Read time: ≈ 11 min • Last updated: December 3 • Live data + verdict
Live comparison: crypto vs traditional banking safety, insurance, hacks, and my personal split. Data from Dec 2025 + free safety checklist.
🔑 Live Stats (Dec 3)
- Custodial hack losses 2024: $2.1 B[^110^]
- FDIC-insured deposits: 99 % (2024)[^111^]
- My personal split: 60 % bank, 40 % Ledger
1. Custody: Who Holds Your Money?
| Factor | Traditional Bank | Crypto (Self-Custody) |
|---|---|---|
| Custodian | Bank (regulated) | You (no insurance) |
| Access | 24/7 card + app | 24/7 global (if you have seed) |
| Recovery | Password reset | Seed phrase only |
| Global Access | Visa network | Any internet node |
2. Insurance: FDIC vs Nothing
FDIC vs Crypto Insurance (Dec 2025)
- FDIC-insured deposits: 99 % (up to $250k)[^111^]
- Custodial crypto insurance: 0 % (self-custody)
- Custodial insurance (Binance SAFU): $1 B (not per user)[^112^]
3. Hacks & Defaults: Live 2024-25 Stats
| Event | Losses (USD) | Type | Insurance? |
|---|---|---|---|
| SVB collapse | $0 | Bank failure | FDIC covered |
| Custodial hacks 2024 | $2.1 B | Exchange breach | No (user loss) |
| Ledger hack 2024 | $0 | Marketing leak | No (seed safe) |
4. My Personal Split (60/40 Rule)
My Wallet (Dec 2025)
- 60 % in FDIC-insured banks (salary, bills)
- 40 % on Ledger Nano (crypto, long-term)
- 0 % on exchanges (only trading float)
5. Free Safety Checklist (Printable)
- Seed phrase on metal (not paper)
- 25th word memorised
- Any-3-of-5 geographic split
- Annual recovery drill
- FDIC limit not exceeded
6. Free Tools to Track Safety
- FDIC Bank Finder – check insurance status
- Ledger Live – hardware wallet safety
- Chainalysis Hack Tracker – live custodial losses
- CoinLedger – tax CSV export
7. FAQ – Is Crypto Safer Than Banks?
Self-custody is safer from hacks (you control keys) but riskier from loss (no insurance). Hybrid = best.
No. Keep bills in FDIC banks, long-term in self-custody. Hybrid = best.
FDIC covers up to $250k. Crypto: zero. Split accordingly.
8. Conclusion – Hybrid Is King
Keep your bills in FDIC banks, your long-term crypto in self-custody, and your trading float on exchanges. Hybrid = best. Download the checklist and sleep like a whale.
Ready to hybrid?
This article is for educational purposes only and does not constitute financial or legal advice. Custody and insurance rules vary by jurisdiction; always verify locally.