The number of fields, in which cryptocurrency can be used, has grown to an extent, off-late. It provides people with many facilities without the interference of a centralized body, that is, the government. People can buy goods in exchange of cryptocurrencies. They can even store it in the form of digital wallets. This digital currency has also attracted many insurance companies. However, these companies are not taking any risk at present. This is due to the fact that this currency is not yet accepted legally in many countries and lacks stability in its values.
Interest of Insurance companies in Cryptocurrency
Despite having some drawbacks, insurance companies are taking many steps to become familiar with cryptocurrency and its wallets. Many of these companies have started digging in this field. They are offering insurance to the people living mainly in those countries in which cryptocurrency and blockchain technology is accepted and is legal. Insurance companies are offering these facilities quietly, that is, they are not interested in boasting about the crypto insurance. Cryptocurrencies have experienced many security-related issues as companies are not sure about the rates of these currencies. Therefore, many companies based on the crypto-field are including insurance for security purpose.
Importance of insurance for crypto-startups
Crypto-startups are taking the next step in the crypto field. Due to the security issues in this sector, many of these startups have introduced insurance. It has become an important aspect of these companies. Many experts have claimed that insurance is the most necessary thing for companies related to cryptocurrency. This helps them to ensure safety and provides an easy way to work along with banks.
Rate issues with insurance companies
Many insurance companies are providing protection services to crypto-companies at a very high rate. In fact, some are charging two to five times more than the rates offered to non-crypto companies. Despite having higher rates, these companies are providing great security in the crypto-field which will definately help in the growth of this sector.