Are there any companys offering insurance policys for crypto exchanges ?

[gunhell16]

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

It's still different that you control your crypto assets rather than others, dude. And since it is inevitable to enter money into the exchange, you should only put in a sufficient amount of money and not store too much money in it.

Just be careful with the exchange you trust to leave your crypto assets. Besides that, you should always be prepared for anything that happens; you know what that means.

[1714514181]

1714514181

[Potato Chips]

There have been talks about this. So if you're able to find a working company, it's likely that you're one of the early adopters. Being an early adopter is typically a gutsy move since there is little past experiences to based on + companies are likely to add/remove clauses over time.

For now, I believe not using the exchange as a means of storage and sticking to reputable exchanges for significant amounts are still a good way to mitigate risk.

[wxa7115]

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

I do not think that something like what you want exists, not only we are talking about assets which experience a high degree of volatility, especially since you did not specifically said you are talking about bitcoin since you talked about crypto, which makes me believe you want to insure your altcoins, but you also want to insure coins that are not even in your possession.

So I doubt there is any insurance company crazy enough to do this, and if it exist you can be sure you will be charged a fortune for this service.

[taufik123]

-snip-
according to ----> https://coinmarketcap.com/exchanges/binance/ Spot Trading Volume(24h) was 7 B USD and Total assets was 70 B USD meaning that SAFU represents about 1/7th of the daily trading volume and 1/70 of Total assets.
the chance of getting your money back seems to be one dollar in every seventy dollars at best.

So when I have $7000 in total assets and a hack happens, then I can only get $100?
That would still be a bad story, going from thousands of dollars to hundreds of dollars and not even enough to build and grow my finances back.

I am also a user of Binance and some other exchanges, but the main exchange is Binance for trading.
But if the percentage of SAFU given will be that bad, it will not give a good enough return.

Storing in Hardwallet is the best for personal management and it is also the sole responsibility of the user.
there is no insurance policy, no guarantee, and no third party.

[tjtonmoy]

Always remember, Not your key, not your coins. Don't fall for centralized exchange platform offering some juicy insurance for your assets. As far as I know, those platform that are listed on the top does not provide any kind of insurance for your assets kept in their platform. They provide other services but not this one. You are on your own with this. There have been many incidents regarding hacking or bankruptcy but none of them were providing any kind of insurance.

This is why everyone will advise you to not keep your asset in centralized platforms. The amount they show on the platform are merely numbers but not actual assets. You have no control over your own asset when you keep it on a centralized platform. Your privacy is for you to keep secure. This is why you should keep your assets in self-custody. That is the best way to secure your privacy as well as your assets. Don't make the mistake of keeping your assets in centralized platform.

[Lanatsa]

-snip-
according to ----> https://coinmarketcap.com/exchanges/binance/ Spot Trading Volume(24h) was 7 B USD and Total assets was 70 B USD meaning that SAFU represents about 1/7th of the daily trading volume and 1/70 of Total assets.
the chance of getting your money back seems to be one dollar in every seventy dollars at best.

So when I have $7000 in total assets and a hack happens, then I can only get $100?
That would still be a bad story, going from thousands of dollars to hundreds of dollars and not even enough to build and grow my finances back.

I am also a user of Binance and some other exchanges, but the main exchange is Binance for trading.
But if the percentage of SAFU given will be that bad, it will not give a good enough return.

Storing in Hardwallet is the best for personal management and it is also the sole responsibility of the user.
there is no insurance policy, no guarantee, and no third party.

I wasnt aware on how that SAFU funds do works but since its mentioned then seeing those numbers and probabilities do really sucks. Its been told every now and then that its never been ideal on storing up your
coins on a centralized platform or simply CEX or something that you dont possess the keys of such wallet. Once they would be experiencing some issues then it would really be definitely over for your funds.
You would really be getting it back but only on small partial on which basing up on that example above then that would really be considered to be a huge loss.

This is why i did make out such allocations or division when it comes to my funds on which that long term holds would be stored up on hardware wallet and the short term ones are really that
parked inside the exchange on which im doing trading on which it wont really be that necessary on storing those coins on HW considering about the effeciency of sudden trades
which we know that time would really be that crucial and we do know on how to take those opportunities suddenly.

[wxa7115]

Always remember, Not your key, not your coins. Don't fall for centralized exchange platform offering some juicy insurance for your assets. As far as I know, those platform that are listed on the top does not provide any kind of insurance for your assets kept in their platform. They provide other services but not this one. You are on your own with this. There have been many incidents regarding hacking or bankruptcy but none of them were providing any kind of insurance.

This is why everyone will advise you to not keep your asset in centralized platforms. The amount they show on the platform are merely numbers but not actual assets. You have no control over your own asset when you keep it on a centralized platform. Your privacy is for you to keep secure. This is why you should keep your assets in self-custody. That is the best way to secure your privacy as well as your assets. Don't make the mistake of keeping your assets in centralized platform.

Basically what we have now are a bunch of people that are interested in obtaining profits out of this market but that are not interested at all on the reasons for the market to exist at all.

