Recently, the cryptocurrency market cap is at 2.05 trillion dollars, which makes it equal to the whole Italian economy, the 8th biggest on the entire planet. There are currently at least 8,000 types of cryptocurrency and well over 4 million NFTs. Nevertheless, the vast majority of the 91.5 billion dollars in daily crypto trade comes from just the top 10 cryptocurrencies.
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Although cryptocurrency has been trending since the early 2000s, it’s still considered new and uncharted territory by many investors. As such, there are still many reasons why some may be hesitant to dive into crypto investments. Crypto losses and crypto theft are two main reasons why investors may still see crypto as a risky investment. They aren’t completely wrong.
This year, investors lose 1,500 Bitcoins every day. Twenty percent of these losses come from lost wallets and missing private keys. However, losses can also be outside of the investors’ control with things such as market drops and crashes or corrupted files.
Obviously, theft is also a very valid concern, especially in the post-pandemic world. One of the many side effects of the COVID pandemic has been weakened cyber security and a massive jump in cybercrime. For example, in 2020, cybercriminals were able to illegally obtain 7.8 billion dollars in cryptocurrency. That might seem bad already, but in 2021, we saw it jump to 14 billion dollars. Phishing, hacking, exploitation, and Ponzi schemes are all to blame for these illegal acquisitions.
Fifty percent of Americans don’t trust crypto investments, but this is where crypto-insurance steps in. Although there are obvious risks to investing in cryptocurrencies, there are also obvious positives, and it’s not yet too late to get in on a relatively “ground floor” investment that will only grow as crypto advances.
Crypto insurance has now become a 3 billion dollar industry and it protects businesses (not private wallets) from scams, theft, and general losses through flexible plans that can be tailored to your investment protection needs.
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Last Updated on February 21, 2022.