What happens to your crypto assets in event of death? Details here

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The cryptocurrency you mine or acquire may have the potential to give healthy returns in the future. But for that, you need to take necessary measures, likely regular monitoring of the investment and ensuring it is stored away safely.

More importantly, you must plan for the smooth transfer of ownership of your crypto assets to your loved ones in the event of your untimely demise.Accounts on crypto exchanges are susceptible to cyberattacks and theft. So, it becomes more important that you ensure someone constantly keeps a watch on the account even when you are not around.

While there is no provision for declaring a beneficiary for your cryptocurrency, there are ways to secure ownership.For example, it is possible to store your crypto in a cold wallet (offline device) that can be accessed through a password that grants access to those entrusted with it. It is also important to note that if you fail to share this crypto wallet, your cryptocurrency will be lost forever with no way to recover it.Let’s first look at how cryptocurrency is stored.

And then explore how you can avoid misuse or loss of your crypto assets after your death. Also Read // What sparked the Bitcoin price crash this week and where is it headed?How is your cryptocurrency stored?There are two ways in which crypto storage is managed. Hot Wallets: These wallets are online and can be accessed through a website. They are typically used for trading or temporarily holding the mined/purchased crypto assets.

This is more like a current account that witnesses regular inflow and outflow of money. These are considered less secure as they are online 24x7 and can be hacked into.Cold Wallets: If you wish to stash away your crypto for long periods, cold wallets are the