How to Make Your Crypto Wallet Work Like a Bank Account | 

How to Make Your Crypto Wallet Work Like a Bank Account

The first recorded bank account was created to securely store a farmer’s assets some 3,800 years ago. Today, in the year 2023, bank accounts still serve that basic function.

People need a way to securely store and safely access their own funds, but what if you could be your own bank?

Today, with services like, people can use crypto to receive their salary, pay their bills, trade, swap, and buy all kinds of crypto and truly be their own crypto bank account.

In this article, we are going to talk about the differences between traditional banking, or TradFi, and being your own bank through services like

What is a Crypto Wallet?

A crypto wallet is an app or device that allows you to safely store your crypto. With many wallets, you have access to buying, trading, saving, and DeFi, and in some cases, you can even link a standard fiat account to create a kind of crypto checking account. 

There are many different types of crypto wallets, but their general operation is more or less the same. Every crypto wallet will have a “public key,” which is sort of like your crypto home address. With this address, you can both send and receive crypto. 

There is also what is called a “private key,” which is a long series of numbers and letters that acts as the password to your funds. This private key is essential, as ownership of the key equates to ownership of the stored assets.

What is a Bank Account?

It is estimated that 76% of the global population has a bank account, with many Western countries, like Ireland, having an ownership rate of nearly 99.6%.

Bank accounts allow you to deposit money, withdraw cash, take out loans, and generally keep track of your finances. One of the most fundamental parts of a bank account is keeping your funds safe, accessible, and, in some cases, even profitable, as some banks will offer interest or investment options.

But some people find banks to be outdated or not user-friendly, and that’s why more and more people are finding a way to bank cryptocurrency.

Cryptocurrency Bank Account: How to Be Your Own Bank

Many people have very mixed feelings towards their banks, with polls showing approval ranging fanywhere between 23 and 60%.

Lots of customers are dissatisfied with the way things are, so if you don’t like the bank, why not become your own bank instead?

In this section, we are going to weigh up the pros and cons of traditional banking versus being your own cryptocurrency bank account with services like

Since 2019, has been bridging TradFi and the world of crypto, offering technology-driven, customer-focused solutions that can make cryptocurrency banking a reality.

In this section, we are going to weigh up the pros and cons of banking cryptocurrency via services like

Advantages of a Crypto Wallet

Through DeFi and Fintech services like and others, customers can have access to the exciting world of crypto, which include:

  • Crypto Cards
    • With a crypto card, like the CW Card, users can spend any one of hundreds of cryptos in virtually any store online or offline.
  • Crypto Staking
    • This is the act of staking (investing) an amount of your crypto into a network for a certain duration of time for a return.
    • Even in a bearish market, crypto staking can offer far higher returns than interest paid out by banks.
  • Crypto Yield Farming
    • This is when a user pools their crypto into a liquidity pool for use by the network, for a return.
  • Crypto Lending
    • This is the emerging service of crypto loans.
    • Can offer low-interest rates depending on the provider.

Another advantage to having a crypto wallet is that it can also be very time-saving, especially when compared to their traditional alternative.

  • Crypto can conduct cross-border payments in seconds, often outperforming TradFi which can take between 2-5 days.
  • Crypto is also round the clock, offering 24-hour, 365 days-a-year services, with no breaks on Sundays or holidays.

Disadvantages of a Crypto Wallet

There can be drawbacks to having crypto wallets vs a bank account.

  • Crypto is considered to be an extremely volatile asset class and this can turn some people off. Though certain stablecoins can alleviate this problem.
  • There can also be tax considerations when using crypto that can be hard to keep track of. However, services like Accointing and Crypto Tax Calculator can do much of the heavy lifting for this problem.

Bank Account

A bank acts as the custodian of your funds and should, in theory, take responsibility for them.

This section will discuss the pros and cons of this long-standing financial service which we will compare later to banking with crypto.

Advantages of a Bank Account

Banks are a dependable way for daily financial activity, and for some people, especially older people, brick-and-mortar buildings feel familiar and safe, allowing them to: 

  • Safely store their wealth
  • Keeping a ledger of their assets
  • As well as having access to loans, debit or credit cards

A central authority also regulates banks, so they should be very stable. But since the 2008 crisis, many people have felt distrustful towards traditional banks, so it’s no surprise that people are looking to be your own bank with crypto.

Disadvantages of a Bank Account

Banks can be shockingly inconvenient, requiring customers to jump through all kinds of hoops, such as:

  • Extremely limiting opening hours
  • Being closed on bank holidays or national holidays
  • Require time-wasting queuing in physical buildings

Not to mention that they are slow to adapt to new technologies, online having a crypto banking account.  Traditional banks are often subject to software issues and unscheduled server maintenance. It’s been reported that some banks still use software that can be over 50 years old.

Security Considerations

The days of the masked bank robber are probably gone, while the new frontier for crime comes from cyberattacks.

In both cases, banks and crypto platforms generally invest heavily in cybersecurity, and both are often insured in the event of a breach.

However, having a crypto wallet bank account, you do have some considerations to keep in mind. 

With crypto, you really are your own bank, and that means tackling some of the responsibilities that come along with that.

In crypto, it’s estimated that nearly $140 billion worth of bitcoin is lost simply because people forget passwords, lose private keys, or damage their hardware wallets. 

