Topic: There is no way to know unless I ask (Read 297 times)
It's not a stupid question, op. In fact, I thought of the same idea a few years ago as a potential business idea. Unfortunately, I'm not interested in business and also don't possess any resources for such a project, but I still believe that an insurance model for crypto holdings is an unfilled niche of the market, and that such a service would find its customers. I can see that there's at least some info about it now, but largely about insuring money that's on exchanges, not in personal wallets. I think that, in principle, it's possible to get your funds insured without giving up decentralization. I mean, people insure cars and homes without weird contracts that make such property technically belong to some authorities, so I don't see why a person can't hodl Bitcoin in a non-custodial wallet and have it insured.
Bitcoin insurance can only be possible if it's under regulations by a central institution and then it will demand that you have to hand over accessibility of your asset to the insurance company but then what's the need for decentralization if such an idea of bitcoin insurance exists, cause it makes the whole decentralized system of a thing useless. Bitcoin is not printed like fiat money so where do you expect a replacement of loss bitcoins by the said insurance maybe due to hack or stolen means or anything of such event. It's all complicated to think such insurance exist with bitcoin.
What kind of insurance you would like to ask OP? Because if you ask for insurance when your wallet gets hacked, never heard of any company doing this now. But if you are talking about insurance from your deposited money to the exchanges, that was already the responsibility of the exchange to give back the money of their users once they got hacked but I'm not sure if it was given back in full amount. I'd see major exchanges like Binance offering this but we can't expect instant money back, it certainly takes time because of huge numbers.
There is no way to get more knowledge in this crypto world than asking questions from those who are here before me, so friends, I will like to know if it's slightly even possible to get insurance on your bitcoin holdings? I've heard about this before but honestly, I don't have anyone close to being doing this, maybe someone on here insured their Bitcoin or it's just a fad.
I don't think this is a stupid question to ask on this forum so please take it easy on me if this sounds stupid, because, Bitcoin is decentralized, any possibility that insurance can cover something decentralized? Or you gotta give it up?
I don't understand which aspect you originally asked about crypto insurance. But generally we take insurance policy to get rid of the risk. As far as i know few organizations offer this facility in Bitcoin or Cryptocurrency. There are some organizations like BitGo,Coinbase and Gemini are very much renowned which are offer a variety of coverages, including protection against theft, loss of private keys, and hacking incidents. But before accepting any such work policy one should read their terms and conditions well. Failure to observe any one of the conditions can lead to great loss. I don't think this is a stupid question to ask on this forum so please take it easy on me if this sounds stupid, because, Bitcoin is decentralized, any possibility that insurance can cover something decentralized? Or you gotta give it up?
Some of the crypto insurance companies I know of such as LIoyd's, ReIm Insurance and Coincover will cover crypto protection and software solutions. LIoyd's, ReIm Insurance focuses more on insurance covering crypto exchanges like Binance, Coinbase etc. Binance provides insurance to its users with the title SAFU which will protect the user's assets when Binance is hacked and the like. Coinbase also provides crime insurance that will protect digital assets stored throughout the Coinbase system.
But, of course you have to do KYC to be able to get this insurance and this will be a problem when you are not happy with KYC having to provide your personal data.
Currently, not many insurance companies provide protection against losses in crypto trading. Existing insurance generally only covers loss or damage to crypto hardware. Meanwhile, other insurance plans only protect transfers to third parties or blockchain damage of underlying assets. Therefore, to obtain comprehensive protection, investors need to purchase several different insurance policies.
But, of course you have to do KYC to be able to get this insurance and this will be a problem when you are not happy with KYC having to provide your personal data.
Currently, not many insurance companies provide protection against losses in crypto trading. Existing insurance generally only covers loss or damage to crypto hardware. Meanwhile, other insurance plans only protect transfers to third parties or blockchain damage of underlying assets. Therefore, to obtain comprehensive protection, investors need to purchase several different insurance policies.
