Get the Best Personal Crypto Insurance Policy

Are you thinking of venturing into cryptocurrency trading?

If so, you have to understand that, just like all types of investments, cryptos also have their fair share of risks. It is important to note that wallets and exchanges only offer limited protection. If you trade in conventional securities like bonds or stocks, you already rely on some level of protection from regulations put in place by the federal government plus other privacy policies that guide the players in this industry.

Is there private insurance for cryptocurrencies?

The short answer is ‘yes’. Today, there are many companies offering private insurance for cryptos. However, not all insurance companies are reliable. That's why you need to check the background of an insurance company before engaging it. That’s the only way you can get the best crypto insurance company for individual crypto insurance.

Remember that most crypto insurance companies do not target private consumers but are bought by crypto wallets or exchanges. These companies cover business insurance, custodial insurance, and theft and crime coverage. So, before you engage an insurance company, find out whether they can insure private investors.

You need Personal Crypto Protection

The greatest advantage of personal cryptocurrency protection is that the technology used will protect your assets against theft and help you regain access in case the hacker locks you out. The technology is built such that it will detect when someone tries to steal your crypto assets and stop the theft.

Does the government insure cryptos?

Unfortunately, the government does not offer any insurance services to cryptos. The government only covers deposits and cash for conventional investments like bonds and stocks.

The Federal Deposit Insurance Corporation, a government agency, only covers certificates of deposit, money market deposit accounts, savings accounts, and checking accounts to the tune of $250,000 per person per bank. Crypto investors don’t enjoy this cover.

Does an exchange offer cryptocurrency protection?

Some exchanges offer protection, but the level of protection isn’t comprehensive. For example, some of these exchanges will not protect you if a hacker steals your crypto by accessing your account.

Worse still, when the whole exchange online platform is attacked, you may not get your cryptos back. And even in cases where you can get compensation, it will not exceed insurance recoveries, meaning you’ll still lose.

Does a crypto wallet protect cryptocurrency assets?

As already mentioned, crypto wallets offer some level of protection which is not adequate. For example, some wallets offer protection against stolen or lost funds but the protection must be underwritten by other third party agencies. This means, the wallet will protect you against
loos or theft including hacking, device theft, cyberattacks, and brute attacks.

However, these protections aren’t guaranteed because not all wallets are insured. That’s why you need to look for companies that cover private investors.

Conclusion

A personal crypto insurance company will be able to compensate you because the technology is insured. The hack checking technology checks for any suspicious activity from your crypto wallet, such as unauthorized transactions then stops them. And in the event that a hacker
succeeds, the company will compensate you. With crypto insurance you can have peace of mind, knowing that your investment is safe.