There were 25,000 commercial banks in the world in the year 2015. By 2020, there were 2582.8 commercial banks for every 100,000 adults. In 2021, there were about 300 million crypto users in the world. According to CoinMarketCap, there are 525 cryptocurrency exchanges in the world. This shows that there is an average of 571,428.57 users per cryptocurrency exchange at the time of writing. This is an indication that there are more preferences for crypto than banking with commercial banks by users. The reasons are not far-fetched. Some of them include: Comfort Anonymous nature Possibility of a huge returns Low transaction fees Void of government control No bureaucracy Larger coverage Let’s try to see each of these reasons in detail to understand why many crypto users prefer cryptocurrency exchanges over banks. Comfort Cryptocurrency exchanges offer their users many options which can be executed from the comfort of their homes. Users can convert their assets to over 19, 000 cryptocurrencies that are present in the market. However, in the banking system, a customer needs to have a domiciliary account that has a given fiat currency for such transactions to be allowed. This makes crypto users prefer dealing with cryptocurrency exchanges over commercial banks. Anonymous Nature The decentralized nature of cryptocurrencies that are enabled on the blockchain makes a user’s cryptocurrency holdings remain anonymous. Most cryptocurrency exch...
