Are there any companys offering insurance policys for crypto exchanges ?

[justdimin]

I looked into this years ago and what I found was that there are some bitcoin exchanges which do have insurance however it turns out the insurance is only for the fiat part of the exchange and not the crypto side.

So if there was some insider theft, then perhaps it would apply however it won’t apply to individual accounts if someone gets their password leaked or sim swapped. Those definitely aren’t covered.

What do you mean by fiat part? Does it mean we should convert our cryptos into the fiat currencies listed there first? I think only few will do this unless if you can also get an incentive for doing this because most exchange users are just traders and once they are done trading, they can be able to pull out their money after, only to be safe.

If someone wants to hold or invest, they already know that doing it on exchange is a worse way. We already know about that condition of insurances. A personal problem or action is obviously not qualified but that should teach that user to be more careful next time of the actions that they are doing.

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[wxa7115]

So few people actually answered the question I'm really surprised by this forum sometimes.

I see many people talk bout exchanges with insurance policy. Lets say Coinbase. The biggest. It estimated in 2023 it held over 5 billion in customer funds. But the insurance it has only covers 200+ million. Not even 5%!

So think, if insurer is only willing to cover less than 5% of Coinbase, why would they cover personal insurance?

Then, most important, even with regular fiat, most insurers will only do custom insurance with you for large amounts of money, so OP most likely won't find anyone. But talk especially with smaller insurance providers. You can be surprised what custom ones allow but be prepared for High premium. So high your insurance cost will see you in loss.

Which means that as we have always known that we are the only ones that really care about our coins, and it is because of this that we need to be the ones to store them and to protect them and trying to find someone else to do it for us is just a waste of time.

However I do not really expect people that do not understand the nature of this market to get it, so they will keep looking for an insurance company to be dumb enough to offer this.

[pinggoki]

Read "about us" on any exchange. When an operational license is awarded, a centralized exchange is automatically subject to regulation and becomes part of the supervision of the authority where the license was issued. As far as I know, there is no special protection offer for certain customers, you must have legal representation and get your own insurance to cover the risk of loss.

What does this mean though? If the CEX that I use has an operational license in Country A and I live in Country B, I would be part of the asset protection if there is one in the CEX that I use right? Or it's a matter of jurisdiction and like you've said I have to get my own legal representation to have my own crypto insurance? This kind of legal and insurance or asset protection maze that CEX creates is the reason why I don't have my bitcoins in any of them, I'm better off having to lose my bitcoins and crypto out of my own carelessness rather than them having my bitcoins and other crypto on their custody with the possibility of them shutting down and taking everything they have there with them at their departure.

[rat03gopoh]

What does this mean though? If the CEX that I use has an operational license in Country A and I live in Country B, I would be part of the asset protection if there is one in the CEX that I use right? Or it's a matter of jurisdiction and like you've said I have to get my own legal representation to have my own crypto insurance?

The operational license isn't enough to protect users' money or guarantee a refund (depending on how the court decides), it is only limited to supervision and legal action against the exchange. For example, in the case of Mt.Gox, if the hacker isn't revealed until now and the thousands of stolen bitcoins can't be accessed, then the settlement to creditors will remain pending indefinitely.
With insurance, you have your own way of resolving cases like that. What is clear is that the funds returned don't come from "lost" money.

[slaman29]

So few people actually answered the question I'm really surprised by this forum sometimes.
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Which means that as we have always known that we are the only ones that really care about our coins, and it is because of this that we need to be the ones to store them and to protect them and trying to find someone else to do it for us is just a waste of time.

However I do not really expect people that do not understand the nature of this market to get it, so they will keep looking for an insurance company to be dumb enough to offer this.

Correction. We are the only ones who should care about our money. But we have all been brought up to think money is not our final responsibility. Hence we rely on banks. We rely on our countries. All we do is care to rely on promises.

Then when it hits the fan we care to cry.

The problem is teaching people to care. That's the hard shit nobody wants.

[Litzki1990]

Some exchanges may accept insurance policies If you want to buy insurance policies in crypto, you can choose to accept them by shortlisting some of the popular exchanges. There are various insurance companies why would you want to insure a crypto exchange instead of insuring them. I don't see much of a difference between depositing money into a crypto exchange and insuring that exchange. It would be better for you to insure with the popular insurance companies in your country. When you insure with a physical insurance company, they provide you with various benefits that are usually not available from the scripto exchange.

[shawonngp]

im looking to secure my crypto money on the exchange !  are there any reliable companys offering insurance policy for individuals against bankruptcy ore hack of the exchange ?

thanks

You can not secure your money on the crypto exchanges, Centralized exchanges are highly risk to store your crypto, Because if you don't have the keys, you don't have control over the money. Binance have insurance policy likes SAFU if your money hacked in their exchange then your fund will automatically recovered.

[wxa7115]

So few people actually answered the question I'm really surprised by this forum sometimes.
<>

Which means that as we have always known that we are the only ones that really care about our coins, and it is because of this that we need to be the ones to store them and to protect them and trying to find someone else to do it for us is just a waste of time.

However I do not really expect people that do not understand the nature of this market to get it, so they will keep looking for an insurance company to be dumb enough to offer this.

Correction. We are the only ones who should care about our money. But we have all been brought up to think money is not our final responsibility. Hence we rely on banks. We rely on our countries. All we do is care to rely on promises.

Then when it hits the fan we care to cry.

The problem is teaching people to care. That's the hard shit nobody wants.

That is right, people caring about their money is the ideal and not the reality we face right now, however I will admit that I do not really understand people at all when it comes to that lack of concern for their own money and their financial future.

And this is because people spend a great deal of their lives preparing for getting a good job and working for money, so it would make all the sense in the world that people were extremely careful with how they used their money and they took care of it, and yet we see the opposite and I find that to be baffling.

[slaman29]

The problem is teaching people to care. That's the hard shit nobody wants.

That is right, people caring about their money is the ideal and not the reality we face right now, however I will admit that I do not really understand people at all when it comes to that lack of concern for their own money and their financial future.

And this is because people spend a great deal of their lives preparing for getting a good job and working for money, so it would make all the sense in the world that people were extremely careful with how they used their money and they took care of it, and yet we see the opposite and I find that to be baffling.

You said it, you said it!!

People worry so much about salaries and expenses, they worry how much they can earn, how much their bank account can grow, but so little do they care about keeping that money safe as a self responsibility.

But can't blame them, we are brought up in society that tells you your government is good. Your banks take care of you. Companies care about you. All of them use us and control us with money.

Time to take charge!!