What is the general sentiment regarding custodial services for people's bitcoin so they don't have to be concerned about storing it them selves?
Are there any examples of companies already successfully doing this?
People generally hate it because it kind of defeats the purpose, and it gives custodial companies power similar to what banks have now. They exist mostly for large institutions. One example is
Coinbase Custody.
Another reason people tend to open bank accounts rather than store money themselves is that they can get their money back in the event of being scammed
(a sense of security really). So is there any examples of companies providing insurance for people's bitcoin?
Custodial services are most likely insured because that's kind of the point. Other than that, I know Coinbase actually
insures customer funds, albeit conditionally. There could be other exchanges that do this but I don't know of any other example.
I feel like I should point out that I don't shill for Coinbase lmao. I just happen to be more familiar with them than other major exchanges.