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Crypto Inheritance: How to make sure your Digital Assets don’t die with you

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Crypto Inheritance

What to expect in this article:

  • What are digital assets
  • Digital Asset definition
  • Digital Asset Investor
  • Digital Asset holding
  • Digital Asset Estate Planning: Protecting and passing your Digital asset wealth

If you are rushed for time – you can download this in eBook format along with future freebies just by subscribing.  Don’t worry – we don’t send more than ONE email per week.

An asset is something of value owned by an individual or a company. Digital asset then refers to an asset in digital form that is owned by an individual or a company.  

Using this generic definition, all forms of digital creation can be regarded as a digital asset, like a YouTube video, a picture, an electronic design, a game, code, so on and so forth.  

Any asset, that is something of value, in digital form can be a digital asset.

However, the hype you have been hearing about in the news and crypto space is not about generic ‘digital assets’, it is about specific digital assets on blockchain.

Digital Asset definition: digital assets in the context of Blockchain and cryptocurrencies

bitcoin budget fincenBlockchain has bred a new asset class called cryptocurrencies. The king of all cryptos is obviously Bitcoin. Outside of Bitcoin, there are over 5500 cryptocurrencies in the market and growing.  

We are witnessing a plethora of assets that are being brought to life through blockchain technology, including:  

Bitcoin: Considered as Gold 2.0 and the basis on which Web 3.0 is being built. Most popular and most expensive of all cryptocurrencies in the market

Utility Tokens: Native cryptocurrencies that are used on the different blockchain networks that are utilized in providing the services on that blockchain.  Most cryptocurrencies in the market fall into the category of utility tokens, however, SEC is looking to categorize them all as ‘security tokens’ 

Stablecoins: cryptocurrencies that are backed by fiat currency or gold or other physical assets to back up the value of the stablecoins.  These are used as hedge against the crazy volatility of the cryptocurrency market

Security Tokens: The concept of tokenizing any asset, tangible and intangible, into tradeable tokens is revolutionizing the way capital has been raised historically. For instance, a company in need of additional capital could offer up the equity in a machine that produces $50,000 in revenue a month for $1,000,000 at $10,000 in each token. These 100 tokens will then be entitled to receive $500 each. The token holders can either receive the $500 a month or sell their tokens to others who are interested at any price they like. This concept could be applied to any asset including machinery, real estate, patents, contracts, invoice discounts, etc., The potential to tokenize is just mind boggling

Crypto Collectibles: For those of you who have been in the crypto space during the crypto kitties debacle that choked the Ethereum network, you will remember that these cutesie digital things sold for thousands of dollars. 

NFTs: Non-Fungible Tokens are tokens that cannot be replicated or replaced.  For instance, if I give you $100 as a loan – there is no need for you to return the same $100 bill when you repay the loan.  However, if I give you a $100 bill signed by Abraham Lincoln – I expect that same bill when you return it.  The generic $100 bill in our example is the equivalent of a fungible token (you can replace/interchange) and the bill signed by Honest Abe is the example equivalent of a non-fungible token.  

DeFi Platforms: A lot of Decentralized Finance platforms (and protocols) are swarming the blockchain and crypto space that are looking to bring the traditional financial services like lending and borrowing to the blockchain.

Each day a new type of crypto asset comes into the market. All the various types of existing and emerging crypto assets fall into a broad basket of ‘digital assets’ in the context of blockchain and cryptocurrency space. 

Digital asset investor

bitcoin-for-CashMost individuals who invested in bitcoin and other cryptocurrencies only 5 years ago were considered as nerds or criminals or anarchists or all of the above.  However, the rhetoric has now changed.

With companies like Fidelity, NASDAQ, paving ways for traditional investors to enter the digital assets place, the digital asset investor now includes innovators and early adopters. The digital asset investor will soon include early majority (mostly millennials) and later many mainstream investors that will form the late majority.

By the time laggards make their way to the digital assets, they would have already become mainstream.

The potential to move from innovators to early adopters to all the way to majority class, there is a vast room for digital assets space to grow.  

At the minimum, if they hit the gold market cap – that would itself put the digital assets space at 6 Trillion dollars.  However, many industry experts claim that digital assets will probably surpass the stock market value in the future as the stock market itself will be mobilized on blockchain.  

This will put the digital asset investor value at over 80 Trillion dollars.

