In this article, we look at the key macroeconomic releases in the US this week, such as jobs numbers, CPI and PPI, and how it could affect markets.

Fears of a US recession and a global trade war have triggered significant downturns in the crypto and stock markets over the past month. As the Trump administration's policies fuel a "period of transition," financial markets are entering a "detox period" characterized by increased volatility and uncertainty. Meanwhile, this is a critical week for investors, with multiple US economic reports being released by Mar 14, 2025.

In this article, Bybit will introduce you to the key macro trends shaping financial markets and crypto prices. You’ll also learn which of this week’s economic reports are the most important to be aware of.

Amid falling stock and crypto prices and market uncertainty, this week is important for investors, with multiple key economic reports being released between March 10 and 14. 

These are the most crucial macro events to watch this week:

A new job openings report was released on Mar 11, 2025, showing that 

 were added in January, bringing total openings to 7.74 million. This signals a resilient labor market, which could have implications for inflation and interest rate expectations.

Investors are now turning their attention to the upcoming reports on 

 on March 12 and the Core Producer Price Index (PPI) on March 13 for further clues on inflation trends. If inflation remains elevated, it could influence the Federal Reserve's policy stance, potentially delaying rate cuts that markets have been anticipating. This could lead to short-term volatility across equities and crypto, as higher interest rates generally make risk assets less attractive to investors.

Despite a strong start this year, the crypto market has taken a significant hit since early February. As of Mar 12, 2025, the combined cryptocurrency market cap

 over the past seven days and 15.24% in the past 30 days. 

Here's how the prices of some major coins have changed:

This market sell-off has triggered a large number of liquidations, 

 over the past 24 hours. Additionally, the 

 has fluctuated between "Fear" and "Extreme Fear" since Feb 25, 2025. This suggests that investors feel pressure to sell their cryptocurrency, driving digital asset prices down.

Cryptocurrency isn’t the only asset class that has recently experienced a significant downturn. In fact, the crypto sell-off is primarily being driven by global market turmoil that has also triggered a stock market downturn within the past few weeks.

The S&P 500 (GSPC), Nasdaq-100 (NDX) and Dow Jones Industrial Average (DJI) — three of the major stock market indices — are down by 8.18%, 10.94% and 7.09%, respectively, over the past 30 days. What's more, the NDX had its 

 within 24 hours, and the “Magnificent Seven” stocks 

But why did crypto and US stocks fall so heavily over the past month? The answer lies in new warnings that the US economy could be 

. Moreover, investors fear that President Donald Trump's tariffs could lead to a global trade war.

Since his inauguration on Jan 20, 2025, Trump has introduced a 

 on US steel and aluminum imports. Moreover, he’s introduced nation-specific measures against 

Also, the Trump administration is drastically cutting US government spending by 

 and other measures. These policies, combined with the impacts of a brewing trade war, are fueling market volatility and uncertainty in the short term.

, warning of short-term pain for financial markets. According to Treasury Secretary Scott Bessent, these moves aim to rebalance the economy and could lead to a "detox period."

Intermediate

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Macro this week: Key releases amid recession fear

AI-DOL Superstar Trading Battle is a premier trading and voting event aiming to support emerging AI crypto projects. Find out more about the five key AI mentors helping to shape the future of AI.

The AI-DOL Superstar Trading Battle is a premier AI-driven event hosted by Bybit. It serves as a launchpad for emerging AI-powered crypto projects, offering them a chance to secure a Bybit Spot listing and gain industry recognition.

A key element of the event is its mentorship program, through which leading AI projects provide strategic guidance to new entrants. These mentors offer expertise in AI-driven trading, governance and 

 (DApps), helping promising startups refine their solutions and achieve long-term sustainability.

What is the Bybit AI-DOL SUPERSTAR event?

The Bybit AI-DOL SUPERSTAR Trading Battle is a unique event that merges artificial intelligence (AI) with blockchain, creating a competitive space for AI-driven crypto projects to gain visibility and adoption.

