Pages:
Author

Topic: Are there any companys offering insurance policys for crypto exchanges ? (Read 461 times)

legendary
Activity: 2674
Merit: 1226
Livecasino, 20% cashback, no fuss payouts.
The problem is teaching people to care. That's the hard shit nobody wants.
That is right, people caring about their money is the ideal and not the reality we face right now, however I will admit that I do not really understand people at all when it comes to that lack of concern for their own money and their financial future.

And this is because people spend a great deal of their lives preparing for getting a good job and working for money, so it would make all the sense in the world that people were extremely careful with how they used their money and they took care of it, and yet we see the opposite and I find that to be baffling.

You said it, you said it!!

People worry so much about salaries and expenses, they worry how much they can earn, how much their bank account can grow, but so little do they care about keeping that money safe as a self responsibility.

But can't blame them, we are brought up in society that tells you your government is good. Your banks take care of you. Companies care about you. All of them use us and control us with money.

Time to take charge!!
hero member
Activity: 2814
Merit: 734
Bitcoin is GOD
So few people actually answered the question I'm really surprised by this forum sometimes.
<>
Which means that as we have always known that we are the only ones that really care about our coins, and it is because of this that we need to be the ones to store them and to protect them and trying to find someone else to do it for us is just a waste of time.

However I do not really expect people that do not understand the nature of this market to get it, so they will keep looking for an insurance company to be dumb enough to offer this.

Correction. We are the only ones who should care about our money. But we have all been brought up to think money is not our final responsibility. Hence we rely on banks. We rely on our countries. All we do is care to rely on promises.

Then when it hits the fan we care to cry.

The problem is teaching people to care. That's the hard shit nobody wants.
That is right, people caring about their money is the ideal and not the reality we face right now, however I will admit that I do not really understand people at all when it comes to that lack of concern for their own money and their financial future.

And this is because people spend a great deal of their lives preparing for getting a good job and working for money, so it would make all the sense in the world that people were extremely careful with how they used their money and they took care of it, and yet we see the opposite and I find that to be baffling.
full member
Activity: 856
Merit: 111
Buzz App - Spin wheel, farm rewards
im looking to secure my crypto money on the exchange !  are there any reliable companys offering insurance policy for individuals against bankruptcy ore hack of the exchange ?

thanks
You can not secure your money on the crypto exchanges, Centralized exchanges are highly risk to store your crypto, Because if you don't have the keys, you don't have control over the money. Binance have insurance policy likes SAFU if your money hacked in their exchange then your fund will automatically recovered.
sr. member
Activity: 1386
Merit: 406
Some exchanges may accept insurance policies If you want to buy insurance policies in crypto, you can choose to accept them by shortlisting some of the popular exchanges. There are various insurance companies why would you want to insure a crypto exchange instead of insuring them. I don't see much of a difference between depositing money into a crypto exchange and insuring that exchange. It would be better for you to insure with the popular insurance companies in your country. When you insure with a physical insurance company, they provide you with various benefits that are usually not available from the scripto exchange.
legendary
Activity: 2674
Merit: 1226
Livecasino, 20% cashback, no fuss payouts.
So few people actually answered the question I'm really surprised by this forum sometimes.
<>
Which means that as we have always known that we are the only ones that really care about our coins, and it is because of this that we need to be the ones to store them and to protect them and trying to find someone else to do it for us is just a waste of time.

However I do not really expect people that do not understand the nature of this market to get it, so they will keep looking for an insurance company to be dumb enough to offer this.

Correction. We are the only ones who should care about our money. But we have all been brought up to think money is not our final responsibility. Hence we rely on banks. We rely on our countries. All we do is care to rely on promises.

Then when it hits the fan we care to cry.

