Crypto era: crypto CEXs are performing better than traditional banks

[KryptoBull]

Crypto-banks were once hyped during the 2017 ICO boom, but most of these projects failed and disappeared, leaving only DeFi protocols with services like lending and borrowing. However, we can see CEXs gradually becoming crypto-banks as they offer many related services: deposits and withdrawals, buying crypto with fiat, lending & borrowing, savings... Interestingly, while many traditional banks are failing due to high-interest rates, CEXs are operating efficiently and generating huge revenues from the crypto market.

In South Korea, a new trend is emerging – crypto exchange employees are now starting to outpace their counterparts at traditional banks in terms of salary. According to a recent report, the average income of employees at Dunamu now exceeds that of employees at major South Korean banks. This is a significant development, as banks have traditionally been seen as the most prestigious and well-paying employers in the Korean financial sector. ^[1]

CEXs can rely on huge profits to offer competitive salaries and benefits to attract top talent in the financial sector - this is a sign that the crypto industry is maturing and becoming a more mainstream force in the global financial system. Many smart banks have chosen to support crypto services and generate huge profits ^[2], while many others continue to be conservative and see crypto as a threat to their existence.

I believe the crypto wave is unstoppable, and we will see more and more banks taking a crypto-friendly stance, supporting crypto services, and even starting to invest in crypto ^[3]. There are no permanent enemies, only permanent interests: when it becomes impossible to stop or destroy crypto, these banks will join in to share the profits from this market. Crypto investors can rest assured that we will soon be able to trade fiat-crypto more easily thanks to the support of these traditional banks.

I would like to know your views on this issue:

• Are you using the savings features of CEXs to get more attractive APYs than traditional bank APYs?
• Do banks in your country support crypto services?
• If possible, are you willing to use crypto storage/trading services directly on banking apps?

References:
[1] South Korean crypto exchange employees out-earn staff at major banks
[2] Crypto bank Sygnum posts profit after doubling crypto trading volumes
[3] 10 Best Crypto Friendly Banks in 2024
Note:

• My opinion has been presented in a topic, on BitcoinTalk forum.
• This topic on AltcoinsTalks forum has included a minor change in the way my opinion is presented.
• This statement is to avoid accusations of plagiarism.

[PrivateKayla]

I believe the crypto wave is unstoppable, and we will see more and more banks taking a crypto-friendly stance, supporting crypto services, and even starting to invest in crypto ^[3]. There are no permanent enemies, only permanent interests: when it becomes impossible to stop or destroy crypto, these banks will join in to share the profits from this market. Crypto investors can rest assured that we will soon be able to trade fiat-crypto more easily thanks to the support of these traditional banks.

I would like to know your views on this issue:

• Are you using the savings features of CEXs to get more attractive APYs than traditional bank APYs?
• Do banks in your country support crypto services?
• If possible, are you willing to use crypto storage/trading services directly on banking apps?

I agree with you. Crypto is here to stay. It may take some time before full adoption or accepting it as another payment option but it's on its way.

1. I use it but in small amounts because, well, CEX and I don't fully trust it.
2. Traditional banks in my country don't support crypto services. In fact, when they find out that a client's income comes from crypto, they give the client a hard time (freezing of bank account until all requirements are submitted, and even then it takes a long time to finalize). Some digital banks do support crypto.
3. I'll have to wait and see before I use a bank's crypto storage/trading services. Our government's stance on crypto is unclear though we are one of the largest crypto users in the region. I find that digital banks that do offer these services don't have a solid foundation yet (just my personal opinion).

[NotATether]

But that is only in south korea, per the OP. In other countries I don't imagine bank employees earning less than the average crypto tech worker.

Besides, with a bank, when you put your money inside a savings account, it is insured up to a certain amount. With an exchange, there is no such insurance so you can end up losing everything. Why do people continue to throw away their life savings like this?

[TomPluz]

We are in the changing era...and since cryptocurrency came into the financial market there had been many new innovations that sparked the interest of the general market hence we are seeing an expanding and continuing patronage of a good number of people on CEX exchanges and their many varied services...some are thinking that they are trusting more these platforms compared to traditional institutions and if this trend will continue this can be disrupting an industry that has had been in the forefront for many decades and centuries.

1. Are you using the savings features of CEXs to get more attractive APYs than traditional bank APYs?
As of now, not yet since I am still weighing things and waiting for some more time before I would be jumping into something that I also know carry some risks even if the possible rewards can be better. Let's see years from now if my stance would be changing but definitely there is no questions many CEX platforms are offering a lot better.

