Why is insurance a necessity for your cryptocurrency?

With the great traction that cryptocurrency is gaining in the digital space, there also exists an equal amount of risk that the investors need to be protected against. Currently, there are approximately 7,000 active cryptocurrencies within the market, and despite the use of enhanced blockchain technology, there are still imminent loopholes that hackers could leverage to cheat the system.

Since 2019, at least 10 crypto exchanges have reported a large-scale hacking attack on their platforms and recent reports even show that cybersecurity is still one of the biggest threats to the industry. In addition to this, crypto also remains extremely volatile concerning price and needs to be protected against market fluctuations. Many newly introduced cryptocurrency projects were abandoned, which resulted in huge losses suffered by both parties.

The world of crypto provides great investment opportunities but these barriers of risk have caused the public to be hesitant to invest in this market. Despite the widespread growth, crypto remains quite complex for comprehension, and to encourage more investors they would require a guarantee against said risks. Just as we insure any traditional assets that carry value to us, digital currency also requires the same insurance to protect them against certain unprecedented threats. Providing coverage for these uncertain issues will help make customers more comfortable to further dip their feet into the cryptocurrency pool.

We at Cover Compared aim to eliminate these worries, by providing an umbrella of insurance options for protecting your digital wallets against phishing attacks, hacks from cybercriminals, and other such out-of-the-ordinary threats. The ecosystem of crypto is only going to be further expanding and Cover Compared will be providing the safety net necessary to protect crypto holders against any such uncertain events.

About CoverCompared

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 for the crypto world.

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.

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