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RE: HowTo Buy Crypto – Part 7: GEMINI

in #howto6 years ago

Thanks as usual @cryptographic! Helpful to have all this data aggregated, especially as everyone looks into new trading channels.

Gemini really pushes its FDIC insurance as one of its main selling points. While I do think it's an asset, it's a common misconception that this covers your cryptocurrency. FDIC insurance actually only covers your cash deposits (of which I would assume are minimal since folks are likely investing quickly into crypto upon deposit) so word to the wise there. Gemini does claim to have additional insurance to protect against "employee theft, computer fraud, and fund transfer fraud" but notably has "has no coverage for hacking," so the coverage is a bit vague. As always, your best bet is probably not to park your crypto in an exchange at the end of the day.

Gemini also had some scandals earlier where the site went down for maintenance during periods of HIGH volatility in December. Potentially purely coincidental but folks were none too pleased about and many were quite supsicious. Worth reading about here for anyone interested: http://www.businessinsider.com/bitcoin-futures-exchange-gemini-scheduled-maintenance-2017-12

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What you say about FDIC insurance is absolutely true: you're only covered when you're in USD.

And thanks for the additional info too!

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