Long-term holders are perplexed by a critical question: what happens to their cryptocurrencies when they die? According to a study done in 2020, more than 90% of people are concerned about what will happen to crypto assets when they die. Whether it will be transferred to their future generations is unknown, but everything will become worthless.
Although there is a lot of concern among crypto traders, there are still four times fewer users who use wills to transfer their crypto investments to their future generations. As you must know, cryptocurrencies are not controlled by any central authority, so no one other than you has control over the assets. And because of this reason alone, hundreds of thousands of cryptocurrencies are lost every day because of the death of their respective owners.
However, this doesn’t mean that you can’t transfer your funds to your future generation, nor does it mean that everything will become worthless once you die. There are various workarounds that you can go through to transfer your funds to your future generation.
Each fund transfer requires detailed planning and decision-making. Along with this, you also need to have a deep knowledge of how cryptocurrency operates. So, here’s a detailed guide to what happens to your crypto when you die.
Share Mnemonic Keys With Trusted Members
One of the best ways in which you can bequeath your crypto funds to the next generation is by sharing your mnemonic keys. You should only share your keys with the person to whom you are going to transfer your crypto funds.
If you do so, the other person will get access to everything once you die. However, this is a very risky process, as if you share the keys while you are alive, the other person can even steal all your funds. So, it’s important for you to educate your hierarchies about what you want them to do with your assets.
Unlock Crypto Assets Via Death Certificate.
Although cryptocurrencies themselves don’t care about what happens to them when their user is dead, there are plenty of crypto exchanges that allow family members to access the crypto funds once their user is dead. Popular crypto exchanges like Binance and CoinBase ask their users to enter a nominee name while creating a new account.
In CoinBase, the family members will have to provide the death certificate and the will of the crypto owner in order to access all his funds. whereas in Binance, you must contact their customer service and they will guide you further on how to access the deceased person’s crypto wallet.
It’s important to know that cryptocurrencies are completely different from the regular currency that you are using. And because of this, the way it is bequeathed to the next generation is completely different from traditional currency. As a result, it’s critical to learn everything you can about what will happen to your cryptocurrency when you die and to ensure that it is passed on to the right hands.
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