I could understand investors having this mentality in almost any market except this one, since we are supposed to keep custody of our coins precisely so we can avoid depending on a centralized entity, and yet we have more and more people doing exactly that, and there have been many instances in which those people have regretted their actions as they lost everything when the exchange in which they had their coins stored disappeared, but at that point there is no use at all for their regret.

[stomachgrowls]

-snip-
according to ----> https://coinmarketcap.com/exchanges/binance/ Spot Trading Volume(24h) was 7 B USD and Total assets was 70 B USD meaning that SAFU represents about 1/7th of the daily trading volume and 1/70 of Total assets.
the chance of getting your money back seems to be one dollar in every seventy dollars at best.

So when I have $7000 in total assets and a hack happens, then I can only get $100?
That would still be a bad story, going from thousands of dollars to hundreds of dollars and not even enough to build and grow my finances back.

I am also a user of Binance and some other exchanges, but the main exchange is Binance for trading.
But if the percentage of SAFU given will be that bad, it will not give a good enough return.

Storing in Hardwallet is the best for personal management and it is also the sole responsibility of the user.
there is no insurance policy, no guarantee, and no third party.

I wasnt aware on how that SAFU funds do works but since its mentioned then seeing those numbers and probabilities do really sucks. Its been told every now and then that its never been ideal on storing up your
coins on a centralized platform or simply CEX or something that you dont possess the keys of such wallet. Once they would be experiencing some issues then it would really be definitely over for your funds.
You would really be getting it back but only on small partial on which basing up on that example above then that would really be considered to be a huge loss.

This is why i did make out such allocations or division when it comes to my funds on which that long term holds would be stored up on hardware wallet and the short term ones are really that
parked inside the exchange on which im doing trading on which it wont really be that necessary on storing those coins on HW considering about the effeciency of sudden trades
which we know that time would really be that crucial and we do know on how to take those opportunities suddenly.

Im agreeing with this!

If there would be some insurances that would exist which includes exchanges then for sure it would really be that an expensive one. Why? potential loss or hacks or whatever issues about on exchange in terms of their funds does really have that lots of problems or holes which we dont really looks good or in favor with insurances which it would really be that common sense that there would really be no one will
really be having that kind of consideration on having exchangers to be included into their services or options. Risks is high and not something that worth even if they would be askign for some
premium on year to year basis. Exchange hack is really that very common and we do know that it doesnt really only talk about a few hundred thousands of dollars but millions.
Damage would really be something that could break someones business  or blown it away in an instant. 

This is why we cant really be able to see some insurance policys for exchange platform yet it is something a business which is really just that too risky on having one.
This is why we do really see that they would really be making their own exchange reserved funds incase problems do exist.

[YOSHIE]

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 ?

I have been involved in the crypto world and until now, it seems that I have not found any (Insurance) that collaborates with crypto exchanges or anything related to crypto assets owned by each individual.

For this reason, we often see warnings that are always written on every stock exchange.
For example:

Crypto trading has quite high risks so you need to be careful before engaging in this activity. To prevent significant losses in crypto trading, you need to pay attention to several risks and weaknesses of this trading.

Based on this warning, I don't think any company wants to take the risk of losing crypto assets owned by users.

As far as we know, insurance has several documents that must be prepared by users so that they can be disbursed, such as identity, chronology of physical losses and so on for the disbursement process, such as life insurance, health and so on, exchanges are online, so there is no physical action that can guarantee insurance for disbursement of funds against crypto.

[Z_MBFM]

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

I don't know if any exchange will give you insurance facility because I don't use such exchanges. But Binance will give you hacking guarantee if your funds are somehow hacked without your knowledge even if you set enough security from this exchange. then Binance will compensate you for it.  Because they think and believe that their platform has enough security measures. I don't know if any other exchange offers such a facility. Crypto is a risky thing here you have to accept the risk to invest.  So you will not get the insurance benefits like keeping money in the bank here.  But don't always keep crypto in exchange use a non-custodial wallet or hardware wallet it will give you a lot of security and here only you can control your crypto no one else can control your crypto

[tjtonmoy]

~snip

People learn from their mistakes, but this is a situation where one mistake could lead to you losing everything. As you mentioned, by the time you realize it, it is already too late. There's no doubt that we can make back what we lose, but the damage is already done. I have heard many cases where big investors keep their money in a centralized platform, but that doesn't mean that it is everything that they own. They must have something in their self-custody in case something happens to that asset kept in the Centralized platform.

Whatever others do, doesn't mean that you should follow them or do the same thing. They have more to lose than you. Again, your privacy is for you to keep safe. Let others do it. Most we can do is share the knowledge about why it is bad. Then it's the personal choice whether they wish to follow it or not. They will learn from their mistakes eventually.

[retreat]

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

As far as I know, some of the popular centralized crypto exchange platforms have their own regulations regarding insurance for their platforms. These popular platforms claim that they have insurance for their cold wallets which will back up when there is a hacking problem or various other things which cause losses to the platform and users.
Well, if you want to find a secure place to store your crypto assets, you can try using a custodial wallet which is much more secure than what is offered by exchange platforms.