This event not only fosters innovation in AI and blockchain, but also rewards participants who engage in trading and voting.

The mentorship program is a core pillar of the AI-DOL Trading Battle, pairing AI startups with experienced industry leaders. These mentorships help AI projects refine their algorithms, governance models and trading strategies — key factors for long-term success in web3.

Here’s a look at the five key AI mentors shaping the future of AI-powered crypto:

Luna by Virtuals (LUNAI) — the AI-driven digital performer

Luna by Virtuals is a livestreaming AI influencer built on Virtuals Protocol. Originally part of an AI-powered K-pop group, Luna has over 500,000 TikTok followers, showcasing that AI-driven personalities can thrive in entertainment and web3.

Luna by Virtuals demonstrates the power of AI in digital engagement, which explores AI-driven media, decentralized content creation and tokenized engagement models. This highlights the intersection of AI, blockchain and social influence in web3.

Top Hat (HAT) — the no-code AI agent builder

Top Hat is a Solana-based AI launchpad that enables anyone to create AI agents and tokens without coding expertise. It features simplified crypto analytics, algorithmic trading and token automation, making AI technology accessible to non-technical users.

Top Hat focuses on market predictions, algorithmic trading and smart contract automation. This empowers startups to develop scalable and efficient AI trading solutions for web3.

Cookie DAO (COOKIE) — web3 AI governance and data intelligence

Cookie DAO is a decentralized AI and data governance platform that optimizes AI-driven marketing, analytics and web3 intelligence. It allows 

 data, improving automation and decision-making.

Cookie DAO integrates AI-powered governance models and data analytics into its blockchain projects, thus enhancing scalability and transparency.

ai16z (AI16Z) — AI research fund and web3 incubator

ai16z develops AI investment strategies, funding models and AI-powered blockchain applications, helping emerging projects secure financing and navigate the AI-driven crypto ecosystem. Its AI-focused venture capital and incubation platform combines community-driven funding with AI-powered decision-making, giving it a significant role in accelerating AI adoption in web3.

Alchemist AI (ALCH) — AI-powered no-code development

Alchemist AI is a decentralized AI development platform that enables natural language-based application creation. By leveraging AI and blockchain, it allows users to build, deploy and monetize AI models without expertise in coding.

Alchemist AI optimizes AI training models, automation frameworks and decentralized AI applications, bridging the gap between AI research and real-world blockchain adoption.

The AI-DOL Superstar Trading Battle isn’t just a competition — it’s a launchpad for AI innovation. Mentors help AI startups scale their projects by providing expert guidance, advanced trading strategies and governance models.

Ready to join the AI-DOL Superstar Trading Battle? 

, trade and vote — and support the next AI revolution in web3 now!

Beginner

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Who are the Mentors in Bybit’s AI-DOL SUPERSTAR?

Trump unveiled plans for the Bitcoin strategic reserve and US digital asset stockpile, signing Executive Order 14178. Find out how this works and the implications for Bitcoin and the crypto industry.

The US government has proposed recent initiatives for both a bitcoin strategic reserve and a US digital asset stockpile in order to create a national reserve of cryptocurrencies. The executive order, signed by President Donald Trump on Mar 7, 2025, aims to secure the country’s place in the fast-evolving crypto space. The strategic reserve would include Bitcoin (BTC), the largest cryptocurrency by market capitalization, while the digital asset stockpile would include other digital assets apart from BTC. 

This article dives into Trump’s vision for crypto, reserve and stockpile details, cryptocurrencies involved, the potential impact on crypto markets and Trump’s broader initiatives for the cryptocurrency industry.

Since his inauguration, President Trump has enthusiastically embraced cryptocurrencies. His administration has rolled out pro-crypto policies to encourage growth and innovation. One standout move was appointing David Sacks, a tech and finance expert, as “AI and Crypto Czar.” Sacks is steering the US toward a crypto-friendly future, overseeing policies that would boost digital assets. 

