The cryptocurrency, a blockchain-based digital currency that has attracted the attention of investors and financial services companies, has a challenge. It can be difficult to get this currency out of the ordinary. But new services are on the horizon. bitcoin And other digital coins for their daily money in major ways.

See how to use these bank-like services Cryptop, As well as their advantages and disadvantages.

What is Cryptocurrency Banking?
The term crypto banking can be misinterpreted because the exchange companies and organizations that provide these services are not technical banks, but generally refer to ways in which consumers can manage their crypto balances. At this stage, this type of banking service allows people to keep their money in a digital wallet or withdraw it as a traditional currency.

Benefits of Cryptocurrency Banking

The main advantage of this type of banking service at this time is crypto debit cards. Instead of keeping it as an investment, they allow you to use your digital coin balance just like any other currency to make daily purchases or withdraw money.

Before these debit cards are available, you can only withdraw your cryptocurrency directly from retailers of your choice to receive or sell in dollars. Financial technology companies now work with partner banks and / or debit card issuers to use their partner’s logistics and control framework to sell their laptops in the background and convert them into dollars for retailers. This means that your digital money will be accepted where many standard debit cards are.

Barriers to Cryptocurrency Banking

Probably the biggest obstacle to borrowing and issuing cryptocurrency is flexibility. It is the same barrier to investing in cryptocurrency cryptocurrency. Financial Services Analysis Organization.

Many banks rely on stable exchange rates to borrow, lend, or raise interest rates, but currently those things cannot be done in a stable or secure way with cryptocurrency.

And to spend your digital coin, you have to accept the risk that the price will go up after you withdraw it, because your transactions are based on the real-world value of your coin at that time. For example, after you buy a $ 5 sandwich, the price of your secret crypto has doubled, which means you have effectively spent $ 10. But the value can be reduced, which makes previous purchases better.

Another obstacle to consider is that regulators are still reviewing Cryptotech Fintex. The U.S. Securities and Exchange Commission (SEC) recently announced plans to sue Coinbase, one of the world’s most popular money transfer companies. Coinbase Cancel product launch since.

Consumers should be aware that using a Crypto debit card is considered a tax, as the cardholder will be technically selling a cryptocurrency on their debit card.

How to try Cryptocurrency Banking

To start using these types of banking services, you must first purchase a cryptocurrency, such as Bitcoin. litecoinThe ether or other currency you want to invest in.

If you want to easily withdraw your balance, you will need to open an account with a company that offers crypto debit cards and use the same type of digital currency you have.

Coinbase, First, has a special debit card that allows customers to withdraw any of their Coinbase assets and receive cryptocurrency rewards, but there is currently a waiting list for new customers. BitPayAnother company offers a prepaid MasterCard debit card that their customers can use to use their digital money. There are others, but not a large bank.

In the future, cryptocurrency may have the potential to become a peer-to-peer loan source, where individuals can quickly and securely lend to each other. This is a huge area of ​​untapped potential but currently the world of cryptocurrency banking is limited by a small set of players with some very new products and services.

(This article was edited by The AP from The Conversation)

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