Bitget is continuously seeking ways to ensure users have a safe and reliable experience while using the trading platform. As such, Bitget has now self-funded and released a protection fund to safeguard users' assets. Here is what you need to know!

What is the protection fund?

It is Bitget’s mission to inspire the world to embrace cryptocurrencies. With every new innovation being released into the world, it can be a difficult task to fully eliminate risks. With the protection fund, a portion of the risk is transferred from the user to Bitget exchange. Therefore, if something happens to the funds of a user that is not a consequence of their own actions or behavior on the exchange, Bitget commits itself to protect their funds with the Bitget Protection Fund.

While this is a proactive attitude on Bitget's behalf, it can also encourage other exchanges to address concerns of safety, accountability, and security in crypto in the longer term.

What does the fund consist of?

What is the difference between a Protection fund and an Insurance fund?

These two types of funds are fundamentally different. A protection fund protects users' funds in case something happens to the users’ funds that cannot be controlled by the user itself. The insurance fund is one that is built collectively through market participants and their activity. This fund can help mitigate losses because of other users' trading behaviors. For an in-depth explanation of how this particular fund works, you can read more about it here: https://www.bitget.com/academy/en/article-details/What-is-Bitget-Insurance-fund

Conclusion

Bitgets protection fund further fortifies the security of its users. It manages to do this by being transparent and making the wallet addresses publicly available. Secondly, even though Bitget strongly believes in Bitcoin and cryptocurrency overall, the fact that price can fluctuate heavily can not be ignored. By hedging the BTC wallets against a stablecoin, will reduce the volatility of the fund and make it a reliable and balanced fund that can maintain its value even throughout a bear market. Lastly, the Bitget Protection Fund is entirely self-funded, making its operations efficient as it eliminates complicated bureaucratic procedures one would normally have when working with third-party funds.

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Disclaimer:

The information provided above is not financial advice but for educational and entertainment purposes. Please do your own due diligence or consult a financial advisor before investing in any digital assets.

All opinions expressed on Bitget’s Soapbox (also known as the ‘Soapbox’) are opinions of individual traders using the Bitget platform, and do not reflect the opinions of Bitget or its affiliate companies and partners. The Soapbox author’s opinions are based upon information they confirm to be reliable, but neither Bitget nor its affiliates warrant its complete accuracy, and it should not be relied upon as such.