Trump has been vocal about his ambitions, declaring on his social media channel Truth Social that the US will become the “crypto capital of the world.”

 plans for the Bitcoin strategic reserve and US digital asset stockpile ahead of the first White House Crypto Summit in January 2025. He signed Executive Order 14178, directing the presidential Working Group to establish this digital stockpile. Think of it as a strategic petroleum reserve, but for crypto — a way to secure valuable assets for the nation’s future. 

 highlighted the move on X, calling it a game-changer. The reserve signals the government’s belief in crypto as a long-term economic tool.

How would a Bitcoin strategic reserve work?

A bitcoin strategic reserve as established in the executive order aims to establish Bitcoin as a strategic asset for the US, similar to a 

, highlighting its potential as a store of value.

The reserve's capital would come exclusively from Bitcoin that the federal government already owns, which it obtained through civil and criminal asset forfeiture proceedings, such as seizures from illegal activities (i.e., drug trafficking, money laundering and cybercrimes). This ensures that no new Bitcoin is purchased with public funds for the initial reserve, and that there's no additional cost to taxpayers.

Estimates suggest the US government currently holds around 200,000 Bitcoin (worth approximately $16.5 billion at current market prices). However, a full audit is required, as mandated by the executive order, since there is no official accounting of these holdings.

Furthermore, the government of the United States has established a policy not to sell any Bitcoin that’s added to a Bitcoin strategic reserve. This policy intends to safeguard the value of Bitcoin over the long term, and to avoid financial losses that could occur from selling the cryptocurrency prematurely. 

 Sacks, previous instances of early Bitcoin sales resulted in losses exceeding $17 billion.

Finally, the executive order authorizes the secretaries of the Treasury and Commerce departments to develop “budget-neutral strategies” for acquiring additional Bitcoin, but only if these strategies impose no incremental costs on American taxpayers. This could involve mechanisms like using future forfeiture proceeds or other cost-free methods, but no specific plans or timelines for additional purchases have been detailed.

Alongside the main crypto strategic reserve, a new executive order was also established: the US digital asset stockpile, which would include other cryptocurrencies (beyond Bitcoin) seized through legal actions, as noted in 

Unlike the initial crypto reserve, it wouldn’t actively buy new assets, but would manage existing holdings responsibly under the Department of the Treasury. The goal (per the White House fact sheet) would be to centralize and maximize the value of these assets, ensuring proper oversight and avoiding past losses from premature sales.

 by roughly 5% to $85,000 on Mar 7, 2025, possibly triggered by the announcement and expectations of larger government purchases of BTC, or even a more aggressive strategy. Over the past week, Bitcoin has declined by 11.8% amid a broader market sell-off.

Trump isn’t just talking about crypto — he’s actually acting on it. Beyond the reserve, his administration has pushed forward, for example, with regulatory changes that include the dropping of multiple enforcement cases against crypto firms, easing the way for innovation.

Since Trump took office, the SEC has backed off from several crypto enforcement actions. Dropping these cases has lifted a cloud of uncertainty, giving companies room to experiment and grow. It’s a clear sign of a more relaxed regulatory stance, aligning with Trump’s push to nurture the crypto industry instead of stifling it.

Could these actions spark a global arms race for Bitcoin?

Trump’s crypto strategic reserve, now expanded with the Bitcoin strategic reserve and US digital asset stockpile, marks a defining moment for digital assets in America. 

By planning to stockpile Bitcoin and other seized assets, the US is staking its claim in the global crypto race and recognizing Bitcoin as a legitimate asset. This 

 to consider allocating capital to Bitcoin. 

 that this executive order is merely Trump fulfilling his obligations to the crypto crowd, arguing it’s more symbolic than transformative, akin to the 2021 

 launch, rather than the impactful January 2024 Spot Bitcoin ETF launch. Only time will tell if this move will herald a paradigm shift in global Bitcoin adoption.

bitcoin strategic reserve, digital asset stockpile

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Understanding Trump's crypto executive order: Bitcoin strategic reserve and US digital asset stockpile

In this article, we’ll delve into Bybit Pay to discover its purpose, benefits and robust ecosystem, which caters to individuals, merchants and businesses alike.

