Why you should not leave your money in the bank

[Sherman198]

Thanks for letting us know these crypto exchanges that offers huge APY....I think the best way to earn tangible and reasonable interest on ones money is through locking or staking it with legit exchanges. But however, it does have its own risks. Do you know that an exchange can be hacked and steal all their crypto locked? What will happen if this occurs,...? I know the exchange is supposed to be responsible and pay back if at all anything like that happens. But what if they don't come back to pay you back. Everything has its risks though, just saying that we can't purely rely on exchange.

 

[Ithedicious]

I don't even understand you. Personally I always try to save most of my money in the bank because I just consider that to be the best for me . The reason is because I didn't have understanding of cryptocurrency and it is just now that I have just been introduced into the crypto space and I consider saving of money in the bank has the best.

I believe as I learn more on cryptocurrency , I will withdraw all my money and invest in good potential cryptocurrency that will be valuable in the future just like bitcoins did few years ago.

I do not also have opportunity to invest in US dollar or any country's currency that will maintain the value of my assets . Also I do not just see the need for people to be saving their money in the money now. The economy of our country is collapsing and this is really difficult because the value of our money won't be the same if we considered saving in banks as the only option.

In most cases we do not know what to do because there is no other way of investing safely without any risks of losing our life saving .

 

[Rachael]

To me, I do not see anything bad or wrong in leaving money in the banks. You cannot just give such advise in generality because not everyone has trading skills in Forex or cryptocurrencies and even experts do encounter losses. Saving money in the bank is the best way until one is psychologically ready to invest either offline or online. There is no investment that does not have risk chances and even saving money has some risk because of the frequent deduction that is accompanied, but at least, it can be managed.


For me, I would not advise anyone to invest in any trading activities online if you are not skilled, technical or have strategic secrets to trading and also, the idea of making a third-party to invest on my behalf is totally out of the context because I have encountered such experiences and it did not end well. Investing in real estate venture is the most feasible bait to take and this also has risk chances but at least, with caution and pitting all the necessary requirement in place, it can be averted. Leaving your money in the bank is not wrong and does not mean you are not a risk taker. Taking uncalculated risk is not worth the aftermath that comes with depression.

 

[HunterNo]

Well, it all depends on tho. I think what he means is that if you just leave your money in the bank with very low interest, you will lose buying power every year, and it's quite a lot.
One smart thing you could do if you have no idea what to do is to contact the bank about index funds or something like that, Ask them what they think it's smart to do with the money. Cus if you don't do anything you are basically losing money over the year.

 

[Mika]

The title and the description do not match. The title says one thing and the description says another thing. The title talks about banks whereas the description talks about cryptocurrency and crypto exchange. I will try to share my opinion on the title (about saving money in the bank) as well well as using crypto exchanges.
If you keep your money in the bank, it can never be robbed or stolen. Even if it is robbed or stolen, the bank will always credit your funds. If you save money on interesting bearing accounts like saving accounts and fixed deposit accounts, you will earn interest, which means you will earn profits on your funds just by keeping in banks. You might be able to earn more if you withdraw the money and invest somewhere, but that's very risky.
Well exchanges can be hacked and your funds might be stolen. But you can diversify your assets, use hardware wallets, or desktop wallets and minimize the risk. You will also have to use the most secured platform and never use an exchange that is not very popular and recently launched. When you are staking, make sure the reward will include a guaranteed principle return, check whether funds are locked or not.

 

[btaliat]

I would have hearkened to the advice of the poster but the alternative to bank he suggested is not always reliable. I don't think one should write off banks just because of crypto. Though just like he said, there may be many reasons why one should deem it fit to invest in cryptocurrency but not at the expense of banks.

It is not a doubt that banks may have its shortcoming which may include unnecessary charges which do not really exist in banking sector. Most times, banks do charge without even explaining the reason why the money was deducted. No one can deduct your money in cryptocurrency but this doesn't mean your money also is saved there because your money may be exposed to hackers.

The volatility nature of cryptocurrency can never make me depend on it solely. I could remember how I have lost much in crypto, though I am still on it but now I am very careful on how I deal with crypto. I don't really buy coin for now. Just have some usddt for there. The only thing that can change the value of your money in banks is inflation.

So I can't ditch banks for crypto.

 

[Richee84]

Leaving money in the bank has it own advantages and disadvantages depending on the angle we are looking from. Money been kept in the bank are seen as the most safest for every individual, money kept though seems to be very safe but the money will only just be in the bank serving the interest of the bank by generating more money for the bank rather than the owner of the money. Saving money I'm the bank reduce the risk of been stolen as the bank will be held responsible for any lost of money that was not authorized by the owner. For real and good entrepreneur, they would rather prefer to put their money on investment rather than to allow it work for another person or organization. money put on a business might involve a very great risk that can make one to loose the whole money, but if the was able to break forth and have a very good market, within couple of days or weeks the money he invested would have multiple. Keeping money in the bank will only encourage savings among individuals but a real entrepreneur will always look for every possible ways to make more profit from what he or she had on ground.

 

[Suba]

Personally, the money in the bank that we have is only for the purpose of smooth transactions and also for short-term savings if we want to purchase investment assets in rather large amounts. I don't agree that if you keep large amounts of money in the bank for a long time, of course you will lose because the interest rates and bank fees are not commensurate with the inflation rate. But our money in the bank is safe even if the bank is liquidated, our money is guaranteed by the central bank through a deposit guarantee institution. Currently, it is not only crypto staking that we can earn, but crypto exchanges also provide other types of passive income such as interest-bearing deposits for a certain period of time. Although until now there is no crypto-specific insurance but some major exchanges have purchased insurance policies (fiat money), as a guarantee in case something untoward happens such as hacking etc. Some of the major exchanges that already have insurance such as Binance, Coinbase, Zipmex etc.

 

[Good-Guy]

I do not think that keeping your money in the bank could be a really great idea because of the fact that inflation is growing rapidly and inflation devalues your money. There was a time when I was a big fan of cryptocurrencies and stable coins and I even planned to save and store my life savings in the tether coin. I am no longer a big fan of cryptocurrencies because of the fact that they are now really unreliable source of income and I have seen what has happened to people who have held the TerraUSD coin. I no longer even trade in cryptocurrencies and I think that cryptocurrencies have the potential to fall at anytime.

Cryptocurrencies have been struggling a lot to gain the value everyone was expecting them to gain and I think that this is something many people are upset about due to the fact that many cryptocurrencies have crashed and they show no signs of recovery at all. having said that, right now my main focus is to invest money with many online investment projects that have been paying people for a really long time. I know that investing money with such kind of online projects is a pretty risky thing, but investing money with cryptocurrencies is also much risky.

 

[Holicent]

Banks have been around for hundreds of years and they are still here because they offer a valuable service. Banks allow us to keep our money safe and make payments from it. The problem is that banks also charge high fees for these services, so much so that it can be worth your while to look for an alternative. Here are sone reasons why you should not leave your money in the bank:

High interest rates.

When you deposit money into a savings account, you earn interest on that money. However, this interest rate is usually below what you could get if you invested it elsewhere. If you don't want to invest yourself, then consider investing through an online broker who charges significantly lower fees than traditional financial institutions like banks and credit unions.

High fees for withdrawals and transfers.

If you try to withdraw or transfer money from your savings account at a traditional bank, they will often charge a fee for doing so, especially if it's done over the weekend. This can quickly eat into any interest you earn on your deposits and leave you with less money than when you started! One way around this issue is by using online banking services such as direct deposit and electronic bill payment options offered by many banks today.


Lastly, inflation can make your money lose value.