2. Do banks in your country support crypto services?
As far as I know, not yet though there is a big possibility for banks here to also get involved with cryptocurrency once they would realize that there is big money that can be made in their involvement. For now, there is still no clarity on this aspect so banks are still steering away from this market. However, money transfer apps who are acting and acting like banks are already into cryptocurrency which can be a good start already.

3. If possible, are you willing to use crypto storage/trading services directly on banking apps?
Yes, I am and things depend a lot on how reputable is the firm behind the banking app. I prefer one with solid background and one that will not run away with my money anytime and has a user-friendly services and options just like what I experienced with Binance.

[Hatchy]

• Are you using the savings features of CEXs to get more attractive APYs than traditional bank APYs?

Though exchanges make it easier for anyone to store their crypto without the need to keeping your own keys, it's still not my thing. I wouldn't want to take chances of leaving the safety of my funds with third parties that why i keep my coins in wallets and store my keys offline. Exchanges is best for those who runs online business that offers cryptocurrency as a payment option. That because they will want to carry out continuous transactions in their business.

• Do banks in your country support crypto services?[/li]

Banks in my country strictly against crypto. Our government thinks that crypto is something that devalues our local currency and thus are in a chase to stop all forms of converting crypto to fiat. Though there's no official ban on crypto but it's just complicated to say.

• If possible, are you willing to use crypto storage/trading services directly on banking apps?

no, like i saud before i prefer having key for my coins and not leaving it to a third party.

[NotATether]

2. Do banks in your country support crypto services?
As far as I know, not yet though there is a big possibility for banks here to also get involved with cryptocurrency once they would realize that there is big money that can be made in their involvement. For now, there is still no clarity on this aspect so banks are still steering away from this market. However, money transfer apps who are acting and acting like banks are already into cryptocurrency which can be a good start already.

Of course banks would love to get involve for this but their compliance and risk departments would think that this is an unnecessary liquidity risk since crypto is very volatile. So I can understand them not wanting to touch it with a 10-foot pole.

3. If possible, are you willing to use crypto storage/trading services directly on banking apps?
Yes, I am and things depend a lot on how reputable is the firm behind the banking app. I prefer one with solid background and one that will not run away with my money anytime and has a user-friendly services and options just like what I experienced with Binance.

I think this would only be good for business accounts. On personal accounts you will definitely get asked for your source of funds, and if you don't have any paperwork then.... sorry.

[MrSpasybo]

I would like to know your views on this issue:

• Are you using the savings features of CEXs to get more attractive APYs than traditional bank APYs?
• Do banks in your country support crypto services?
• If possible, are you willing to use crypto storage/trading services directly on banking apps?

1. I'm currently participating in Earn & Staking on Binance to receive an APY of up to 10% per year, which is clearly more attractive than a bank. Especially when holding USD in a bank account, users have to pay monthly fees, while holding USDT on Binance in Earn will earn additional money daily, which is really attractive.

2. In Vietnam, banks have not officially supported crypto services yet. Even crypto-fiat transactions have to avoid mentioning crypto in the transfer content to avoid unnecessary trouble. Banks wanting to participate must also wait for the legal framework for crypto from the government.

3. If banks officially support crypto, I wouldn't want to use it because crypto is self-custodied, meaning users should use personal wallets. If I want convenience, CEXs are a more suitable choice because they are still private companies in this market and are not under the management of any government.

[0t3p0t]

1. Are you using the savings features of CEXs to get more attractive APYs than traditional bank APYs?

2. Do banks in your country support crypto services?

3. If possible, are you willing to use crypto storage/trading services directly on banking apps?

1. Nah, I don't use both features from CEX's and traditional banks.
2. Few banks supports cryptocurrency here in my country and others don't for some reason.
3. Never tried one yet but I don't think I am gonna use them unless I need to use one. I usually use traditional trading services on top exchanges regardless of it being centralized or decentralized hard pass for banking apps.

[akeemqaz]

I believe the primary reasons why CEX are preferred over traditional banks are their similar offerings with lower interest rates or fees, and often higher APR.
Another thing is, CEX allow individuals to easily invest in various assets without needing to contact intermediaries. Given current trends, CEX are likely to continue outperforming traditional banks.

