With the popularity of cryptocurrency on the rise, the concept of insurance for it has become more mainstream and more of a necessity. The current market has a cap of $2.05 trillion, and nearly 80% of global daily trade value can be attributed to the top ten cryptocurrencies. Because of how widespread crypto trade has become, it often is lost or stolen. This year, 1,500 bitcoins are lost daily due to a number of crashes, errors, and lost wallets. Also, the monetary value of cryptocurrency that has been stolen nearly doubled from 2020 to 2021. Scams such as phishing and hacking contribute to the billions of dollars in losses that some people, such as users Chris Larsen and Maxnaut, have incurred.
Many people worry about crypto, and only 50% of Americans truly believe that it is stable enough to put money into. For example, founder of Crypto Asset Recovery, Charlie Brooks, believes that the crypto world is “fraught in insecurity by the lack of a safety net” that can secure user information and property. This perfectly displays the need for insurance of cryptocurrency, which works to ensure portions of an investment and protect investors against theft, scams, and general loss. To insure crypto and NFTs, the simple process operates much like insurance in other sectors, and allows users the freedom to choose plans and services that are right for their financial needs. With cryptocurrency insurance, the future of investor wealth is secure.