As cryptocurrencies continue to gain mainstream adoption, the one field where they still lag behind is in daily use. Most coins and tokens are treated as speculative assets or long-term investments, not as a medium of exchange. The biggest impediment to such adoption is the lack of payment solutions designed to seamlessly merge the advantages of cryptocurrencies with the reliability of the traditional banking system.

In order to change this situation, we need a payment solution that bridges the traditional banking system and 

 to provide a seamless payment solution for the end user. The world’s second-largest cryptocurrency exchange, 

, has launched Bybit Pay with that precise goal in mind. 

Traditional financial systems and blockchain-based ecosystems have long operated in silos, creating friction for users and businesses alike. 

 aims to bridge these barriers, allowing anyone to transact effortlessly across both worlds.

Bybit Pay supports payments in eight cryptocurrencies (including Bitcoin, Ethereum and USDT) and the Brazilian real, and has already integrated with 

 the popular BCB-created payment platform, with more integrations likely to follow in the future.

The biggest advantage of Bybit Pay is that it acts as a bridge between fiat currency and crypto. Bybit Pay allows users and merchants to conduct transactions without worrying about the technical and regulatory challenges that typically accompany crypto payments. By converting crypto to fiat (and vice versa) in real time, the platform ensures that both transacting parties experience minimal friction when a payment is made.

Bybit Pay also unifies merchants, payment processors and service providers worldwide through a single, integrated platform. For example, a retailer in Brazil can effortlessly accept payments via Pix’s local QR code–based system without needing to understand web3, since transactions are seamlessly processed through Bybit’s infrastructure.

Merchants who support Bybit Pay tap a user base of over 60 million Bybit users globally, a large and active community that creates a network effect to benefit customers and merchants alike. The platform’s seamless integration enables merchants to reach a global audience, breaking geographical barriers that often limit growth in traditional markets. Additionally, accepting cryptocurrencies allows businesses to stay ahead of the curve by being early adopters of a payment system that could potentially redefine financial transactions.

Bybit Pay enhances user experience by simple and easy integration with 

. This allows users to keep control of their digital assets, while bridging for traditional payments.

Traders can also use Bybit Pay’s collateralized payment tool to pledge their crypto and borrow the required fiat currencies. Together, these features provide users with the ease of use of traditional finance combined with the financial flexibility of cryptocurrencies. 

Bybit Pay has developed an impressive suite of ecosystem system products that reinforce its crypto payment advantages. These include:

Bybit Pay also provides tailored solutions for businesses to streamline crypto adoption. Its merchant acquiring system offers e-commerce platforms and other businesses low-fee cryptocurrency payment processing, and enables real-time settlements in both crypto and fiat currencies. 

For developers, the API Open Platform provides a flexible tool kit that allows them to embed Bybit Pay’s infrastructure into apps, websites or custom platforms. 

Together, these tools make it easy for businesses of all sizes to tap into the global crypto user base without overhauling their existing systems.

Bybit Pay also goes beyond payments to help users grow their assets, acting as a one-stop investment center that merges spending flexibility with earning potential. Bybit Pay lets users deposit idle funds into flexible savings products to generate yield. Yields vary depending upon demand, but as of March 2025, USDT deposited for a flexible term could generate a 6.45% yield on the 

. This dual functionality ensures liquidity for daily transactions while maximizing returns. 

To further incentivize engagement, the platform also offers exclusive discounts and cashback rewards on purchases, creating a loyalty loop that benefits frequent users. High–net worth individuals gain further advantages through 

. This includes elevated cashback rates, priority access to new features and tailored discounts on premium products. 

These layered incentives not only enhance user retention, but also position Bybit Pay as a complete financial ecosystem in which spending and wealth-building can seamlessly coexist.

In late January 2025, Bybit announced the 

. This service offers a cutting-edge payment solution and integrates seamlessly with Pix, Brazil’s leading payment system. 

