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BiographyAlthough private cryptocurrency insurance is available, it is a relatively young industry, and the protection is limited. Most crypto assets are not covered by insurance, which is in large part due to the relative immaturity of the crypto market. However, you should keep in mind that there are a number of ways to protect your assets in case of a security breach. In the event that you lose a large amount of money, there are several ways to get insurance coverage.
One way to ensure your funds are protected is to purchase crypto insurance. Cryptocurrency isn't legally tender in the U.S., so the money used to purchase it could be any legal tender. Thus, the money you use to purchase crypto is part of your risk portfolio, and insurers are likely to evaluate this risk before underwriting a policy. As such, it is critical to find a good crypto insurance provider who can offer coverage for both retail and institutional investors.
While the traditional insurance industry is becoming more familiar with digital assets, it remains cautious, so it's critical to discuss any digital asset-related risks with experienced advisors. Moreover, recent announcements of crypto-focused companies going public suggest that the market is growing fast. This process brings with it a number of financial benefits, but also significant exposures that require specific insurance coverage. While traditional insurers have shied away from entering the crypto space, this could soon change.