Bankex Introduces Crypto Custody For Everyone
The company is now accepting deposits of Bitcoin, Bitcoin Cash, Litecoin, Ethereum, and ERC-20 tokens. Customers can also store money in the platform’s native BKX token, which will allow them to take advantage of reduced service fees.
What Is Custody?
“Using crypto, you relinquish all the physical monetary attributes you are accustomed to. There are no cards or banknotes…[and there is no] customer service line. Users with unresolved questions can find themselves on their own.”
Bankex warns investors of three major causes of financial loss: “human factors, physical damage, and online attackers.” In other words, if you secure your private keys improperly, they could be lost, forgotten, or stolen.
Custody services reduce the difficulty of securing your crypto. They store cryptocurrency by holding your funds and applying their own security measures. By using Bankex’s custody service, users can access their funds via a traditional login page. Users will also have access to customer support if anything goes wrong.
Bankex also encrypts its databases so that they cannot be seen by human eyes, except when necessary. The automated environment will automatically allow small withdrawals, while Bankex will manually review more substantial withdrawals for added security.
Custody For Individuals
However, platforms like Coinbase Custody are out of reach for most individuals: the minimum deposit is $10 million worth of cryptocurrency, and that is on top of a $100,000 set-up fee. Bankex, meanwhile, is offering its services to anyone: there is no minimum deposit, just a monthly commission fee of 0.2%.
Centralization Considerations
Although manual crypto management is not always straightforward, it provides advantages over centralized storage if done correctly. Nevertheless, centralized storage remains incredibly popular and accessible. It seems that Bankex and similar services will continue to prosper.
