![]() ![]() "They have no underlying fundamental value and suffer from many weaknesses as any sort of savings vehicle," he says. Johnson, PhD, CFA, CAIA and Professor of Finance at Heider College of Business, Creighton University, says it's important to remember that cryptocurrencies are purely speculative vehicles. That makes it hard to plan, and to know if your account is truly helping you "get ahead." ![]() This means that the interest you earn could be worth more or less on any given day. However, if the balance and interest is paid in Bitcoin, then Kane points out that the total balance and payments will fluctuate according to market conditions. If the balance and interest is paid in a dollar-backed stable coin, then it's easy to account for the interest being paid. Meanwhile, Kane says price volatility is another significant item customers should be aware of. These fees can add up if you're an active crypto trader who makes a lot of transfers in and out of your account. Not only that, but you may also have to pay fees to withdraw your money. These withdrawal limits can put your money out of reach when you need it most, like during a financial emergency. However, CPA and crypto expert Mark DiMichael of Citrin Cooperman says this may not be the case with your crypto savings account.įor example, some cryptocurrency savings accounts have withdrawal limits that cap the amount you can take from your account over a specific period of time. If you have a traditional savings account, you can withdraw your money and close your account at any time. "But with Bitcoin or other cryptocurrency, if you lose your keys, there is no dedicated company or organization to help recover your wallet." ![]() "In a normal savings account, the money is yours, full stop," he says. If the administrator of your crypto savings account lends money to third parties and is never paid back, you could lose all or part of your assets with no recourse.Ĭryptocurrency expert and consultant Viputheshwar Sitaraman says giving up your keys is a huge concern regardless. Since the whole crypto system is decentralized, the risk of shenanigans is actually quite high. Moore points out that acquiring a crypto savings account means that one has to relinquish their account "keys" to the lending body. According to cryptocurrency expert Patrick Moore of Crypto What, another major downside is the fact you give up total control of your cryptocurrency assets. ![]()
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