The key differences between traditional digital assets and digital assets on the blockchain:

Digital assets have existed before blockchain and bitcoin. For instance, eBooks, articles, copyright material, pictures, videos, and many more that only existed in digital world were all considered digital assets. However, with the evolution of blockchain, it becomes important to understand the difference between traditional digital assets and digital assets on the blockchain.

Traditional Digital AssetDigital asset on the Blockchain
Hackable and not easy to traceArguably non-hackable
Lack of privacyHighly secure and can be made private
Difficult to claim ownershipEasy to establish ownership
Difficult to monetize ownershipEasy to monitor and monetize ownership

Digital Asset Estate Planning: Protecting and passing your Digital asset wealth

The issue of safeguarding and passing the crypto wealth to your loved ones in case something happens to you has been a topic that has been gaining considerable momentum. Rightfully so.

We have all heard about the stories of people who passed away suddenly taking crypto wealth with them because they did not have any Digital Asset Estate Planning in place.

For instance, Michael Moody’s dad could have benefited from having access to his son’s crypto wealth, however, there is no way to facilitate this when the crypto is left without a legal heir.  

Existing Digital Asset Estate planning options

  • Exchanges like Coinbase/Custodial services

If you are among those who trusts Coinbase with their crypto wealth, you are in luck.  

Coinbase makes it easy to transfer your crypto wealth to your loved ones.  Simply follow the steps laid out by Coinbase here to pass on the crypto wealth.

Few exchanges also have similar protocols in helping transfer the cryptos held on the exchange to your legal heirs. 

Some of these exchanges offer custodial services through third party custody providers like BitGo.

This is how this works. You write a few e-mails and choose the recipients. These emails are stored privately until they’re sent. Your switch will email you every so often, asking you to show that you are fine by clicking a link. If something were to… happen… to you, your switch would then send the emails you wrote to the recipients you specified. Sort of an “electronic will”, one could say.”

While this solution is a very simple one, it may not be the best option for passing your crypto wealth.  or one, you want to send the details of your wealth to someone you trust with your life.  Two, what happens you are stuck somewhere or get so busy that you don’t check emails and you accidentally trigger an email with sensitive information to your crypto wealth?  

The company itself advises users to not use it for non-casual purposes such as passing your crypto wealth, “That having been said, this service is meant for casual use by the average person. Please don’t use the service if you need strong guarantees of privacy, e.g. if you are a whistleblower or any similar life-and-death situation. It is NOT meant to safeguard against high-value messages,” the site warns.

  • Old school notebook & locker

You could write down your passwords, private key information in a notebook and secure them in a safe or bank locker and include these as part of your will.

Obviously, there is danger that your heirs may not know how to access the crypto wealth or someone else could get the information from the notebook. This method should only be used by those who have ways to secure the notebook with private keys and passwords with their cash and gold. 

  • Hardware wallets

There are a lot of hardware wallets that you can use to secure your crypto wealth. You want to ensure that someone in your family knows how to access the wallet.

Existing Digital Asset Estate planning projects

Where there is a problem there are bound to be solutions. Crypto inheritance is a big problem for the industry and there are projects that tackle this problem:  

  • TrustverseTrustVerse: TrustVerse offers Digital Wealth Management Solution through its DApp called Pluto a “blockchain platform innovated to provide stability to users and their beneficiaries with proper inheritance services.”  TrustVerse helps with the crypto inheritance “in case of a sudden death of the predecessor, the beneficiary(s) will need to submit the individual’s certificate of death to withdraw his/her digital assets. In the case of multiple beneficiaries, the approval of the death certificate’s validity by all the beneficiaries is necessary.”
  • SafeHavenSafeHaven: Safehaven provides many services that aim to help crypto onramp to the mainstream.  Among these services is their inheritance solution.  SafeHaven site states that it is “building financial, asset management and inheritance solutions on the blockchain
  • CasaCasa: Casa offers solutions that can work with your existing estate lawyer and your loved ones to make sure you pass on the wealth when it’s time and without failure.  

What if these companies shutdown?  

  • Crypto is a relatively new space. One company providing the crypto inheritance service called DigiPulse is already out of business and its website is on sale.  You have to consider what type of team, sustenance model and history is behind the Digital Wealth Management Solution that you choose.

