Cryptocurrency quickly came into global prominence with the help of Bitcoin, followed by Ethereum, Litecoin and more. Platforms such as digital wallets, exchange sites and crypto banks were formed so coin holders could use their crypto to purchase digital assets, take part in a crypto loan or put their money in crypto savings.
Digital banking is fundamentally different from traditional banking in a lot of ways.
Crypto Currency vs Traditional Money
Perhaps the greatest difference between these two financial medium is the kind of asset they hold.
Traditional banks hold fiat currency (dollar, euros, etc.) while a crypto bank holds digital assets like Ether, Bitcoin and others. Moreover, a traditional financial institution is under the sway of its government while crypto operates via decentralized aspect.
Going down further, fiat money exchange is done physically while cryptocurrencies follow a digital medium, such as an app. Paper money is represented by coins and bills while crypto is represented by private and public ‘keys’.
Fiat money is virtually limitless as the country can print them as much as they want while crypto coins have a limited supply via a ‘set maximum’.
Cryptolifebank and other crypto banks offer crypto asset management, loans and other things. Investing in crypto assets is an excellent way to diversify your portfolio and to widen your scope.
Decentralized Financial System vs Traditional Financial System
One of the most defining characteristics of cryptocurrency is that it doesn’t require a ‘middle man’. It may not be controlled by a single entity and thus can be very useful in global transactions.
The decentralized aspect means hackers won’t be able to get into a particular transaction. P2P settlement systems work 24/7 and are available even during weekends and early hours of the morning.
Cryptolifebank.com offers people a way to manage their digital assets in a secure and safe platform. You can manage, trade and secure both traditional and digital assets in one convenient medium.
