Recently, the cryptocurrency market cap reached $2.05 trillion. That’s equivalent to the economy of Italy! For people who have heavily invested in crypto, a way to insure the asset would be desirable. If not against market swings, then at least against theft or loss of access. In 2022, 1,500 Bitcoins are lost every day, often due to lost keys or corrupted files. Moreover, cryptocurrency theft nearly doubled in 2021, reaching a total value of $14 billion. Common methods of theft include phishing, hacking, and Ponzi schemes. As a result of these troubles, only half of America believes crypto is stable enough to invest in.
Enter cryptocurrency insurance. This new industry has already reached $3 billion, and it continues to rise. Crypto insurance is mostly for businesses, not personal wallets. Even so, the insurance is applicable to exchanges, mining, infrastructure, payment processing, and more. Certain policies can also insure investors against general loss due to market volatility, in addition to protection against theft and scams.
How should businesses go about ensuring their digital assets? The best way is to begin as one would any other form of insurance. Start by looking into providers and compare the quotes they provide. Consider coverage amount and premium costs, as many policies have flexible limits regarding how large a portion of crypto investment they will cover. Finally, choose the necessary umbrellas that your business needs coverage from among fraud insurance, exchange insurance, and/or more specialized forms. Cryptocurrency insurance lets investors rest easy.
Provided By VAT reporting software company, Sovos