Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency Trading => Topic started by: Jennieee on August 01, 2023, 09:16:18 AM
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You see, 2/3 of the 30 largest global banks support crypto trading through exchanges. But is this really good news for us? Well, let’s see.
Pros:
More access and exposure to crypto assets.
More security and trust.
More innovation and competition.
Cons:
More fees and restrictions.
More surveillance and control.
More dependency and risk.
So, there are both advantages and disadvantages to using these banks to trade crypto assets. It depends on what you value more: convenience or freedom? Security or privacy? Innovation or stability?
Personally, I like to have options and diversity in the crypto space. I use these banks for some of my crypto needs, but I also keep some of my crypto assets in my own wallet or on a decentralized platform. That way, I can enjoy the best of both worlds.
What about you? Share your thoughts with me in the comments below. And don’t forget to hit that like button, share this video with your friends, and subscribe to my channel. #crypto #banking #prosandcons #Binance #Coinbase #decentralized
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Well, you're right. There are advantages for banks supporting Crypto trading through Exchanges. But they own some percentage of the trading fee I guess, while so goes to the exchange. That could be the reason for more fees on transactions. Looking at that, the trader or Crypto users is the one being exploited.
I stopped trading Crypto through banks. I now use Bitget P2P option where I can find my Bitget Account through the P2P option, do all my trading and stuff, then when I want to cash out, I will use the P2P option again to seek off my Crypto for fiat all at no fee at all. Bitget is a globally recognized Cryptocurrency trading Exchange, and the P2P (PEER2PEER) Merchants on their Platform are verified, so I can trust them.
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Crypto banking, also known as decentralized finance (DeFi) or digital banking within the cryptocurrency space, offers several benefits and drawbacks. Here are some of the pros and cons of crypto banking:
The Good (Pros):
Financial Inclusion: Crypto banking has the potential to provide financial services to unbanked or underbanked populations who lack access to traditional banking systems.
Decentralization: It operates on decentralized networks, reducing the need for intermediaries like banks, which can lead to lower fees and more control over your finances.
Accessibility: Crypto banking is accessible 24/7 from anywhere with an internet connection, allowing for borderless transactions and global financial access.
Ownership and Control: Users have full control over their funds and private keys, reducing the risk of government seizure or bank freezes.
Transparency: Blockchain technology ensures transparent and tamper-resistant transaction records, enhancing trust and security.
Yield Farming: DeFi platforms offer opportunities for users to earn interest or yield on their cryptocurrencies through lending, liquidity provision, and staking.
Innovation: DeFi platforms enable the creation of new financial products, such as tokenized assets, decentralized exchanges, and prediction markets.
Non-Custodial: In many crypto banking services, you retain custody of your assets, reducing the risk of hacking or loss due to a service provider's failure.
The Bad (Cons):
Volatility: Cryptocurrencies are known for their price volatility, which can result in significant gains but also lead to substantial losses in a short period.
Security Risks: While blockchain technology is secure, DeFi platforms are not immune to hacks, smart contract vulnerabilities, and security breaches. Users must exercise caution and take security measures.
Regulatory Uncertainty: The regulatory environment for cryptocurrencies and DeFi is still evolving, leading to uncertainty and potential legal challenges.
Scams and Frauds: DeFi has been associated with various scams and fraudulent projects, which can result in the loss of investments.
Complexity: DeFi platforms and services can be complex and challenging for newcomers to understand and navigate, increasing the risk of mistakes.
Smart Contract Risks: Smart contracts can contain coding errors or vulnerabilities that, when exploited, may result in the loss of assets.
Lack of Consumer Protections: Unlike traditional banking, crypto banking may lack consumer protection mechanisms such as FDIC insurance, leaving users vulnerable to losses.
User Errors: Users who make mistakes in transactions, such as sending funds to the wrong address, cannot easily reverse or recover their assets.
Regulatory Compliance: Some DeFi services may struggle with regulatory compliance, limiting their adoption and access to traditional financial services.
Market Fragmentation: The crypto banking space is fragmented, with various platforms, tokens, and standards, making it challenging for users to choose the right services.
In summary, crypto banking offers numerous advantages, including financial inclusion, accessibility, and control, but it also comes with risks, including volatility, security concerns, and regulatory uncertainty. Users should exercise caution, conduct thorough research, and consider their risk tolerance before participating in crypto banking. It's crucial to understand the specific platform or service you are using, its security measures, and its compliance with local regulations.
