Cryptocurrencies are an emerging asset class that is experiencing a meteoric rise. But what happens if your crypto holdings suddenly drop in value? Crypto can be hacked, stolen, or lost through hardware failure. Markets can crash and exchanges can close down indefinitely – rendering you unable to access your crypto funds.
These risks may sound like something that would never happen to you – but it only takes one incident for the odds of being affected by cryptocurrency fraud to increase substantially.
That’s why it’s important for everyone holding cryptocurrencies by the best crypto insurance to take a step today to ensure their coins are protected and ready for use when they need them tomorrow.
What is the best crypto-insurance?
Crypto-insurance is coverage against the risks of cryptocurrency theft and loss. It gives you the peace of mind that your crypto can be accessed in the event that they are lost or stolen without worrying about where to get them back.
One main provider is BitGo, which was started by a former CEO at Google. It has raised over $30 million to date and features some of the industry’s leading engineers including Mike Belshe, one of the creators of Bitcoin, who leads their engineering team.
Can You Insure cryptocurrency? What You Need to Know
Cryptocurrencies are a hot topic in the media and on the internet. But what exactly is cryptocurrency? Cryptocurrency is a digital asset that acts as a medium of exchange between parties. Instead of being printed on paper like traditional fiat currencies, cryptocurrency is encrypted and stored in digital wallets that can be accessed via computer or smartphone. With block chain technology, crypto transactions are secure, almost free to make, and can be completed in seconds.
The global cryptocurrency market hit $100 billion in October 2017 with more than 1,000 different types of digital coins — also known as altcoins — available for trading online. But not all cryptocurrencies are created equal.
Hackers Steal $60m in Ethidium
Hackers stole more than $60 million worth of cryptocurrency from a venture capital fund using a single email phishing attack. The hackers also took control of the venture capital fund’s website and Twitter account and posted fraudulent messages that appeared to be legitimate.
Top 10 Cryptocurrencies That Marketed Hardest in 2017
Most cryptocurrencies market themselves as an alternative to the current financial system. They claim that block chain technology will revolutionize how commerce is conducted and ultimately, challenge the status quo in this regard.
In 2017, there were many promising altcoins on the market. Ow to protect yourself from common crypto scams
How to protect yourself from common crypto scams
As an increasing number of companies accept cryptocurrency as a form of payment, the demand for crypto protection has also increased. And both individuals and businesses are looking for crypto-insurance policies to protect their virtual holdings.
In fact, one company called BitGo raised over $30 million in funding in 2017 alone. The policies offered by BitGo will protect users from a variety of threats related to investing, including theft and financial loss.
Research thoroughly
The first step to protecting your cryptocurrencies is doing your research. Your best defense against fraud is to do thorough research on the market. Look at the long-term viability of a given coin or token and ask questions like:
- What problem does it solve?
- how easy is it to use?
- how will this technology impact society in the future? After you have done some initial research, make sure you also look into:
The reputation of the company behind the cryptocurrency. A scam ICO can look very similar in appearance to a legitimate one. If you are suspicious about an ICO, ask third parties for suggestions or warnings before participating.
Examine their social media presence and how it compares to others in their field.
Check out the smart contract
A smart contract is a code that accurately holds funds and manages transactions. It is basically the blockchain’s accounting system. A smart contract can have a wide range of different uses, including the ability to accept cryptocurrency payments for goods and services. To learn more about smart contracts, see “Smart Contracts 101: What They Are and How They Work” (see Resources).
Examine the website
Website security is extremely important when it comes to crypto-protection. You want to make sure that you are dealing with a legitimate company before investing in their product or service. It is also critical that you know whether they are able to provide what they promise before paying them any money.
Understand reputation risk
After you have completed your research, it is important to understand the reputation risk that you are taking. Because cybercriminals target people on a daily basis, many crypto-protection services will require a higher premium for individuals and businesses who are known to be involved in any kind of cryptocurrency-related activity.
Understand that different threats may be covered
There are numerous types of scams that you can find in the crypto space. Some of these include phishing (so-called “scam emails”), malware, hacking, and even phishing scams disguised as good news. One way to protect yourself against these types of scams is by thoroughly researching and understanding each one before participating.
Keep your wallet safe with the best crypto insurance
The biggest problem with cryptocurrency mining is that it involves a lot of new equipment. The good news is that some companies offer insurance to help protect against it.
The first step to finding a high-quality crypto insurance policy is to thoroughly research the policy options available before deciding on one. A good place to start is by going through the list of cryptocurrency marketplaces, which includes a resource called Bitcoin Investor’s Fundamentals. This site is full of great information on all types of cryptocurrencies, including insurance information.
As you shop around for a policy, keep in mind that some insurers will allow you to buy them or get quotes as long as you are not planning on buying or mining any cryptocurrencies in the near future.
Conclusion
As block chain technology continues to advance, more companies are finding the potential to use it in multiple applications. The property market is one of these industries that could be disrupted by cryptocurrencies.
Cryptocurrency offers a new way to invest in property, which can then be used as a way to generate passive income or used as part of a retirement plan. However, these opportunities also come with a great deal of risk. While there are many different ways in which cryptocurrencies can offer personal and financial benefits for investors and real estate investors alike, it is important to thoroughly research all options before deciding on one.
In addition to research, it is important that you understand the benefits and drawbacks of investing in cryptocurrencies before you decide on one.