Helpful tips for Digital Asset Estate planning

In addition to the above listed solutions in the market, consider these tips and as always, consult a professional for specific advice.

  • Will: Make sure you reference the existence of your crypto wealth in your will
  • Power of Attorney: Designate someone you trust with power of attorney that covers your crypto wealth
  • Have joint deposit boxes: consider having joint deposit boxes with your loved one and securing your private keys in the safety 
  • Have redundancy but avoid too much duplicacy: Do not store all your crypto assets in a single hardware wallet, or single exchange, or single location.  Spread it.  Have at least 1 back up for each holding (for instance, if your hardware wallet is destroyed or lost, have a backup to recover these assets through private keys)

No one can foresee the future and it is always better to be prepared for your own sake and for the sake of your loved ones.

Thank you for reading and sharing this article. Stay safe and healthy!

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Crypto Roundup: All Your YouTube Influencers in One Place

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Crypto Roundup

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: Bitcoin Will Be OVER $20,000 By Christmas 2020! BIGGEST WEALTH SHIFT OF OUR LIFETIME! Cryptocurrency

Date: 19-Nov-20

  • World’s biggest wealth shift of our lifetime is happening right now and no mainstream media is talking about it, except CNBC.

  • Preston Pysh predicted on August 26th that: “Bitcoin should be reaching its all time high by Christmas.”

  • If you are looking to buy a dip, there may not be one.
  • Ricardo Salinas Pliego, a mexican billionaire, has just revealed that 10% of his liquid assets are into bitcoin.

Lark Davis

Video Title: STOCKS HIT NEW HIGHS! WILL COVID VACCINES LEAD TO MEGA PUMP IN 2021? [Are You Ready?]

Date: 19-Nov-2020

  • Stock markets and bitcoin pumps higher on the news of the second successful covid vaccine.
  • There could be more chances for the new stimulus. Means more inflation, more debt and simultaneously pumps stocks, gold and bitcoin.

Crypto Zombie

Video Title: BITCOIN $18.5k TOP!!?! DON’T BE FOOLED!! HODL FOMO BEGINS!!! $TRILLIONS FLOOD!!

Date: 18-Nov-2020

  • Overall sentiment of Bitcoin has changed drastically from ICO craze in 2017 to a time where people are FOMOing to own more bitcoin.

Ivan on tech 

Video Title: BIG WARNING TO ALL HODLERS!!!!!!!!! DO NOT GET REKT!!! BITCOIN $18,500 REJECTED – NOW WHAT?

Date: 18-Nov-2020

  • Ivan expects bitcoin to shoot past $20K resistance before end of this year, giving it 85% probability

Chico Crypto

Video Title: World’s Most Powerful Turn BULLISH on BITCOIN

Date: 19-Nov-2020

  • All those who hold big bags of Bitcoin will come out of the shadows to talk up the Bitcoin rally, a $20K bitcoin could be on the cards before the end of this year
  • Ethereum mining could act as a big catalyst for Ethereum’s price
  • Big companies like google could play a bigger role in mass adoption of crypto

Let the FOMO begin…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Lessons from the Veteran HODLERS to the Newbies!

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Lessons in Crypto

For all those who entered the crypto market after the 2017 bull run – here are few lessons from the HODLERS from the last bull run(s).

This is our attempt at making all you newbies aware of the mistakes veteran cryptoers did.

Let’s get started…

Don’t FOMO in to all the hype

FomoIt’s hard not to FOMO in crypto.  The trick is to make sure you don’t lose your shirt in crazy bets.  Always limit your bets to what you are comfortable losing.

The common ways you can become victim of FOMO are:

  • Following your favorite YouTuber without actually doing your own research on the project.
  • Investing into projects at the top.
  • Believing in promises of 100x or 1000x without any substance behind those claims.

HODLing far too long

Remember why you are into crypto – to make the money.

Never fall in love with your crypto, and HODL the tokens even when they are 10x and more.

Have a strategy to take your capital out before you become a HODLer.  

If you believe the project really has what it takes to go beyond 100x and more, just sell in instalments so as to not miss the ride.

One of the best ways to HODL is to take your capital in full and profit in tranches.

This rekt story will give you a right perspective of what it looks like, it’s one of many:

Don’t put all your eggs in one basket

Never go all in on one project. No matter how strong the project may look, even the projects with strong fundamentals don’t do well sometimes. 

