Topic: Are there any companys offering insurance policys for crypto exchanges ? - page 2. (Read 388 times)

I have been involved in the crypto world and until now, it seems that I have not found any (Insurance) that collaborates with crypto exchanges or anything related to crypto assets owned by each individual.

For this reason, we often see warnings that are always written on every stock exchange.
For example:

Based on this warning, I don't think any company wants to take the risk of losing crypto assets owned by users.

As far as we know, insurance has several documents that must be prepared by users so that they can be disbursed, such as identity, chronology of physical losses and so on for the disbursement process, such as life insurance, health and so on, exchanges are online, so there is no physical action that can guarantee insurance for disbursement of funds against crypto.

Im agreeing with this!

If there would be some insurances that would exist which includes exchanges then for sure it would really be that an expensive one. Why? potential loss or hacks or whatever issues about on exchange in terms of their funds does really have that lots of problems or holes which we dont really looks good or in favor with insurances which it would really be that common sense that there would really be no one will
really be having that kind of consideration on having exchangers to be included into their services or options. Risks is high and not something that worth even if they would be askign for some
premium on year to year basis. Exchange hack is really that very common and we do know that it doesnt really only talk about a few hundred thousands of dollars but millions.
Damage would really be something that could break someones business  or blown it away in an instant. 

This is why we cant really be able to see some insurance policys for exchange platform yet it is something a business which is really just that too risky on having one.
This is why we do really see that they would really be making their own exchange reserved funds incase problems do exist.

Basically what we have now are a bunch of people that are interested in obtaining profits out of this market but that are not interested at all on the reasons for the market to exist at all.

I could understand investors having this mentality in almost any market except this one, since we are supposed to keep custody of our coins precisely so we can avoid depending on a centralized entity, and yet we have more and more people doing exactly that, and there have been many instances in which those people have regretted their actions as they lost everything when the exchange in which they had their coins stored disappeared, but at that point there is no use at all for their regret.

I wasnt aware on how that SAFU funds do works but since its mentioned then seeing those numbers and probabilities do really sucks. Its been told every now and then that its never been ideal on storing up your
coins on a centralized platform or simply CEX or something that you dont possess the keys of such wallet. Once they would be experiencing some issues then it would really be definitely over for your funds.
You would really be getting it back but only on small partial on which basing up on that example above then that would really be considered to be a huge loss.

This is why i did make out such allocations or division when it comes to my funds on which that long term holds would be stored up on hardware wallet and the short term ones are really that
parked inside the exchange on which im doing trading on which it wont really be that necessary on storing those coins on HW considering about the effeciency of sudden trades
which we know that time would really be that crucial and we do know on how to take those opportunities suddenly.

Always remember, Not your key, not your coins. Don't fall for centralized exchange platform offering some juicy insurance for your assets. As far as I know, those platform that are listed on the top does not provide any kind of insurance for your assets kept in their platform. They provide other services but not this one. You are on your own with this. There have been many incidents regarding hacking or bankruptcy but none of them were providing any kind of insurance.

This is why everyone will advise you to not keep your asset in centralized platforms. The amount they show on the platform are merely numbers but not actual assets. You have no control over your own asset when you keep it on a centralized platform. Your privacy is for you to keep secure. This is why you should keep your assets in self-custody. That is the best way to secure your privacy as well as your assets. Don't make the mistake of keeping your assets in centralized platform.

So when I have $7000 in total assets and a hack happens, then I can only get $100?
That would still be a bad story, going from thousands of dollars to hundreds of dollars and not even enough to build and grow my finances back.

I am also a user of Binance and some other exchanges, but the main exchange is Binance for trading.
But if the percentage of SAFU given will be that bad, it will not give a good enough return.

Storing in Hardwallet is the best for personal management and it is also the sole responsibility of the user.
there is no insurance policy, no guarantee, and no third party.

I do not think that something like what you want exists, not only we are talking about assets which experience a high degree of volatility, especially since you did not specifically said you are talking about bitcoin since you talked about crypto, which makes me believe you want to insure your altcoins, but you also want to insure coins that are not even in your possession.

So I doubt there is any insurance company crazy enough to do this, and if it exist you can be sure you will be charged a fortune for this service.

There have been talks about this. So if you're able to find a working company, it's likely that you're one of the early adopters. Being an early adopter is typically a gutsy move since there is little past experiences to based on + companies are likely to add/remove clauses over time.

For now, I believe not using the exchange as a means of storage and sticking to reputable exchanges for significant amounts are still a good way to mitigate risk.

It's still different that you control your crypto assets rather than others, dude. And since it is inevitable to enter money into the exchange, you should only put in a sufficient amount of money and not store too much money in it.

Just be careful with the exchange you trust to leave your crypto assets. Besides that, you should always be prepared for anything that happens; you know what that means.

If you aren't trading most of your crypto then just bought a hardware wallet and keep your crypto there rather than trusting an exchange because they have an insurance policy/ies. As what others suggested here or stated you won't get a full refund even if they do have something to get it back, imagine the hard earned money and you'll just risk it by staying it on an exchange. If you really want to hold your crypt, buy a hardware wallet.

