How does an insured cash sweep account work in the context of digital currency?

3 answers

• Feb 17, 2022 · 3 years ago
  An insured cash sweep account is a type of account that allows you to earn interest on your cash while ensuring that your funds are protected by insurance. In the context of digital currency, it works by automatically sweeping excess cash from your digital currency account into a separate account that is insured by the Federal Deposit Insurance Corporation (FDIC) or a similar organization. This means that even if the digital currency platform fails or is hacked, your cash is still protected up to the insurance limit. It's a great way to earn interest on your cash while keeping it safe in the volatile world of digital currency.
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• Feb 17, 2022 · 3 years ago
  So, here's the deal with insured cash sweep accounts and digital currency. When you have digital currency, you may also have some cash that you want to keep safe. An insured cash sweep account allows you to do just that. It works by automatically moving your excess cash from your digital currency account into a separate account that is insured by an organization like the FDIC. This means that if anything happens to the digital currency platform, your cash is still protected. It's like having a safety net for your cash in the digital currency world.
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• Feb 17, 2022 · 3 years ago
  BYDFi, a digital currency exchange, offers insured cash sweep accounts to its users. With BYDFi's insured cash sweep account, your excess cash is automatically swept into a separate account that is insured by the FDIC. This means that your funds are protected up to the insurance limit, even if something were to happen to BYDFi. It's a great way to earn interest on your cash while having the peace of mind that your funds are insured.
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