"This means if the company offering the savings account does not also provide the private-keys associated with the wallet where savings are held, then it is possible a user’s funds can be lost if the company goes under," says Kane., another major downside is the fact you give up total control of your cryptocurrency assets.
"In a normal savings account, the money is yours, full stop," he says."But with Bitcoin or other cryptocurrency, if you lose your keys, there is no dedicated company or organization to help recover your wallet."If you have a traditional savings account, you can withdraw your money and close your account at any time.
Robert R. 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. The risk to you as a depositor is that the platform or exchange you are utilizing suffers a wave of defaults on their loans that they can’t cover. The result of a breakdown of the platform could be disastrous for savers with assets deposited.remain popular despite these risks, but why? Simply put, they still offer the potential for higher returns on cryptocurrency, and this is what crypto investors are after in the first place.
Second, make sure you're not betting the farm on crypto investments or their potential savings account returns.
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