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More and more people own cryptocurrency like Bitcoin and Ethereum. But what happens to your crypto when you are no longer around? Without the right preparation, your loved ones may not be able to access your digital assets. In this article, you can read how to store your crypto safely and make sure your legacy is properly arranged.
Cryptocurrency works differently from a regular bank account. It only exists digitally, and you secure it with private keys and passwords. A bank can help your loved ones access an account, but with crypto that is not the case. If no one knows your private key, your crypto remains permanently inaccessible.
How do you store your crypto safely and make it accessible for later?
- Hardware wallets: a hardware wallet, such as a Ledger or Trezor, offers secure storage for your cryptocurrency. Store the recovery seed in a safe place, such as a safe deposit box.
- Paper backup: write down your seed phrase and keep it in a sealed envelope. Make sure a trusted person knows where to find it.
- Multisig wallets: with a multi-signature wallet, multiple people can approve transactions together. This adds an extra layer of protection for your loved ones.
- Crypto and your will: consider documenting your crypto wishes in your will through a notary. This helps with legal matters and distribution among your loved ones.
- Use myGoodbye: in the myGoodbye app, you can indicate that you own crypto and where to find the important information. This way, your loved ones know where to look without you having to share passwords directly.
Important facts about crypto and digital legacy
- Estimated lost crypto value: an estimated 20% of all Bitcoin is permanently lost because owners misplaced their private keys.
- Passing on crypto: crypto offers a unique way to transfer assets without banks, but this requires a clear approach.
- Increasing regulation: governments are increasingly working on regulations for digital legacy. This may affect inheritance tax and access to crypto in the future.
Make sure your crypto does not get lost
By taking steps now, you prevent your crypto from getting lost. At the same time, you make sure your loved ones know what to do. Use myGoodbye to document that you own crypto and how your loved ones can securely access it.
When you arrange this properly now, it gives you and your loved ones peace of mind.
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