There is always the option to ask google before asking the community 
If you go to google and type "Insurance for bitcoin" you will see some results like these ones:
https://www.investopedia.com/crypto-insurance-5441920
https://cryptocurrencyinsurance.io/
https://www.coincover.com/
If you ask me, if I think is a good idea to buy insurance for cryptos, I would say no. It's a better idea to learn how to handle your coins in a safe way and have a plan B if your coins are under attack.
Getting insurance for bitcoin is like getting insurance for gold, it's possible but isn't cheap, and if your coins are lost I don't think the insurance would cover all your loses.
If you go to google and type "Insurance for bitcoin" you will see some results like these ones:
https://www.investopedia.com/crypto-insurance-5441920
https://cryptocurrencyinsurance.io/
https://www.coincover.com/
If you ask me, if I think is a good idea to buy insurance for cryptos, I would say no. It's a better idea to learn how to handle your coins in a safe way and have a plan B if your coins are under attack.
Getting insurance for bitcoin is like getting insurance for gold, it's possible but isn't cheap, and if your coins are lost I don't think the insurance would cover all your loses.
There may be some exchanges that insure the Bitcoin of their clients but I'm not really aware of it. I want to say Binance has some sort of insurance because I remember reading after they got hacked once they said something about insurance covering some or all of it, but not totally sure. In general I don't think exchanges insure any cryptocurrencies. Though that is probably one of the most needed regulations for the industry.
But of course the best way to ensure your bitcoin is simply to hold it yourself and secure the keys properly. Then you don't need insurance.
But of course the best way to ensure your bitcoin is simply to hold it yourself and secure the keys properly. Then you don't need insurance.
I feel compelled to make a correction that inquiry is a major means of acquiring knowledge but not the only means. And coming to the main topic, I must say that it is very important for me to know, I think not only me but also everyone who familiar with Bitcoin should also know about this. According to my opinion it seems to me quite impossible service to give another.
If you know of any such service provider then definitely let me know. I would like to do some research on them.
If you know of any such service provider then definitely let me know. I would like to do some research on them.
There is no way to get more knowledge in this crypto world than asking questions from those who are here before me, so friends, I will like to know if it's slightly even possible to get insurance on your bitcoin holdings? I've heard about this before but honestly, I don't have anyone close to being doing this, maybe someone on here insured their Bitcoin or it's just a fad.
I don't think this is a stupid question to ask on this forum so please take it easy on me if this sounds stupid, because, Bitcoin is decentralized, any possibility that insurance can cover something decentralized? Or you gotta give it up?
Can you tell me who will give you insurance on your Bitcoin holdings when we all know that the coin is very volatile. Incase you don't know, Bitcoin investment is not for everybody. It is for those people who can endure the market turbulence and still keep holding with fear of the market crashing. I don't think this is a stupid question to ask on this forum so please take it easy on me if this sounds stupid, because, Bitcoin is decentralized, any possibility that insurance can cover something decentralized? Or you gotta give it up?
OP does not clear what he means by insurance of his bitcoin. But if we talk about possibility here everything is possible and OP needs to handover the information to the company which is not a good thing to do. No, company will get you an insurance without getting the proper information from you.
Yeah this is what will compromise anyone's privacy and it will become more like centralized asset. In order to keep getting the insurance over all your assets, you have to give information about everything you own or the amount you want the insurance for. This will become public information if there's any data breach or the thing gets hacked.
Someday back I heard a news about a guy who got killed by some thugs after his information about the amount of his crypto holdings got leaked. This happened in India. I was unable to find the source of the news or proof about that, but things like that could happen too. So it is anyone's best interest to just avoid something like this.
There is no way to get more knowledge in this crypto world than asking questions from those who are here before me, so friends, I will like to know if it's slightly even possible to get insurance on your bitcoin holdings? I've heard about this before but honestly, I don't have anyone close to being doing this, maybe someone on here insured their Bitcoin or it's just a fad.