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Great points raised about crypto banking! I agree that it's a double-edged sword. On one hand, these banks offer easy access to crypto assets, better security, and dedicated support, which is a huge plus. They also push for innovation and competition in the crypto space, which is always good for users.
On the other hand, there are potential regulatory hurdles, limited DeFi access, and counterparty risk to consider. Plus, crypto banks often charge fees and raise privacy concerns. So, it really depends on your individual needs and preferences. If you prioritize convenience and security, crypto banks might be a good fit. But if you're all about privacy and self-control, self-custody or decentralized platforms might be more your style.
As for me, I like to have options. I use crypto banks for some of my crypto needs, but I also keep some of my assets in my own wallet or on a decentralized platform. That way, I can enjoy the best of both worlds.
If you would like to discuss this further, you can contact me via my Discord: https://discord.gg/WyUZV2uP
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Honestly, I have not yet tried to use a bank related to cryptocurrency. Here in our country, few traditional banks are open to cryptocurrency, or Bitcoin. But my banks can be selected here when doing p2p from the exchange.
Maybe that's the only good thing because, from P2P, you can go directly to the bank. a few days before it comes in, if I'm not mistaken in my idea. The only thing I don't like is when you enter money from the exchange in a big way, the bank will suddenly hold your account with them, and they will ask for a lot of requirements to find out where the money came from.
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It is said that cryptocurrency is a rate wall. Its main reasons can be of other types.Cryptocurrency offers both a revolutionary concept and benefits.This allows adults to access the economy without having to access banking systems.This decentralized nature attracts transactions across the line, providing reliable security transfers across international lines.The cornerstone of crypto banking, it works on blockchain technology,Due to which cryptocurrency reduces the risk of fraud.They also emphasize innovation and competition in the crypto sector, which is always good for users.Yet cryptocurrency volatility remains a significant challenge. The value of digital assets can fluctuate dramatically, exposing users to financial risks. There remain concerns such as incidents of hacking and scams. This is raising doubts over the security of digital wallets and exchange If users deal with all these problems carefully then they can gain proper
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Honestly, I have not yet tried to use a bank related to cryptocurrency. Here in our country, few traditional banks are open to cryptocurrency, or Bitcoin. But my banks can be selected here when doing p2p from the exchange.
Maybe that's the only good thing because, from P2P, you can go directly to the bank. a few days before it comes in, if I'm not mistaken in my idea. The only thing I don't like is when you enter money from the exchange in a big way, the bank will suddenly hold your account with them, and they will ask for a lot of requirements to find out where the money came from.
I can't really factor out such bank and we don't have that in my country except for making payment directly to our local account with Binance or any other exchange that supports p2p trading, and yes, we can only deposit money through local account using our debit card but a restriction was placed in our country to limit us from transacting a crypto related currency to our bank. Then after the ban a p2p system was introduced to enable trade without the government taking control over our transactions or even to monitor our trades.
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to store finances more securely by using a private wallet and a wallet that has a guaranteed level of security or a strong level of security, usually exchange places where you store money in exchange wallets have their own security and it's a good idea to add a strong security application, so that other people can't open it. your account secretly.
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In 2017, crypto bank = project in the crypto market with purpose of building a dapp that operates like a bank, supporting wallet + staking + crypto lending services.
2023: crypto banks = traditional banks serving crypto services. The world changes so quickly ^^
When traditional banks serve crypto, users will easily participate in the crypto market through buying and selling crypto/fiat, and banks will receive transaction fees and provide users' tax data.
I don't think we should worry about the participation of traditional banks in this market, at least when we can still store crypto ourselves in personal accounts on the blockchain.
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In 2017, crypto bank = project in the crypto market with purpose of building a dapp that operates like a bank, supporting wallet + staking + crypto lending services.
2023: crypto banks = traditional banks serving crypto services. The world changes so quickly ^^
When traditional banks serve crypto, users will easily participate in the crypto market through buying and selling crypto/fiat, and banks will receive transaction fees and provide users' tax data.
I don't think we should worry about the participation of traditional banks in this market, at least when we can still store crypto ourselves in personal accounts on the blockchain.
During 2017, almost all the banks here in our country were not really open to cryptocurrency except Unionbank, and there is no online banking related to cryptocurrency yet. But as 2023 entered, I noticed that the other banks in our country suddenly changed the wind, and the other banks suddenly became related to cryptocurrency and bitcoin.
Maybe because of the current bull in 2017 and now they noticed and found out that the Bitcoin halving is coming again and then there will be a bull run, they thought of doing this thing because many people are waiting and believe in the situation like the bull seasons. Just be cautious and careful with the bank you choose so as not to have a problem with the crypto assets that will be entered or placed for them.