You have to ensure passwords, private keys, and hardware wallets are secure from all kinds of threats, including fires, water damage, pests, thieves, and the passage of time. This can be achieved by keeping a “metal crypto plate” in a secure location, such as a safe or deposit box.

Cost Comparison

Both bank accounts and crypto services can vary in terms of cost depending on location, provider, your own activity, and other variables.

For instance, a bank account transaction fee can cost anywhere between 0.5% and 5% on average. But those figures can jump significantly if the transaction is cross-border.

On the other hand, the average cost of a crypto transaction is stated to be around 1.5%, though this number is probably misleading as gas fees and network traffic could bump those numbers.

Both crypto services and traditional banks alike can have all kinds of unexpected fees that can come as quite a surprise to an unwary customer. Such as:

  • ATM Withdrawal fees
  • Out-of-service ATM fees
  • Overdrafts
  • Inactivity fees
  • Card issuance and reissuance
  • Maintenance

But what’s important to keep in mind is that not all providers will have all or even some of these hidden fees, you just have to make sure to shop around to get the best value and find the best fit for you. 

Ease of Use Comparison

Traditional banks can suffer in this area. Many customers are baffled that so many banks close entirely at 5 o’clock, just when most people are finishing work, while also being closed on holidays.

With crypto, this just isn’t a problem.

Crypto is online, 24-hour and year-round, with many platforms like offering top-notch customer support and help for any and every question and problem you might have. Being your own bank with crypto is as simple as logging in with your phone or device, entering a password and you’re ready to go.

Accessibility Comparison

Many banks have verification processes that can take days to approve and require high credit scores to access credit or loans. Other banks will need you to queue in buildings with inconvenient opening hours, and many banks are closing their smaller branches, which exacerbates problems.

With crypto, a lot of these problems disappear. Verification for a crypto service can take minutes, with KYC authentication taking a day or so. Credit barriers can be low for all kinds of services, including crypto cards. And to access crypto services, you don’t need much more than a computer or a hand-held device.

Final Thoughts

Let’s summarize what we’ve covered so far.

In both cases, traditional banks and being your own bank with crypto fare pretty well in terms of storage and access when it comes to your funds, but the key difference between the two is in terms of ease and service.

Many customers today work internationally or online, and this can make traditional banking far too restrictive. With crypto, you are your own bank, and that means 24-hour, 365-day service, which many banks can’t match.

Some traditional financial services are not a good fit for some people’s lives, and for too long, they haven’t had an alternative, but not anymore. With crypto as your bank, you are in the driver’s seat in a way that just wasn’t available in the past.

While it’s not for everyone, for many people, being your own bank is a welcome breath of fresh air.


People can have a lot of questions when it comes to becoming their own bank, which is why in this section we are going to be addressing some of the most frequently asked questions.

Is Crypto Cheaper Than Banks?

It depends on how you use it.

For instance, crypto can be very cheap in regards to things like cross-border payments and hundreds of times faster. However, crypto usage can have unexpected fees in terms of gas fees and transfer costs.

How Risky Are Crypto Savings Accounts?

With the possible exception of some stablecoins, it would be wise to consider all crypto ventures, including a crypto savings account, to be risky.

Crypto is volatile. This is an important fact to remember when entering into any crypto service because price fluctuation can happen, leading to wild swings in value in a very short space of time.

Why Don’t Banks Like Crypto?

Crypto is disruptive to the traditional banking sector, bringing new technologies and services that can undercut and outperform.

Unsurprisingly, this fosters a feeling of hostility from the “old guard.” Today, however, we are seeing a change in this attitude as banks are starting to adopt some of the technology and ideas found in crypto/DeFi.

Can Crypto Replace Banks?

Probably not, but it is changing them.

Traditional finance is overdue for some change, but without any competition, banks have become a bit stagnant.

Today, crypto forces some healthy competition into the mix, and banks are learning to grow alongside the crypto sector rather than against it.

This synthesis of sectors is already visible in banks like Vast Banik that allow customers to save crypto alongside fiat.

Are Crypto Wallets Safer Than Banks?

With a crypto wallet, you have to make sure that you keep your devices secure, use multifactor authentication, and apply good judgment about where and with whom you do business.

But a lot of this advice is also easily applicable to using a regular bank, so the best answer may be that, like a bank account, crypto wallets are as safe as you allow them to be.

Can I Withdraw From my Crypto Wallet to a Bank Account?

In some cases, like at Vast Bank, you can withdraw crypto directly to your bank account, but this service is rather new and hasn’t been widely adopted yet.

Generally, you will have to use a service like Crypto Wallet to send funds from your wallet to your bank account.

What you can do is take any one of hundreds of cryptos from your wallet, sell it for fiat on the exchange, and send funds to your bank account.

Is Crypto Better Than a Savings Account?

Crypto is considered to be an extremely volatile asset class, and for some people, that’s the attraction. Volatility can work both ways, and for a lot of people, that is reason enough to invest in some crypto.

Savings accounts are more stable, offering daily, monthly, or yearly compound interest rates. These rates are usually small and reasonably predictable, making savings accounts a wise move for a cautiously conservative investor.

What Are the Safest Ways to Store Bitcoin?

There are lots of ways to store crypto, and each will have its pros and cons. But in terms of pure security, the safest option is probably a hardware cold storage wallet.

These systems, like the Ledger series or Trezor, are extremely secure ways for you to store your crypto offline.
In most cases, hardware wallets like these are almost immune to hacks in the conventional sense.