I don't think this is a stupid question to ask on this forum so please take it easy on me if this sounds stupid, because, Bitcoin is decentralized, any possibility that insurance can cover something decentralized? Or you gotta give it up?
Not directly that any I can suggest. But if you put your money in coinbase if you are an American citizen, or if you put it in Binance, that means you are putting your money in things that will basically make sure that it's going to be insured one way or another.I don't think this is a stupid question to ask on this forum so please take it easy on me if this sounds stupid, because, Bitcoin is decentralized, any possibility that insurance can cover something decentralized? Or you gotta give it up?
Your money directly is not insured in that case, it's insured as general deposit, all the money in there is insured, so if something happens, people who do not have much will get it all back, it will only be people who have a ton of money that will get in trouble because it's insured to a point in both cases. So put your money in either of those and you should be doing pretty well in the end.
I had read about companies that do provide crypto insurance services and of course bitcoin is included. These companies are Lloyd's and Relm Insurance. 1
And it seems that the top crypto exchanges like Binance and Coinbase either have services or use services of some sort of crypto insurance. to protect users' funds from something unexpected like theft, hacking and the like.
for example, Binance established Secured Asset Fund for Users (SAFU) to protect user funds.2
I also remember reading about crypto insurance on Binance having to do with futures trading or something. but I was a little lazy to read it at that time.3
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Reference :
1. https://id.beincrypto.com/belajar/asuransi-crypto-perlindungan-risiko-investasi/
2. https://academy.binance.com/en/glossary/secure-asset-fund-for-users
3. https://www.binance.com/id/blog/futures/
And it seems that the top crypto exchanges like Binance and Coinbase either have services or use services of some sort of crypto insurance. to protect users' funds from something unexpected like theft, hacking and the like.
for example, Binance established Secured Asset Fund for Users (SAFU) to protect user funds.2
I also remember reading about crypto insurance on Binance having to do with futures trading or something. but I was a little lazy to read it at that time.3
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Reference :
1. https://id.beincrypto.com/belajar/asuransi-crypto-perlindungan-risiko-investasi/
2. https://academy.binance.com/en/glossary/secure-asset-fund-for-users
3. https://www.binance.com/id/blog/futures/
I don't see any insurance for bitcoin, and I think this also works like you are giving them your private key, which is not safe even if they are reputable. Also, correct me if I'm wrong, but how do those insurances then work since most of the reasons why we've lost our bitcoin are getting hacked, getting scammed, or we've lost our key, which means it's our fault, and that also means that it won't cover the insurance unless it accidentally happens? Though I haven't heard one, I am also interested in these things, as the goal is to keep our money safe.
Yes, I think you gotta give your Bitcoins up if you want the insurance. I'm not familiar with how Bitcoin insurance works but I guess it is something that is associated with centralized or custodial platforms. If you are into self custody and you are the one who is in control of your Bitcoins, then how would an insurance company make sure you are not say stealing your money from yourself? You can claim you got hacked or whatever but since you have the private keys and all, the insurance seems to have no protection whatsoever.
binance SAFU is not a formal insurance using an insurance underwriter
nor does it protect all of binance's reserves of 575k btc it holds in custody
its actually binances own corporate funds with just enough set aside to protect one small hotwallet (small amount used on servers to process daily withdrawals)
..
the problem with insurance is they will want proof of ownership and also proof of theft before processing any claims.. goodluck trying to prove a theft and not just a movement to new wallet and then claiming loss
insurers will not want to insure such digital items
its upto individuals to secure their own funds. as thats the point.
if you want some insured middleman to take responsibility of liability of funds.. go back to using regular bank balances and let them secure you at a 2% a year debasement of your value for that service
that said in the future there will be regulated 'insurance services' where you lock your value into them. and should they lose it they repay you. where you then only withdraw what you need when you need it.