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Maybe that's the only good thing because, from P2P, you can go directly to the bank. a few days before it comes in, if I'm not mistaken in my idea. The only thing I don't like is when you enter money from the exchange in a big way, the bank will suddenly hold your account with them, and they will ask for a lot of requirements to find out where the money came from.
If you're doing P2P, wouldn't the buyer/seller trade directly through their preferred payment system though? You don't necessarily have to deposit on a third-party wallet unless both of you want to use a multi-sig or something similar. As far as I can remember, a cashback system like Paypal is also not recommended for P2P trading, so you'll likely end up using cash directly or other alts. If there is no explicit mention of crypto, would your bank still block that transaction? I'm not surprised if your bank suddenly asks you this and that if you made large transactions. That's their standard procedure whether you use crypto or not.
Maybe because of the current bull in 2017 and now they noticed and found out that the Bitcoin halving is coming again and then there will be a bull run, they thought of doing this thing because many people are waiting and believe in the situation like the bull seasons. Just be cautious and careful with the bank you choose so as not to have a problem with the crypto assets that will be entered or placed for them.
It is a bit different in my country. Banks never tried to block crypto, probably because trading crypto is legal here. Nobody is blocking people's accounts because they trade crypto on local or overseas exchanges, but they don't offer any crypto services (staking, storage, etc). I don't think things will change anytime soon, considering that crypto is still being viewed as an unreliable asset for companies to manage.
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Well, the truth of this matter, which I personally believe to be a fact, is that, crypto trading and banks will co-exist, as long as fiat remain dominant in our monetary system.
Think of it this way, for us to spend our crypto, we first need to convert it to fiat, and how do we do this?, is by engaging wit other crypto traders who want to buy crypto with fiat, and how is this or will this transaction be carried out? Is through the banks, the buyer of your crypto sends fiat into your bank account, and you the seller release your crypto to the buyer's wallet, and a trade is done.
So, going by this, I would like I said before, say it again that, crypto users will always need banks, except we get to a stage where the basic things of life are now being priced in crypto, or come with a crypto price tag, which simply means that, we can now spend our crypto directly to buy goods and services, when we get to this stage, bank will become obsolete or may start to run out of business.
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In 2017, crypto bank = project in the crypto market with purpose of building a dapp that operates like a bank, supporting wallet + staking + crypto lending services.
2023: crypto banks = traditional banks serving crypto services. The world changes so quickly ^^
When traditional banks serve crypto, users will easily participate in the crypto market through buying and selling crypto/fiat, and banks will receive transaction fees and provide users' tax data.
I don't think we should worry about the participation of traditional banks in this market, at least when we can still store crypto ourselves in personal accounts on the blockchain.
You know, here in our country, our banking institutions have a style: when they suddenly see that a large amount of money has entered your bank account from a cryptocurrency exchange, they will suddenly freeze or hold your account.
This is the thing that I don't like about traditional banks in our country: they will suspect you; maybe they think you are from a bad source; or you may have laundered the money you put into their bank using your personal account. As a result, it is also difficult to deposit large sums of money from p2p crypto exchanges into banks. So the local e-wallets are better than the bank.
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The involvement of large banks in cryptocurrency trading has advantages, such as increased access and security, but comes with possible disadvantages, including additional fees and restrictions, increased surveillance and dependence on banks. It is important to choose a balance between convenience and freedom, taking into account your own goals and preferences. A diverse approach, using banks for specific needs and decentralized solutions, can provide better results.
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Discussing the impact of major banks supporting crypto trading:
Pros:
More access and exposure to crypto assets.
Increased security and trust.
Encourages innovation and competition.
Cons:
Potential for more fees and restrictions.
Enhanced surveillance and control.
Increased dependency and risk.
It's a balance between convenience and freedom, security and privacy, innovation and stability. Diversifying by using banks for some needs while also maintaining assets in personal wallets or decentralized platforms offers the best of both worlds.
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Personally, I like to have options and diversity in the crypto space. I use these banks for some of my crypto needs, but I also keep some of my crypto assets in my own wallet or on a decentralized platform. That way, I can enjoy the best of both worlds.
What about you?
I think we don't have any other option but to rely on banks and we have to use them in some time of our life, we cannot live without using them directly or indirectly (like via some friend's account), because they are in our lives from a long time and our elders are using them trusting them from decades and now if we will tell them to keep some funds in their smartphones they will deny in a matter of second.
