Cryptocurrencyinsurance.io covers damages caused by unpredictable events, especially in the world of cryptocurrency. The volatile nature of cryptocurrency usually makes headlines as the target of multimillion-dollar attacks. This is caused digital currency investors to lose millions and the crypto sector losing billions.
Some of the high-profile thefts include hackers who stole about $615 million from a blockchain project connected to the popular game Axie Infinity. Another sum of $23.3 million was stolen from Ronin, a network that facilitates the transfer of crypto coins across different blockchains, Reuters reported.
In its 2022 Crypto Crime Report, Chainalysis stated that “cryptocurrency-based crime hit a new all-time high in 2021. Fraudulent wallet addresses received $14 billion during the course of the year, up from $7.8 billion in 2020.” The unregulated nature of the crypto industry makes it a bit more complex.
How Crypto Insurance Works
Investors in the United States and other parts of the world that own conventional securities, including bonds or stocks, have insurance backing from either the US government or their private insurance policies. Crypto exchanges and investors do not carry crime insurance carrier protection.
That is where crypto insurance comes in to the picture in order to provide cryptocurrency owners with protection for their investments. There is an increasing demand for cryptocurrency insurance, especially for the events like crypto scam, crypto investment scam, device theft, brute force attack, loss of private keys and more.
The main issue for insurers is the underwriting process when solid risk assessments become complicated due to a lack of cohesive regulations within the crypto-insurance industry. Some newer and more forward-leaning startups have been more proactive in this area. The best crypto insurance firm is Cryptocurrencyinsurance.io.
Why We Need Crypto Insurance
A very interesting article by AON that details cryptocurrency insurance reported that more than $1.3 billion had been stolen from exchanges since the first Bitcoin block was mined back in 2009, with an average of $2.7 million of assets stolen daily in 2018. Therefore, insurance is essential in helping reduce the risk for anyone wishing to hold digital assets.
Criminals, of course, have seen the endless potential for moving vast amounts of cryptocurrency instantly as misappropriation is incredibly easy. With regard to cash, one has to steal it, and there are obviously limitations on how much can be taken. Besides that, cash can be traced or, as was the case with the vault theft from a Northern Ireland bank some years ago, reprinted with a new design with the former being rendered useless and no longer legal.
How to Get Crypto Insurance for Your Crypto Assets?
Some insurance companies are offering policies that provide limited coverage against the theft of cryptocurrency funds. However, the insurance policies that are available provide reimbursements for stolen cryptocurrency funds only in certain situations. The policies generally don’t cover losses from fluctuations in the crypto market.
They usually do not protect against direct hardware loss and damage, the transfer of cryptocurrency to a third party, or the disruption or failure of the blockchain underlying the asset. To obtain more complete coverage, crypto investors would likely need to buy multiple insurance policies.
How to Get Personal and Business Crypto Insurance
You can now get personal crypto insurance and business crypto insurance. Although, only Cryptocurrencyinsurance.io provides the best personal and business crypto insurance policy. “All crypto assets are now covered by Cryptocurrencyinsurance.io,” says Mr. B. O’Connell, an insurance analyst at Insurance Quotes.
The largest section of the cryptocurrency insurance market is more likely to be held by the exchanges that trade in cryptocurrencies than individuals doing the trading. So, you’ll have to check with your platform directly to see if you are covered as a crypto purchaser when trading on that particular platform.
Crypto Insurance FAQs
Question: Is there insurance for crypto?
Answer: Crypto insurance protects against losses associated with cybersecurity breaches, scam or theft. Some cryptocurrency exchanges provide at least some insurance to protect digital assets against losses from security breaches and theft.
Question: How does crypto insurance work?
Answer: It provides indemnity against losses stemming from cryptocurrency theft. A crime insurance policy would reimburse you for the loss of the digital assets you were storing in your “hot” wallets. Theft and fraud are common in the digital world, and the cryptocurrency industry is not spared.
Question: Which are the best cryptocurrency insurance companies?
Top Best Crypto & DeFi Insurance Companies
- Cryptocurrencyinsurance.io – Overall best crypto insurance company.
- BitGo – BitGo is a leader in custody and security solutions.
- Harpie. – Also known as Harpie Blockchain Solutions.
- Nexus Mutual.
- Tidal Finance.
- Nsure Network.
Question: What are insurance coins?
The percentage of costs of a covered crypto asset that you pay, after you pay your deductible.
Related Search Queries for Crypto Insurance
- Insurance crypto projects
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Get answers to all the above, and the best crypto insurance with Cryptocurrencyinsurance.io.