Crypto fixed deposit is a riskier venture than the bank fixed deposit in 2022
The cryptocurrency market is flourishing in the world with more than 4000 cryptocurrencies for crypto investors to gain profit. Though it is highly volatile, crypto investors are not stopping their huge investment towards popular cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and many more. Cryptocurrency wallets are in high demand for the utmost safety of tokens and other crypto assets. Meanwhile, some crypto investors have some concerns between crypto fixed deposit and bank fixed deposits. Yes, one needs to open a cryptocurrency wallet just like a bank fixed deposit account. Let’s explore the main differences between crypto fixed deposit and bank fixed deposits.
Crypto fixed deposit v/s Bank fixed deposit
Bank fixed deposit is known for assuring a fixed return with the principal amount back in full payment at the end of seven days to ten years. Meanwhile, the cryptocurrency fixed deposit is popular for placing cryptocurrency tokens for 30 days and the payment includes the principal amount and the interest.
The most interesting and important difference between cryptocurrency wallets and the bank fixed deposit account is that the cryptocurrency wallet does not have any third-party or any authorization from financial institutions whereas the bank fixed deposit account works under any one financial institution and the Reserve Bank or the Central Bank of any country.
Some cryptocurrency wallets like WazirX allow crypto investors to trade the cryptocurrency tokens from the cryptocurrency fixed deposit account and not withdraw, while bank fixed deposit accounts are known for only fixing the amount for a limited period of time without any trading options.
Being a highly volatile cryptocurrency market, it is highly risky for crypto investors to deposit a hefty amount of their salaries and be paid at cryptocurrencies— unstable prices at the time of withdrawal. Meanwhile, the bank fixed deposit venture is highly stable and only pays back in cash that is suitable at the time of withdrawal.
The cryptocurrency wallet does not provide the feeling of real money to aspiring crypto investors while the bank fixed deposit account provides the satisfaction of receiving real money with interest on hand.
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