In this article we will explain how cryptocurrency insurance related industry can make a top level place in cryptocurrency market and they could make cryptocurrency related investment and businesses more attractive for new people.
Cryptocurrency Insurance A New Business Opportunity
In the present time new business can make profit only when they have new ideas or concepts to implement in this growing market.
If a new business will enter into any field with an old idea or concept then that can’t achieve that type of hype and publicity which actually needs for a new business.
But here in this field of cryptocurrency no one high level company exists in cryptocurrency insurance sector so that investors in cryptocurrency field can get insurance facilities individually.
Only SEC like companies are available which are doing insurance for only big reputation companies like exchanges in cryptocurrency market.
In the present time this cryptocurrency field needs Insurance companies which can serve insurance policy to almost every person who have small or big business.
We all know very well how the cryptocurrency market is volatile but still there can be a business of insurance that can insure our investment by particular amount of compensation against loss.
History Of Cryptocurrency Insurance Companies
In the cryptocurrency field in 2014, many small money makers were doing business in this field with the name of cryptocurrency insurance.
These people doesn’t have any permission or reputable trust but still people were using their services of investment.
Usually 10% of the profit of investment taken by those people and in case of loss they return 50% of the investment amount.
Since it doesn’t seem good for a small investor but still it was really a best option for those people who were doing investment in a very big amount.
But here we should keep in our mind that the time of year 2014 was not much volatile like in the present time. So Insurance returns in case of high loss in the present time can’t be insured by 50% .
Why Does the Cryptocurrency Field Need Cryptocurrency Insurance?
Most of the people, who are not aware about the cryptocurrency and share market, have lots of fear that they will lose all their funds in case of a high dump.
Since this is a very usual thing for any person , if they have lack of knowledge in any field of investment.
But for the beginning of investment by newbies in this field of cryptocurrency we need Crypto Insurance options that can insure such newbies to tackle their mentality by big loss fear.
Also many types of hack at trusted Exchange ( including BINANCE , Cryptopia, Coin gecko, Bitfinex etc) faced Ethereum and many other crypto coins stolen from multiple Exchanges at the same time. This clearly shows that how much this economy of cryptocurrency needs Insurance options.
Challenges For Cryptocurrency Insurance Companies Startups
Cryptocurrency Insurance could be a big source of revenue for the cryptocurrency insurance Startups. But beside the revenue there are many types of challenges which are hard to handle under the dramatic situation of the cryptocurrency market.
First thing that is a big problem is volatility. Crypto Market is highly volatile, which is its uniqueness but it is going to be a big challenge for insurance companies because high dump in the market means high loss in the investment and this will lead to a high loss for insurance companies to give compensation in case of insurance for the investment in crypto assets.
Second big thing is high level black hat hackers. Since day by day technology of development in every field is growing but still opposite of it there are numbers of hackers who are ready to crack any type of security.
Since transactions in cryptocurrency can be traced easily but no one can identify the user who is doing the transaction, so usually hackers try to hack exchanges’ funds instead of fiat based share market Exchange.
So risk at cryptocurrency Exchanges at more than in any other field.
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