Cryptocurrency might be relatively new, but it’s moving at a record-breaking pace in transforming the world of finance. Were you aware, for instance, that there are currently over 5000 different cryptocurrencies trading globally?
However, most of us can probably name a few of these, and Bitcoin is perhaps the first to come to mind.
But how does a new investor get started with cryptocurrency? One option is to choose a Bitcoin bank. Here’s how Bitcoin banks work.
What Is a Bitcoin Bank?
Most of us have heard of Bitcoin, the leading cryptocurrency that first came on the financial scene in 2009. You might be familiar with rags to riches tales; people who invested in Bitcoin before it became mainstream and made millions.
But Bitcoin, like other cryptocurrencies, was always about more than betting on market fluctuations to make a quick buck.
An anonymous inventor designed Bitcoin as a better way of making financial transactions globally. It’s secure, easy to move, and private.
Bitcoin has become a regular currency used by large institutions, private individuals, and businesses. Increasing numbers of corporations now accept payment in Bitcoin.
And that’s led to the question of where to hold your cryptocurrency. The short answer is a crypto bank or a Bitcoin bank account.
While you might class these as financial institutions, they operate a slightly different model from traditional banks. You can deposit, move or withdraw cryptocurrency from a Bitcoin bank.
You can also buy and sell Bitcoin. But you can’t do other traditional financial activities like applying for a bank loan.
How Does a Bitcoin Bank Work?
You can set up a crypto bank account in a similar way to set up a standard bank account. You choose a provider and apply to open a “Bitcoin Interest Account.”
That’s similar to a traditional savings account. You’ll earn interest, which is often significantly higher than what you’d make in a dollar savings account.
You can also opt for a checking account if you want to do more than earn interest on your savings.
That will enable you to use Bitcoin in day-to-day transactions, becoming more prevalent as businesses begin to accept the currency. In addition to these standard banking models, there are also Bitcoin ATMs that you can use to buy Bitcoin on the go.
ATMs are perfect for beginner investor who is new to cryptocurrency. You can find a location near you and try these ATMs for yourself.
Finally, you can try a cryptocurrency app as an alternative to the banking model.
These apps will allow you to begin trading in Bitcoin and other cryptocurrencies. It also operates as a wallet you can use to make financial transactions.
Join a Bitcoin Bank Today
A Bitcoin bank might sound like something from a futuristic movie. But in reality, Bitcoin banking is a simple and easy way for anyone to get started in cryptocurrency. Why not set up an account today?
Do you want to keep learning about crypto? Head over to our guides section now for more relevant posts.