In The News

Different Types of Cryptocurrency Insurance

If you’re a cryptocurrency trader, you probably already know that the blockchain and cryptocurrencies are volatile investments. It’s a risky industry to be in because you never know when someone might turn rogue and cause an attack or hack. To make matters worse, crypto exchanges are notorious for having security issues of their own — most notably, $530 million was stolen by hackers in 2018.

In the last ten years, insurance for cryptocurrency traders has been a hot topic. Crypto investors are looking for A Way to protect their currency and precious capital. It’s easy to get carried away in the heat of the moment when you’re trading, especially if you’re dealing with large amounts of currency.

You may want to trade your coins as soon as possible so that you don’t miss out on profit opportunities.

What is Cryptocurrency Insurance?

Cryptocurrency insurance is just like any other type of insurance, except that it protects your digital tokens and capital. It’s basically an agreement between the insurer and you, where the insurer agrees to reimburse you if you lose capital due to a hack or theft.

Crypto insurance can be divided into three main categories:

1. Insurance for theft or loss of crypto from an exchange platform.

2. Insurance for the loss of crypto wallet either due to a software failure, cyberattack, malware, or hardware failure (i.e.)

What Insurance Do I Need For a Small Business?

If you’re a small business owner, you need to know that most insurance companies are refusing to insure crypto growth.

However, if your company is doing business in the crypto industry, you should look for insurance coverage for:

1. Data breach and cyber-attack on cryptos or by criminals against the exchange platform that hosts the currency you trade.

Insurance for cryptocurrency

Cryptocurrency insurance is a relatively new industry, but it’s growing in popularity as cryptocurrencies become more popular and make their way into mainstream markets.

Insurance for the loss of a crypto wallet due to a cyberattack on your computer or smartphone is called cyber-insurance, and it covers:

1. Computer hardware failure or theft of currency.

2. Infection by a virus that steals your currency.

3. Loss of currency due to a cyberattack against your web application or company.

Crypto and insurance

Since cryptocurrency insurance is so new, there have been very few case studies to back up the efficacy of these policies.

There are three different types of insurance for your cryptocurrency:

1. Theft from an exchange platform such as Binance or CoinCheck.

2. Loss of currency due to a software error, malicious program, hardware failure, or theft of a cryptocurrency wallet (i.e. bitcoin vault).

Get a Free Estimation or Talk to Our Business Manager!

Is cryptocurrency insured?

Before buying cryptocurrency insurance, be sure that the insurance covers your particular type of currency. Keep in mind that most insurers don’t cover anything related to blockchain technology and cryptocurrencies.

The biggest problem with purchasing cryptocurrency insurance is that it’s difficult to know exactly what you’re getting into. There are no industrywide standards to base your coverage on and there are a lot of shady dealings in this market.

3 Things you Need To Know About Cryptocurrency Insurance:

1. Most insurance companies are refusing to insure crypto growth because the industry is too new.

2. You should look for insurance coverage for your company if you’re doing business in the cryptocurrency industry.

3. It’s difficult to know what you’re getting into when it comes to purchasing crypto insurance because there are no industry-wide standards.