but thats how banks started out hundreds of years ago when people wanted to insure their gold but still want to spend its value (by trading bank notes)
nor does it protect all of binance's reserves of 575k btc it holds in custody
its actually binances own corporate funds with just enough set aside to protect one small hotwallet (small amount used on servers to process daily withdrawals)
..
the problem with insurance is they will want proof of ownership and also proof of theft before processing any claims.. goodluck trying to prove a theft and not just a movement to new wallet and then claiming loss
insurers will not want to insure such digital items
its upto individuals to secure their own funds. as thats the point.
if you want some insured middleman to take responsibility of liability of funds.. go back to using regular bank balances and let them secure you at a 2% a year debasement of your value for that service
that said in the future there will be regulated 'insurance services' where you lock your value into them. and should they lose it they repay you. where you then only withdraw what you need when you need it.
but thats how banks started out hundreds of years ago when people wanted to insure their gold but still want to spend its value (by trading bank notes)
I don't think this is a stupid question to ask on this forum so please take it easy on me if this sounds stupid, because, Bitcoin is decentralized, any possibility that insurance can cover something decentralized? Or you gotta give it up?
Insurance for Bicoin hack or its value because I heard something like this when DeFi is new but there’s no idea materialized because crypto in general directly opposite to the insurance main feature to cover which is the low risk. Crypto is very high risk in terms of volatility and safety especially when newbie is controlling the wallet which will be unprofitable for insurance companies to cover the funds.
I believe some insurance companies offer this kind of services on the smart contract of a project and not to normal holder of Bitcoin.
Binance have Safu fund which is some form f insurance for the exchange users who may suffer loss in the event of a hack on the exchange.
This is not Bitcoin insurance but rather exchange insurance which is centralized. OP is looking for a decentralized insurance.
There may be but it would be that as Binance SAFU works, you've to keep the bitcoins in the insurance company's wallet. Afaik, it's only offered by exchange industries[1] that are known to risk more the trust of millions of users. And there's no separate company dedicated to serving crypto insurance, let alone letting you hold your bitcoins in a private wallet.
1. https://coincodex.com/article/6899/best-crypto-exchanges-with-insurance-fund-against-hacks
1. https://coincodex.com/article/6899/best-crypto-exchanges-with-insurance-fund-against-hacks
Binance have Safu fund which is some form f insurance for the exchange users who may suffer loss in the event of a hack on the exchange.
But aside from that we don't have any platform or project that offers such services, but you can become your own insurance by storing your wallet key in a safe place or going the extra mile to get a cold wallet device
But aside from that we don't have any platform or project that offers such services, but you can become your own insurance by storing your wallet key in a safe place or going the extra mile to get a cold wallet device
It is possible if cryptocurrencies are regulated in your country. But since we all know that it is not, therefore that's the answer already. Bitcoin or cryptocurrencies in general are different from fiat wherein savings would be insured. Given that this technology is lacking support from governments, this would seem impossoble at this point. Just like with properties wherein you'd get an insurance from it but ofcourse you would pay huge amount for the registration of your business and there's no such thing yet in this technology. As others have mentioned there are exchanges who offers quite the same of the concept but definitely that's different from what we've known how insurance work.
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I don't think this is a stupid question to ask on this forum so please take it easy on me if this sounds stupid, because, Bitcoin is decentralized, any possibility that insurance can cover something decentralized? Or you gotta give it up?
If you hold your Bitcoin personally or you are using such wallets that are non-custodial then I believe there's no insurance at all for your Bitcoin.I don't think this is a stupid question to ask on this forum so please take it easy on me if this sounds stupid, because, Bitcoin is decentralized, any possibility that insurance can cover something decentralized? Or you gotta give it up?
I haven't heard of some insurance on Bitcoin but I am not sure if some centralized platforms offer this such exchanges.
For example on centralized exchanges like Binance, they have this Secure Asset Fund for Users (SAFU) which is a emergency insurance fund for their users, you can read more here: https://academy.binance.com/en/glossary/secure-asset-fund-for-users
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