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Sirwin

The Financial Freedom Part 2 - Banks on Fire

By Teodor | Reitis Community Network | 12 Feb 2021


How I've Started to Ignore the Banks?

For more than 30 years I was a constant bank client as I needed a modern way of payment for managing my companies. I was even among the founders of a bank in Romania, Patria Bank, and also the first ING Bank client of the first branch in the City of Iasi; also the first holder of a debit card in this bank. As I told you before in my first article of these series - The Financial Freedom Part 1 - I also was a stock holder in Albina Bank, which went bankrupt few days after I've withdrawn all my money from that stock! Lucky me! Blessed me, as it wasn't a little money! So, I am not a bank hater, but not a lover as well! 

But since 2008, when giant banks went bankrupted during the Great Recession, things were changed forever! The Financial crisis of 2007–2008 led to many bank failures in the United States and the entire world. According to Wikipedia, only in the USA, Federal Deposit Insurance Corporation (FDIC) closed 465 failed banks from 2008 to 2012. Maybe it wasn't a bad thing for people, but a required cure for the system. 

However, since then a normal person like me, who were also owning a small business, started to be ignored and even somehow persecuted by banks! I define normal person the one that isn't involved in: politics, governments, bad corporations, secret bad elites, and old style banking system. Among people working there are good persons and I have friend among then and respect them very much. But, even  if they would want to change things in good, they can't fight against the those bad leaders.

So, governments gave to banks gifts by forcing them to print money, and banks became governments' slaves. At the same moment, we the honest clients were ignored and rejected. 

What would you do being in my situation, as a business man or only a personal account client in a bank? Of course, looking for alternatives! Back in 2009 it wasn't easy, so I started to trade on Forex, but this can't replace the bank! Then, in 2013, with my wife's help I've discovered the heavenly gift named Bitcoin. So, I've started to trade, hold, lend, mine and transact bitcoins, litecoins, and later other cryptocurrencies. 

So, the moment of the beginning of ignoring the banks has arrived! Banks started to be on fire! 
Bank on fire
Image source: Alex Schaefer, artist, Los Angeles, California


Looking for Solutions

To replace those banks that became unfriendly to me and all small business owners, I've found SEPA and the new Fintechs. But, I could't use SEPA in Romania as banks started to hate me for not obeying their stupid unwanted rules, so I've opened few accounts across EU countries. However, I still use SEPA payment system when buying crypto from some exchanges (e.g. Binance) as the fee is ZERO. If you choose to pay by a debit card, the fees are high, so pay attention to this aspect. 

In Fintech sector, started with Monese then Transferwise and later Revolut, which is now mostly used, for personal and business transactions and with ZERO fees! However, you must be very careful with these accounts as these companies aren't so crypto friendly, even if Revolut has inside the option to buy and sell Bitcoin and other few cryptocurrencies. As in PayPal, this feature is useless. 

Then I was researching and found our about the possibility to have IBAN (international bank account number) accounts not only with those above mentioned financial institutions but also with crypto-friendly ones. I won't name them yet (there are just a very few!) as I am in the process to opening account with one of them. Before finding a good bank that has a smart director, it was hard to find a crypto friendly bank or financial institution that provides IBAN numbers as they are afraid of central banks and of Mrs. Christine Lagarde! 

There is one that I,ve tried also, the Spanish BIT2ME, which offers also IBAN, but I don't have any experience with them so I won't recommend it, and if you need an IBAN in Europe, do your research first.

If you want to know more about banks, here's a very good article written by @MikeZillo on banks: "Private keys held by banks: oxymoron or mouse trap?

Next are some things you can do in order to be free of financial poverty caused by underperforming bank account and their burdensome cards. 

How to Pay Low Fees When Buying Crypto with Fiat?

Even if CZ, the creator and owner of Binance doesn't look as a very reliable person, the products he and his team have created are high-tech. So, if you live in Europe (I don't know about others) and have an account opened with Binance and you want to buy crypto with fiat go with SEPA as you pay ZERO fees. Otherwise is quite expensive. 

Not many choices here, but you also can choose a providers like Changelly which rely on a peer-to-peer protocol that sends the coins directly to your wallet, once the payment is complete. There are other direct providers, but I'd rather go to an incomplete list of crypto debit cards, as you can see below. 

Conclusion

In order to get the financial freedom everyone deserves, you must take few decisions and then actions! Otherwise, you will be caught in the terrible claw of the banks. I hope my good and bad experience with traditional banks will help you to go further with you journey to the financial freedom island! But, before all, be aware that this is not a financial advice or offer, but a friendly share of experience. 

Thank you for reading,

Teodor

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Teodor
Teodor

Strong Faith, Christian family man and entrepreneur, deeply involved in finances and sustainable real estate development.


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