Cryptocurrency Insurance!
The cryptocurrency market is still relatively new. It is maturing with time. And as these markets mature, they are attracting the attention of investors or customers from other industries. Insurance industry is one of them. Currently, due to the popularity of crypto, various companies invest and trade in cryptocurrency, but because it is still relatively new, there is a risk of losing this digital asset due to crypto theft or accident during the transaction. Hence insurance is required to protect digital assets from all these risks. That's why various exchange companies or different companies have started introducing insurance schemes.
This is especially important for exchanges and other entities that hold large amounts of cryptocurrency on behalf of their customers. Cryptocurrency insurance could become a "huge opportunity" for insurers in the future as more and more people join the industry and invest as well. Nowadays you will find many companies entering the market to provide insurance products for the growing crypto industry. This insurance scheme started as a way to prevent the risks of losing digital assets.
We know that cryptocurrencies are known for volatility. And considering the volatility of this ecosystem, cryptocurrency insurance is very important. We know that our wallets or other crypto wallets are getting scammed all the time. Many people are stealing these digital assets and making them destitute. To be honest such incidents happen because there is still regulatory uncertainty in such industries and lack of oversight in cryptocurrency exchanges. This can further complicate matters for insurers interested in serving such industries.
Some traders introduced insurance soon after the launch of Bitcoin, but they were mostly self-insured and relied on. At least we can see that those of us who have invested in cryptocurrencies or who own large whales have all taken personal responsibility to protect their digital assets and secure their private keys. But large exchanges that are based online can be bankrupted by a major heist. This has happened in the past with the Mount Gox hack So today many large, regulated institutions, such as mutual funds and pension funds, start looking for ways to gain crypto exposure without having to safeguard their own digital assets.
This has created market opportunities for companies that can provide cryptocurrency insurance. Hence cryptocurrency insurance plays a very important role in all these cases. As a result, these industries focus on securing digital assets to protect users from risk and theft.
source
Thank you, friend!
I'm @steem.history, who is steem witness.
Thank you for witnessvoting for me.
please click it!
(Go to https://steemit.com/~witnesses and type fbslo at the bottom of the page)
The weight is reduced because of the lack of Voting Power. If you vote for me as a witness, you can get my little vote.
Such a beautiful topic. However, cryptocurrency is an amazing currency. But for crypto volatility many companies are in danger. But Cryptocurrency Insurance is a very useful for all. Thank you so much for sharing.....
Thanks for your nice feedback
Cryptocurrency is a revolution but the overall market is not mature and this is why I think it will take couple of years in which we are going to see a lot happening in this space. Insurance is certainly another aspect that should be part of it and I hope it should be happening in the next few years as we see the market getting matured. Thanks for sharing this informative article with us and
Thank you so much for your nice comment and also for sharing some more information.
The volatility of the crypto market makes crypto insurance really necessary. You have shared a very informative article.
Thanks