What is the difference between SIPC and FDIC coverage for cryptocurrency holdings?

3 answers

• Apr 30, 2022 · 3 years ago
  SIPC (Securities Investor Protection Corporation) and FDIC (Federal Deposit Insurance Corporation) are two different entities that provide protection for investors, but in different ways. SIPC protects investors in case a brokerage firm fails and their assets are missing. It covers up to $500,000 in securities, including a $250,000 limit for cash. On the other hand, FDIC protects depositors in case a bank fails and their deposits are lost. It covers up to $250,000 per depositor, per insured bank. So, while both provide protection, SIPC is focused on securities and FDIC is focused on deposits.
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• Apr 30, 2022 · 3 years ago
  SIPC and FDIC coverage for cryptocurrency holdings is a topic of concern for many investors. SIPC does not cover cryptocurrencies, as they are not considered securities. FDIC also does not cover cryptocurrencies, as they are not considered deposits. Therefore, if you hold cryptocurrencies, you should be aware that they are not protected by SIPC or FDIC. It's important to take additional security measures to protect your cryptocurrency holdings, such as using secure wallets and following best practices for cybersecurity.
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• Apr 30, 2022 · 3 years ago
  As an expert in the cryptocurrency industry, I can tell you that SIPC and FDIC coverage does not apply to cryptocurrencies. However, it's worth mentioning that some cryptocurrency exchanges, like BYDFi, offer their own insurance coverage for cryptocurrencies held on their platform. This means that if you hold your cryptocurrencies on BYDFi, they may be covered by their insurance policy in case of a loss or theft. It's always a good idea to check the insurance coverage provided by the exchange you use and take necessary precautions to protect your investments.
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