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Since the beginning, cryptocurrencies have been attracting attention. Its success and prevalence in the market, in addition to the high rates of income, made it difficult to ignore.
The cryptocurrency market has been growing more and more, being considered one of the most active, with unprecedented transaction volumes in history. So many positive numbers tend to draw attention not only from investors, but also from criminals.
Although cryptocurrencies are designed to be secure, they are often stolen or lost. These incidents don’t just happen to new or unprepared investors.
In addition to fraud, cryptocurrency market declines can significantly impact investor earnings. Due to all the volatility surrounding cryptocurrencies, the insurance industry has developed “Cryptocurrency Insurance”.
What is cryptocurrency insurance?
Cryptocurrency insurance aims to protect your financial well-being, preventing theft, scams and losses in general, as well as the sharing of your cryptocurrency investments. It is necessary to consider that there are flexible limits between the options available in the market.
This insurance option is not available for personal, only business insurance, and is considered to be an important offering, protecting businesses from various risks, complementing existing protection plans.
The following items qualify for cryptocurrency insurance:
- Exchange
- Mining
- Custody
- Payment Processing
- Wallets
- Infrastructure
- Financial Services Platform
To choose the best type of cryptocurrency or NFT insurance, it is essential to identify your needs, so you can choose the best type of coverage.
Here we list the main types of insurance for cryptocurrencies:
- Fraud Insurance
- Exchange Insurance
- Commercial Cryptocurrency Insurance
- Mining Insurance
- Custody Insurance
- DeFi Insurance
After identifying your ideal coverage, comparing quotes between different providers, this area is expanding and there are many options within the market. Based on all this information, you can narrow down which insurance premium is best suited to your needs.
Cryptocurrency insurance has several plans, varying in price, amount of coverage and flexibility. Considering the volatility presented by the cryptocurrency market, in addition to being a constant target of criminals, it is essential to keep your assets safe from external threats.
If you liked this text, read also What is KYC and why is it important for digital asset management?
