The smooth and efficient user-friendly features the cryptocurrency world offers have made it so popular that its demand is soaring everyday. And besides, the decentralization system, backed by upgraded blockchain technology, is also a strong point for traders to choose the crypto platforms for making trades or investing for an extended period.
However, with the growing fame and demand for the cryptocurrency market, there is also a rising risk of potentially hacking or getting one’s assets stolen or simply forgetting the complicated key passwords of the asset-holding e-wallets. All these things triggered the need for a solution for securely managing bitcoin. And family and estate planning for Digital Inheritance solve all these issues in simple steps.
Now with the Digital Inheritance plans, you can Manage your bitcoins by including your family members in your plan or just adding them to your crypto account. You can opt for several options as per your necessity and requirement, availing of an inheritance plan. But how can it benefit you, or what are some better steps for managing bitcoin? Well, we will talk about all those in the below sections.
Overview: Getting Started In Cryptocurrency Savings
The first essential thing while entering the cryptocurrency world for anyone is to keep the data and key passwords all to themselves and never share them with others to eliminate the chance of getting stolen by hackers. And with the passing time and the gradual progress and upgradation of the crypto market and the relative technology, planning a Digital Inheritance has become quite the need of the hour for the same reason.
By opting for a cryptocurrency savings account, one can keep all the crypto assets there, track the transaction histories, send or receive assets on that account, and make family and estate planning for the future. A crypto inheritance allows one to put any person’s or persons’ name as his successor to the crypto assets. One can also create a subaccount, limit the successors’ rights or access to the assets, and create a Will to distribute his assets among the people he wants to.
Apart from that, the feature of managing bitcoin as a family allows one to include the family members in jointly managing and handling the crypto savings account. Thus, the risk of forgetting important key phrases or the pressure of managing and making important decisions regarding the assets’ investment and staking reduces a lot.
Why It Is Important To Manage Bitcoin As A Family?
The points below explain why managing Bitcoin as a family is important.
- The Bitcoin account is just like a traditional bank account that contains regular currency and wealth. So managing a Bitcoin account as a family can help you keep your crypto assets within your family safely and securely.
- As your family members will know about it, there will be less pressure on you to make all the crucial decisions regarding crypto investment, and you will be able to discuss the matter with your family members.
- It makes your assets more protected from outsiders and reduces the risk of your assets getting stolen or hacked, as the key passwords remain safe with others besides you. So even if you forget them, you can quickly recover them without needing outside help, which can be risky.
How Estate Planning Can Help You With Managing Bitcoin?
Although the digital currency world does not work like the physical one, crypto assets are now worth billions, unlike the initial phases. And saving crypto assets can make one unexceptionally rich enough that they can transfer the wealth to the next generation through Estate planning.
But do you wonder how it can help you? Imagine you have crypto assets worth millions in your crypto wallet, and no one in your family knows about it. And suddenly, something unfortunate happens to you, like you got into an accident or worse, you die; what will happen to all those crypto assets?
If you do not have any will, then there is very much the chance that the crypto administration system will divide your hard-earned assets among the system’s shareholders or debtors, or even your assets can get stolen by a third party.
But, you can prevent all those mishappenings by opting for Estate planning and passing down your assets to your family or a person of trust. In Estate planning, you can add numbers, properties, data, digital share, stakes, etc., and decide what to pass down to whom.
Advice For Managing Bitcoin
Here are five crucial points that will help you manage your Bitcoin safely and efficiently.
- The safest and most secure way of managing bitcoin is to distribute it among the family members, and here, planning a crypto inheritance can significantly help you.
- Divide the crypto savings account into many sub accounts, making the family members owner of each subaccount. For instance, in the Crypto account for Minors section, you can save Crypto for kids to ensure that financial issues do not hinder their education or growing up.
- Now write a crypto Will regarding how you would like to distribute your crypto assets in your absence or after your demise. Even though your family members are a part of managing your Bitcoin, a Will can save them from any unnecessary hassle and misunderstandings among the family members.
- Keep the information about accessing your assets and key passwords safe in a bank vault and inform your family members about the same.
- Always keep a backup of the written keys and information (note down on a piece of paper or a diary) just in case the primary one gets stolen or lost.
5 Steps To Manage Your Bitcoin
Here are five steps to help you safely and efficiently manage your Bitcoin for your family.
- Before entering the crypto world, get a basic knowledge of how bitcoin and blockchain work.
- Before purchasing bitcoins for owning them, ensure you are getting the best price, so check all the stock prices beforehand along with the possible drawbacks and then own only 5 percent of your portfolio to play safe in the beginning.
- Do not just limit yourself to owning bitcoin; use it to earn big through diversifying it. For instance, use those bitcoins for staking or investing in bonds or stocks, buying other bitcoins (Litecoin, ether digital coin, bitcoin cash, etc.).
- Avoid keeping all the bitcoin in the exchange accounts; instead, opt for cold or hot wallets to secure it better.
- Instead of taking the pressure of managing bitcoin all by yourself, go for managing it as a Crypto family. This would help you in taking better decisions as well as in helping your family members learn more about the crypto world.
How Much Bitcoin Should The Average Person Own?
The digital currency or cryptocurrency realm is volatile, and there is nothing much predictable here. So if you are a first-timer or even a pro, it is always best to play safe, as a simple mistake can make you financially broke. Manage bitcoin with a Minimum bitcoin investment so that if you lose in the market fluctuation, it will not affect you much.
Although bitcoin is one of the major cryptocurrencies and has a high market value, owning it in between 5 to 30 percent of one’s entire portfolio is always recommended. The safest would be owning 5 percent, and one can increase that up to 20 percent by analyzing the crypto marketplace to play while staying in the safe zone. However, these things depend entirely on the market valuation of the cryptocurrency.
Conclusion
Now that you know what family and estate planning in the digital currency world are and how crucial it is for keeping the crypto assets within the family securely, you will be able to choose a better plan and make wiser decisions regarding your crypto inheritance. Having a crypto inheritance plan is like building a solid shield for your crypto assets against all online fraud and hacking activities.
Besides that, practical and good family and estate planning can help if you ever forget your key password for accessing your asset-holding crypto wallet. Although in the initial phases, it was highly recommended to keep the key all to yourself for security purposes, however, at present, with the support of blockchain technology, the whole scenario has changed. And now, one can afford to share the keys of his crypto assets with others in the family for far more strong protection of the assets.