The problem is teaching people to care. That's the hard shit nobody wants.
hero member
Activity: 2212
Merit: 670
Signature designer - start @$10 - PM me!
What does this mean though? If the CEX that I use has an operational license in Country A and I live in Country B, I would be part of the asset protection if there is one in the CEX that I use right? Or it's a matter of jurisdiction and like you've said I have to get my own legal representation to have my own crypto insurance?
The operational license isn't enough to protect users' money or guarantee a refund (depending on how the court decides), it is only limited to supervision and legal action against the exchange. For example, in the case of Mt.Gox, if the hacker isn't revealed until now and the thousands of stolen bitcoins can't be accessed, then the settlement to creditors will remain pending indefinitely.
With insurance, you have your own way of resolving cases like that. What is clear is that the funds returned don't come from "lost" money.
sr. member
Activity: 1666
Merit: 426
Read "about us" on any exchange. When an operational license is awarded, a centralized exchange is automatically subject to regulation and becomes part of the supervision of the authority where the license was issued. As far as I know, there is no special protection offer for certain customers, you must have legal representation and get your own insurance to cover the risk of loss.
What does this mean though? If the CEX that I use has an operational license in Country A and I live in Country B, I would be part of the asset protection if there is one in the CEX that I use right? Or it's a matter of jurisdiction and like you've said I have to get my own legal representation to have my own crypto insurance? This kind of legal and insurance or asset protection maze that CEX creates is the reason why I don't have my bitcoins in any of them, I'm better off having to lose my bitcoins and crypto out of my own carelessness rather than them having my bitcoins and other crypto on their custody with the possibility of them shutting down and taking everything they have there with them at their departure.
hero member
Activity: 2814
Merit: 734
Bitcoin is GOD
So few people actually answered the question I'm really surprised by this forum sometimes.

I see many people talk bout exchanges with insurance policy. Lets say Coinbase. The biggest. It estimated in 2023 it held over 5 billion in customer funds. But the insurance it has only covers 200+ million. Not even 5%!

So think, if insurer is only willing to cover less than 5% of Coinbase, why would they cover personal insurance?

Then, most important, even with regular fiat, most insurers will only do custom insurance with you for large amounts of money, so OP most likely won't find anyone. But talk especially with smaller insurance providers. You can be surprised what custom ones allow but be prepared for High premium. So high your insurance cost will see you in loss.
Which means that as we have always known that we are the only ones that really care about our coins, and it is because of this that we need to be the ones to store them and to protect them and trying to find someone else to do it for us is just a waste of time.

However I do not really expect people that do not understand the nature of this market to get it, so they will keep looking for an insurance company to be dumb enough to offer this.
hero member
Activity: 3164
Merit: 675
www.Crypto.Games: Multiple coins, multiple games
I looked into this years ago and what I found was that there are some bitcoin exchanges which do have insurance however it turns out the insurance is only for the fiat part of the exchange and not the crypto side.

So if there was some insider theft, then perhaps it would apply however it won’t apply to individual accounts if someone gets their password leaked or sim swapped. Those definitely aren’t covered.
What do you mean by fiat part? Does it mean we should convert our cryptos into the fiat currencies listed there first? I think only few will do this unless if you can also get an incentive for doing this because most exchange users are just traders and once they are done trading, they can be able to pull out their money after, only to be safe.

If someone wants to hold or invest, they already know that doing it on exchange is a worse way. We already know about that condition of insurances. A personal problem or action is obviously not qualified but that should teach that user to be more careful next time of the actions that they are doing.
legendary
Activity: 2716
Merit: 1855
Rollbit.com | #1 Solana Casino
I didn't know that other exchanges already follow the SAFU program of binance. But I know long time about binance.
This is why I am confident using this trading platform. Maybe, I am using this exchange that's why I am more familiar with their offerings to their users.
Now, that other exchanges have the same feature, I believe more traders will be confident in using those platforms.
With such protection fund, hacking or any unexpected situations will give hope to its traders that they can get their funds back.
Don't be too confident and don't put all your assets into CEX,
a private wallet with full control is better than any wallet.

All security also depends on how the user's activity is.
Some of the offers about SAFU were applied to the major exchanges that I mentioned because of the impact of FTX that made many users lose,
and SAFU was the right step that was implemented for the first time by Binance.
Binance has the largest SAFU Balance and that's because Binance users are also more numerous.

