Saving In Bank Accounts Is Normal, but What About Saving in Cryptocurrencies?

When it comes to savings, bank accounts have long been option number one. But, under the influence of modern technology, the financial world is changing rapidly. Many people have started using digital tools and platforms, and money itself is increasingly getting digital.

One of the biggest innovations in the market is cryptocurrencies and the blockchain technology on which they are based. Among other things, they have led to the emergence of savings as an alternative path to financial prosperity. Generating significant passive income by keeping currencies long enough is the main intention here. Volatility, which is innate in almost all cryptocurrencies, poses as one of the obstacles in practice and that is why it is best to approach this topic with a healthy dose of caution. 

This guide will show you the main features, benefits, and ways for crypto savings…

The Problem With Traditional Savings

We know what you are thinking right now. The money is safe in the banks and there is no reason to move it. But what about the fact that it often makes no profit? Namely, if you provide a deposit in the national currency or a foreign currency deposit, the value of that money remains more or less the same over time. In other words, almost no positive effect on your purchasing power will emerge from this type of savings. The main culprit for this is inflation, which ‘eats away’ what the interest rate brings.

Of course, the inflation rate is a matter of the country’s fiscal policy on which you do not have much influence. Simply put, traditional money is designed to gradually lose its value. Potential to increase the revenue that cryptocurrencies have is, on the other hand, much greater. First, they are completely hedged against inflation and this characteristic of cryptocurrencies is the result of their design and the fact that their supply (the number of currencies in circulation) is limited. Governments may choose to let a lot of money into the economy but as far as cryptocurrencies, there is only as much of them as blockchain users can mine.

Advantages of Saving in Cryptocurrencies

The principle of a peer-to-peer network lies in the root of the way the crypto market, which is decentralized, operates. The terms of transactions cannot be dictated or be under the impact of any central instance. Buying or selling currencies is a unique transaction between two participants. You own, not only full ownership of the assets but also all the privileges of managing them.

Another advantage is that you do not have to prepare a bunch load of paperwork and pay for various banking services. When opening regular savings accounts, complications, commissions, and other costs might arise – cryptocurrencies give you a chance to avoid most of those. Individuals do not have access to your complete financial history, which will likely please you. 

Instead of pure consumption, and as a result of all these benefits, many have begun to accept cryptocurrencies as a form of savings.

Savings Plan As a Foundation

When it comes to saving, a well-thought-out strategy is important. The basic concept is straightforward. Find a method of purchasing cryptocurrencies that is both simple and safe. How do you choose a channel on which to store your cryptocurrencies? Should you use stock exchanges or exchange offices? Each channel has advantages and disadvantages, which are mainly determined by your motivation for purchasing and knowledge of cryptocurrencies. One choice is to open an account with the appropriate stock exchange and secure a cryptocurrency deposit of a certain sum. Another choice is to use a crypto exchange to buy cryptocurrencies with your money quickly and easily.

Problems occur in the realm of practicality, i.e. when putting this strategy into action. To succeed, you must think like an investor rather than a traditional saver or speculator. In other words, your aim is not to become wealthy quickly or to hold money in the hands of others. Holding cryptocurrencies on the stock exchange is the same as keeping ‘money’ in the hands of another individual. Stock exchanges do not have to be the best option for savings if you are not actively trading cryptocurrencies.

It is also worth noting that diversifying your cryptocurrency portfolio is usually a good idea. When you diversify your investments, you effectively eliminate the risks that come with investing all of your money in one currency. One of the more recent savings trends is for parents to purchase cryptocurrencies for their children. This is a form of saving that also serves as an investment in their future. The key benefit is that you can escape inflationary risk, i.e. pressure, as we already stated.

Cryptocurrency Selection Factors

The first move is to decide which currency you want to save in. Bitcoin remains one of the most common and popular cryptocurrencies. While it has a bad reputation for being a very volatile option, the phenomenal growth of its value over time is undeniable. Other well-known currencies, such as Ethereum, Litecoin, Dash, and Bitcoin Cash, can be considered as options right after Bitcoin. Despite the volatility, the value of these currencies has increased over time. Their value is also stabilizing, which is a positive development.

Investing in smaller cryptocurrencies could be less expensive, but the fundamental issue is that they are unprofitable in the long run. Simply put, they are subject to huge price fluctuations and can vanish from the scene at any time. As a result, they are rarely trusted by savers and investors. True, there is always a risk, and many investors and savers avoid cryptocurrencies because of it. This market definitely cannot measure up with the securities market, which is much more stable. What you need to remember is that this uncertainty is just one side of the coin. The other side is big profits.

Explore Options First

The purchase of cryptocurrencies is still in its infancy in some less developed countries. However, even if you are their resident, you are not without options, especially if you opt for one of the largest currencies. You can do this through crypto exchange offices or by opening an account on one of the stock exchanges. There are also cryptocurrency ATMs in larger cities. On them, they can be bought or sold in exchange for cash.

It is also a good idea to explore tools for saving and storing cryptocurrencies. They are called crypto wallets and they can be used for various purposes, including online gambling (there are also e-wallets for such purposes, e.g. those at Also, their number is constantly growing. These wallets can be divided into two categories: software wallets and hardware wallets. Because of its affordability, the first solution is more common among active cryptocurrency traders, while hardware tools are recommended for savers. One of their key advantages is protection, which is critical when dealing with large amounts of money.


In theory, cryptocurrencies are worth considering for long-term investments. They are not affected by inflation and gain in value over time. Bank accounts, on the other hand, are a practically non-existent way of investing, in addition to being slow, due to low-interest rates and inflation.

There will undoubtedly be risks, and you must be able to take them into consideration. Make a savings plan, figure out how much you will save, and set attainable targets. Choose your saving currency carefully, and diversify your plan as much as possible. For starters, do not invest all of your savings in cryptocurrencies. You don’t want your financial well-being to be entirely dependent on cryptocurrencies. Always proceed with caution when investing.