How does SIPC compare to FDIC when it comes to protecting digital assets like cryptocurrencies?

3 answers

• Dec 16, 2021 · 3 years ago
  SIPC and FDIC are both government-backed insurance programs, but they have different coverage and regulations. SIPC protects investors in case of brokerage firm failure, while FDIC protects depositors in case of bank failure. However, neither SIPC nor FDIC covers losses due to market volatility or theft of digital assets. It's important to use additional security measures like cold storage and strong passwords to protect your cryptocurrencies.
  447224
• Dec 16, 2021 · 3 years ago
  When it comes to protecting digital assets like cryptocurrencies, SIPC and FDIC have limited coverage. SIPC covers up to $500,000 per customer, including a $250,000 limit for cash. FDIC covers up to $250,000 per depositor, per insured bank. However, it's worth noting that cryptocurrencies are not considered cash or deposits, so they may not be covered by either program. It's advisable to research and choose a reputable custodian or exchange that offers additional insurance or protection for digital assets.
  511171
• Dec 16, 2021 · 3 years ago
  As an expert in the digital asset industry, I can tell you that SIPC and FDIC are not the primary sources of protection for cryptocurrencies. While SIPC and FDIC provide coverage for traditional financial assets, they do not typically cover digital assets like cryptocurrencies. Instead, the security and protection of cryptocurrencies primarily rely on the security measures implemented by the custodians or exchanges. It's crucial to choose a reputable and secure platform that employs industry-leading security protocols to safeguard your digital assets.
  557140