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Kind of an incorrect analogy. Exchanges aren't banks, they're more like open bazaars. Your own cold wallet is the bank. Once you take the money to the bazaar,
by coralreef 9y ago
Kind of an incorrect analogy. Exchanges aren't banks, they're more like open bazaars.
Your own cold wallet is the bank. Once you take the money to the bazaar, it becomes possible to be pick pocketed.
- JumpCrisscross 9y ago> Exchanges aren't banks, they're more like open bazaars I believe the SIPC guarantee covers losses incurred as a result of an exchange failure. Practically, I have a hard time understanding how an exchange failing would cause customers to lose funds (outside capital losses). Securities markets segregate exchange and settlement, e.g. the NYSE from the DTCC [1]. The latter is guaranteed, indirectly, by the federal government. [1] https://en.wikipedia.org/wiki/Depository_Trust_%26_Clearing_Corporation https://en.wikipedia.org/wiki/Depository_Trust_%26_Clearing_...