conventional finance has ways of insuring money and getting back stolen funds. it also is more idiot proof. nothing like that exists with cryto. crypto way less forgiving of errors..
Not quite accurate. The insurance you are talking about is for the custodial services of financial institutions. You can get custodial service for crypto with insurance too (https://custody.coinbase.com/faq). Outside of your narrowly worded agreement you don't have anything except perhaps the justice system which rarely works out in these cases. $20B were stollen in phone scams alone in the US last year, not recovered or insured, outside the insurance terms.
Because crypto is the first layer. It's like dealing with paper money and trades while living >200 years ago. Eventually "Trusted Institutions" will come along with insurance to keep your crypto safe for those with less risk tolerance.
The advantage then is that you get to choose how much control you want to give up for safety. Unlike the current system where you have to use these institutions to participate.