And, you will be kicking yourself watching other projects go up and your portfolio just doesn’t seem to make a move.

And don’t over do it and have a portfolio with over 100 projects either. It is very difficult not to have invested in more than 15 projects but anything less than 20 is a good way to go, in our opinion. 

Put aside the share of Profits for Taxes.

One way you can get a good night’s sleep is by paying taxes. 

Always keep a habit of putting aside a % of your profits in USDT or other stable coins, as a reserve to take advantage of market volatility and also to meet your tax obligations. 

Exchanges are more evil during bull run

Foreign ExchangesDon’t trust exchanges. Yes we already know that, but they play more games during bullrun, some intentional and some technical. 

Many exchanges tend to go under maintenance when the prices shoot up too high too soon (Coinbase?), and you can’t sell. 

And the shady exchanges scam out before you know.

Regulators seem interested when the market cap of these projects goes through the roof, which then adds FUD around the project crashing the prices.  

Exchange may freeze funds pending investigations when such issues arise.

Take for example OKEx. Users are unable to withdraw their assets from the exchange for almost a month now, not certain if they ever will, and all that started with the legal dispute.

Never fall for Arbitrage gains

Arbitrage is when you buy in one exchange at a lower rate and sell on the other for a higher rate to take some profits. 

Some shady exchanges show a lot higher prices than the other genuine exchanges and when you deposit your assets to sell at those prices there won’t be actual volume to execute the trade. You may be stuck with either a high fee for withdrawal or other funky rules to take your own money out. 

Remember, there is no free Giveaway

Free CryptoScammers rise with the rising market.  

When the crypto market buzzes with all time highs – scammers cash in big time on newbies.

The most lucrative scam in crypto is ‘Free Giveaway’. Whether it be through YouYube ads or discussion groups and wherever they can get your attention.  Read this article on various sophisticated scams that are being deployed.

We hope these lessons help you through your trades and crypto life.  Stay safe and always DYOR.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

Continue Reading

CryptoSpace

Crypto Roundup: All Your YouTube Influencers in One Place

Published

on

crypto news

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: The United States Just Brought Bitcoin into the National Conversation!! | Cryptocurrency in 2021

Date: 16-Nov-20

  • Former National Treasurer and the new US Senator Elected, Cynthia Lummis, said Bitcoin fits the bill as a good store of value as it is finite and limited, unlike the inflationary fiat currency.

  • Grayscale adds over 7000 more bitcoin in just the last 24 hours.
  • Just over 16% ETH staked for ETH 2.0 launch on Dec 2 2020.
  • Bitcoin Cash hard fork takes place tomorrow.

Crypto Zombie

Video Title: WARNING!!! BITCOIN 2017 BEAR FRACTAL RETURNS!!! BTC WORST CASE SCENARIO…

Date: 14-Nov-2020

  • Institutional money starts flowing into bitcoin.

  • Paypal goes live with its crypto trading platform for eligible customers. They have also raised the buying limits from the initially set $10,000 to $20,000 per week.
  • DIA, an DeFI Oracle provider, integrates with Polkadot.

Ivan on tech 

Video Title: BITCOIN WILL DO SOMETHING INSANE THIS WEEK!!!! -30% DUMP AHEAD vs $20,000 PARTY – Programmer

Date: 16-Nov-2020

  • Bitcoin could make a big move this week, either hit 20K or we may see a 20% to 30% drop
  • Chainlink partners with Etherisc to deliver agricultural insurance in Kenya.

Ellio Trades

Video Title: UNLOCKING $100 TRILLION? This low cap gem seeks to bridge CeFi and DeFi

Date: 15-Nov-2020

  • DeFI could be similar to the ICO craze in 2017
  • Low cap gem: AllianceBlock
  • AllianceBlock is bridging the gap between DeFi and CeFi
  • AllianceBlock Partnership with Orion Protocol and Chainlink.

Chico Crypto

Video Title: WARNING! An “EVIL” Entity Wants Control of BITCOIN…

Date: 15-Nov-2020

https://www.youtube.com/watch?v=45Ac-5y2ofg

  • 90% of Bitcoin’s mining pools are controlled by China based mining pools
  • As the value of bitcoin goes up – there is a threat of push to ‘control’ the network from China
  • Binance is looking to push through the 50% mining share and Chico believes this could be dangerous

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place. 

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

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