Insurance is Important for Crypto Exchanges

[shirackjs]

Insurance is a good thing to secure our funds. But with exchanges’ high risk business model and super expensive premium in cyber insurance. I don’t think it is workable.

[kryptqnick]

I have gone through the article and it has explained it quite well about why it is important to have insurance in crypto exchange. I am convinced by the article and will do a insurance for my crypto exchange. It is really necessary.

Wow, even though the article is simple and plain, it sounds like a great idea! We humans are used to insurances of all kinds, especially when it comes to important matters like health or significant items. I wonder, though, if people use insurances to cover the cases of bank robberies (if they kept their money there) or bankrupcy... Anyway, insurances for exchanges sounds like a great deal, if an exchange wants to show how it cares about their customers. But would any company really agree to create an insurance for an exchange with hundreds of millions of dollars circulating out there and knowing that in bad case they will have to reimburse dozens of millions? How big should an insurance company be to be willing to cover those risks? And the companies saying they'll handle it might be turn out to be a scam, which is collecting insurance payments, but once the hack happens, not doing a thing about it.

[r1s2g3]

Insurance will not come for free means exchange  charging high trading fees. Most of the hacks of exchange are due to their negligence or insider job. Insurance is not  going to pay for the negligence or insider job.

Exchange need to do audit frequently their balance and should use cold wallets. Instead of paying hefty fees to insurance every month (with no guarantee that it will pay) they should invest their time and money in security measures. It will be good if they got Security audit every six month by an external agency.

[dTAPPO]

It will not work good,,, there will be lot of problems.

[abiola4real]

As the crypto keeps expanding day in day out, no one can tell what future hold for crypto currency and for one to be on a safer side, if one can get insurance at least it can be of help.

[Aleksandr_ov]

I think that everything in the world can be bought or insured, there would be guarantees from the insured

[olenka.1988]

insure and do not be afraid, the coin must be insured for a certain amount and a certain limit, since it is already an asset

[tillerthekiller]

Insurance in general and crypto do not mix together. In order to have working insurance, crypto has to be more heavily regulated, which defeats many of the points of having crypto in the first place. It is crappy but if we want a truly decentralized currency, things can't be insured.

[bartolo]

The point here is to know if there will be any insurance company willing to insure an exchange. Imagine having to respond to a theft of 40 million dollars in cryptos. The exchanges are high risk potential customers, if some insurer assures them, that will not come cheap.