In this article you will learn:
- How wallet insurance works
- Which contributions (in euros and BTC) are insured
- What damage the wallet is insured against
- What criticism exists against wallet insurance?
The collapse of Mt.Gox, FTX and the like made it clear: Not your keys, not your coins. This means: Anyone who keeps their cryptocurrencies on exchanges runs the risk of losing everything. The solution: non-custodial wallets, i.e. self-custody of cryptocurrencies. Here, the users control the access key – the so-called seed phrase – themselves. This means that responsibility for their own assets lies with the users.
But there is still the risk of losing all of your assets. An example: James Howells. The computer engineer lost 8,000 Bitcoin – because he accidentally threw away his wallet keys. The Welshman is not alone in this. Investors repeatedly lose their access data and therefore inevitably their money.
How this should change, at least partially: with insurance. BTC-ECHO spoke to Philipp Oehler, CEO of Bitsurance, a company that insures Bitcoin. But how exactly does it actually work? And is the loss of the seed phrase also insured?
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