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I think main issue is not lack of insurance. Stocks aren't insured, for example. Crypto being a novel space where no one truly understand its risks and that is
by rmbyrro 4y ago
I think main issue is not lack of insurance. Stocks aren't insured, for example.
Crypto being a novel space where no one truly understand its risks and that is (sadly, still) welcoming to scammers is the real issue, in my opinion.
- prepend 4y agoStocks are insured by SPIC. I’m not sure it’s possible to find a US brokerage in business that doesn’t insure stocks against this kind of loss in bankruptcy.
- rmbyrro 4y agoI'm no specialist in the topic, but AFAIK you're insured for monetary funds held in a brokerage account. Stocks themselves don't need insurance from the brokerage, as they're in custody somewhere else. Depends on the country, I presume. What I meant is there's no insurance against the company you own going bankrupt. If you buy Tesla and it goes south, nobody will rescue your funds.