BitIRA Launches Dollar-for-Dollar Insurance
BitIRA -- pioneer of the first insured cold storage solution for cryptocurrency retirement accounts -- has engaged a panel of London insurance companies to offer dollar-for-dollar insurance on customers' digital currencies.
On the back of its customers' retirement accounts growing an incredible 297% in 2020, Jeremy Warner, Head of Sales at BitIRA, explained the company wanted to do its utmost to protect its customers. "We looked into upgrading our insurance options and what we found really surprised us," Warner explained. "So we chose to move to the kind of coverage we'd want for our own savings: dollar-for-dollar insurance."
Why Does Dollar-for-Dollar Insurance Matter?
A recent survey of BitIRA's crypto IRA competitors turned up the following insurance policies:
- In several cases, $0 insurance
- $100 million
- $50 million
When presented with these figures, Warner was quick to point out that even a $100 million policy could be misleading.
Warner explained the concept like this:
"Imagine you just bought a condo. You think about getting insurance, and the HOA tells you they already have a $1 million policy. Great – that's way more than you paid for the place! A few days later you see something about a hurricane on the news. So you look at your HOA documents and see something unexpected: the HOA's $1 million policy covers all the units in your building. If anything awful happens, instead of getting the value of your condo back, you're getting a little slice of the overall insurance payout."
In this manner, even a $100 million insurance policy might not be sufficient for a company that represented hundreds of millions of dollars in customer savings.
In comparison, dollar-for-dollar insurance guarantees full recompense. "If your assets are hacked, or robbed, or defrauded, you will be made whole," Warner said. "Because saving for retirement can be stressful enough on its own. We wanted to give our customers peace of mind."
For customers of BitIRA, the full amount of their cryptocurrency IRA is insured at no additional cost through a group of London-based insurance companies -- all with S&P ratings of A or better -- thus mitigating the risks of theft, hacking, loss of private keys, and other worst-case scenarios associated with cryptocurrencies.
All of this is even more important considering cryptocurrency performance in 2020.
2020: 297% Growth for Established Savers, "Only" 144% for Latecomers
BitIRA's customers who had invested before January 1, 2020 had an incredible year: on average, they ended 2020 up nearly fourfold.
On the other hand, many felt they had missed the big crypto rally and were concerned about buying at the top of the market. "We spent a lot of time explaining what FOMO means," Warner said, using an abbreviation common in the cryptocurrency world that translates as "fear of missing out." Those who started investing in digital currency through BitIRA at some point during 2020 saw, on average, their balances more than double.
According to Warner, "If it's one thing we learned in 2020, it's that it's never too late."
The key take-away for BitIRA's customers is that the insurance covering their assets scales along with their IRA balance.
"Just think about somebody who invested somewhere else, let's say with $300,000, " Warner speculated. "On January 1, their IRA company offered a $1 million per-account insurance policy. And that was fine."
If that same hypothetical customer saw the same growth as the average account through BitIRA? By the end of 2020, that same $1 million insurance no longer covers their entire savings.
The same scenario applies in the case of IRA solutions that offer a single, overarching insurance policy. "If all funds weren't insured on January 1, you can bet a whole lot less are insured today," Warner said. "It's the same as your house. If its value quadrupled in a single year, wouldn't you be on the phone with your insurance agent?"
Considering these factors, BitIRA has built a certain amount of automatic prudence right into its digital currency IRA.
Ultimately, Warner described the role BitIRA's insurance plays in the company's business model. "Here's what we believe: educate our customers, remove technological obstacles, empower them to make their own decisions, and do everything we can to give them peace of mind."
About BitIRA:
Based in Burbank, California, BitIRA is a leading specialist in the setup and management of cryptocurrency holdings in self-directed IRAs. Founded by team members from Birch Gold Group with extensive precious metals IRA experience, the company was established on the belief that Americans should have easier access to the wide range of conventional and alternative assets available to hold in their tax-advantaged retirement accounts. Aside from facilitating the setup and management of digital currency IRAs, BitIRA advocates for public awareness of available investment options.
For more information about BitIRA or to sign up for a digital currency IRA, visit https://www.bitira.com.
Read the full story at https://www.prweb.com/releases/on_297_account_growth_in_2020_bitira_launches_dollar_for_dollar_insurance/prweb17680197.htm
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