What Weaknesses Are Often Exhibited by Crypto Exchanges?
how can exchanges and users go about reducing them and making the world of crypto that much safer?
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The traditional banking sector has been a part of life for hundreds of years. Banks with histories stretching back centuries are still found on streets worldwide. But digital banking is now widespread, and its popularity is only growing, offering many advantages over traditional banking, including deeper integration with cryptocurrency.
Let’s briefly look at digital banking vs. traditional banking, specifically focusing on cryptocurrency.
More Integration with Cryptocurrency
The traditional banking world has been resistant to the introduction of cryptocurrency, often actively working to limit its rise. Most traditional banks still offer no facilities to integrate with crypto. On the other hand, various digital banking operators have welcomed cryptocurrency, offering features to simplify crypto investment, as well as allow crypto transactions, crypto staking, crypto lending, and more.
This integration with crypto has made digital banking popular with the younger, more tech-savvy generation. Traditional banks that don’t accept crypto payments or offer integration with crypto wallets will almost certainly be squeezed until they accept the change or go defunct.
Increased Convenience with Digital Banking
There’s no arguing with the fact that digital banking is more convenient. 24/7 access to account details ensures complete control over money, allowing accounts to be checked, payments to be made and received, and information to be changed at any time of day and night. The crypto integration mentioned above is also highly convenient for regular cryptocurrency users.
On the other hand, traditional banking relies on visits to brick-and-mortar venues to make any money transfers and account changes – highly inconvenient, even for those living close to a bank. Phone support might be offered, but that fails to provide the convenience of online banking.
Digital Banking Can Be More Rewarding
High interest rates on savings are now a thing of the past – investors know that leaving their money in a traditional bank account isn’t going to boost their wealth considerably and are now choosing alternative ways to invest.
Some digital banking providers now offer crypto staking – the ability to pledge crypto towards helping validate blockchain transactions. For doing so, crypto owners earn rewards, which can be significantly more valuable than the paltry interest offered by traditional banks nowadays. The more crypto staked, the more rewards will be earned.
Traditional and Digital Hybrid Likely
Digital banking has many advantages over traditional banking, meaning that traditional banking establishments can’t ignore digital options forever. If they do, they’ll almost certainly find themselves going out of business. But they also won’t want to abandon the traditional values of the banking industry, which have served them so well over the years.
The answer will almost certainly be a hybrid between the two. Traditional banking operators will have to start offering many of the services they’re currently resisting, including much stronger integration with cryptocurrency. Most major banks already offer a digital banking platform, but this will evolve significantly.
KUNA Tech Digital Banking Software Development
At KUNA Tech, we provide digital banking software development from scratch, offering modern features, including integration with crypto wallets, crypto staking, and the ability to accept crypto payments. Digital bank cards, which are stored on a mobile device, can also be integrated.
We also offer services to banks that haven’t currently adopted cryptocurrency features. Our KUNA Banking API allows several new blockchain-based features to be added, helping to make banks more appealing to cryptocurrency users.
