The founders of cryptocurrencies have always had a problem with traditional banks. These institutions are important, sure, but they’re also slow to change and adapt. They’re centralized, which goes against the decentralized ethos of most crypto projects.
And, most importantly, they’re just not that interested in working with cryptocurrency companies. After all, crypto is still a relatively new industry, and one that banks don’t really understand.
But that’s slowly starting to change. Banks are beginning to see the potential of cryptocurrencies and blockchain technology, and they’re slowly starting to become more open to working with crypto companies.
This is good news for the industry, as it means that there will be more opportunities for crypto companies to get funding and grow their businesses. But it also poses a challenge: how can crypto companies make sure that they’re choosing the right bank?
Understanding the difference between crypto and traditional banking
The first step is to understand the difference between crypto banking and traditional banking.
What is crypto banking?
Crypto banking is a new breed of a financial institution that is specifically designed to work with cryptocurrency companies.
These banks offer a range of services that are tailored to the needs of the crypto industry, such as storage for digital assets, merchant processing services, and investment products.
Because they understand the unique needs of cryptocurrency companies, crypto banks are able to offer a higher level of service than traditional banks.
What is traditional banking?
Traditional banks, on the other hand, are still trying to figure out how to deal with cryptocurrencies. They’re not quite sure what to make of them, and so their approach is often one of caution.
That doesn’t mean that traditional banks aren’t interested in working with crypto companies, but they are more likely to take a gradual approach, offering only a limited range of services at first.
As they gain more experience with cryptocurrencies, they will likely expand the services they offer.
What’s best for you?
So, which type of bank should you choose? It depends on your needs. If you’re looking for comprehensive services and support, then a crypto bank is probably your best bet.
But if you’re just starting out and you need only basic banking services, then a traditional bank will probably be fine.
Just keep in mind that traditional banks are likely to become more open to working with cryptocurrencies as time goes on.
Final words
Choosing a bank is an important decision for any business, but it’s especially important for cryptocurrency companies. That’s because there’s a big difference between crypto banks and traditional banks when it comes to their willingness to work with cryptocurrencies.
Crypto banks are purpose-built to serve the needs of cryptocurrency companies, while traditional banks are still trying to figure out what to make of this new industry. So, if you’re looking for comprehensive banking services and support for your crypto business, then a crypto bank is probably your best bet.