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The cryptocurrency market is one of the most volatile financial markets for investors, with massive price swings and less regulation than traditional markets. Investors can lose money due to human error and social engineering phishing scams. Insurance for cryptocurrencies may assist with both the compensation of lost cash and the supply of crypto market liquidity. The first federally chartered digital asset bank in the US was established in January 2021, enabling it to collaborate with other conventional financial institutions to provide customers with digital currencies. This is important since it increases the chances of traditional insurance companies providing collateral for digital assets via established digital banks.