Keeping Your Crypto Safe: 4 tips from experts in digital asset management

As the crypto industry grows, more people are investing in digital assets. But as you may be aware, hackers are developing sophisticated ways of stealing billions of dollars worth of digital assets every year, highlighting the need for greater asset protection. Here, we introduce four tips for managing your digital assets, with a focus on why signing up for a crypto insurance policy is such an important step to take. 


Manage the risks 

Due to the high stakes associated with your investments, it’s so important that you take steps to manage the risks of holding cryptocurrency. The main threat comes from online sources, as hackers continue to steal billions of dollars of crypto every year. Most crypto is stolen as a result of criminals gaining access to systems that store private key data, enabling them to steal money directly from people’s accounts. 

There are multiple ways to safely store your crypto, from cold wallets to paper wallets. Multi-factor authentication is also crucial for protecting your assets, as is the use of unique passwords and other standard online security. The more you think about the risks, the less likely you are to be hacked. 

Take out cover

Comprehensive crypto cover acts as an external seal of approval for your digital assets. As robust as your personal or business security is, a cover policy adds a safety net that protects your crypto should hackers access it. 

At Amulet, we will provide simple, reliable cover for everyone in Web3. Our coverage will start with smart contract risk and stablecoin depeg before moving onto slashing, NFT insurance, oracle failures, and other economic exploits. We have created the industry’s first Protocol-Controlled Underwriting Value (PCUV) approach with initial deployment on Solana. If you’re serious about protecting your digital assets, taking out cover is a crucial step to take.

Policy wording 

Firms and individuals need to be aware of the different types of cover available. After all, digital asset management presents a new area of risk, which has resulted in a lot of confusion surrounding the coverage available. 

Two of the most common offerings are known as crime and specie policies. Crime protection is available for traditional finance products and covers the loss, damage, and theft of certain digital assets. Specie cover is specifically for theft or destruction of assets when they’re stored in secured locations. You need to be aware of the differences between the two when doing your research. 

Market dynamics 

Taking out a protection policy is an important step, but the dynamics of the crypto market confuse things slightly. As more individual and business users enter the market, coverage will evolve, particularly as protocols become more confident about the risks they are seeking to prevent. 

Most policies are written in fiat currency, but many firms would like more variety. This would eliminate the risk of failing to keep up with the value of a specific cryptocurrency, given current market volatility. While the evolution of crypto protection will take place over several years, it’s extremely important to take the necessary steps to protect your digital assets in the here and now. 

Amulet is the industry’s first PCU approach, with initial deployment on Solana. Find out more about our future range of coverage, and follow our blog for the latest updates on the evolution of digital asset insurance. 

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