These days the hacking of portfolios and cryptocurrency accounts is not unpopular. The recent victims are the cryptocurrency exchange Zaif who lost $ 60 million with a hacker last month, and is even a hacker who said he will do it on October 12 in live streaming on a platform. The anonymous Twitter account with the name GeoCold announced this week that it would perform and broadcast live streaming on Twitch, a 51% attack against Altcoin Einsteinium. He wants to show how easy it is to take delivery of a blockchain with a few dollars of rented hardware to achieve two goals.
But now you can buy cryptocurrency savings on CryptoIns using Bitcoin, Ethereum and more than a hundred supported cryptocurrencies. The service, which is managed by the Swiss insurance broker ASPIS SA, is the first of its kind to offer insurance for personal accounts on the exchange of cryptocurrency and in portfolios.
The service protects all cryptocurrencies and aims to provide confidence for beginners as well as for experienced traders and investors and, hopefully, attracts new audiences according to CryptoIns CEO Timofey Volkov.
An insurance for your cryptocurrency savings means that your assets will be fully reimbursed in the event of loss of resources either by hacking or other eventualities. The compensation decision is taken within 30 days from the application of an event or an insured event while payment is made within 5 days of the decision.
The insurance policy also covers the risk of loss of business due to a total shutdown of the switch and malicious actions by staff members leading to a collapse of the exchange or in the event of bankruptcy or termination. It also covers theft, fraud, illegal actions of personnel, management or owners of an encrypted exchange. But there is a list of events not covered by the policy and customers will have to submit to KYC to get compensation.
Once an event occurs, the losses are calculated and the compensation paid in BTC. All cryptocurrencies are insured with the insured value recalculated at the time of BTC insurance for reasons of convenience. And it does not exclude the growth of the value of cryptocurrencies. For example, if the value of the insured cryptocurrency increases, they will pay more in insurance payments in the event of an eventuality. However, the maximum payment amount is equal to the amount of liability purchased under the policy.
With CryptoIns, simply open the website and choose the accounts in a purse or portfolio that you want to insure. Currently, the service is available for 28 different exchanges and portfolios including Binance, Bitfinex, Bitstamp, Kraken, HitBTC, Bithumb, Coinexchange.io. ShapeShift, Cobinhood, Coincheck, YoBit, Bittrex, Poloniex, MEW, Ledger, Trezor and a new set of accounts.
The default insurance policy period is 90 days or 365 days, but may be extended. The price of an insurance policy will depend on the size of the secured cryptocurrency portfolio and on the reliability of the exchange or portfolio that houses the account you wish to insure. Reliability is accessible from a proprietary scoring model. You can also calculate the cost of your protection using their calculator on the website. Their insurance fund, which is obtained from the sale of crypt insurance policies, and is constantly growing.
Once registered, select accounts or portfolios to ensure and calculate costs, payments are made through the Coinpayments gateway in the personal account on the website.
However, the maximum amount of funds that can be insured for an exchange is only 15 BTC per exchange and you can secure assets on different exchanges with a total of up to 15 BTC, but will be increased in the future. Furthermore, the limit for each insured event is $ 7,000,000.
Insurance payments are guaranteed by the main global reinsurers and insurance certificates issued by Selecta Insurance and Reinsurance Company (Caribbean) Limited, an authorized insurer. Selecta is an insurance company legally capable of receiving insurance premiums, maintaining reserves and providing insurance payments in the form of cryptocurrencies. It has a partnership with AIG, one of the ten largest insurance companies in the world.
According to their website, over 50 exchanges of cryptocurrencies fail while 19 have been hacked since 2011, with over 1.2 million Bitcoin lost from these activities. Attendance frequency increased by 36% each quarter.
According to Cragnews and CoinSpeaker, Timofey Volkov said the company is sure that cryptocurrency insurance is the "next necessary step on the road" for mass adoption of technology around the world.