Insurance companies are carefully entering the cryptocurrency market, offering limited coverage that covers some situations, but not all. Cryptocurrency insurance usually covers virtual assets that are lost or stolen under certain conditions. For example, if the exchange where you stored your private keys If your account is hacked and your money is stolen, you may be covered, as long as the exchange has a policy for such events.
However, if you store your private keys in a wallet not created or maintained by the exchange (aka careless purse), you may not qualify for coverage. To date, there are no insurance policies that protect users who independently own and manage their private keys.
If a digital currency exchange goes bankrupt, insurance provides little protection because customers are usually the last to receive any payments. To better protect your assets, you can use a careless wallet where you control the private keys. However, this approach puts all the responsibility on you.
2024-09-09 10:23:03
#Crypto #Insurance
