Individual Bitcoin, Ethereum and cryptocurrency holders looking for a way to protect their holdings now have the option to secure an automatic policy offering up to $1 million in the event of catastrophic losses.
Coincover, a UK-based risk management provider, is offering a new policy through Lloyd’s of London for Civic wallet users. Users who sign up for Civic’s digital wallet will automatically be opted-in to the policy.
According to Coincover, the offering will provide protection for Civic’s hot wallet. Hot wallets are typically used to settle cryptocurrency transactions including trades, purchases and remittance payments.
By staying connected to the internet, they remain exposed to potential hackers, unlike cold storage solutions that protect long-term crypto holdings offline.
Coincover guarantees coverage of up to $1 million per wallet against catastrophic losses.
“In the event that a business with Coincover Deposit Protection Guarantee ceases operations due to business failure, catastrophic systems failure or catastrophic data loss that results in its customers being permanently unable to access funds in their wallets, the Deposit Guarantee scheme will access and recover funds on their customers behalf.”
Civic CEO Vinny Lingham says its new coverage is an industry-first for hot wallets.
“Civic is now the first and only non-custodial crypto hot wallet to offer a $1 million (USD) digital currency insurance policy, free to all our users to protect their crypto holdings.”
Bitcoin, Ethereum and crypto entrepreneurs are making a push to attract mainstream users by offering consumers a new way to move value around the world and to retain the value of their assets based on math and cryptography. Cryptocurrencies function in stark contrast to traditional fiat currencies, such as the euro and the US dollar, which are routinely subject to fiscal measures, political tactics and monetary policies that can adjust money supplies, interest rates and change other critical terms overnight to impact liquidity and thwart the damaging economic effects of Covid-19.
According to Civic,
“The Coincover and Civic alliance and Cryptocurrency Protection Guarantee represent continuous efforts from both Coincover and Civic to provide consumers with peace of mind as they enter into the crypto space in greater numbers. The timing couldn’t be more apt. The world economy is shifting rapidly, and governments have taken emergency measures to stabilize global markets, including cutting the interest rates to nearly zero. For crypto holders navigating economic turbulence, a Civic Wallet with a Coincover Cryptocurrency Protection Guarantee provides an additional layer of protection.”
Civic is rolling out its private beta to a list of pre-registered users and says it plans to announce new features in future versions of the product. The wallet will allow users to store and buy digital currencies, including Bitcoin, Ethereum and the stablecoin USDC by linking directly in the app to a bank account. Users in specific regions will also be able to send crypto and money to friends and family via usernames or addresses to other blockchain wallets.
The company says a user can easily regain access to their wallet in the event that they lose their phone.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Marcos__Silva/Dario Lo Presti
