Bitcoin at $115,000: Why Americans Are Paying $2,000 a Year to Insure Their Crypto
Bitcoin has crossed $115,000 this week, and in the United States, a new business is booming: crypto insurance.
After several major exchange hacks in 2025 where users lost over $1.7 billion, American investors are no longer taking risks. They are insuring their Bitcoin, Ethereum, and USDT portfolios just like they insure their houses and cars.
How Much Does Crypto Insurance Cost in the USA?
In the USA, crypto insurance is offered by companies like Lloyd's of London, Coinbase Custody, and BitGo Trust.
- For $10,000 portfolio: $150 - $300 per year
- For $100,000 portfolio: $1,200 - $2,500 per year
- For $1,000,000 portfolio: $12,000 - $25,000 per year (about 1.2% to 2.5%)
The insurance covers theft, hacking, and loss of private keys if you use an approved cold wallet.
What Is Covered and What Is Not?
Most USA crypto insurance policies cover you if an exchange is hacked or your insured wallet is stolen. They do NOT cover you if you send crypto to the wrong address or if the price of Bitcoin crashes.
It is similar to bank insurance. In the USA, the FDIC insures your bank account up to $250,000. Crypto insurance gives you similar peace of mind for your digital assets.
Should Nigerians in the USA Insure Their Crypto?
If you hold more than $5,000 in crypto on an exchange, financial advisors in the USA now recommend getting insurance. The cost of $200 per year is small compared to losing your entire investment overnight.
With Bitcoin expected to reach $150,000 by 2027, protecting your asset has become a financial priority.
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