As the market for non-fungible tokens (NFTs) grows, it’s important to be aware of how Coinbase is protecting your investments. The company offers multiple security measures to protect your cryptocurrency, including insurance and safe storage options.

The insurance market for digital assets has been evolving in recent years, and there are a number of products available. Some are specifically targeted at consumers, while others are tailored for exchanges and custodial providers.

Understanding Coinbase Insurance for Crypto Assets

Coinbase insurance is offering insurance policies for crypto assets, though it’s worth noting that these are typically limited in scope. Many do not cover losses resulting from exchange hacks or system failures, for example. Other exclusions may include losses due to market fluctuations or Ponzi schemes. Physical loss of hardware wallets is also typically not covered, and issues with the underlying blockchain technology are generally excluded as well.

As a result of these limitations, the cost of crypto insurance is currently fairly high. Insurers need to pay out claims before receiving revenue, so premiums are often very high relative to other coverages. The price is likely to decline as the industry matures and companies are able to negotiate better rates with insurers.

The good news is that you can still protect your cryptocurrencies with secure storage methods like cold storage, and there are some newer services that offer more robust protections. In addition, you should use a password manager to ensure that your accounts are as secure as possible and avoid reuse of usernames and passwords to reduce the risk of account takeover.