Crypto insurance as a solution if you are afraid of losing

Crypto insurance as a solution if you are afraid of losing Crypto is one of the assets that the
younger generation likes to collect now. Some even think crypto investing is
cooler than stocks. Investing in crypto includes high-risk investments, some
investors think of ways to reduce the risk. However, is crypto insurance the
right answer?

Why Is Insurance Important?

Crypto insurance provides protection
against the loss of tokens. Crypto insurance is different from insurance in
general such as health and life. The scheme is also unique in that crypto
itself is not legal tender and the factors affecting it are also different from
other investment assets. The factors that influence crypto are volatility,
hacking, and fraud.

Volatility

The volatility of crypto is very
unreasonable. Within a day, crypto can rise by more than 100% while stocks are
limited to 24%. This volatility could also be influenced by many sentiments
including Elon Musk’s Twitter tweets. Although many people have a dilemma
against this volatility, the drastic increase in price makes people interested
in getting into crypto.

Hacking

Many crypto hacking cases occur. One that
happened in March 2022, when USD540 million worth of crypto was stolen from the
ronin project. It is difficult to overcome crypto hacking because it cannot
block personal accounts. In other words, it requires a private key from its
hackers. Even if knowing who the hacker is, there is not much that can be done.

Deceit

According to a June 2022 FTC report, more
than 460,000 people reported losing more than 1 USD billion in money from 2021
– 2022. The case of fraud in crypto is quite serious. A large number of asset
loss factors provide an opportunity for the insurance company to grow.

How Do Crypto Insurance Companies Help?

Most crypto insurance companies target
crypto-related businesses. Some of the exchanges that insure assets are
Coinbase and Gemini. One of the leading crypto insurance companies is Lloyd
through his broker Superscript provides protection against crypto.

Superscript says that the first layer of
protection will protect businesses from a variety of risks, including
ransomware attacks, cyber business intrusions, and professional negligence.
Layers for directors and officers, trustees, and miners will be launched later.

There is no crypto insurance that provides direct insurance coverage to consumers. Not all wallets are insurable. Protection is in the form of payment of money according to the level of protection purchased in the wallet. It should be noted that insurance protection applies only to 20 types of coins and only in America.

Tinggalkan komentar