Today and tomorrow we dive into cryptocurrency security and legacy with a two-part mini-series. Today we explore the surface to delve into the depths in the next section.
Bitcoin and crypto investors have seen their wealth grow tremendously over the last 10 years. What often starts out as an innocent investment can turn into a huge fortune in a short period of time. The special thing about bitcoin and other cryptocurrencies is that they are virtual currencies that you can keep entirely under your own management.
Internal, so responsible for himself
You no longer need a bank or other financial intermediaries to transfer or store value. However, with that advantage comes great responsibility. The security of your decentralized assets. If you play for your own bank, you also have to organize security yourself and a lot of people go wrong there.
For most newcomers, choosing a secure closed environment like BLOX is the best way to get started with bitcoin. The smallest mistake can be fatal to your crypto assets and unfortunately you cannot call the CEO of Bitcoin to get your assets back. Today we are going to talk about part of that security: how do you leave cryptocurrencies to your relatives?
the easiest way
In principle, it is not very exciting to establish a secure configuration for your crypto assets. However, it is important to first gain some knowledge and try small amounts before putting all your capital into your own wallet. Most beginners should initially opt for the security of a closed platform.
You can buy and sell bitcoins within the app with BLOX, but you cannot withdraw bitcoins from the platform. The only way to get capital from the platform is to sell your crypto and receive money in your account. BLOX organizes all the security for you. That way, it is always possible for your relatives to access your crypto assets without taking big risks as a beginner.
The only risk you run in this case is that the security of BLOX is not in order. Although many crypto exchanges were hacked in the early years, the industry today is much more professional. True purists are still against holding their crypto assets on an exchange. However, for beginners this can be safer than managing your own wallet, because it is not entirely up to you.
Time for the real work
Now it’s time for the real work. If you think you have enough control of the technology, we will now write a step-by-step plan to organize your security as tightly as possible. Note: there are many more options and ways to organize this, but this is the configuration we have chosen for now. Even if you are not ready for it, it is interesting to read it to better understand how to think about this topic.
Step 1: Prepare the balance and know what you want to protect
The first step is to write down how many cryptocurrencies you currently have, what is the total value and where is everything. It is best to do it alone and in an offline environment. Take, for example, a sheet of paper for this or write it down in a notebook that you know for sure that no one comes.
Step 2: Divide your crypto assets into different classes
After the first step, it’s time to determine how much of your assets you want to always have available. You should think about the amount of money that you comfortably keep in your wallet. These are funds that you can store in a mobile wallet. Then you decide how much of your assets you want to store for the long term, which you’ll likely use years later. You can also choose to store part of your assets in an intermediate class.
Read the second part of this miniseries tomorrow!