Insurance of cryptocurrency is an area of the industry that still needs to mature. Like institutional custody a couple of years ago, insurance in the space is lacking. One of the largest cryptocurrency exchanges created their own insurance because there was no other viable solution. Options for cryptocurrency insurance, just as with custody, continue to develop slowly but surely.
We get asked about insurance regularly and rightly so. Our clients are moving large amounts of their funds into our care and want to make sure it is safe. For that reason, we work with Curv, an institution wallet provider that is SOC 2 Certified. They are venture funded by the best firms and work with several well established financial institutions. Learn more about Curv here.
$50 Million Insurance Policy
Munich Re, established in 1880, performed extensive security audits on Curv’s technology before issuing the policy, which is a testament to MPC protocol and the robustness of Curv’s implementation.
Learn more on Cointelegraph: Curv Secures $50 Million Insurance for Customer Crypto Assets
Competitors are price gouging
We’ve studied the competition so we can provide the best platform and customer experience in the market. We have found that one competitor, in particular, attempts to use insurance as a sales trick and marketing gimmick.
An example is Bitcoin IRA which touts its custodial partner Bitgo’s insurance policy. They point to this policy and use it as the primary reason to charge up to 12.5% transaction fees, which is 1,150% higher than iTrust’s transaction fee of only 1%.
Bitcoin IRAs transaction fees are in addition to account and storage fees of:
- $240 per year account fee
- .05bps of account value per month storage fee (.60bps per year)
Their account/storage fees should be plenty to cover the insurance offered through Bitgo without having to charge excessively high transaction fees on top.
Example with Bitoin IRA: $100,000 Account = $840 account/storage fees per year.
Same example with iTrustCapital: $100,000 Account = $359.40 account/storage fees per year.
Insight over Emotion
Consumers need to do research and make investments based on proper analysis, not marketing designed to manipulate their emotions
We are still in the early stages of this new asset class, and many areas can be improved. At iTrustCapital, we commit ourselves to offer the most secure, easiest to use, and the lowest cost crypto and physical gold IRA platform. We are also committed to full transparency, which is counter to many of our competitors.