To celebrate this launch, Bybit Pay is hosting a 

 from Feb 28–Mar 31, 2025, blending Brazil’s festive spirit with crypto incentives. Every time a user spends 50 USDT or 250 BRL via Bybit Pay, they earn entry into a prize pool featuring luxury gadgets like an iPhone 16 Pro or PlayStation 5, or thousands of USDT 

. The more you spend, the higher your chances of winning.

Bybit Pay has the potential to make cryptocurrency payments as simple as traditional fiat payments. By merging web3 flexibility with traditional payment infrastructure, it empowers merchants and users to transact globally without sacrificing familiarity or liquidity. Its recent expansions — such as its Brazil launch and Carnival-themed incentives — reward participation while demonstrating how easily the platform integrates into daily life. 

Users can take advantage of current initiatives by registering for the 

 event. Merchants who want to integrate Bybit Pay and benefit from its vast customer base can use the 

bybit pay.png

Bybit Pay: Bridging the gap between traditional finance and the crypto world

Crypto

Crypto investment can be lucrative, but it brings new risks, especially in the DeFi realm. Is crypto-insurance the solution for everything? Learn more.

The crypto market is growing in leaps and bounds. As it does so, it’s gaining more acceptance in the traditional financial system. Governments are exploring their options for incorporating cryptocurrencies into their central banks, while financial institutions are investigating new crypto-inspired products to offer their customers. The world of 

 is an exciting one, offering consumers numerous worldwide options to access vibrant new financial products, applications and services. But crypto also brings new risks. Is crypto insurance, which promises the protection we seek, the next big thing?

Crypto insurance is a type of insurance policy designed to protect against losses associated with cybersecurity breaches. Most major crypto exchanges carry at least some insurance to protect the digital assets in their custody against losses from theft and other security breaches. 

Because cryptocurrency isn’t legal tender, it’s not protected the same way other deposits might be by bank insurance. For example, in the United States, bank deposits are typically protected by the 

 (FDIC) or Securities Investor Protection Corporation.

On contrary, exchange insurance is designed to protect against losses incurred in covered security events. However, total losses may occasionally exceed insurance recoveries, leaving some investors unable to recover their entire investments. Additionally, policies don’t cover personal losses, such as those associated with lost credentials or personal data breaches — which means that there can be coverage gaps for some users.

Do Crypto Exchanges Insure Your Digital Assets?

The crypto insurance industry is still in its infancy, and many crypto assets simply aren’t protected by insurance. Most insurance policies are designed for businesses and corporations, not for private consumers.

Crypto wallets and exchanges purchase insurance policies with coverage, designed to protect against cyber theft and security threats. Other types of coverage are still in development and may feature additional protection, such as decentralized finance (

) insurance, which could feature protection against the loss of funds associated with the shutdown of a service provider, lost private crypto keys, or similar catastrophes. However, these policies aren’t yet available for consumers to purchase.

In other words, the average consumer’s protection depends largely on the services they access and use. For the safest experience, the most basic level of security should include two-factor authentication (2FA) as a standard. Users are asked to provide additional information, such as a code, whenever they log in. Using a cold wallet for the majority of digital assets is also advisable. 

 are more convenient, but they’re more easily accessible to hackers. Cold wallets are offline and are typically air-gapped, making them well-protected from those with ill intentions.

Most exchanges offer additional security measures, including crypto insurance programs. These aren’t backed by government-sponsored insurance plans the way conventional banks are, but if the exchanges are hacked, your funds will be protected and you’ll be compensated for your loss up to the amount specified in the insurance policy.

Do We Need Insurance in the Cryptocurrency Ecosystem?

, numerous hacks have put crypto funds in peril. The 

 resulted in more than $600 million being stolen from Ethereum, Binance Smart Chain and Polygon wallets. 

 nearly $150 million in Ether, Bitcoin and stablecoins in two separate hacks, and in December, hackers stole nearly $200 million from Ethereum and BSC wallets.

