The money market as it were is full of so many innovations. Whether they be fiat or crypto currencies, a lot has changed over the years. Prior to the advent of crypto, traditional banks has always been the go to for all financial transactions.
Crypto currencies came and with it a lot of innovations. With it came the ease of transaction hardly seen with fiat. One could easily transact his or her business and have it processed in real time. Crypto currencies has opened our eyes to see a whole new avenue to banking.
crypto saving vs traditional bank saving
As one who is into the financial market, I carry out a lot of money transactions on all the ways and methods of banking. Be it traditional, through the use of bank accounts for fiat currencies or the use of centralised and decentralised exchanges for crypto currencies
Every of these methods have their unique merits and demerits. One truth is that, you can't forgo anyone of them especially if you are into anything crypto related. For me they all have their selling points. They all serve a particular purpose we cannot ignore totally. The generally idea is to utilise each method as the need arises.
There are different reasons why I want to use a particular method of banking. Probably for trading transactions,payment transactions, saving transactions etc. These methods of will definitely give one different types and levels of experiences while carrying out this transactions.
Restricting myself to the context of this prompt, saving in any of this methods of banking have their advantages and also disadvantages. The question is, which one works best for you.
Like I said, as a financial trader, I will factor in a lot of things to explain why one methods works better for me. For one I will look at their various level of security. Nobody wants to loose their funds.But as we all know, all of this method of banking have their own challenges. I have lost my funds in virtually all of this methods,especially on my crypto wallets.
I remember loosing money in a hacked centralised crypto exchange. Not to talk of the rug pulls associated with decentralised exchanges. If you now add to it the story of every day loss of funds to fraudsters on traditional banks, you would agree security challenges cut across all of them. Still, would I rather save my funds in one instead of the other? Definitely.
For a very long time now, I have never had more than $10 as savings in my fiat account. All my funds has always been saved in crypto wallets. I had one experience that strengthened my my resolve in saving in crypto rather than fiat.
A bank marketer had cajoled me into opening a fixed deposit account for 90 days in her bank. I had some funds I was saving for a project. Since I was not using it immediately I decided to try it out. At the end of the 90 days contract I did not get up to 2% which translates to a little above 0.6% per 30 days. Meanwhile, still that same time, I had some other crypto locked savings giving me about 2% monthly. Even saving on hive will give me more than 1.6%. Suffice to say after that experience I never tried saving in fiat.
If you stay in a country that has an ever weak currency like mine, you would probably be wise to save in your crypto wallet. For a fact, my countries currency has devalued by over 65% to the dollar in the past 2 years. The worst part is that it is still falling.
Putting it into perspective, if you had a saving in your traditional bank account this 2 years, it would have lost about 65% in value. On the contrary, if you had the same saving in your crypto currency wallet, particularly in stable coins, you would be up 65% in value against the local fiat. This makes saving in crypto wallets a no brainer,at least for me.
Adding to this, even when saving in crypto, I would tilt more to saving in decentralized exchanges,as this gives me greater control over my currencies. Without fear of censorship etc.
But then would I consider using other methods if somethings are put in place? Maybe if they fully adopt crypto into their systems which for me is highly unlikely. Banks in my country hardly do things that would favour the regular customer. So for me, I would use my traditional bank account for converting crypto to fiat. As almost all crypto exchanges can't readily do this.
All being said, I will always have my savings in crypto currencies and most likely in only decentralised exchanges.