[adaseb]

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.

[slaman29]

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.

[benalexis12]

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

If you put money in an exchange, especially if it is a centralized platform, you should immediately be aware that the only thing guaranteed is fiat currency, excluding crypto assets, if you ever buy anything from them like Bitcoin, Ethereum, and so on.

Now, as for Dex, I don't know yet, but of course it seems to be the same as CEX in that they can only guarantee fiat. But also try to do some research before you actually take a step towards what you want to happen.

[synchronym]

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

If we want to hold crypto currency for a long time, we can definitely keep it but we need a reliable wallet. I myself keep some Kipto currencies in my hardware wallet and my Kip currencies are very safe. So I would definitely suggest you to keep your crypto currencies in hardware wallet.  This will keep your crypto currencies safe.

[Awaklara]

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

If we want to hold crypto currency for a long time, we can definitely keep it but we need a reliable wallet. I myself keep some Kipto currencies in my hardware wallet and my Kip currencies are very safe. So I would definitely suggest you to keep your crypto currencies in hardware wallet.  This will keep your crypto currencies safe.

that's what many people who think about keeping their crypto assets safe in the long term or at least according to their investment plans.
However, the guarantee provided by the exchange seems to invite their members who invest to keep it on the exchange as an assumption that they are protecting their assets well and safely.

However, when assets are on the exchange, it means we hand over control of all our assets to the exchange. Therefore, people who don't like things like that will store their assets in hardware wallets and that is the best advice rather than thinking about the protection or insurance that exchanges provide to their members.

[taufik123]

Using centralized exchange is already a risk for everyone. But there are some exchanges that have their own emergency fund like Binance called Secure Asset Fund for Users (SAFU)
Where they have their own insurance which comes from a portion of trading fees generated by their exchange.

Since this is still a centralized exchange, they are still the ones who control it. Still risky.

Binance is a pioneer in the emergence of the Secure Asset Fund for Users (SAFU),
and it has succeeded in making everyone more confident in the safety of their assets from unfortunate events.

Seeing Binance's success with SAFU, other major exchanges such as OKX, HUOBI, Coinbase, Bitget, and Gate.io launched their own SAFU.

SAFU Exchange fund amount
Binance SAFU: $1B
OKX Risk Shield: $700 M
Huobi Security Reserve Fund: 20,000 BTC
Bitget Protection Fund: $300 M
Gate SAFU: $100 M
Coinbase Insurance: £150 (Protection for UK Customer Account)

For more details on the terms and conditions, please read the Terms and services of each Exchange.

[TimeTeller]

Using centralized exchange is already a risk for everyone. But there are some exchanges that have their own emergency fund like Binance called Secure Asset Fund for Users (SAFU)
Where they have their own insurance which comes from a portion of trading fees generated by their exchange.

Since this is still a centralized exchange, they are still the ones who control it. Still risky.

Binance is a pioneer in the emergence of the Secure Asset Fund for Users (SAFU),
and it has succeeded in making everyone more confident in the safety of their assets from unfortunate events.

Seeing Binance's success with SAFU, other major exchanges such as OKX, HUOBI, Coinbase, Bitget, and Gate.io launched their own SAFU.

SAFU Exchange fund amount
Binance SAFU: $1B
OKX Risk Shield: $700 M
Huobi Security Reserve Fund: 20,000 BTC
Bitget Protection Fund: $300 M
Gate SAFU: $100 M
Coinbase Insurance: £150 (Protection for UK Customer Account)

For more details on the terms and conditions, please read the Terms and services of each Exchange.

I didn't know that other exchanges already follow the SAFU program of binance. But I know long time about binance.
This is why I am confident using this trading platform. Maybe, I am using this exchange that's why I am more familiar with their offerings to their users.
Now, that other exchanges have the same feature, I believe more traders will be confident in using those platforms.
With such protection fund, hacking or any unexpected situations will give hope to its traders that they can get their funds back.

[taufik123]

I didn't know that other exchanges already follow the SAFU program of binance. But I know long time about binance.
This is why I am confident using this trading platform. Maybe, I am using this exchange that's why I am more familiar with their offerings to their users.
Now, that other exchanges have the same feature, I believe more traders will be confident in using those platforms.
With such protection fund, hacking or any unexpected situations will give hope to its traders that they can get their funds back.

Don't be too confident and don't put all your assets into CEX,
a private wallet with full control is better than any wallet.

All security also depends on how the user's activity is.
Some of the offers about SAFU were applied to the major exchanges that I mentioned because of the impact of FTX that made many users lose,
and SAFU was the right step that was implemented for the first time by Binance.
Binance has the largest SAFU Balance and that's because Binance users are also more numerous.

In addition to the exchanges mentioned, there may be several other exchanges that start implementing SAFU,
this will be a new era of exchanges, but you still have to be careful with the assets you have.