Do digital currency sweep accounts offer FDIC insurance protection?

3 answers

• Dec 27, 2021 · 3 years ago
  Digital currency sweep accounts do not offer FDIC insurance protection. Unlike traditional bank accounts, digital currency accounts are not backed by the Federal Deposit Insurance Corporation (FDIC). This means that if the digital currency exchange or platform holding your funds goes bankrupt or is hacked, you may lose your digital currency holdings. It's important to carefully consider the risks before using digital currency sweep accounts.
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• Dec 27, 2021 · 3 years ago
  No, digital currency sweep accounts are not covered by FDIC insurance. FDIC insurance is specifically for traditional bank accounts and does not extend to digital currencies. This means that if something were to happen to the digital currency exchange or platform where your funds are held, you would not be protected by FDIC insurance.
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• Dec 27, 2021 · 3 years ago
  While digital currency sweep accounts do not offer FDIC insurance protection, some platforms may offer their own insurance or security measures to protect users' funds. For example, at BYDFi, we have implemented robust security measures to safeguard our users' digital currency holdings. However, it's important to note that this is not the same as FDIC insurance and there are still risks involved with using digital currency sweep accounts.
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