In addition to the exchanges mentioned, there may be several other exchanges that start implementing SAFU,
this will be a new era of exchanges, but you still have to be careful with the assets you have.
hero member
Activity: 2744
Merit: 588
Using centralized exchange is already a risk for everyone. But there are some exchanges that have their own emergency fund like Binance called Secure Asset Fund for Users (SAFU)
Where they have their own insurance which comes from a portion of trading fees generated by their exchange.

Since this is still a centralized exchange, they are still the ones who control it. Still risky.
Binance is a pioneer in the emergence of the Secure Asset Fund for Users (SAFU),
and it has succeeded in making everyone more confident in the safety of their assets from unfortunate events.

Seeing Binance's success with SAFU, other major exchanges such as OKX, HUOBI, Coinbase, Bitget, and Gate.io launched their own SAFU.

SAFU Exchange fund amount
Binance SAFU: $1B
OKX Risk Shield: $700 M
Huobi Security Reserve Fund: 20,000 BTC
Bitget Protection Fund: $300 M
Gate SAFU: $100 M
Coinbase Insurance: £150 (Protection for UK Customer Account)

For more details on the terms and conditions, please read the Terms and services of each Exchange.

I didn't know that other exchanges already follow the SAFU program of binance. But I know long time about binance.
This is why I am confident using this trading platform. Maybe, I am using this exchange that's why I am more familiar with their offerings to their users.
Now, that other exchanges have the same feature, I believe more traders will be confident in using those platforms.
With such protection fund, hacking or any unexpected situations will give hope to its traders that they can get their funds back.
legendary
Activity: 2716
Merit: 1855
Rollbit.com | #1 Solana Casino
Using centralized exchange is already a risk for everyone. But there are some exchanges that have their own emergency fund like Binance called Secure Asset Fund for Users (SAFU)
Where they have their own insurance which comes from a portion of trading fees generated by their exchange.

Since this is still a centralized exchange, they are still the ones who control it. Still risky.
Binance is a pioneer in the emergence of the Secure Asset Fund for Users (SAFU),
and it has succeeded in making everyone more confident in the safety of their assets from unfortunate events.

Seeing Binance's success with SAFU, other major exchanges such as OKX, HUOBI, Coinbase, Bitget, and Gate.io launched their own SAFU.

SAFU Exchange fund amount
Binance SAFU: $1B
OKX Risk Shield: $700 M
Huobi Security Reserve Fund: 20,000 BTC
Bitget Protection Fund: $300 M
Gate SAFU: $100 M
Coinbase Insurance: £150 (Protection for UK Customer Account)

For more details on the terms and conditions, please read the Terms and services of each Exchange.

hero member
Activity: 1246
Merit: 699
im looking to secure my crypto money on the exchange !  are there any reliable companys offering insurance policy for individuals against bankruptcy ore hack of the exchange ?

thanks
If we want to hold crypto currency for a long time, we can definitely keep it but we need a reliable wallet. I myself keep some Kipto currencies in my hardware wallet and my Kip currencies are very safe. So I would definitely suggest you to keep your crypto currencies in hardware wallet.  This will keep your crypto currencies safe.
that's what many people who think about keeping their crypto assets safe in the long term or at least according to their investment plans.
However, the guarantee provided by the exchange seems to invite their members who invest to keep it on the exchange as an assumption that they are protecting their assets well and safely.

