The Great Debate: Cash, Bank Accounts, or Crypto Wallets – Where to Keep Your Money Safe?

Money has become, with time, a crucial part of our daily lives. From paying rent to financing dream vacations, money is needed everywhere. However, navigating the financial landscape can be as tricky as it gets, especially for those with no specialized knowledge. But don’t worry —  we’ve got you covered!

In this article, discover the pros and cons of keeping your money in cash, bank accounts, or crypto wallets. Get the inside scoop on the current state of each option in Canada and essential tips to secure your funds. It really doesn’t matter if it’s hard-earned money or lucky money won on the online casino Verde, the idea will be the same! 

Cash

Cash is a staple in our daily lives, widely accepted and recognized in Canada and beyond. But, is it the best option for keeping your hard-earned money safe? Unfortunately, the answer is no.

While cash is readily available and familiar to everyone, it has its drawbacks. Physical currency is vulnerable to theft, damage, and loss. It doesn't earn interest or come with insurance policies that would finance your losses. Plus, it’s highly susceptible to devaluation due to inflation and other economic factors.

However, cash is still a commonly used form of payment in Canada, with 20% of all transactions being conducted in cash, according to the Bank of Canada. One of its biggest advantages is that it’s virtually untraceable.

So, if privacy is your top priority, cash may be the way to go. But if you want to ensure the safety of your funds, consider exploring other options stated below.

Bank Accounts

A bank account is a financial repository maintained with a financial institution like a bank, credit union, or similar entity. It’s a widely used tool in Canada, with over 99% of adult Canadians holding accounts with top financial institutions in the country.

The key advantage of bank accounts is their insurance coverage. The Canadian Deposit Insurance Corporation (CDIC) provides up to $100.00 in coverage per depositor, per insured category, ensuring depositors won’t lose all their funds in the event of a bank failure.

Moreover, bank accounts offer the possibility of earning interest on deposits, neutralizing the effects of inflation and preserving the purchasing power of one’s funds. The ease of making fast transactions through debit cards linked to the bank account or online banking only adds to their appeal as a popular financial instrument.

However, bank accounts do have some drawbacks, such as fees and restrictions on the amount that can be withdrawn or transferred. It’s crucial to consider these factors when choosing a bank account for your financial needs.

Crypto Wallets

Cryptocurrency wallets are digital storage solutions designed to securely hold, transfer and receive digital currencies such as Bitcoin and Ethereum. These wallets are built on decentralized blockchain technology, offering unparalleled security to their users.

In Canada, cryptocurrency wallets have become a popular choice for storing money, as more than 1.2 million Canadians have invested in cryptocurrency. With the option to earn interest on deposits and the convenience of using various methods for making purchases and payments, crypto wallets provide a valuable solution for those seeking greater financial control and mobility.

However, it’s important to note that crypto wallets are not insured by the Canadian Deposit Insurance Corporation, so, in case of a failure, users may potentially lose their funds. Furthermore, crypto wallets are not completely anonymous, as personal information is required for opening and maintaining an account.

Despite these challenges, crypto wallets remain a secure and dynamic way to manage digital currencies and investments, providing you with a wide range of options for managing your finances. However, if you don’t possess knowledge of cryptocurrencies and the crypto market as a whole, it would be better to make a crypto wallet your main place to keep your money, as this industry is highly volatile and unstable.

If you do decide to invest in cryptocurrencies and use a crypto wallet, it's important to choose a reputable and secure wallet. Here's a list of the 10 best crypto wallets in Canada:

1. Ledger Nano S
2. Binance
3. Crypto.com
4. MyEtherWallet
5. MetaMask
6. Coinbase
7. Exodus
8. BitBuy
9. CoinSmart
10. ZenGo

At last, choosing a repository for one’s funds is a personal affair that hinges on personal inclinations and circumstances.
 

Cash may be accessible and convenient, yet its lack of interest-bearing capabilities and vulnerability to theft or loss makes it a less-than-ideal option. Bank accounts, on the other hand, enjoy the protection of the Canadian Deposit Insurance Corporation(CDIC) and allow for interest accrual but come with their own set of trade-offs, such as high fees and withdrawal restrictions. Cryptocurrency wallets offer robust security and no fees or limitations but have no coverage of CDIC.

You must choose according to your own needs, knowledge, and circumstances.