How To Best Save Your Crypto Keys
This article is provided by GoodTrust - your trusted digital legacy advisor. Learn more about GoodTrust.
Recently the New York Times shared the story of Stefan Thomas, a programmer based in San Francisco, who found himself locked out of his Bitcoin account. The reason? He had forgotten the password or key required to access it and ran the risk of being locked out forever if he didn’t guess it correctly in 10 attempts. And this wasn’t just any Bitcoin account. That barrier meant nearly $220 million of his money was likely trapped in the digital realm forever (technically in a small hard drive called IronKey). There may be nothing he can do in this case but GoodTrust can help you in the future.
Since Bitcoin and other crypto currencies aren’t aligned with traditional banks and financial institutions (part of their appeal as a decentralized form of money sharing, storage and transactions) there is no third-party with which Thomas can interact and seek to verify his identity. Certainly keeping those codes or keys private is of paramount importance but as the value of Bitcoin oscillated up and down (and sometimes way down) over the past few years Thomas lost track of where it was written down.
Now imagine another scenario in which Thomas did find the codes but didn’t tell his loved ones or next-of-kin where to find them - and then he passed away. The same dire situation would be passed on to those people and they would encounter the same unimaginable frustration of seeing a virtual fortune disappear before their eyes. But this dilemma can be avoided by taking a few simple steps.
Once you’ve created a GoodTrust profile you can upload any documents that you wish to share with others in your trusted network. You can also simply write some notes or instructions like either where to find cryptocurrency codes or even the keys themselves. Remember that even if someone managed to get the key to an account they can’t necessarily do anything with it if they don’t have the password to the account or your two-factor authentication device or other means of back-up protection.
Seek that additional peace of mind today and don’t forget to add your first Trusted Contact along the way - they should be someone you inherently trust and will always act in your best interests after you pass away. You decide how and what they will have access to with your entire digital legacy and you can include more than one.
That’s also another reason why you may want to store your phone code in your GoodTrust profile as well (also within Documents) to create the most accessible pathway for anyone you’d like to designate as the recipient of your cryptocurrency or other accounts. There are countless ways to try to create the most secure cryptocurrency accounts on the planet but providing either a key or detailed instructions for your Trusted Contact can be a great plan of action. Don’t become another cautionary tale in the world of digital currency.