But you do have insurance. For some of the amount. You just didn’t pick the vendor. Or have to think about it. You are, in a way, making my point.
I don't think I understand. Fidelity 401k - Millions of people put in their paychecks, millions of people have withdrawn successfully in their retirement. An unsophisticated investor will not lose anything.
Crypto - no way to know what, if any, company is legit. If I use a hardware wallet and lose it I'm screwed. FTX seemed pretty legit a few weeks ago, they even had an NBA arena named after them! There are dozens of ways an unsophisticated investor can lose everything.
Isn’t Fidelity FDIC insured?
Fidelity is insured through Lloyd’s of London, among other vendors. You pay for that insurance as a customer. There is no reason a company with infrastructure based on different technology could not also purchase insurance.
I don't need to worry about insurance, or picking the wrong insurance vendor!