Choose the Right Platform for Crypto Banking Investments13 min read

Choose the Right Platform for Crypto Banking Investments13 min read

With the rise of crypto banking and decentralised finance, more and more people are looking for safe and reliable ways to store, trade and invest in digital assets. 

Crypto banking platforms have emerged to bridge the gap between traditional banking and the new world of blockchain-based currencies and financial services. 

But with so many options on the market, how do you choose the right platform for your crypto banking and investment needs? In this article, we’ll explore some of the top considerations and key features to help you make an informed decision.

Advantages of Investing with a Crypto Banking Account

One of the main benefits of using a crypto friendly bank like The Kingdom Bank is that it gives you a centralized hub to manage both your fiat and cryptocurrency holdings. 

Unlike exchanges that only deal with digital assets, crypto banking platforms integrate traditional banking services – so you have the best of both worlds under one roof.

Some key advantages of investing through a crypto banking account include:

Security – Reputable crypto banks utilize strong security protocols and safeguards to protect your funds. Features like bank-grade encryption, multi-factor authentication and insurance on digital assets provide peace of mind.

Convenience – Being able to buy, sell, deposit and withdraw cryptocurrencies directly from your banking interface makes the process seamless. You won’t have to manually transfer funds between separate exchanges and wallets.

Lower fees – Compared to standalone exchanges that charge transaction and withdrawal fees, crypto banking platforms often bundle these into one competitive monthly or annual fee.

Access to fiat – If you take profits or need to realize gains, you can instantly convert crypto to fiat currencies like USD, EUR, GBP within your account instead of external exchanges.

Investment options – Beyond just holding digital assets, many crypto banks provide access to lending, staking, defi and other investment opportunities to earn yield on your coins.

Altogether, having a regulated banking platform as your crypto investment gateway unlocks significant advantages around management, usability, costs and liquidity.

Which Cryptocurrencies are Invested the Most?

When it comes to core holdings in a crypto banking account, the dominant assets invested are usually Bitcoin and Ethereum.

As the largest and most established cryptocurrencies, they provide a solid foundation for any digital portfolio.

Some key reasons why Bitcoin and Ethereum top investment rankings:

• Market leadership – Combined, BTC and ETH make up over 65% of the total crypto market cap, so they move the market.
• Store of value proposition – Bitcoin has become a widely-accepted digital store of wealth akin to digital gold.
• Smart contract usage – The Ethereum network hosts a large share of defi applications and NFT marketplaces.
• Liquidity – As the most actively traded coins, it’s easy to buy and sell when you want versus more obscure altcoins.
• Resilience – Both cryptocurrencies have survived multiple market cycles, proving their longevity.

Beyond the top 2, other major cryptocurrencies that see regular investment include BNB, Solana, XRP, Dogecoin, Toncoin and Avalanche. 

These provide diversification across different crypto categories like payments, smart contracts and layer-1 blockchains.

Some advanced crypto banking platforms might give you access to top 100 coins by market cap. 

But for simplicity and security, focusing on the top 10-20 is usually the sweet spot for most investment portfolios.

Which Cryptocurrency is Advantageous for Long-Term Investment?

For a “set it and forget it” buy-and-hold approach measured in years, Bitcoin remains the optimal long-term investment choice in the crypto space. 

Its strong brand recognition, enormous total market value and proven track record of appreciation make it an attractive core holding.

Some key reasons why Bitcoin is excellent for long-term investments:

• Store of value properties – With its fixed supply capped at 21 million coins, Bitcoin is uniquely positioned to act as a very scarce digital asset over decades.
• Inflation hedge – As governments continue to print money, the non-inflationary Bitcoin stands to gain as an alternative monetary asset.
• Network effects – More users, infrastructure development and adoption by institutions strengthen Bitcoin’s first mover advantage long-term.
• Volatility will decrease – As Bitcoin matures and its $1.2 trillion+ market cap expands further, its price swings are expected to decrease and stabilize over time.
• Security from hard forks – Being the original cryptocurrency, Bitcoin is insulated from risks that may emerge from divergent blockchain forks like Bitcoin Cash or Bitcoin SV down the line.

Of course, none of this precludes positions in other cryptocurrencies like Ethereum which have strong use cases. 

But for “set it and forget it” crypto banking portfolios seeking exposure over 5-10 years, Bitcoin is an outstanding long-term play based on its solid growth trajectory and investment qualities.

How to Do Crypto Market Analysis with a Crypto Banking Account

For active traders looking to maximise gains in the volatile crypto markets, conducting thorough market analysis is essential before opening positions. 

Fortunately, many top crypto banking platforms offer built-in research and analytical tools to their customers.

Here are some effective ways traders can leverage their crypto banking accounts for market analysis:

• Price charts and tools – Visualise historical coin prices and volumes against fiat currencies or BTC using customizable charts with indicators like moving averages.
• Market data and rankings – Access real-time statistics on individual coins including market cap, volume, price changes and rankings to assess market leadership.
• News and sentiment tracking – Stay on top of breaking developments, press releases and aggregated social sentiment that may influence short-term price movements.
• Technical analysis – Apply technical indicators like Bollinger Bands, MACD, RSI and patterns/formations to identify likely support/resistance zones and momentum shifts.
• Economic calendar – Refer to schedules of upcoming events like hard forks, exchange listings, protocol upgrades or regulatory news that can catalyse volatility.
• Research reports – Leverage analysis by crypto research firms, journalists and influencers to get expert perspectives on investment opportunities and risks.

With powerful built-in data, tools and community insights directly on their banking platforms, traders using services from a provider like The Kingdom Bank get a holistic workstation for creating an edge in the markets.

Making Crypto Investments with Crypto Banking Advantages

Now that we’ve explored some of the top considerations for choosing a crypto banking provider as well as different investment strategies, let’s recap some useful tips for putting it all together:

Research thoroughly – Carefully vet providers based on jurisdictions served, offered coins/tokens, security protocols, fees, functionality and reputation before committing funds.

Start with top coins – Construct a core portfolio anchored by industry leaders Bitcoin and Ethereum for maximum liquidity and stability. Consider adding positions in other notable altcoins.

Diversify appropriately – Beyond just cryptocurrencies, explore opportunities to diversify across different crypto asset classes like DeFi tokens, NFTs and metaverse coins based on risk tolerance.

Develop an investment thesis – For each coin, have a clear logic behind why you expect it to appreciate – be it platform/technology, community strength or upcoming network developments/milestones.

Rebalance periodically – Review portfolio allocation periodically and shift balances between positions based on changing market conditions and individual crypto performance.

Consider ongoing costs – Factor trading, withdrawal and staking fees into modeling expected long-term returns, balancing costs against further upside potential.

Have an exit strategy – Similar to investing in equities/stocks, have price targets in mind for taking profits or cutting losses on trades within the context of broader market environments.

By weighing these suggestions and leveraging the advanced crypto banking capabilities available through a trusted platform like The Kingdom Bank, users can architect diversified portfolios and apply modern analytical techniques to make optimized risk-adjusted investment decisions in the vibrant crypto economy.