What is an FDIC insured exchange?

Basically, if an exchange is FDIC insured, it means that the Federal Deposit Insurance Corporation (FDIC) should protect your funds against losses if it’s the case that the exchange fails by means of fraud or mismanagement.

What is the FDIC?

The FDIC is a government entity that supervises United States companies and insures USD deposits, as to protect consumers from potential losses caused by failure of said companies.

Which exchanges are FDIC insured?

If you want to verify the legitimacy of their FDIC insurance claims, feel free to contact the FDIC directly. The FDIC’s contact information is available on their contact page.

Quick note: Your cryptocurrencies are NOT insured

Note that the FDIC only insures the USD funds in exchanges. Your bitcoin and other cryptocurrencies are not FDIC insured. This is due to crypto exchanges being quite prone to hackers — whereas hackers can potentially get away with all of the exchanges’ users’ cryptocurrencies with a chance of not getting caught; making covering potentially hundreds of millions or even billions quite difficult for the FDIC.

Use hardware wallets for your crypto instead

For storing bitcoin and cryptocurrencies long-term, we’d heavily recommend using a reputable hardware wallet such as a Ledger or a Trezor. While using a hardware wallet doesn’t make your funds insured, it makes your finds highly resilient to hacks.

We heavily recommend only leaving cryptocurrencies on exchanges if you actively trade them.

Final thoughts

When picking a cryptocurrency exchange or literally any platform where you need to deposit some money, always stick with the platforms with a high reputation and high transparency; so as to significantly decrease the chances of things going wrong with your funds.

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