The cryptocurrency industry is growing exponentially, with projections forecasting continued growth. Currently, the market capitalization of cryptocurrency is $2.05 trillion – an astronomical sum that matches Italy’s, the world’s eighth-largest economy, in number. 79% of total international trade is dominated by the leading 10 cryptocurrencies as $95 billion in cryptocurrency are exchanged each day. This is why cryptocurrency insurance matters.
With the great reward of accumulating wealth via cryptocurrency comes large risks as well. Over 1,500 units of cryptocurrency go missing each day. Theft and loss are far too prevalent, and both are due to a slew of tactics and errors.
In 2020, cryptocurrency theft totaled $7.8 billion, but that digit nearly doubled, coming in at $14 billion in 2021. Ponzi schemes, exploitation, hacking, and phishing are some of the most-used methods. Over $2 billion has been stolen via Ponzi schemes, $103 million through exploitation, $7.4 million by hacking, and a whopping $115 million have been attributed to phishing.
As for loss, missing wallets, drops in the market, and corruption are common to take blame. 20% of Bitcoin is null due to misplacement of private keys, in 2018, U.S. adults lost $1.7 billion in cryptocurrency due to an ebb in the market, and approximately 1 out of 1,500 cryptocurrency files crash at the hands of corruption.
Fortunately, cryptocurrency insurance offers security. To obtain it, begin by researching crypto insurance providers, then request quotes, compare premiums among them and how much coverage they offer, and choose a plan that best caters to your budget and assets.
After investing in cryptocurrency, invest in a guard against loss and theft as you invest in a promising financial future. In a world where the illicit acquisition of cryptocurrency is rampant, doing so can make a world of difference.