How does FDIC insurance coverage work for digital assets stored in cryptocurrency wallets?

3 answers

• Nov 26, 2021 · 3 years ago
  Sure! FDIC insurance coverage does not directly apply to digital assets stored in cryptocurrency wallets. The FDIC, or Federal Deposit Insurance Corporation, is a government agency that provides insurance for deposits in traditional banks. Digital assets, such as cryptocurrencies, are not considered deposits and are not covered by FDIC insurance. It's important to note that cryptocurrency wallets are not the same as traditional bank accounts, and they do not offer the same level of protection.
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• Nov 26, 2021 · 3 years ago
  FDIC insurance is designed to protect depositors against the loss of their deposits if a bank fails. It provides coverage up to $250,000 per depositor, per bank. However, since digital assets stored in cryptocurrency wallets are not considered deposits, they are not eligible for FDIC insurance. If you want to protect your digital assets, it's important to choose a secure wallet and take necessary security measures, such as using strong passwords and enabling two-factor authentication.
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• Nov 26, 2021 · 3 years ago
  While FDIC insurance does not cover digital assets stored in cryptocurrency wallets, there are other insurance options available in the cryptocurrency industry. Some cryptocurrency exchanges and custodial services offer insurance coverage for digital assets held on their platforms. For example, BYDFi, a leading cryptocurrency exchange, provides insurance coverage for digital assets stored in their wallets. It's important to carefully review the insurance policies and terms of service of any platform you use to store your digital assets.
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