When you lose your wallet, there are steps you can take to recover most items.  You can stop your credit cards, alert the bank and request new ones.  You can request a new license from DMV.  You can change all passwords from sites that may be vulnerable.  And although you may still lose some things, like cash, you can still recover the majority of your financial life found in that tiny rectangle.

For cryptocurrency holders, their digital wallet recovery is a bit different.  If your cryptocurrency wallet were compromised and your currency stolen – like cash, it is gone forever.  So why ever share your password with anyone then?

Well, if you keep your cryptocurrency password to yourself, without ever notifying family members of its whereabouts, you would be denying them access to your wallet indefinitely.  If you were to suddenly die, your password would “die” with you.  There is no way to retrieve it without you.  Leaving your entire investment in cryptocurrency untouchable forever.

There is a happy medium between security and smart preparation.  Have partial passwords saved in multiple unrelated locations.  Provide detailed instructions on where to find these passwords in legal documents, such as wills.  Or even secure these partial passwords in safety deposit boxes.  This will ensure that family members can retrieve this information and have access to your virtual wallet when you no longer can.

Nothing is 100% secure, but having these steps in place can give you peace of mind that your wallet is safe and still accessible.  Smart and analytical preparation helps to secure your financial investments for yourself and your loved ones.

If you need any suggestions on ways to make a clear plan for your sudden death, please reach out.  WealthEdge® is here to help, every step of the way.