However, when assets are on the exchange, it means we hand over control of all our assets to the exchange. Therefore, people who don't like things like that will store their assets in hardware wallets and that is the best advice rather than thinking about the protection or insurance that exchanges provide to their members.
full member
Activity: 504
Merit: 163
im looking to secure my crypto money on the exchange !  are there any reliable companys offering insurance policy for individuals against bankruptcy ore hack of the exchange ?

thanks
If we want to hold crypto currency for a long time, we can definitely keep it but we need a reliable wallet. I myself keep some Kipto currencies in my hardware wallet and my Kip currencies are very safe. So I would definitely suggest you to keep your crypto currencies in hardware wallet.  This will keep your crypto currencies safe.
full member
Activity: 896
Merit: 117
PredX - AI-Powered Prediction Market
im looking to secure my crypto money on the exchange !  are there any reliable companys offering insurance policy for individuals against bankruptcy ore hack of the exchange ?

thanks

If you put money in an exchange, especially if it is a centralized platform, you should immediately be aware that the only thing guaranteed is fiat currency, excluding crypto assets, if you ever buy anything from them like Bitcoin, Ethereum, and so on.

Now, as for Dex, I don't know yet, but of course it seems to be the same as CEX in that they can only guarantee fiat. But also try to do some research before you actually take a step towards what you want to happen.
legendary
Activity: 2674
Merit: 1226
Livecasino, 20% cashback, no fuss payouts.
So few people actually answered the question I'm really surprised by this forum sometimes.

I see many people talk bout exchanges with insurance policy. Lets say Coinbase. The biggest. It estimated in 2023 it held over 5 billion in customer funds. But the insurance it has only covers 200+ million. Not even 5%!

So think, if insurer is only willing to cover less than 5% of Coinbase, why would they cover personal insurance?

Then, most important, even with regular fiat, most insurers will only do custom insurance with you for large amounts of money, so OP most likely won't find anyone. But talk especially with smaller insurance providers. You can be surprised what custom ones allow but be prepared for High premium. So high your insurance cost will see you in loss.
legendary
Activity: 3808
Merit: 1723
I looked into this years ago and what I found was that there are some bitcoin exchanges which do have insurance however it turns out the insurance is only for the fiat part of the exchange and not the crypto side.

So if there was some insider theft, then perhaps it would apply however it won’t apply to individual accounts if someone gets their password leaked or sim swapped. Those definitely aren’t covered.
sr. member
Activity: 1106
Merit: 391
im looking to secure my crypto money on the exchange !  are there any reliable companys offering insurance policy for individuals against bankruptcy ore hack of the exchange ?

thanks

As far as I know, some of the popular centralized crypto exchange platforms have their own regulations regarding insurance for their platforms. These popular platforms claim that they have insurance for their cold wallets which will back up when there is a hacking problem or various other things which cause losses to the platform and users.
Well, if you want to find a secure place to store your crypto assets, you can try using a custodial wallet which is much more secure than what is offered by exchange platforms.
sr. member
Activity: 1008
Merit: 366
~snip
People learn from their mistakes, but this is a situation where one mistake could lead to you losing everything. As you mentioned, by the time you realize it, it is already too late. There's no doubt that we can make back what we lose, but the damage is already done. I have heard many cases where big investors keep their money in a centralized platform, but that doesn't mean that it is everything that they own. They must have something in their self-custody in case something happens to that asset kept in the Centralized platform.

Whatever others do, doesn't mean that you should follow them or do the same thing. They have more to lose than you. Again, your privacy is for you to keep safe. Let others do it. Most we can do is share the knowledge about why it is bad. Then it's the personal choice whether they wish to follow it or not. They will learn from their mistakes eventually.
sr. member
Activity: 546
Merit: 309
im looking to secure my crypto money on the exchange !  are there any reliable companys offering insurance policy for individuals against bankruptcy ore hack of the exchange ?

thanks
I don't know if any exchange will give you insurance facility because I don't use such exchanges. But Binance will give you hacking guarantee if your funds are somehow hacked without your knowledge even if you set enough security from this exchange. then Binance will compensate you for it.  Because they think and believe that their platform has enough security measures. I don't know if any other exchange offers such a facility. Crypto is a risky thing here you have to accept the risk to invest.  So you will not get the insurance benefits like keeping money in the bank here.  But don't always keep crypto in exchange use a non-custodial wallet or hardware wallet it will give you a lot of security and here only you can control your crypto no one else can control your crypto
Pages:
Jump to: