any chance that it can be stored together with fiat?
Thankfully, there are crypto friendly banks that cater exactly to these needs. Now, what exactly are crypto friendly banks like when Dogecoin signals Telegram?
Keep on reading to discover what this new solution is and if it’s worth trying.
What are crypto friendly banks?
Some banks have recognized the impact of blockchain technology in the financial world. Thus, adopting them into their offerings.
Simply put, crypto friendly banks are banks that enable customers to perform financial transactions using both fiat currency and cryptocurrency. They provide services like buying, selling, holding, and saving a customer’s digital assets. This is besides their regular fiat accounts.
Choosing the right crypto friendly bank for you
Before you make that decision of opening an account with a crypto friendly bank, here are some things to consider:
Benefits of crypto friendly banks
The adoption of cryptocurrencies by traditional financial banks is definitely to their advantage. They can leverage the benefits of blockchain technology to attract more customers to open an account with them.
Let us give you a few reasons why you should consider using a crypto friendly bank especially if you are a cryptocurrency investor.
Easy transfers
These kinds of banks enable their customers to easily transfer money from their digital account to their fiat account or vice versa. Now, there’s no need for separate applications because your bank can easily provide this service.
Fewer charges and fees
Traditionally, banks charge customers with a service fee for fiat transactions including transfers. This fee is deducted from the customer’s balance. On the other hand, crypto friendly banks for transfers have significantly lower transaction fees.
Some banks may charge customers with a maintenance fee for the upkeep of their registered accounts. However, since the blockchain is self-maintaining, crypto friendly banks are able to waive this.
Transparency of transactions
In traditional banks, transactions are known to the customer and the bank. With crypto friendly banks, customers keep track of their transaction records. They can view it anytime and anywhere. Hence, it allows them to quickly report any discrepancy seen in their accounts.
Risks of crypto friendly banks
Where there are benefits, there are also risks involved. Since blockchain technology is a relatively new kind of technology, it may not be for everyone.
Some downsides when dealing with cryptocurrency in crypto friendly banks
Hacking
It is no secret that digital wallets and platforms have been the subject of hacking in the past years. There have been crypto wallets that hackers have successfully zeroed in to especially if the platform has weak cybersecurity.
As such, there is always the threat of hacking in both traditional and crypto friendly banks. Since most cryptocurrencies are not insured by the government, recovering lost digital assets is nearly impossible.
Unstable crypto market
The constant price fluctuations of cryptocurrencies is its major downside. One moment it’s at an all-time high, and it comes crashing down the next. This is one factor banks have no control over. Customers need to take this into consideration before any actions they want to do with their cryptocurrency reserves.
Prominent crypto friendly banks
We present to you a short list of the top crypto friendly banks available. This may help you decide which bank suits your crypto and fiat needs.
Juno
This crypto friendly checking bank is all-inclusive and dedicated to helping their customers grow their accounts. Juno’s customers can easily trade, hold, and transfer their digital assets to blockchains like Polygon and Ethereum.
This bank allows transactions with USDC, ETH, and BTC straight from their bank accounts. It also offers 2.15% APY for your fiat accounts. Users will definitely like its rewards program. Among their popular products is a cashback debit card that offers up to 10% cash back for $300 spent.
Juno launched its token-based loyalty program called JCOIN in 2022. With this program, users get to enjoy promotions like interests on bank deposits and higher cash back limits.
USAA
If you are currently serving or a veteran of the US Armed Forces, you may find USAA to your liking. The United Services Automobile Association (USAA) is exclusive for you and your families. With over $150 million in investments, USAA is Coinbase’s major investor and one of the best crypto friendly banks available.
It allows you to manage several accounts from different financial institutions. Tracking your crypto portfolio is easier than ever also because it also includes Coinbase. Here, you can trace your transactions and view your account balance.
Ally
This crypto friendly bank started out as a neobank which is an online-only platform with no physical branches. Eventually, it became an actual bank when it acquired bank charters during the pandemic.
Ally is a full-service bank that offers fiat savings and checking accounts, credit card products, and borrowing options. For crypto account holders, it offers access to Bitcoin contracts, trusts, and futures. The bank also allows crypto trading using Coinbase where users can buy Bitcoin and other cryptocurrencies using their bank credit.
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