How do I insure my crypto assets?
A common question new investors have is how do I insure my crypto assets? Luckily, Decentralized Finance space has protocols that provide coverage to various crypto assets on different platforms. This article will take a look at what the process looks like.
What Coverage is Right for me?
To help decide on a coverage provider, it’s important to know what type of Coverage Protocols exist. Furthermore, it’s important to understand exactly how these DeFi Insurance Alternatives Work. Once you have a good understanding of those concepts it is time to purchase a policy!
How to buy cover
To purchase cover, protocols will require you to interact through their decentralized app. Meaning, this will require you to have a crypto wallet that can connect through their interface directly on their website. For a traditional policy, as discussed on our other article, you will need to choose:
- Covered Asset/Protocol
- Value of coverage
- Length of coverage
Once these three variables are chosen, the protocol will require an upfront premium equal to a percentage of the covered value (typically 2.6%). Then, on accepting terms, a transaction will execute in which you will need to approve the price of the policy, in crypto. Finally, after the transaction completes, the policy is active! If you ever need to make a claim there will be a claims process. This varies by protocol by protocol, but will always require proof of ownership process of the wallet holding the policy and the wallet that suffered the loss. So keep that in mind.
No purchase necessary – Ease Uninsurance
Alternatively you can get your assets covered through our new model of Uninsurance. This process does not require you to purchase cover and lock yourself into a contract. It’s much simpler and more user friendly. To interact with our app follow these instructions here. Once you deposit your assets that’s it! Enjoy coverage with no premium. The only time you pay is to help cover the cost of a hack that occurs to other assets in the ecosystem. With coverage this easy and simple, there has never been a better way for investors to DeFi @ ease.