Why security is imperative for Crypto Exchanges?
Crypto exchanges are often the first stop new users ever visit within the crypto world. With the ease of use and accessibility they offer, the popularity of these exchanges is on a constant rise. Cryptocurrency is reputed for its transparency, but unfortunately, it is also well-known for cybercriminals targeting exchanges to exploit them & at CoverCompared we are offering the perfect solution.
So, how secure are the exchanges investors lock thousands, even millions of dollars worth of assets? Recent incidents of crypto exchange hacks are raising concerns towards exchanges. In January 2022, the international cryptocurrency exchange Crypto.com admitted that a hacker made off with $30 million worth of cryptocurrency stolen from 483 users’ digital wallets. It is noteworthy that stolen assets belonged to users, making such news even more concerning.
When it comes to trust, there is no margin for error. As seen, even the biggest and most highly regarded exchanges fell victim to hacks in the past. the KuCoin hack resulted in $281m worth of assets being stolen in 2020. Similarly, the world’s largest cryptocurrency exchange by volume- Binance got attacked and lost $40m in Bitcoin. It is reported that the attackers managed to break into the exchange’s security systems, obtained key information sets, including two-factor codes, APIs, and other data to perform the malicious attack.
Are crypto exchanges doomed?
Crypto space has expanded a bit too fast and the development of security measures couldn’t keep up with the rapid pace of raising popularity of exchanges. Thankfully, a reliable solution to stay protected when using crypto exchanges has emerged amidst the question marks surrounding the crypto world, insurance!
CoverCompared is an ever-growing DeFi insurance aggregator, already partnered with various leading insurance providers in light of the goal to help crypto users stay protected against crypto exchange hacks.
At CoverCompared we offer the option to compare and customise various policies so that users remain in total control when it comes to policy purchase decisions. Purchasing our varied insurance products using our native token $CVR gives the added advantage of 25% discount to users.
Additionally, we removed gas fees from the picture when purchasing insurance coverage. One of the most unpleasant burdens on crypto users’ shoulders was astronomical gas fees, causing users to think twice before making transactions. Prioritising your security above all else, we removed gas fees out of the equation.
So, in case the crypto exchange you use gets hacked, having coverage would significantly reduce the level of risk imposed on you. Risk management is an imperative method every investors must employ and it doesn’t only involve diversifying your portfolio. Taking necessary precautions against all risks- including exchange hacks is the logical thing to do in the current state of the crypto world.
The CoverCompared dApp is your one-stop solution to insure all your crypto assets within wallets present in these crypto exchanges that are vulnerable to hacks.
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.