[pieppiep]

I believe the primary reasons why CEX are preferred over traditional banks are their similar offerings with lower interest rates or fees, and often higher APR.
Another thing is, CEX allow individuals to easily invest in various assets without needing to contact intermediaries. Given current trends, CEX are likely to continue outperforming traditional banks.

Each CEX exchange has its own policy. Some have lower interest rates and some are quite high. So it is better for us to try to find an exchange that has low fees and has an easy-to-use display so that we do not have difficulty when we want to trade. Banks already know this directly, but some local banks prefer to remain consistent and persist even though they already know what the threats will be in the future.

[Rruchi man]

• Are you using the savings features of CEXs to get more attractive APYs than traditional bank APYs?

Since I started using cryptocurrency, I basically do not keep any money in my traditional bank account that I did not intend to use for a purpose. I practiced self-custody more because I do not trust traditional banks.

If possible, are you willing to use crypto storage/trading services directly on banking apps?

My bank have disappointed me often. I will expect them to disappoint me if they add a crypto wallet or trading service to their bank app and I use it.

[Stompix]

Crypto-banks were once hyped during the 2017 ICO boom, but most of these projects failed and disappeared, leaving only DeFi protocols with services like lending and borrowing. However, we can see CEXs gradually becoming crypto-banks as they offer many related services: deposits and withdrawals, buying crypto with fiat, lending & borrowing, savings... Interestingly, while many traditional banks are failing due to high-interest rates, CEXs are operating efficiently and generating huge revenues from the crypto market.

I don't see any CEX performing better than traditional banks, sorry but no!
Just because some are paying their employees on average more than a traditional bank doesn't mean a thing, especially because of the different jobs and qualifications one requires for a cex and the number of extra jobs and often less well-paid banks have for all their branches.
Plus the article itself says that usually, the wages are well lower than banks, and they went up just because of bonuses during the bull run.

As for borrowing, no CEX offers borrowing without collateral, so for 99% of the population, those loans are out of reach, not to mention they are also far pricier than banks and with higher risks. And if we talk about banks falling, remember FTX and Celsius?

[Faisal2202]

I would like to know your views on this issue:

• Are you using the savings features of CEXs to get more attractive APYs than traditional bank APYs?
• Do banks in your country support crypto services?
• If possible, are you willing to use crypto storage/trading services directly on banking apps?

I can't agree more with you. As the fact you have shared is really motivating and it will encourage the bank's employees to work for CEXs although there is no office of any CEX in our country so we are not able to work in any and to be very honest I don't want to work in any bank here not because of salary because they give enough that can fulfill 3 Middle-class person's need

1. I am not using any interest base feature on any platform

2. No in my country crypto is still not legal so banks can't really provide us with crypto-related services instead when they come to know you have withdrawn the crypto money to your account they seize the money and open a legal case against you.

3. If they provide us with such features, it would mean crypto is going to be legal in our region, and we can freely use crypto-related services integrated within our banking apps, so I will definitely use it.

[bayu7adi]

In my opinion, centralized exchanges are now starting to explore other features that can even be more than the Banks that were planned by projects during the ICO in 2016-2018.... I also realized that many people like to save their money in exchanges because it is more flexible and also easier in terms of turning money for investment or other productive purposes.

If conventional banks implement similar features related to cryptocurrency, will I immediately become the most enthusiastic customer waiting for it? Of course yes... because when that happens, there will be a lot of regulations that will start to be relaxed in order to accommodate crypto adoption in a country... however, I will not store all my crypto assets in a bank... only a small part may make me more comfortable, because I am used to storing in a non-custodial wallet.

[bitterguy28]

I also realized that many people like to save their money in exchanges because it is more flexible and also easier in terms of turning money for investment or other productive purposes.

aside from that banks usually have high fees and even higher fees for international transfers which is not very attractive for people and make them turn away but with exchanges yes the fees are still quite high but it is relatively lower and the transactions go through a lot easier

If conventional banks implement similar features related to cryptocurrency, will I immediately become the most enthusiastic customer waiting for it? Of course yes... because when that happens, there will be a lot of regulations that will start to be relaxed in order to accommodate crypto adoption in a country... however, I will not store all my crypto assets in a bank... only a small part may make me more comfortable, because I am used to storing in a non-custodial wallet.

i think not many would be into this idea for the reason being if a bank is holding your coins then it is not your coins no? you are still giving access to them and for people who do not want their identity known this can be a problem as well