‘Crypto Insurance’ is probably a term which is not so familiar with us, as of now. But if you are an investor who invests in virtual assets or happen to be someone who’s interested in the world of crypto or tech in general, you must come to terms with its growing importance.
We all know that the global crypto market had an astronomical boom before plummeting to an all-time low, where even some of the most premium stocks fell like a house of cards. At present, it’s on a slow recovery. However, crypto remains a huge market in the global economy as transactions worth billions of dollars are being made everyday.
But with the rise of crypto, incidents like hacking, phishing, scamming etc. too experienced a massive surge with the passage of time. There are also some other important factors which come into play and calls for a mass awareness regarding crypto insurances. Let’s delve deeper with the story to know the insights.
There are a host of factors which contribute to the growing importance of crypto insurances across the world. [Image Credit: Canva]
What is Crypto Insurance?
The story of insurance is quite amazing. From car insurances to footballers insuring their legs, the journey seems fascinating. But let’s keep that aside for a different day.
Just like any other insurance, a crypto insurance is meant for safeguarding your crypto assets. In case of any loss, they will keep you covered. Some crypto insurance policies even protect you from cybersecurity breaches, a phenomenon which is on a rise, of late.
Why Do You Need Crypto Insurance?
There are a host of factors which contribute to the growing importance of crypto insurances across the world. Let’s have a close look at them in order to attain a crystal clear understanding about it. Here we go!
Market Volatility
Market volatility is one of the key factors you should take into account before investing. It applies to the stock market and the money market too. When it comes to the crypto market, market volatility becomes a very crucial factor.
If we have a close look at the global crypto market over the years, we will see how its graph has turned upside down, time and again. For the uninitiated, Bitcoin itself slumped by more than 67% within a span of just six months.
Cyber Hacks
These days, cyber hacks are growing like nothing. Only a few months back, the Deribit hot wallet hack wiped out $28M investor wealth within barely a few minutes.
Scams
The wound of the highly controversial FTX scam is still fresh and continues to spill blood. It caused a massive bloodbath on the streets. Investors went berserk, which couldn’t save their assets from going down the drain.
Institutional Failures
Throughout history, we have seen how institutional failures lead up to investors losing their hard-earned digital assets.
Phishing
All over the globe, phishing incidents are growing by leaps and bounds. At times, they come for the crypto investors, only to take a heavy toll on them.
What are the Safe Options?
There are a couple of crypto insurance policies available in the market which can keep you covered for such unwanted events, safeguarding your digital assets in the process. Here’s a list of some of the safest bets at the moment.
- Nexus Mutual
- Bridge Mutual
- InSure
- Coincover
- Unslashed
You can check these crypto insurance options. We intend to get back to you with a detailed discussion on the best crypto insurance policies, in the near future. Meanwhile, please stay aware and keep your crypto assets closely guarded. Stay tuned with us for more such exclusive stories on crypto along with tech reviews and much more.
