If you’re new to the dizzying world of crypto, you might be wondering where to start. After all, the media and the internet are inundated with guides from self-appointed crypto gurus, each proclaiming to be the ones with the knowledge of how to invest the right way. While we aren’t here to offer investment advice, we can offer you some helpful information on crypto banking.
Unlike simply trading bitcoin, crypto currency banking describes a system of managing, retaining, and earning passive income from your crypto portfolio. If you’re looking for actionable and practical advice on what to do with your bitcoin investment, read this essential beginner’s guide to crypto banking to learn more.
Table of Contents
1. What is Crypto Banking?
First of all, it is worth explaining what crypto banking is and how it relates to crypto investment activities. Essentially, the term describes the platforms you can use to manage your crypto and make secure payments. It includes many of the functions of a traditional bank, only applied to cryptocurrencies.
It does not have anything to do with bitcoin mining, as some people may think. A crypto bank would be a safe and reputable place for you to store your coins, as well as sell them exactly when you want to and trade them at market prices.
It would be a platform that facilitates payments for goods and services via bitcoin (just as a bank account is where you make cash payments from). Going further, many of the top crypto banks also allow you to earn interest and even passive income from your crypto deposits. These are the essential functions of crypto banking.
2. How to Get Started with Crypto Banking
The most important thing when choosing a crypto bank account is that you have a reliable e-wallet that you can use for your transactions. Remember, your e-wallet and accompanying data is the only thing that ties you to the cryptocurrencies you have actually bought.
Without an e-wallet and number, you cannot begin crypto banking. In addition, you can use this handy page to find your nearest bitcoin ATM, where you can instantly buy and sell coins on the go.
3. Things to Look Out For
Remember that banking security still matters in the world of crypto. Always choose a reputable and licensed crypto banking provider before you do anything else. Do not take a chance on an unknown or unlicensed platform, as the risk of losing all of your investments is high. In addition, take the time to find an account that offers actual interest on your earnings.
There is a huge range of crypto savings accounts from top financial institutions that you can now choose from, so look carefully. Finally, remember that all crypto is extremely volatile, meaning that the value of your deposits will change dramatically from day to day.
Future Proof Your Finances Today
Now that you know the basics of crypto banking, you are one step closer to truly future-proof finances. For more money tips that are fit for 2021, we have got you covered. Make sure to consult our expert Personal Finance guides to learn more.