Traditional insurance companies are hesitant about writing policies to cover losses in cryptocurrency. Businesses that have customers dealing in cryptocurrency, until now have been the only recipients of their coverage.
However, since centralized insurance is another target of blockchain projects, you will notice a lot of decentralized insurance platforms that claim to insure users’ assets. For the most part, these should be avoided, because they are new in the investment field. Also, the only way to find out if these scams are scammed in reality.
Decentralized insurance might involve nothing more than smart contracts that automatically trigger when certain events take place. For example, if you have stored your cryptocurrency keys at an exchange and they were stolen in a hack, a smart contract could automatically transfer funds into your exchange account without any claim process.
