Protect your Bitcoin and Ethereum against loss and theft with new crypto insurance

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Now more than ever, crypto insurance may be just what your digital asset portfolio needs.


Key points

  • According to blockchain data analysis firm, Chainalysis, revenue from crypto scams increased 82% in 2021 to $7.8 billion worth of cryptocurrency stolen from victims.
  • The latest Crime Report from Chainalsys revealed that direct crypto theft has increased further, with an estimated $3.2 billion worth of cryptocurrency stolen in 2021, a 516% increase from 2020.
  • Since cryptocurrency is not considered legal tender in the United States, it is not protected in the same way as other deposits. However, some companies see the opportunity by creating and offering cryptocurrency insurance.

According to the last cryptocurrency crime report from blockchain data analysis firm, Chainalysis, crypto scam revenue grew 82% in 2021 to $7.8 billion worth of cryptocurrency stolen from victims. Direct theft of crypto from individuals has increased further, with an estimated $3.2 billion worth of cryptocurrency stolen in 2021, a 516% increase from 2020.

The lack of crypto regulation and the lack of recognition of cryptocurrencies as sovereign legal tender prevents it from being insured by the US government under the FDIC like traditional bank deposits.

It was only a matter of time before someone saw this loophole and started offering cryptocurrency insurance – and it looks like the time has come.

Individuals can get insurance for their cryptocurrency accounts

A company called Crypto Shield recently announced that it offers an insurance policy for individual investors that covers owners for the loss of digital assets held only on the following crypto exchanges: Coinbase, Gemini, Binance US, and CoinList. Crypto Shield claims on its website that there were six exchange hacks in 2021 where cybercriminals stole over $455 million in stolen crypto and 62 attacks since 2011 with total losses of over $60.9 billion. of dollars.

The insurer’s website claims to cover exchange wallet hacks and social engineering events caused by hacking a depository exchange that holds funds on your behalf, providing coverage for up to 1 million dollars equivalent for a 50% appreciation of your crypto value. The insurance does not cover third-party hardware and software wallets such as Trezor and Ledger, losses due to user error, or price drops due to market volatility.

The Crypto Shield plan currently offers coverage for 20 of the most popular cryptos, including Bitcoin, Ethereum, Solana, Dogecoin, and Cardano, as well as stablecoins such as USD Coin and Tether. The insurer’s FAQ section of the website states that it is constantly evaluating new crypto exchanges and assets to include in its coverage.

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To start

You Can’t Pay Crypto Insurance Premiums Using Crypto

Since individual assets are unique and different, Crypto Shield does not offer flat rate pricing, but requires potential policyholders to provide details of digital assets to receive a quote. Ironically, the company does not accept crypto as a payment option for insurance premiums. It only accepts Visa or Mastercard credit or debit cards.

The site says claims can be made automatically through the Crypto Shield dashboard for your respective policy. You can get coverage for all the parts they deal with for 12 months and the policy is renewed every year – after an initial three-day waiting period to enroll.

The service is currently available in the following states:

  • California
  • Illinois
  • Massachusetts
  • Michigan
  • New Jersey
  • new York
  • Nevada
  • Pennsylvania
  • Texas
  • Washington

It continues to seek national approval only in the United States. While current insurance offerings may not protect your crypto assets from everything, the peace of mind provided by Crypto Shield might turn out to be better than nothing.

Buy and sell cryptos on an exchange selected by experts

There are hundreds of platforms around the world waiting to give you access to thousands of cryptocurrencies. And to find the right one for you, you’ll need to decide which features appeal to you the most.

To help you get started, our independent experts have sifted through the options to bring you some of our best cryptocurrency exchanges for 2021. Check out the list here and start your crypto journey today.

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