Investing in cryptocurrency brings the promise of major returns, but the risks can be very real with a volatile crypto marketplace. There’s a real need for crypto insurance policies, but insurance industry policies and premiums tend to be based on historical data. Because the crypto marketplace is still so new, historical data tends to be lacking, and market volatility can make the process even more difficult. 

When Bitcoin and other cryptocurrencies skyrocket in value, hot wallets and exchanges become especially attractive to hackers and thieves. For example, on Jan. 20, Crypto.com confirmed that it had been hacked with over 400 users being affected with unauthorized withdrawals on their accounts. Subsequently, Lloyd’s of London also reported using a variety of risk mitigation strategies, including cold storage, multi-signature wallets and server-side security.

Crypto insurance can fill the gaps, protecting against losses in a vulnerable, volatile system.

When Bitcoin was first unveiled, it was intended to serve as an alternative to the traditional financial markets. It would serve as a way for people to send and receive money via the internet without the need for an overseeing body or centralized authorities, but it would work much like any other currency.

Since its introduction, Bitcoin has grown in popularity and value, and numerous other cryptocurrencies have subsequently been introduced. The cryptocurrency markets have expanded rapidly, and crypto exchanges have had to move quickly to protect the integrity of their markets. The regulatory environment has evolved alongside the crypto markets, too. Regulators have gone from simply tolerating the existence of cryptocurrency to actively engaging with the markets.

From the Swiss Financial Market Supervisory Authority (FINMA) and Germany’s Federal Financial Supervisory Authority to the U.S. Securities and Exchange Commission (SEC), more countries’ regulatory bodies are taking proactive approaches when it comes to cryptocurrency.

 such as the Financial Action Task Force (

) have issued guidance regarding cryptocurrency, as widespread adoption continues with market volatility a commonplace occurrence. The ultimate goal is to create a strong framework, or regulatory environment, to inhibit fraud and money laundering without quashing the free-thinking and innovation that encourage economic development and let crypto markets continue to thrive.

Since Bitcoin’s introduction in 2009, the cryptocurrency market has grown in fits and spurts. Still, the market was largely retail-driven until the mid-2010s, when the total market value was valued at around

. At that time, the market entered what was known as a crypto winter, and prices cooled. Speculators fled the market, leaving only diehard crypto users who continued supporting the industry.

Their hard work paid off in the form of stronger infrastructure, new products and soaring demand. The long bitter crypto winter is now over, and institutions are ready to add crypto products to their investment portfolios. The demand for crypto products is hotter than ever, and the general public is clamoring for cryptocurrency and tailored products, financial services — and more regulated infrastructure.

The cryptocurrency market has also never been stronger or more viable for venture capital funds, banks and other institutional investors.

 investing in digital assets include Morgan Stanley, JPMorgan Chase, Citibank and BNY Mellon, with institutional investors beginning to significantly outweigh individual investors in the crypto marketplace. Retirement accounts are also increasingly turning to crypto investments.

There’s no better time than now to unveil a crypto insurance market.

Surge for Decentralized Finance (DeFi) Products

DeFi is still a relatively new concept in the crypto marketplace. Through the blockchain, users can complete hundreds or thousands of individual peer-to-peer transactions with complete security and privacy before settling them on the blockchain.

Decentralized finance refers to financial services that enable users to trade, borrow or lend via cryptocurrency on public blockchains. DeFi uses smart contracts to facilitate transactions without the need for a third-party regulator and facilitates peer-to-peer transactions through the use of DApps and/or exchanges.

The unregulated atmosphere surrounding the crypto marketplace and DeFi have allowed for some exciting and perhaps unexpected outcomes. In the traditional financial industry, regulations are intended to keep all parties safe and secure — but they can also have a dampening effect, preventing innovation and creativity that allow for stronger financial outcomes for both parties. In DeFi, transactions are built on the concept of “trustlessness.”

