Crypto exchanges are often the first stop of new crypto users. Constantly expanding their product offerings, both decentralized exchanges and centralized exchanges attract the attention of users who decided to venture into the crypto space. Binance is among the leading centralized exchanges in the world. In fact, the daily trade volume of Binance is higher than the Bitmart, FTX, and Coinbase combined.
No matter how many users put their trust in an exchange or how good the exchange’s security measures are, DeFi without insurance is a dangerous place. There have been major decentralized and centralized exchange hacks in the past, including Binance. In May 2019, Binance got hacked and hackers managed to withdraw 7000 BTC worthed $40m back then. Users who kept BTC in their Binance hot wallet were affected as a result.
It is evident that centralized exchanges with extensive KYC requirements are not immune from hacks either as the Binance hack was due to a compromise of sensitive user information.
As such crypto exchange hack incidents proved times and times again, DeFi insurance is a must for every user interacting with exchanges. An insurance aggregator, CoverCompared offers exchange covers from the leading insurance providers for your convenience.
Stay Covered in Binance
CoverCompared’s ever-growing partner ecosystem gives users easy access to a variety of insurance covers. Currently, we are offering crypto exchange covers for Binance. You can easily compare, pick, and purchase the coverage that suits your needs on one platform. Not to mention no gas fee will be levied as we are completely gasless!
You can buy Nexus Mutual’s and InsurAce’s crypto exchange covers directly from CoverCompared.
Here is a quick comparison of the two coverage plans.
Both InsurAce and Nexus Mutual provide coverage against custodian risk. This risk can be described as “incurring a loss on assets held in custody in the event of a custodian’s or insolvency, negligence, fraud, poor administration or inadequate recordkeeping.”
Since centralized exchanges keep an off-chain ledger of balances to enable P2P trading they are considered susceptible to hacks and attacks. By purchasing either of these coverages, you will be ensuring your assets’ protection against the custodian risk.
In case the custodian, in this case- Binance, gets hacked while you have active coverage and you lose more than 10% of your funds, you’ll be eligible to file a claim.
The claim request together with proof of loss must be submitted during the cover period or within 15 days after the cover expires.
Proof of loss can be a snapshot of the balance held by the designated custodian before
and after any losses have been applied; and/or a description of the attack which results in the loss from the designated custodian or security specialist.
It is advised to view the insurer’s policy document to attain the exact understanding and scope of the cover.
Use $CVR & Get 25% off on insurance policies
The quote you will get for purchasing either exchange cover depends on the duration of coverage and the value of insured assets. If you choose to make the purchase with CoverCompared’s native token- $CVR you will be automatically granted a 25% discount! Making this deal the most efficient and affordable way to get coverage for your assets on Binance.
How to Purchase Coverage for Binance
Now that we agree getting crypto exchange coverage is a good idea, here is how you do it on CoverCompared:
1- Go to covercompared.com and select “Crypto Exchange Cover”
2- Search for Binance and select the insurance coverage you’d like to purchase, then hit the Buy Now button.
3- Connect your wallet. Make sure you have $CVR to benefit from a 25% discount.
4- Set the cover amount and duration. The quote will be automatically calculated. Review the details in the Description section and read the insurer’s document for details. Then select “Buy Now”.
5- Check the details, don’t forget to apply the 25% discount for paying with $CVR, and select Approve CVR.
Congratulations, now your assets on Binance are safe from custodian risk!
Stay Safe in the Crypto Space
Partnering with global insurers such as Nexus Mutual, InsurAce, and Protect4Less, we are offering a plethora of insurance products that provide coverage for traditional as well as crypto-based assets.
We are proud to make these covers even more accessible by granting additional discounts and removing gas fees from the picture.
CoverCompared is the First DeFi insurance marketplace for the global crypto ecosystem. We aim to lower transactional and administrative costs of insurance policies and coverage while providing high-value, cost-effective insurance products bought using a host of cryptocurrencies.
Our platform will be connecting users with multinational insurance providers for all global insurance products such as crypto-related protection, health, life, and travel policies. The platform will include a frictionless insurance marketplace experience that incorporates next-generation blockchain technology and tokenized incentives.