You can insure cryptocurrency in Germany only in part. There is no deposit guarantee like the EUR 100,000 for bank balances, and contents insurance (Hausrat) does not count data as household goods. If a trading platform is hacked, a licensed provider is liable under the EU MiCA regulation up to the market value of the lost crypto. Cyber policies from about EUR 45 a year help only if their terms say so.
A policy just for your crypto holdings hardly exists for private customers. The closest product is personal cyber insurance; these prices come from a published tariff comparison in Germany.
Example
Typical range
Cyber insurance, basic tariff, single
EUR 3.75 a month, about EUR 45 a year
Cyber insurance, basic tariff, family
EUR 4.40 a month, about EUR 53 a year
Cyber insurance, comfort tariff up to EUR 3,000 per fraud case, family
EUR 13.41 a month, about EUR 161 a year
Range of all tested cyber tariffs, single
EUR 7 to 212 a year
Prices from the Stiftung Warentest cyber insurance comparison of May 2024.
Whether a tariff covers crypto depends on its terms and was not part of these prices.
We obtain the exact quote for you.
Worked example
Investor with EUR 20,000 in bitcoin
How protection splits across three loss scenarios. Amounts and device value are assumptions for illustration.
EUR 12,000 on a licensed platform, platform hacked
claim against the provider up to market value at the time of loss
EUR 8,000 on a hardware wallet, device stolen in a burglary
contents insurance pays for the device, restore coins via the phrase
Phishing, EUR 2,000 drained
cyber policy only if crypto is in the terms
Price falls 30 percent
not an insured event
There is no real insurance for coins; the best protection is a licensed provider, a safely stored key and clear terms in your cyber policy.
Why deposit protection does not help
German statutory deposit protection (Einlagensicherung) covers bank balances up to EUR 100,000 per customer and bank. According to the financial supervisor BaFin, bitcoin, ether and other cryptocurrencies are as a rule covered neither by deposit protection nor by investor compensation. An exception can apply if a token counts as a security or you hold fund units that invest in crypto.
If a custodian goes bust, your position depends on insolvency law. The key question is whether you can claim your crypto out of the insolvent estate, which BaFin says depends on your contract with the custodian.
Contents insurance and hardware wallets
The German model terms for contents insurance state that electronically stored data and programs are not household goods. Their list of valuables names cash, securities, jewellery and gold, but not crypto. Your coins are not on the device anyway; they live on the blockchain, and the wallet only holds the key.
If a hardware wallet is stolen in a burglary, your Hausrat pays for the device. You restore the cryptocurrency on a new device with your recovery phrase. Lose that phrase, or keep it next to the wallet, and the risk is yours.
Case
Who pays
Limit
Hardware wallet stolen in a burglary
contents insurance pays for the device
not the coins, secure your phrase
Trading platform hacked, provider at fault
licensed provider under MiCA
up to market value at the time of loss
Provider insolvent
no deposit protection
insolvency law, contract decides
Phishing, login stolen
cyber policy only if crypto is covered
per policy terms
Price drop
nobody
investment risk
When a trading platform is hacked
EU rules for crypto asset service providers have applied since 30 December 2024. Under Art. 75(8) of Regulation (EU) 2023/1114, providers that hold crypto for clients are liable for the loss of crypto or of the means of access caused by an incident attributable to them. That includes cyber attacks on the platform.
Liability is capped at the market value of the lost crypto at the time of the loss. Events the provider can show are outside its control, such as a problem with the blockchain itself, are not attributable. If the platform has no money left after the hack, your claim joins the insolvency, and no deposit guarantee steps in.
Only licensed providers give you this protection
You only get MiCA liability from a provider licensed in the EU. With an unlicensed platform, all you have is a claim against a company that is often impossible to reach. BaFin regularly warns about such crypto trading platforms.
Before you deposit money, check in the BaFin company database whether the provider is licensed. Social media ads promising guaranteed returns are a red flag.
What custodians insure themselves
MiCA requires crypto service providers to hold prudential safeguards in the form of own funds or an insurance policy covering the EU territories where they operate. The policy has to be publicly available on the provider's website.
That insurance strengthens the provider's ability to pay, but it is not a policy in your own name. Read the published policy before leaving larger sums on a platform.
Cyber insurance and crypto fraud
Personal cyber policies in Germany are built for online shopping fraud, account misuse and identity theft. Whether losing cryptocurrency to phishing or malware is covered depends entirely on the policy terms.
Ask explicitly about crypto and wallets before you sign. Price swings and fake investment schemes where you send the money yourself are a different risk from a hacking attack.
Step by step
Check whether your platform is licensed in the EU as a crypto asset service provider.
Read the provider's published insurance policy or guarantee.
Move larger amounts to your own wallet and keep the recovery phrase safe and separate.
Ask about crypto in an existing or new cyber policy.
Turn on two factor login and never log in through links in messages.
Checklist
Platform licence checked
Not relying on deposit protection
Recovery phrase stored away from the wallet
Cyber policy checked for crypto
Hardware wallet covered as a device under contents insurance
Common mistakes
Leaving everything on an unlicensed platform
Photographing the recovery phrase or saving it in the cloud
Assuming contents insurance replaces stolen coins like cash
Questions and answers
Frequently asked
Is bitcoin covered by German deposit protection?
No.
BaFin states that crypto assets are as a rule covered neither by deposit protection nor by
investor compensation.
Who pays if a crypto exchange is hacked?
A custodian licensed in the EU is liable under Art.
75(8) MiCA for losses from incidents attributable to it,
up to market value at the time of the loss.
What if the platform goes bankrupt after the hack?
Then insolvency law and your custody contract decide.
There is no state guarantee like the one for bank balances.
Does contents insurance pay for a stolen hardware wallet?
For the device, yes, if it was stolen in an insured burglary.
Not for the cryptocurrency itself; you restore that with your phrase.
What does advice cost?
Nothing.
Norman Nammert acts as an insurance broker, and the insurer pays the commission.
