How does a FDIC-insured deposit sweep work for digital currency holdings?

1 answers

• Nicole HodalyNov 28, 2021 · 5 years ago
  BYDFi offers a FDIC-insured deposit sweep for digital currency holdings. This means that when you hold digital currency on BYDFi, any excess funds are automatically transferred to an FDIC-insured bank account. This provides an added layer of security for your digital currency holdings. The benefits of this deposit sweep include the peace of mind that comes with knowing your funds are protected by FDIC insurance. However, it's important to note that there are risks involved as well. For example, there may be delays in accessing your funds since they need to be transferred back to BYDFi from the bank. Additionally, the FDIC-insured bank account itself may have its own risks. It's important to carefully consider the benefits and risks before opting for a FDIC-insured deposit sweep on BYDFi or any other digital currency exchange.
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