Is crypto better than banks?

The crypto vs. banking debate isn’t only about choosing the better option to store money. While crypto wins in terms of decentralization, technology, and transparency, the global financial system is powered by banks that have seamless user-onboarding solutions and requirements even in the crypto space for on and off-ramps. However, crypto pros outweigh the cons, making it a slightly better choice overall.

Why is crypto better than traditional banking?

Traditional banking is still plagued by centralization issues. Today, if a bank wants, it can discontinue your account. However, with crypto and blockchain technology, decentralization, transparency, and faster remittances are guaranteed. Plus, long-term crypto investors, who have successfully navigated the volatile waters, have experienced higher growth in their portfolio, compared to banking-specific investments.

Can crypto replace banks?

It is too early for a nascent space like crypto to replace banks. Plus, crypto is primarily a tokenized version of blockchain technology and isn’t a substitute for any bank. Yet, for money parking, decentralized finance protocols and bitcoin (the store of value) might be better than banks, as users have more control over their funds.

Is crypto safer than banks?

In the current scheme of things, comparing crypto and banks with safety as a parameter isn’t all that appropriate. Crypto suffers from issues related to volatility and manipulated price sentiments by influencers. And with banks, you lack control over your funds. Hence, safety can be a concern for both.

Is it better to keep money in crypto or a bank?

Investing in crypto as a store of value can be prone to risks like volatility. However, the risks are lower with the likes of BTC and ETH — two of the most popular and largest digital assets around. With banks, though, interest rates can be extremely low, making them not-so-good instruments to combat inflation.