How To Safeguard Your Cryptocurrency
The total market capitalization of cryptocurrencies stands at $2.05 trillion. With the 8th biggest GDP in the world, the cryptocurrency industry is larger than Italy’s economy.
The top 10 cryptocurrencies account for 79% of all global trading.
Increasing amounts of cryptocurrency are being illegally acquired. In two years’ time, cryptocurrency theft reached a valuation of $7.8 billion and grew to $14 billion in the following year. Cryptocurrency and NFT ownership is growing rapidly, and with it, the amount of theft is staggering.
Cryptocurrency theft is conducted through a number of tactics, making it hard to stay ahead of. By tapping emails, texts, and other communications, phishing uses social engineering to capture cryptocurrency. Phishing alone has resulted in the theft of $115 million. Exploitation, via ransomware, blackmail, and fraud, have stolen a whopping total of over $103 million. Cybercriminals have robbed a standing total of $7.4 million by hacking into systems, software, and cryptocurrency wallets. The most profitable method of heist is Ponzi schemes, which have earned over $2 billion. Through these fraudulent schemes, investors are wired profits accumulated by other investors.
When it comes to insuring cryptocurrency or NFTs, it’s important to begin as you would with any insurance policy. Request quotes from multiple providers and decide which fits your budget. With this information on hand, compare the insurance premiums of the various quotes and types of coverage associated. The last step is to choose your umbrella insurance type, some of which include fraud, exchange, mining, custody, and DIF. Learn more about crypto insurance in the infographic below: