news4global
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • Latest news
  • Market
  • Regulation
  • VideosHot
    Terra Luna News Today | Rajeev Anand | Crypto News Today | Cryptocurrency News Today | Crypto Marg

    Terra Luna News Today | Rajeev Anand | Crypto News Today | Cryptocurrency News Today | Crypto Marg

    Poilievre's position on cryptocurrency criticized | CPC leadership debate

    Poilievre's position on cryptocurrency criticized | CPC leadership debate

    CRYPTO IS BLOODY RIGHT NOW! IS CRYPTO CRASHING? ARE WE IN THE MIDDLE OF A CRYPTO CRASH?!

    CRYPTO IS BLOODY RIGHT NOW! IS CRYPTO CRASHING? ARE WE IN THE MIDDLE OF A CRYPTO CRASH?!

    Why Terra Luna Dump hard ? | Reason..

    Why Terra Luna Dump hard ? | Reason..

    Michael Saylor Reacts To Bitcoin Crash And Inflation

    Michael Saylor Reacts To Bitcoin Crash And Inflation

    Is LUNA Fueling the Crypto Crash?

    Is LUNA Fueling the Crypto Crash?

    What exactly is Putin's 'doomsday plane'?

    What exactly is Putin's 'doomsday plane'?

    Why Generation Z is about to become the RICHEST Generation | Crypto Investing w Miss Teen Crypto

    Why Generation Z is about to become the RICHEST Generation | Crypto Investing w Miss Teen Crypto

    XRP SELL WARNING!!! *EMERGENCY* (DO THIS NOW!!!!!)

    XRP SELL WARNING!!! *EMERGENCY* (DO THIS NOW!!!!!)

No Result
View All Result
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • Latest news
  • Market
  • Regulation
  • VideosHot
    Terra Luna News Today | Rajeev Anand | Crypto News Today | Cryptocurrency News Today | Crypto Marg

    Terra Luna News Today | Rajeev Anand | Crypto News Today | Cryptocurrency News Today | Crypto Marg

    Poilievre's position on cryptocurrency criticized | CPC leadership debate

    Poilievre's position on cryptocurrency criticized | CPC leadership debate

    CRYPTO IS BLOODY RIGHT NOW! IS CRYPTO CRASHING? ARE WE IN THE MIDDLE OF A CRYPTO CRASH?!

    CRYPTO IS BLOODY RIGHT NOW! IS CRYPTO CRASHING? ARE WE IN THE MIDDLE OF A CRYPTO CRASH?!

    Why Terra Luna Dump hard ? | Reason..

    Why Terra Luna Dump hard ? | Reason..

    Michael Saylor Reacts To Bitcoin Crash And Inflation

    Michael Saylor Reacts To Bitcoin Crash And Inflation

    Is LUNA Fueling the Crypto Crash?

    Is LUNA Fueling the Crypto Crash?

    What exactly is Putin's 'doomsday plane'?

    What exactly is Putin's 'doomsday plane'?

    Why Generation Z is about to become the RICHEST Generation | Crypto Investing w Miss Teen Crypto

    Why Generation Z is about to become the RICHEST Generation | Crypto Investing w Miss Teen Crypto

    XRP SELL WARNING!!! *EMERGENCY* (DO THIS NOW!!!!!)

    XRP SELL WARNING!!! *EMERGENCY* (DO THIS NOW!!!!!)

No Result
View All Result
news4global
No Result
View All Result
Home Blockchain

What happens to our cryptocurrency and NFTs when you die?

April 23, 2022
Reading Time: 5 mins read
0
What happens to our cryptocurrency and NFTs when you die?
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Death isn’t a happy topic to discuss, but it’s important to plan every scenario in advance, especially inheritance planning, also known as Estate planning to ensure that all your assets – physical, financial and online – are inherited and transferred to your loved ones, after your demise.

Whether it is gold, cash or a house, typically someone inherits it after it was put somewhere in a will by the deceased. But, what happens to crypto-assets after a person dies? The answer to that is not as simple.

With cryptocurrencies, the risk of losing assets or misplacing them is higher than with traditional assets. In this week’s column, we explain what happens to your crypto and non-fungible-tokens (NFTs) when you die, and how to set up your digital wallets so your loved ones can access them securely.

No keys, no crypto assets

About 4 million Bitcoins have been out of circulation forever, as a result of people dying and not revealing their private keys. A private key is like a password. It is a string of letters and numbers that give you access to your crypto wallet—where your crypto coins and NFTs are stored securely.

Billions of dollars worth of cryptocurrencies have been lost forever, due to the owners dying and their family members or close ones not being able to retrieve the crypto assets from their wallets.

In 2018, Matthew Mellon, a Ripple investor who held $1 billion worth of XRP died and it was lost forever. In 2019, Gerald cotton, the CEO of a Canadian exchange QuadrigaCX, died and he was the only one that had access to $190 million worth of Aetherium.

The bottom line is, in both of these cases, only the deceased had access to the cryptocurrency, and with them, their assets are lost forever.

Cryptocurrencies are stored in your crypto wallets built on blockchain technology— that stores digital assets cryptographically, making it impossible for someone to hack your private keys.

Without the private keys, you cannot claim ownership to any crypto assets. Court orders or any other legal document won’t be worth it, if you don’t have private keys.

Crypto Estate planning

Before we delve into the details of securing your crypto assets, it’s important to plan whom you give access to your digital assets.

Remember, choosing the right person to give access to your crypto wallet is not just about trust, it’s about choosing someone who is technologically savvy and understands how to retrieve a crypto wallet.

For instance, say Raj has 2 Bitcoins that he wishes to leave for his brother Sham, in the unfortunate event he dies. However, Sham has no idea how to use a cryptocurrency wallet or an exchange. In this scenario, Sham would most likely employ someone to help him access the cryptocurrency and then liquidate it. This can pose a significant risk. The employed person could transfer all the funds in their wallet—and we are familiar that such crypto scams are quite prevalent in the crypto universe.

This is only one such scenario. Even if Sham learns how to use crypto-wallets, there are other risks associated: sending crypto to the wrong address, getting locked out of devices or withdrawing assets using the wrong token standards.

Another factor to consider is how much information should you give out? Obviously, you’d have to give out your private keys, but can you trust only one person with your crypto assets or could you divide the information among several people.

It is a safe bet to divide your bets across a group of people, although it has its pros and cons. An individual would not be able to withdraw your assets or steal your assets, but the drawback of listing multiple parties is that the whole system collapses if one person mislays any piece of the information.

Steps to take

The first thing to do before making a will is to transfer all your crypto assets to a hardware wallet. While online wallets are the easiest to set up and use but are also the most susceptible to cyber-attacks. One way to secure your cryptocurrency is to use a hardware wallet instead of an online wallet.

A hardware wallet stores private keys in a secure physical device, it is one of the best ways to protect your cryptocurrency. Moreover, they are immune to computer viruses, making it virtually impossible for hackers to steal your coins.

Make it easier for your loved ones to find and gain access to your crypto wallet. Write a step-by-step guide that explains how to access your cryptocurrency. Ensure that the provided information is stored somewhere on a password encrypted hard disk so that it doesn’t go in the wrong hands.

When writing the instructions, assume that your beneficiary knows nothing about cryptocurrency. Here is a sample of the instructions that could be given.

#Name of the exchange that hosts your cryptocurrency. (WazirX, Binance, etc)

#Steps to log in: Username and password

#For physical wallets: Private wallet keys

#For account recovery a 12- or 24-word secret seed phrase

#In case you have two-factor authentication (2FA) switched on, provide either the location and password of the device where the Authenticator app is stored.

#If your accounts are set up to receive OTP on mobile phones, include details of the location and password of your current mobile device.

#Password or pin to your hard-disk.

After finalising the list, a complete walkthrough of these instructions will ensure that you included all the information your loved ones need to access your cryptocurrency.

Have a will drawn

Now that you have secured your crypto assets for your descendants, call up a lawyer and draft a will clearly stating who owns the access to your crypto assets, after you pass away.

In case you don’t list crypto in your will, it falls into the “residue” of your will. Residue or ‘remainder’ is a list of everything you own that isn’t accounted for in your will. This includes your clothing, subscriptions, any personal items, etc.

Lastly, in the will, make sure to mention where to find your cryptocurrency. Bequeathing cryptocurrency to your loved ones requires way more planning and effort than any other traditional assets. It is better to start off as early as possible, before it’s too late.

