How does FDIC insurance work for USD stored on Coinbase?

3 answers

• Nov 26, 2021 · 3 years ago
  Sure! FDIC insurance stands for Federal Deposit Insurance Corporation. It is a government agency that provides deposit insurance to banks and savings associations. In the case of Coinbase, which is not a bank but a cryptocurrency exchange, they have partnered with a bank to provide FDIC insurance for USD deposits. This means that if you store USD on Coinbase and the bank fails, your deposits up to $250,000 are protected by the FDIC. It's important to note that FDIC insurance only covers USD deposits and not cryptocurrencies like Bitcoin or Ethereum.
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• Nov 26, 2021 · 3 years ago
  FDIC insurance is a great feature offered by Coinbase for USD deposits. It provides peace of mind knowing that your funds are protected in case of a bank failure. The $250,000 coverage per depositor is a significant amount and should be sufficient for most individuals. However, it's worth noting that FDIC insurance does not cover losses due to theft or hacking of cryptocurrencies. So, it's always a good idea to take additional security measures to protect your digital assets.
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• Nov 26, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, also offers FDIC insurance for USD deposits. This means that if you store USD on BYDFi and the partner bank fails, your deposits up to $250,000 are protected by the FDIC. It's a great feature that adds an extra layer of security to your funds. However, it's important to remember that FDIC insurance only covers USD deposits and not cryptocurrencies. So, if you're looking to protect your digital assets, it's recommended to use additional security measures like hardware wallets or cold storage.
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