There's none for sure, if there's one then it would be hella of expensive. Why? We do know that exchange platforms turns out to be like honeypot for scammers. If there's one then i had might be able to miss
out but just like on what i had said that it is something that would really be that impossible or unlikely. This isnt something an information that would really be shared out, not unless if its announced.
This is why its really that important as a trader on which you shouldnt really be that storing up your coins on an exchange platform or centralized so  that you wont really be having that kind of risks on losing with those funds.

We've seen some exchangers had been hacked and ended up on not to be operational anymore or completely stop, and there are situations which  exchange owners do ran off the money of their traders.
There's so much possibilities for you to lose up money if you arent that careful, this is why HW or storing up your coins on non-custodial wallet would be always that recommendable.
Somewhat it do understand on why people do really love on leaving out their coins on exchange to make those fast executions of buys and sells if ever there's an opportunity.

thats what i am searching for

Some good site have their own insurance to cover any losses if there’s a hack but if you are asking for a personal insurance that can cover your money if there’s something bad happen, I guess no services yet for this but this is actually a good idea. Though even on bank, you can’t take any insurance to protect your money in the bank, aside from the government insurance that can give you protection for just a small portion of your money in the bank.

It’s always better to go for trusted crypto exchanges. If you run after exchanges that provides exciting offers but their security is poor, then no one can help you from getting hacked. There are also many trusted exchanges, who provide insurance upto a fixed amount if your funds are in the form of fiat money. So you can have a research on that also. But if you are planning to store your coins in any of the exchanges, then let me say you that it’s a bad idea. In exchanges you completely don’t own the coins. Move it instantly to any cold wallet for better protection.

Even if the exchange offers insurance, you won't be able to get the whole amount of assets. This will be like the FDIC which the amount offered is $250,000 regardless of how much millions you have.

The best thing to do is just take them out from exchanges and send them back if you want to trade again or sell in the bull market. There is no safer way than to keep your coins in your wallet.

This is mostly provided by insurance crypto companies insuring exchanges so in case of hack or bankruptcy. I think you will need to read the team of service of the cryptocurrency exchange you are using so that you can be rest assured that your funds are protected in case of hack of bankruptcy. Many of the big cryptocurrency exchanges do have insurance policies supported by their insurance companies. I think exchanges like Binance, Kraken, Crypto.com etc have something like insurance funds for there customers so in case of bankruptcy.

The only place you can secure your crypto money is your personal wallet, thinking that an exchange will bail you out if something happens in the future is another mistake that will cost you losing everything to an exchange. If you have coins on exchanges, it's better you take them out because that is not how self custody work, you can wake up one day and find out you have nothing under you anymore because you don't have the private keys and when you have no keys, you don't control such assets and if they chose not to pay back, you can't do nothing but to beg to have access to your one crypto.

You remember what happen to FTX, how the exchange went from being one the most to been one with nothing because the team were disorganized, some stole assets through back door that till today, nothing has been recovered from them, and crypto doesn't have any insurance that cover this company.

If you are insurance company, you will not accept to run insurance for any crypto companies because that's one of the biggest and riskiest investment any company will want to insurance. Even if they received money for insurance, the day it might want to collapsed, you will need more to settle this company. Some may even played dirty just to have money from insurance company, nothing safe about insurance here.

Secure Asset Fund for Users (SAFU) has these reserves:

 - https://blockchair.com/bitcoin/address/1BAuq7Vho2CEkVkUxbfU26LhwQjbCmWQkD ----> 565 M USD
 - https://etherscan.io/address/0x4B16c5dE96EB2117bBE5fd171E4d203624B014aa  ----> 99 M USD
 - https://bscscan.com/address/0x4B16c5dE96EB2117bBE5fd171E4d203624B014aa  ----> 313 M USD

Almost a billion dollars, and a third of these reserves are in the form of BNB Balance, which may be zero if binance collapses.

according to ----> https://coinmarketcap.com/exchanges/binance/ Spot Trading Volume(24h) was 7 B USD and Total assets was 70 B USD meaning that SAFU represents about 1/7th of the daily trading volume and 1/70 of Total assets.
the chance of getting your money back seems to be one dollar in every seventy dollars at best.

If it's the exchange itself, there are for sure insurance companies that they're securing their funds in terms of hacking incidents.

But as an individual, I don't think that there's one service that gets a policy from an insurance company to secure your funds sleeping on an exchange.

The best insurance is that if you're not going to trade, don't keep your funds in any exchange.

If you are in some countries that require cryptocurrency exchanges to make an emergency fund in the event of bankruptcy, you may be able to recover part of your money, but this process is slow and may take several months, if not years. So why do you need to secure your money with a third party instead of using a multi-signature wallet in the bank vault or in the bank, where you can place wallet seed in safe place or using services that encrypt part of the private key and enable you to recover your money even if you do not remember the seed, are all safer solutions than leaving your money in an exchange and waiting for compensation to occur if the exchange goes bankrupt or is hacked.