They don't trust smartphones and other technologies but only banks, they think we have someone in front of our eyes that we can blam after if money is gone somewhere but in reality they don't have any authority over these bank managers.
The thing is, we can't avoid banks even if we adopt crypto fully, but we can make 2 profiles, one for crypto world and another for fiat world where we can use banks, and we don't have to tell one life about others, this way we can really enjoy both worlds and can get benefit of both.
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Although I have never used a bank to do cryptocurrency P2P transactions so I don't have much experience with it. But I have seen that you can transfer money to bank through p2p transaction and you can also transfer money to your debit cards in your local currency. I mostly transfer money through P2P exchange via mobile banking and my home currency and do transactions from there, it is convenient.
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Well, you're right. There are advantages for banks supporting Crypto trading through Exchanges. But they own some percentage of the trading fee I guess, while so goes to the exchange. That could be the reason for more fees on transactions. Looking at that, the trader or Crypto users is the one being exploited.
I stopped trading Crypto through banks. I now use Bitget P2P option where I can find my Bitget Account through the P2P option, do all my trading and stuff, then when I want to cash out, I will use the P2P option again to seek off my Crypto for fiat all at no fee at all. Bitget is a globally recognized Cryptocurrency trading Exchange, and the P2P (PEER2PEER) Merchants on their Platform are verified, so I can trust them.
- That's why there is still a disadvantage because you know that the bank can freeze or hold the account you have with them at any time. Rather than that, I prefer local exchanges, or if you want to accumulate or save, just put it in wallet apps like Trustwallet or ExodusWallet.
Also, when going to the bank through P2P, it takes a few days before it enters your bank account; unlike the local exchange that accepts P2P, the process is fast.
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- That's why there is still a disadvantage because you know that the bank can freeze or hold the account you have with them at any time. Rather than that, I prefer local exchanges, or if you want to accumulate or save, just put it in wallet apps like Trustwallet or ExodusWallet.
Trustwallet and Exodus wallet are both close source wallets. They are also both an online wallet. Online wallets are less secure compared to offline wallets, or to wallets that you can use offline.
Also, when going to the bank through P2P, it takes a few days before it enters your bank account; unlike the local exchange that accepts P2P, the process is fast.
According to what my friend that did something like this told me, it is instant. Maybe this may differ from one bank to another. Although, I prefer the noncustodial means.
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Bankers around the world have realized that they cannot stand aside from crypto transactions. SMEs, crypto exchanges and crypto-related companies need these services to enter the market.
The world is starting its journey with crypto in banks, so we need well-established work between government teams in this area.
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Bankers around the world have realized that they cannot stand aside from crypto transactions. SMEs, crypto exchanges and crypto-related companies need these services to enter the market.
The world is starting its journey with crypto in banks, so we need well-established work between government teams in this area.
Well, no one can miss cryptocurrency because digital currency based on cryptocurrency is one of the digital currencies that will be very influential in the future. So many are creating cryptocurrency, and some banks may consider further accepting the use of cryptocurrency on their platforms someday. However, banks must be careful in determining this because the risk is very high.
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Bankers around the world have realized that they cannot stand aside from crypto transactions. SMEs, crypto exchanges and crypto-related companies need these services to enter the market.
The world is starting its journey with crypto in banks, so we need well-established work between government teams in this area.
Well, no one can miss cryptocurrency because digital currency based on cryptocurrency is one of the digital currencies that will be very influential in the future. So many are creating cryptocurrency, and some banks may consider further accepting the use of cryptocurrency on their platforms someday. However, banks must be careful in determining this because the risk is very high.
- Here in our country, only one bank knows if it is open to cryptocurrency, and that is Union Bank. But at other banks, I know they are not open to cryptocurrency. That's why when I do P2P transactions, it's only through local e-wallets like GCash or Maya apps.
But not in the bank, because I don't trust the bank when it comes to entering a large amount of money into them. Maybe with a small amount of money, maybe it's fine, but not in terms of a large amount of money.
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The cryptocurrency I trust the most is Bitcoin and it was created for a purpose of giving people freedom of their own finance. So I will use it for the example and because it is the most known cryptocurrency in the world. The purpose of cryptocurrency, Bitcoin to be exact is to have control over your own assets. This includes no interference of any kind of third party or middleman.
When you include banks which is centralized into it, it loses its purpose. Cryptocurrency is for those people who seek out freedom and can maintain it on their own. If you feel like that you need to rely on some other sources for your security and privacy of your asset then cryptocurrency is not for you. It's in its name, crypto means something which is hidden or personal to only that person that it belongs. So you can already guess why adding banks in that makes it something else.
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My personal opinion on the matter is that it is better to keep distance from cryptocurrencies and banks. Connections can be those connections so that our financial freedom is not captured by this banker. Then our purpose of inventing Satoshi Nakamoto Bitcoin or cryptocurrency will be failed.
Currently, just I can't avoid the bank just why I use them. Yes, if banks are involved with crypto currency, its adoption and global spread will be faster. But the only problem is that if they add crypto currencies to them, then these crypto currencies are no longer decentralized and the power to start the results will remain in their hands. I don't think it's a problem if banks are associated with the currency. Those of us who like to see decentralization in cryptocurrencies have no need to use banks as third parties. ;D
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My personal opinion on the matter is that it is better to keep distance from cryptocurrencies and banks. Connections can be those connections so that our financial freedom is not captured by this banker. Then our purpose of inventing Satoshi Nakamoto Bitcoin or cryptocurrency will be failed.
Currently, just I can't avoid the bank just why I use them. Yes, if banks are involved with crypto currency, its adoption and global spread will be faster. But the only problem is that if they add crypto currencies to them, then these crypto currencies are no longer decentralized and the power to start the results will remain in their hands. I don't think it's a problem if banks are associated with the currency. Those of us who like to see decentralization in cryptocurrencies have no need to use banks as third parties. ;D
So far, what I have noticed is that Satoshi Nakamoto's main goal is still successful and has not yet shown failure because Bitcoin should not be regulated by anyone, including banks, which of course will not take the risk of entering the world of cryptocurrency. Banks are only a liaison between traders who want to withdraw profits from trading results. In this way, the bank will be safer because it will not interfere in cryptocurrency matters.
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Well the arguments that OP gives are very good, and I really respect the opinion of others because I think it is very valuable, in fact we always enrich ourselves with the opinion of others, however I think that things with crypt are very delicate , starting with the governments, a bank can easily be intervened by a government and take the data they have there, and it is not good because it may be that later over time they know who uses crypto, their amounts and everything in detail, no That's nice, to have control you have to leave your KYC immediately, which doesn't seem good to me, so why can it be done? Take precautionary measures such as not allowing things to get out of control.
We already have a lot of the KYC requirements of a casino, of an exchange, isn't it better to leave it in a wallet with our own private and public lalves? that are under our control? That for me is much safer and more useful.
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Maybe that's the only good thing because, from P2P, you can go directly to the bank. a few days before it comes in, if I'm not mistaken in my idea. The only thing I don't like is when you enter money from the exchange in a big way, the bank will suddenly hold your account with them, and they will ask for a lot of requirements to find out where the money came from.
If you're doing P2P, wouldn't the buyer/seller trade directly through their preferred payment system though? You don't necessarily have to deposit on a third-party wallet unless both of you want to use a multi-sig or something similar. As far as I can remember, a cashback system like Paypal is also not recommended for P2P trading, so you'll likely end up using cash directly or other alts. If there is no explicit mention of crypto, would your bank still block that transaction? I'm not surprised if your bank suddenly asks you this and that if you made large transactions. That's their standard procedure whether you use crypto or not.
Maybe because of the current bull in 2017 and now they noticed and found out that the Bitcoin halving is coming again and then there will be a bull run, they thought of doing this thing because many people are waiting and believe in the situation like the bull seasons. Just be cautious and careful with the bank you choose so as not to have a problem with the crypto assets that will be entered or placed for them.
It is a bit different in my country. Banks never tried to block crypto, probably because trading crypto is legal here. Nobody is blocking people's accounts because they trade crypto on local or overseas exchanges, but they don't offer any crypto services (staking, storage, etc). I don't think things will change anytime soon, considering that crypto is still being viewed as an unreliable asset for companies to manage.
- You're lucky if that's how your country is doing with cryptocurrency right now. Unlike here in our country, they are open to crypto, but not all banks are open to cryptocurrency or bitcoin. Another thing is that I don't trust our bank here except UnionBank, which is friendly to crypto or bitcoin.
But the other bank is not really. I have seen that many times that they hold the accounts of their clients without any opposition from them. I even had an acquaintance before who said that he thought badly that the money he put into the bank came from money laundering, which was a large amount. At once, his account was immediately held or frozen.
Now he showed evidence to the bank itself, including a lawyer, when the bank saw that there was nothing they could do, which was strong evidence. Then my acquaintance immediately took his money out of the bank, and after that, he filed a case against the bank. That's why I don't really trust the bank; even if I put money there, it's not a large amount; rather, it's limited.