Brian Wallace, Founder & President, NowSourcing
As a result of the sharp increase in value over the last few years, cryptocurrency is taking markets and the masses by storm.
Currently, 8,000 cryptocurrencies and 4.7 million non-fungible tokens (NFTs) are in circulation as of January 2022 and cryptocurrency trading volume stands at an all-time high. In spite of being made secure by design, cryptocurrency is still easily lost and stolen. According to recent reports, more than 1,500 bitcoins go missing daily in 2022.
Cryptocurrency strays and is poached in a slew of surprising ways. Lost wallets are a major problem causing 20% of Bitcoin to go stale and making loss of private keys a common culprit. Cryptocurrency market plunges are another instigator as it prompts problems, with U.S. adults losing $1.7 billion to cryptocurrency in 2018. There is also a high chance of corruption, with roughly one file out of every 1,500 citing it as its demise.
A few news-worthy mega-losses have hit headlines, as gargantuan sums of cryptocurrency have been robbed from their respective investors. In 2013, Mt. Gox, one of Bitcoin’s previously biggest houses, lost $2 billion by investing in BTC. Then, Chris Larsen lost $44 billion on his XRP investment in 2018. Just a year ago, Maxnaut invested in NFTs, but lost a subsequent $297,000.
With more people taking into account the likelihood of losses associated with cryptocurrency ownership, the cryptocurrency insurance industry is expanding exponentially, currently valued at more than $3 billion. In addition to cryptocurrency exchanges and mining, cryptocurrency insurance also covers custodial, payment processing, wallets, infrastructure, and financial service platforms.
Cryptocurrency insurance is only available for businesses, not for individual wallets. This market-based insurance covers portions of your cryptocurrency investment and is designed to shield you and your assets from theft, scams, and other losses. You can extend you business insurance to encompass cryptocurrency insurance, giving your commercial endeavor well-rounded protection. If you want to get your cryptocurrency covered, begin by deciding what type of insurance best suits your assets, research and compare insurance premiums, then select which plan caters to your budget while offering the most coverage for your unique set of cryptocurrency investments.
Due to the volatility of the cryptocurrency market, it is pertinent that you shield your cryptocurrency profits from external threats, scams, software and hardware failures, and hacking attempts. Invest in peace of mind by investing in cryptocurrency insurance.
About the Author: Brian Wallace is the Founder and President of NowSourcing, an industry leading infographic design agency in Louisville, KY and Cincinnati, OH which works with companies ranging from startups to Fortune 500s. Brian runs #LinkedInLocal events, hosts the Next Action Podcast, and has been named a Google Small Business Adviser for 2016-present. Follow Brian Wallace on Linked