This doesn’t mean you cannot trust the transaction. Rather, it means that you do not need to put your trust in a third party or intermediary to complete the transaction. The process instead depends on smart contracts, a series of protocols that must be accomplished before the transaction can complete. This process protects both you and the other party in a transaction. Once the transaction is sent, it’s final. It cannot be reversed or altered in any way.

The growth potential for DeFi is enormous, which is why so many major players are looking to it, such as JPMorgan Chase and the Royal Bank of Canada.

Currently, the total value locked across DeFi stands at 

, compared to about $435 billion for this time last year. Comparatively, the

 is threatened by consumer inflation rates in the U.S.

This makes stablecoins and other cryptocurrencies with yields of 20 percent or greater even more attractive, for both individual and institutional investments. As the infrastructure has advanced, so has the access to and increased adoption of permissioned applications requiring KYC and Layer 1 blockchains, and Layer 2 scaling solutions for increased speed and improved asset management.

This has led to a new stage of evolution, with new cryptocurrencies, stablecoins and non-fungible tokens bringing new products and services — not just to more countries, but potentially to the entire world. This includes the estimated 1.7 billion currently unbanked people who could obtain simple mobile wallets, granting them instant access to the currency of their choice at a fraction of the cost of a traditional financial institution.

Bitcoin was the first cryptocurrency in history, and its blockchain was initially slow to attract fans. The first BTC cost just a fraction of a penny. Over time, its value slowly and steadily increased until it was nearly a dime.

Although at first only intended as a way to opt-out of the traditional banking structure after the 2007 financial crisis, the Bitcoin blockchain has grown to so much more. Recently, its price has soared and is currently trading

Cryptocurrency is a volatile market, though, and prices can drop quickly, even within a few hours — which is why experts recommend keeping only

 in cryptocurrency investments. Crypto insurance isn’t necessarily designed to cover the devaluation of your crypto, but it can protect against certain types of losses, such as a misplaced or forgotten key, or hacking or theft.

Increasing Crypto Hacks and Cyber Infiltration

As more people opt into cryptocurrency for everything from day-to-day transactions to investing for retirement, they attract another type of attention: that of bad actors with ill intentions. Hackers, infiltrators and thieves find the large volumes of currency passing through exchanges to be irresistible, and they use every tool at their disposal to access it. Security has been a concern for Bitcoin since its inception.

Blockchain technology has always been secure and difficult to hack, but it’s not totally impenetrable. Security risks are almost inevitable at every stage of the transaction process. From hacking into hot wallets to outright scams, hackers will attempt to access digital funds any way they can.

They’ll also attempt to infiltrate security systems. Crypto exchanges hold private wallet keys on behalf of their users via a custodial structure. This allows for speedier transactions, improved service and protection against loss. However, it can also pose a grave cyber threat if the administrative key is compromised by a security breach. The “admin key” provides complete control over smart contracts. If user funds are lost through a breach, they can only be protected for the amount insured by any policy covering them.

Therefore, both leading-edge security and high-quality insurance coverage are essential for protecting your digital assets when using a crypto exchange.

Generally, crypto insurance is designed to cover institutional losses. If a crypto exchange is affected by a security breach, its losses will be covered up to the amount covered in the policy. However, this emerging industry is beginning to recognize the need for individual crypto coverage as well. One insurer is now offering the service:

 to create a crypto policy that covers losses beyond that which an exchange might typically include. The policies range in cost from $10 to $750, and cover account holders’ digital assets against hacking, phishing, malware, device theft, trojan software and brute force attacks. There are some exclusions, however, and certain types of losses aren’t covered, including price fluctuations, blockchain failures and hardware loss or damage.

Other insurers haven’t yet entered the crypto insurance market — but they likely will as the insurance industry continues to heat up.

Crypto has gone mainstream, and as more people adopt and invest in digital assets, the industry will continue to expand. The potential for this virtually unregulated industry is nearly limitless — which is just what makes the risk-averse insurance market hesitate. That doesn’t mean that there aren’t plenty of opportunities for you, however. Proceed with caution, keep your wallet secure, and choose your investments wisely.

Is Crypto Insurance the Next Big Thing?

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