Why you Should Custody Crypto with a Bank
In the past, cryptocurrencies used to attract a niche group of tech savvy people with a high-risk tolerance. Then cryptocurrency FOMO hit—fueled by celebrity endorsements—and crypto transactions reached a much wider audience of crypto-curious individuals. Then a market cooling settled in, and the ups and downs and turmoil of crypto have been front page news for weeks now.
The extreme volatility of crypto is not for the faint of heart, but crypto interest still exists, even among those who have never owned cryptocurrency. Vast Bank—the first full-service national bank to offer the ability to buy, sell and hold crypto—is seeing the demand.
Given recent events in the cryptocurrency market, the wisdom of partnering with a bank to custody crypto investments is becoming more and more clear.
Yes, you can buy crypto through a bank.
Working directly with digital-only exchanges used to be the only way to acquire digital assets, but for the last year Vast Bank has offered customers the ability to buy, sell and hold crypto within a mobile app.
Unlike digital-only exchanges, Vast Bank is a traditional, federally regulated bank, staffed by caring professionals. And because we are a national bank, Vast Bank is simply held to higher standards than any of the crypto exchanges.
At Vast Bank, the unregulated, risky lending practices with customer crypto deposits that have recently mired certain crypto exchanges, are simply not possible. Your crypto belongs to you. As a federally regulated bank, we use an audited ledger to identify your crypto holdings and track your account activity. Vast Bank will never repurpose your digital assets unless you specifically instruct us to do so, meaning that your funds are available to you 24/7.
Let’s take a closer look at how and why it’s simpler to manage cryptocurrencies with a bank.
Traditional currency is printed and backed by a government or central bank, but cryptocurrencies lack this centralization and solely exist as digital tokens on a blockchain—a database using multiple computers that store information about transactions in blocks. You can buy an entire digital coin or pieces of that coin.
If you decide to self-custody, the most important aspect of working with cryptocurrencies and blockchains is the secure management of your private keys. Private keys give you the ability to move coins on the blockchain, and if you lose your private keys or they are compromised, you will not be able to access your digital assets—ever.
Given these complexities and risks, self-custody is not for everyone. However, well-structured custody solutions, like Vast Crypto Banking, can make crypto more accessible to a broader range of people.
What is a crypto custodian?
A financial institution that stores assets on behalf of customers provides financial custody to minimize the risk of theft or loss. Instead of storing things like stocks, bonds or cash, a crypto custodian stores your digital assets.
Crypto custodians offer retail customers a place to securely store, buy and sell digital assets in a simple, straightforward manner without the technical hassle of managing private keys. Ultimately, crypto custodians like Vast Bank allow customers who were uncomfortable with or unable to manage the complexities of self-custody to enter the digital asset market.
Your digital assets are safe with Vast Bank
The cryptocurrency market, like the stock market, is unpredictable. So please proceed at your own risk if you take a dip in the stormy waters of cryptocurrency ownership but know that your digital assets are safe when you buy, sell and hold crypto with Vast Bank.
If you’re ready, download the app today.
Digital Assets involve risk are and not insured by governmental entities including FDIC or SIPC. You should carefully consider if trading digital assets is right for your financial situation. Digital Assets are Not Bank Guaranteed and May Lose Value. Terms and Conditions Apply.