Related articles

Crypto Coin Coach on Why NFT Projects like Cryptopunks and BAYC are a Huge Success

Crypto Coin Coach on Why NFT Projects like Cryptopunks and BAYC are a Huge Success

May 18, 2022
Business leaders to discuss post-pandemic inflation, SPACs, Metaverse at Top CEO in Dubai

Business leaders to discuss post-pandemic inflation, SPACs, Metaverse at Top CEO in Dubai

May 18, 2022
Tags: bitcoinBitcoin lost foreverBitcoin recoverycrypto lost foreverCryptocurrencycryptocurrency after deathcryptocurrency newsCryptocurrency recoveryhow to set up crypto willNFTs news
Share76Tweet47

Related Posts

Crypto Coin Coach on Why NFT Projects like Cryptopunks and BAYC are a Huge Success

Crypto Coin Coach on Why NFT Projects like Cryptopunks and BAYC are a Huge Success

by admin
May 18, 2022
0

NFTs are the hottest topic right now. Non-Fungible Tokens, popularly known as NFTS, are a blockchain-based technology that can grant...

Business leaders to discuss post-pandemic inflation, SPACs, Metaverse at Top CEO in Dubai

Business leaders to discuss post-pandemic inflation, SPACs, Metaverse at Top CEO in Dubai

by admin
May 18, 2022
0

RIYADH: Investors in crypto currencies should expect more difficult times ahead as tightening financial conditions around the world stoke appetite for...

WhatsApp Competitor Releases Blockchain-Powered Private Calls By CoinQuora

WhatsApp Competitor Releases Blockchain-Powered Private Calls By CoinQuora

by admin
May 17, 2022
0

© Reuters WhatsApp Competitor Releases Blockchain-Powered Private Calls Encrypted messaging app Session has launched its ‘private calls’ beta. The app...

SEBA joins LGT Bank in journey into crypto

SEBA joins LGT Bank in journey into crypto

by admin
May 17, 2022
0

Earlier this month, LGT Bank announced its partnership with SEBA Bank in a bid to launch custody and trading services...

EOS Fireside Chats – Bywire Blockchain News

EOS Fireside Chats – Bywire Blockchain News

by admin
May 16, 2022
0

LONDON (Bywire News) - This week’s EOS Fireside Chat took place against the backdrop of the collapse of Luna’s stable...

Load More
  • Trending
  • Comments
  • Latest

Bitcoin Is ‘Definitely Not a Fraud,’ CEO of Mobile-Only Bank Revolut Says

March 2, 2022

Bitcoin’s Main Rival Ethereum Hits A Fresh Record High: $425.55

March 3, 2022
How online shopping has changed over the last 30 years | National

How online shopping has changed over the last 30 years | National

April 6, 2022

India: Bitcoin Prices Drop As Media Misinterprets Gov’s Regulation Speech

March 4, 2022

US Commodities Regulator Beefs Up Bitcoin Futures Review

0

Bitcoin Hits 2018 Low as Concerns Mount on Regulation, Viability

0

India: Bitcoin Prices Drop As Media Misinterprets Gov’s Regulation Speech

0

Bitcoin’s Main Rival Ethereum Hits A Fresh Record High: $425.55

0
How to avoid ‘rug pulls,’ the latest cryptocurrency scam | Business News

How to avoid ‘rug pulls,’ the latest cryptocurrency scam | Business News

May 18, 2022
From bags to pet food, businesses in Singapore allow customers to pay with crypto

From bags to pet food, businesses in Singapore allow customers to pay with crypto

May 18, 2022
Crypto Coin Coach on Why NFT Projects like Cryptopunks and BAYC are a Huge Success

Crypto Coin Coach on Why NFT Projects like Cryptopunks and BAYC are a Huge Success

May 18, 2022
GPU Manufacturers Expect Availability And Price Changes

GPU Manufacturers Expect Availability And Price Changes

May 18, 2022

Latest News

How to avoid ‘rug pulls,’ the latest cryptocurrency scam | Business News

How to avoid ‘rug pulls,’ the latest cryptocurrency scam | Business News

May 18, 2022
From bags to pet food, businesses in Singapore allow customers to pay with crypto

From bags to pet food, businesses in Singapore allow customers to pay with crypto

May 18, 2022

Categories

Site Navigation

  • Home
  • About us
  • Contact us
  • Privacy policy
  • Terms and services
  • Home
  • About us
  • Contact us
  • Privacy policy
  • Terms and services

© 2022 Designed by news4global

No Result
View All Result
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • Latest news
  • Market
  • Regulation
  • Videos

© 2022 Designed by news4global