Cryptocurrency

Crypto Insurance – Why It’s Needed And What Concerns Insurance Providers

An insurance policy or coverage is a measure taken to avoid financial loss which is offered by an insurance company, an insurer, an underwriter or an insurance carrier. It is a type of risk management wherein it is mainly utilized to protect against the possibility of contingency loss or any uncertain and unforeseen financial loss.

For instance, a motor trade insurance is an insurance policy that safeguards someone involved with car dealing as a business or a profession, which could be a part-time or full-time occupation. Regardless if you are sole trader or a Limited Company and employ workers, traders insurance is needed. A motor trader could be a valeter, a car mechanic or individuals selling automobiles as a side income. A motor trader insurance’s focal purpose is to ensure you are lawfully covered, wherein the least insurance policy mandated is a policy on Road Risk Motor Trade alongside a Third Party Only policy.

Cryptocurrency Insurance Can Be A Huge Industry

With the prevalence and maturity of the market of cryptocurrency, it has been getting the attention of numerous players from various industries, the insurance industry being one.

As per a report by Bloomberg, crypto insurance is primed to be a huge opportunity. A spokesperson from one of the leading company of insurance provider, Allianz, stated that the company was looking into product as well as coverage preferences in the cryptocurrency space since digital currencies were turning out to be relevant, significant, as well as prevalent on the actual economy.

Why The Need For Insurance In The Cryptocurrency Space

At present, the crypto business wherein it largely comprises of startups as well as exchanges isn’t large enough to give the insurance industry considerable revenues.From publicly available data, even Coinbase, the biggest cryptocurrency exchange in North America, just holds 2% of its digital coins covered with Lloyd’s of London, wherein they are kept in hot storage whereas the remaining is cut off from the internet. Other than that, no other information is available regarding the status of their insurance.

What Concerns Insurance Providers

When volatility or instability of the crypto space is considered, coverage for cryptocurrencies is of importance. The rapid rise in valuation of cryptocurencies especially bitcoin, has brought about massive online thefts on digital wallets as well as exchanges. However, insurers are posed with distinctive challenges by cryptocurrencies. Insurance premiums, usually, are grounded on historical data which cryptocurrencies lack. Volatility or instability in valuations could likewise have a bearing on premiums since it trims down the total quantity of coins being covered or insured. Furthermore, regulatory ambiguity as well as lack of surveillance and management at crypto exchanges could further make matters more challenging for insurers drawn to offering insurance services to the crypto industry.

Posted by Ned Queen in Cryptocurrency, Finance

Forex Trading And Cryptocurrency Trading

Currently, there are various ways as to how individuals trade forex, such as the use of forex vps, as well as other assets in the industry of finance. With the launch of numerous digital currencies via the blockchain technology, the platforms for trading have taken an entirely different stance.

In recent past, traditional forex trading platforms have encountered several hitches and challenges. However, the key appears to be provided by the range of available digital currencies running on the platform of blockchain technology. So as to completely understand this, it is vital to know what a blockchain is.

It has been mentioned several times in different industries, the blockchain technology is a series of blocks linked together and is made accessible via a public ledger. This public ledger is circulated among crypto users on the technology’s network which is quite advantageous for numerous reasons, such as data security, swift transactions, global reach as well as better financial security.

Forex Trading

The market of foreign exchange is the hugest global market that is decentralized where various currencies are traded from various individuals across the globe. Via the numerous platforms for forex trading, over 5 trillion US dollars traded daily. The forex market is the most liquid in the globe.

By means of forex trading as well as its numerous platforms for trading, there are opportunities for investment that encompass the profitability of involved participants. From a newbie, you could fully turn into a professional trader in a short span of time. To achieve this, an online platform for forex trading is needed.

Cryptocurrency Trading

Different from traditional currencies or fiats, cryptocurrencies (digital currencies) are completely decentralized and operate on the platform of the blockchain technology for diverse uses. Cryptocurrencies aren’t controlled or dominated by whichever central administrator increasing the usefulness, efficacy and use of these cryptocurrencies.

Crypto trade is very distinct from the conventional method of trading, since digital currencies are traded instead of the usual fiat currencies through crypto trading platforms that runs on the platform of blockchain technology as well.

It is a potent skill to learn to trade cryptocurrencies. Generating a profit on platforms for forex trading is essentially depended on difference in values, on the other hand, cryptocurrencies as well as other digital assets are known for their volatility where values always change. Therefore, you have to know and understand which crypto to buy and sell, when and at what price to generate profit.

Trading Crypto On Trading Platforms

Comparable to the traditional forex trading platforms, crypto trading platforms are used for the trade and exchange of digital currencies. Cryptocurrency trade is done between two factions by buying or selling other cryptocurrencies or by exchanging crypto with fiat currency. All these are possible depending on the platform for trading as well as its policies.

Posted by Ned Queen in Cryptocurrency, Finance

Facebook’s Libra Cryptocurrency Faces More Withdrawal of Support for the Project

As U.S. legislators and regulators continue to scrutinize Facebook’s planned launch of its Libra cryptocurrency, six (6) other financial backers of the project have announced withdrawal of their support.

Wary of becoming involved in a financial project that has yet to present proof that it is capable of meeting and complying with regulatory requirements, major credit card companies Visa and Mastercard, decided not to pursue plans of becoming founding members of the Libra Association.

Other companies that withdrew pledge of financial support and membership from the Libra Association, include eBay, Stripe, Booking Holdings and Mercado Pago. This recent development came after PayPal formally announced the company’s withdrawal a week ago.

As a result, the Libra cryptocurrency will only have Netherlands-based PayU on board as payments processor. However, it is purported the PayU is not accessible in the U.S. and Canada, as well as in some areas in the Middle East and Africa.

Treasury Secretary Steven Mnuchin says that it is necessary for the Libra cryptocurrency to meet financial regulatory standards, which up to now is not up to par.

Moreover, Secretary Mnuchin warned that if Facebook’s Libra launches while not meeting the anti-money laundering standards and the standards set by the Financial Crimes Enforcement Network, the Treasury Department would take enforcement actions against Facebook and its proposed governing body, the Libra Association.

Remaining Libra Associates Still Optimistic about the Libra Cryptocurrency Project

Despite the mounting pressure to comply with financial regulatory requirements, and the rising number of partners withdrawing as Libra Associates, the remaining partners held an inaugural meeting in Geneva, Switzerland yesterday (October 14, 2019).

Reuters reported that the remaining 21 members, out of the original 28 previously named as Libra Associates, reaffirmed their support for the cryptocurrency undertaking. The group formed and voted on the 5-member board, whilst agreeing to an interim articles of association, developed in accordance with Swiss Laws.

Making up the 5-member board are Facebook Executive David Marcus, and representatives of PayU, Andreessen Horowitz, Xapo Holdings Limited and non-profit organization Kiva Microfunds.

Posted by Madelina Feliks in Cryptocurrency