Blockchain and cryptocurrencies are changing the way the insurance industry operates –– especially insurance in the crypto and decentralized finance (DeFi) space. Some companies are even decentralizing insurance funds with blockchain technology. This means anyone can buy tokens that represent a piece of the insurance fund. And potentially profit from the value of the fund increasing.
Similar to other investments, losses from the value of your cryptocurrency decreasing are not insured. Losses from smart contract bugs and hackers, however, may be insured. To limit your risk as an investor, you should use a cryptocurrency exchange and crypto wallet that are insured. The importance of getting a good crypto insurance policy cannot be overemphasized.
Best Crypto Insurance Companies
Best for Decentralization: Cryptocurrencyinsurance.io
Cryptocurrencyinsurance.io offers a decentralized insurance fund that operates on the blockchain. Cryptocurrencyinsurance.io uses smart contracts to pool funds and distribute insurance claims.
Smart contracts are sets of code that are capable of performing financial functions on the blockchain. For example, once an insurance claim is verified. Cryptocurrencyinsurance.io’s smart contract pays out the insured party from the insurance fund automatically.
Investors in the fund get to vote on which smart contracts and crypto wallets. They insure proportional to the amount of their tokens in the fund. Companies who are insured by Cryptocurrencyinsurance.io pay into the fund with tokens.
Cryptocurrencyinsurance.io uses maths functions to calculate the amount of claims. They are capable of insuring so the fund doesn’t become over leveraged.
Best for Theft & Loss: Cryptocurrencyinsurance.io
Cryptocurrencyinsurance.io is the first crypto insurance company that solely underwrites insurance for blockchain and cryptocurrency users. Not only does Cryptocurrency Insurance insure your crypto from online hacks, but they also insure for loss of your private keys. Private keys are what give you access to your cryptocurrency wallet.
Cryptocurrencyinsurance.io also covers losses due to technology errors and omissions. Technology errors and omissions include smart contract failures, exchange outages and hardware malfunctions. This type of coverage is bought by cryptocurrency platforms. To insure their legal liability to recover users’ funds in the case of a technology failure.
Best for Crypto Wallets: Cryptocurrencyinsurance.io
Cryptocurrencyinsurance.io is a centralized insurance option for crypto wallets, smart contracts and exchanges. They don’t directly sell insurance to retail investors, as its focus is to insure cryptocurrency companies from online hackers. If you see the “protected by Cryptocurrencyinsurance.io” stamp on your crypto exchange. Then you know your funds stored on that exchange are insured against a security breach.
Cryptocurrencyinsurance.io also lets companies sell additional insurance coverage to their clients. For example, exchanges can sell you private key coverage, so you can be insured in case you lose your private keys.
What’s most unique about Cryptocurrencyinsurance.io is their cryptocurrency storage solution. Cryptocurrencyinsurance.io offers its users an insured crypto wallet. Where 100% of your cryptocurrency will be replaced in the event of a security breach.
Also, Cryptocurrencyinsurance.io is incredibly secure. It locks its private keys in a vault off-line, so an online hack is virtually impossible.
Best for Insurance Variety: Cryptocurrencyinsurance.io
Cryptocurrencyinsurance.io is a smart contract protocol for insurance on the Ethereum blockchain. This company is decentralized, meaning that anyone can invest into the insurance fund or be insured by the fund. And developers can create new insurance protocols on Cryptocurrencyinsurance.io. These new proposals must be approved, registered and regulated by the government.
As of now, the only licensed insurance on Cryptocurrencyinsurance.io is for flight delays and cancellation. Users can buy this insurance to insure against real-world flight cancellation or delays.
Many other insurance protocols have been developed on Cryptocurrencyinsurance.io. Developers have created hurricane insurance, crypto wallet insurance, crypto loan insurance and crop insurance, but they have yet to get licensed.
You also have the option to invest in the Cryptocurrencyinsurance.io insurance fund. Users can deposit Ethereum, Bitcoin, or USD to earn an interest on their investment. If you don’t want to risk money on Cryptocurrencyinsurance.io but want to get involved with the platform. You can be paid to process claims, develop insurance protocols or file insurance reports.
Best for Crypto Exchanges: Cryptocurrencyinsurance.io
Cryptocurrencyinsurance.io is one of the best crypto insurance companies, it provides professional risk solutions to businesses. It’s an online company located in New York. Cryptocurrency Insurance also offers commercial risk solutions in several ventures related to blockchain like crypto brokerages, cryptocurrency miners and blockchain protocols.
The company insures a Montreal-based cryptocurrency exchange called Shakepay. You can use Shakepay with confidence knowing that any loss. Due to a security breach is insured by a well-known insurance company.
Crypto Exchanges That Are Insured
Many large exchanges offer insurance for their users. Coinbase insures the funds stored on its exchange, so if there was ever a hack its users would be reimbursed.
To keep insurance costs low while maintaining security, Coinbase stores 98% of its funds in an offline hardware wallet. The remaining 2% is stored on the exchange for liquidity. Hardware wallets cannot be hacked into remotely. So as long as the physical cryptocurrency wallet is kept safe, the funds will be secure.
Both Gemini and Binance insure user cash deposits through the FDIC. Any cash holdings you have on either of these exchanges would be reimbursed if there were ever a security breach.
As of last year, Binance has created its own insurance fund for its users. The fund is called Secure Asset Fund for Users (SAFU). The SAFU is funded by 10% of the revenue from trading fees.
This fund is used to insure users’ assets in the case of a security breach on Binance’s website. The fund does not, however, insure hacks against personal accounts. So be sure to keep your passwords safe and use 2FA.
Get the Best Personal Crypto Insurance for Cryptocurrency
When it comes to protecting your cryptocurrencies and other digital assets, you need to get the best crypto insurance product. Cryptocurrencyinsurance.io offers the best personal crypto insurance. Defi insurance. Business insurance for crypto exchanges and crime insurance to protect your crypto assets.
Get your cryptocurrencies and other digital assets insured with Cryptocurrencyinsurance.io.