Digital Inheritance - What happens to your Crypto investments after you die?
Hello everyone, today I ponder the question "What happens to your Crypto's when you die?"
Crypto Inheritance
This is a subject that is not talked about that much but it's an important one and should be considered by everyone that owns any crypto are digital investments. If you are in the crypto space then chances are you have more than 1 wallet and you might even hold crypto's on exchange wallet with many passwords and seed words to take care if. Do you have all that information recorded somewhere? If you were to get hit by a bus today would your partner are any member of your family have access to your crypto funds and know-how to withdraw them into fiat? It's easy for us on steemit to think, just transfer all the different cryptos to binance, convert it all to BTC and then withdraw that to your bank account. For the normal man on the street that would be seen to be an impossible task.
3rd party companies are starting to pop up to that are crypto banks that hold all your assets. Of course, this would mean trusting someone else with all your crypto that your holdings. It's a good idea but sorta goes against the point of owning crypto if you control 100% yourself. Plus these services are only good for HODLing cryptos. The likes STEEM is used for upvoting other, earning curation, etc. NEO, EOS, and others are staked on their wallets so this 3rd party option is a good idea but not the practical to someone active and doing more than HODLing.
Things to consider when planning
With crypto's where do you begin? I have a plan but it's custom for me and might not work for others. When planning, you need to think about 3 keys stages. 1, where all your crypto is being held, 2, Access to 1 exchange that trades all your tokens and 3/ how to convert it into BTC and then fiat that can be withdrawn.
1/ - There's a lot of think about and this is the most important stage, making sure that the information required is available to those who need it. Think about where all your crypto investments are. You have a STEEM wallet for sure, maybe you have 4-5 other wallets for other cryptos, you have some staked, you have some invested in a lending platform earning interest, ou own steem monster cards are everything like that. Think about maybe getting 1 wallet that will hold all your crypto's in 1 place is at least downsizing the number of storage points you use. Think about accessing these wallets, are your passwords stored offline, maybe some wallets require 2FA to access. There's a lot of think about and this is the most important stage, making sure that the information required is available to those who need it.
2/ - When your beneficiary has access to your crypto funds, they will need to either use a wallet build in convertor are an exchange to convert everything into BTC. Again having to proper information is vital and from my experience, most exchanges require 2FA and email verifications to confirm a transaction and withdraw's.
3/ - After they have it all converted in BTC, they will need to convert it in fiat cash and withdraw it to a bank account they have access to. This can be done in many ways and this should be the easiest stage of the 3. A lot of exchanges will let you cash out directly to a bank account. Other ways would be using services that are instant but might charge 10% in fees. This is someone normal people could learn to do by themselves in a few hours but having a solid plan in place is reassuring.
My Plan
I keep a black book that I update every year and it includes all my stuff, bank accounts, life insurance, pensions, investments, crypto, etc. I have instructions included. My stepdad and my wife know where it is hidden and have access to it. This is all my information.
1/ - I keep the bulk of my crypto investments in 3 places. My exodus wallet, steemit wallet, and binance exchange. I have about 10 other wallets holding stuff but it's stuff I don't care about. My smartcash wallet will take about 3 weeks to sync (no joke) before getting access, some of my cryptos need to be exchanged on decentralized exchanges and stuff like that. I'm not bothered about losing these, it's not good practice but keeping things simple is important.
2/ - The Exodus wallet has a built convertor that will allow my wife to change all my holdings into BTC pretty easily. My binance account holds about 4 crypto's and with a youtube link included, should be easily converted into BTC. Steemit requires undelegating STEEM POWER and then waiting 13 weeks to power it down and then a blockades converted into BTC. My kids understand steemit and its wallet works, I've been showing them for months to use it.
3/ - Once everything is converted to BTC, it needs to go my wirex account which is connected to my bank account. This is the simplest stage as all they are doing it transferring from exodus, binance, and blockades to this one account. After that, they convert it to fiat and then withdraw it to my bank account. If they having problems with this, my wirex account comes with a full debit card that can be used to withdraw up to £1600 per day in 2 £800 withdraws at any ATM machine are used to buy things are pay bills, are whatever I don't care I'll be dead.
That's it, folks,
That today post, what do you think? Do you ever think about what will happen to your crypto after you die? How will your loved ones access it? Services to fill the gap in the market will come but whether people use them are not is another thing.
Thank you for reading my post today, I hope you enjoyed it and I would love to hear your feedback.
