The rise of cryptocurrency and its new-age blockchain-based mechanism had captured the interest of traders, investors, and financial institutions alike. However, the virtual medium takes way the ease of spending the currency just as people like to spend cash or currency notes. In recent times, new services and platforms have been introduced to help people manage bitcoin and other such digital coins in day-to-day finances. Here’s what you need to know about cryptocurrency banking and its benefits:
What is cryptocurrency banking?
Bitcoin – the world’s largest and most popular cryptocurrency by market cap, is held in virtual wallets with unique keys. Bitcoin and other digital coins are equivalent of cash, but in electronic form. The virtual currency is not held in physical form. Digital currency is decentralised by a ledger system called blockchain, which means that it is not controlled by a bank or central authority.
Cryptocurrency banking is sometimes considered an inaccurate term, as the digital coins are not regulated by a central authority. Exchange companies and firms that offer services of managing digital currency, are not technically banks. Cryptocurrency banking mostly just allows people to hold their funds in a digital wallet or spend it like they would spend traditional money. People can manage their cryptocurrency balances on exchange platforms.
What are the benefits of cryptocurrency banking?Source…