Digital Age: Comparing Centralized and Decentralized saving System
I prefer saving in my wallet to saving in the bank. I have a friend who has been advising me to save in a crypto wallet rather than in my bank account. He kept telling me that, but I felt the bank was saving and was more secure. I refused his idea until I decided to give it a try.
Delving into this topic, I will start with what centralized and decentralized methods of saving are. The truth is that we are in the digital age, but not everyone seems to understand these two words. There are so many people who have not heard, or maybe have heard, but don't really understand what these two words mean.
In layman's terms, a centralized method of saving simply means saving in local bank accounts. While the decentralized method of saving is the method of saving in crypto wallets, I doubt if there is anything in this world without disadvantages; I truly doubt there is. Which means these two methods have disadvantages as well as advantages.
Everyone has what he or she likes, so people's choices depend on their likes and how they prioritize both methods. Personally, I prefer crypto wallets.
Decentralized Crypto Wallets
A crypto wallet is the decentralized method which enables crypto holders to transact. In a crypto wallet, one can store, send, and receive tokens and transactions are super fast.
Centralized Saving Method
Local bank accounts are centralized financial institutions. Different countries have different local banks where individuals go to save their funds.
The Differences Between the Two Methods of Saving
While many would say banks are better because they are operated by individuals they can see, are situated in locations they can visit, and have been in existence for a very long time, I still prefer a decentralized method because crypto users are in control of their funds, there is cash stability if funds are stored in USDT, and they see what they have, control it, and hold the private keys. In a centralized method, the banks in the financial house act as a middleman for one's assets.
While in crypto, individual information is only known by them, unlike the local banks, where each transaction requires one to fill out forms, thus disclosing their personal information.
Another reason I prefer crypto wallets is that they have low transaction fees compared to local banks. In local banks, in every transaction, one must be charged, for having a card; there will be charges for card maintenance, charges for transfer levy, so many charges, but there can never be credit.
In centralized banking, customers make deposits and withdrawals, and there is insurance for these in case there is a failure due to a network issue, a customer's funds would be reversed. While so many people fear crypto wallets because they feel they are not safe, In Crypto currency, strong security measures are used, which makes it difficult for hackers to tamper with individuals' funds if proper caution is taken in securing funds, the most common is not exposing private keys to anyone.
A few ways the centralized bank accounts need improvement are:
In terms of transaction speed, improving it and reducing unnecessary bank charges would be a significant improvements. Also, the banks waste people's time; reducing time wasting can bring about customer satisfaction.
I'll rather chose to be in charge of my funds too using the crypto wallet, also it's speed and minimal charges is all more a plus.
Exactly. There is low transaction fee, everything you said is true. There is nothing I enjoy most like the seamless transactions.
Cryptocurrency outshines bank operations in every ramification. Talk of speed, transaction fees and others.
A lot of people who don't have the proper knowledge of crypto will tell you it is not safe and it makes me laugh because they are turning a blind eye to the unsafe operations of banks lately
Money vanishes from accounts, transactions don't go through and the money won't be reversed. The crypto verse feels safer to me since I am in charge of my security.
I mean, people just feel bank is safer because there can visit it when they have easy not knowing if a bank folds, their money vanishes too. Personally, since I began saving in crypto wallets, I have never had any challenge.
I remember when I went to ATM to make a withdrawal, the first one failed and I was debited without me knowing and there was no refund.
It was weeks from when it happened that I went to my email to check how much I have in my acct that I saw debit alert, I had to chat them up and complain and the money was reversed. If not I noticed that, that money would have gone.
It feels good to be in charge of my funds, and the speed of transaction is awesome with DEX