When you have already entered the world of cryptocurrency, you might find it difficult to think that your crypto should be a matter that you have to take up with your lawyer. But just like any other asset, crypto also has a manner of passing on from one generation to another. What should you do in this case? You have to devise a plan for your crypto so that it gets passed on in the right manner after you meet your death. If you also want to start trading in cryptocurrencies, you just need to visit this website.
Crypto tokens might be assets but they are not like the traditional ones. They might have several issues with security. You will have no kind of crypto evidence unless you have the tangible key and password at your home. It is easy to get into the wallets which store the crypto tokens. Who knows, that you should trust someone and they steal the crypto even when you are alive? On the other hand, if you have not shared your crypto key, you may be losing it forever after death!
How can you measure the safety of your crypto and also make sure that it is passed on in the right manner? Let us check it out.
Do you know how your crypto is stored?
You must know that your crypto is stored someplace that you might call a wallet. This wallet is not tangible and you will need to keep it on a safe website. What are the kinds of wallets that you can use? Let us see:
- HOT WALLETS:
Hot wallets are often used in the system to trade and purchase crypto tokens. They are free to use but the security measures are not quite effective. They are always connected to the internet which increases the risk of being stolen.
- COLD WALLETS:
Cold wallets might be able to store your crypto tokens for a long time and this will be like storing your crypto for an extended period for safekeeping.
You might be considering the hot wallet like a checking account which allows the price of your wallet to move in or out with time. The cold wallet can act as a savings account and you can use both of them at the same time. The key which is related to either of these wallets is a conglomerate set of numbers and letters. One who has access to the key has access to your crypto as well. The third-party hybrid will be containing this as well if you have involved them in the mix.
- It is advised not to keep a third party as it will be detrimental to the long-term conditions.
- You will no longer have complete control over your keys.
- If you have your wallets attacked, you will not have any grounds to complain as well in case you choose any third party to be a part of key keeping.
Keeping your crypto safe and accessible
A cold wallet can prove to be a good physical storage device that will be lost very soon. You will need OTP or Pin codes along with recovery phrases.
- A fireproof safe might be used at your home but this can prove to be hazardous as well. If someone gets all of these at once, you are bound to suffer.
- The system might prove to be quite complicated in the beginning but you should hide each piece of the puzzle in different places.
- Make sure that these pieces are kept in places known only to you. This can be quite safe for crypto tokens.
Deciding the right plan
- It is best to keep a person in your will that will have access to your keys and passwords after your death.
- If you set the terms and conditions right, they will be able to contact the crypto exchange to get customer support. The process can be made simple if you have the right people on your side.
Unless your plan after your death is made sure, you will not be able to pass on your assets in the right manner. Make sure that your will is crafted well for the benefit of your family. Considering every opinion, it will be useful to keep a loved one in the will who will have access to the private keys. This can be better for the maintenance of your wallets as well.