Love it or hate it, cryptocurrency has emerged as a major world market. And with that, it is becoming more and more of a mainstream industry. That said, it is not without inherent risk, especially considering that crypto whales, or individuals that own a lot of crypto can virtually manipulate markets almost singlehandedly with large trades of cryptocurrency. Many of the critics of cryptocurrency point to the inherent volatility in the market.
While individual investors may not be able to do much about the inherent risk within the markets, there is hope to try to hedge your bet against this risk. What if there was a way to get the benefits of security along with the massive gains in the cryptocurrency market? Today, it is possible to get the best of both worlds by insuring your crypto.
While the major cryptocurrencies may be a bit off of their all time highs, they are still up from event the highest of historical highs. Cryptocurrencies have become highly sought after appreciable assets, especially as they continue to enter mass adoption and even become close to de facto standard replacement for currencies where there is high volatility and inflation.
But with every opportunity, come significant challenges. Besides a currency going down, there is a lot of individual risk in terms of losing, misplacing keys, or getting hacked. It is estimated that a whopping 1,500 Bitcoins will be lost every day, so it is quite important to do your part to hold (or hodl) your hard won assets. Of these losses, a full 20% of Bitcoin is stranded due to lost wallets, which considered to be likely to never be recovered. Cryptocurrency theft is a major player as well. An estimated $14 billion in cryptocurrency was stolen last year – double from the prior year.
What exactly is cryptocurrency insurance and what does it cover?
Generally speaking, these types of policies can protect your investments in the cases of theft, scams, and other such losses. Moreover, cryptocurrency insurance plans can cover more specific aspects of crypto such as mining, exchanges, custodians, payment processing, wallets, infrastructure, and financial service platforms.
Let’s hope that cryptocurrencies continue to appreciate – and give us a break in some way of offsetting their risks. Perhaps now is the time for you to further explore or add on to your crypto holdings. Learn more about the opportunity of purchasing cryptocurrency insurance and finding the right plans for you in the visual deep dive below: