Saturday, July 9, 2022

Bitcoin Custody Question

I’m going to heed Craig’s LinkedIn warning and pull most of my coins off of the exchange. I use RH, which I’m less concerned with in-general than the others he mentioned. I don’t like them either but I think it’s the ‘best’ of the worst so to speak. I’m a little nervous about doing this myself as I’ve generally only invested in stocks (and derivatives) in the past. With regulation SPIC / FDIC, I’m generally covered from risks with custody banks when dealing with securities. As you know, coins are another matter.

I’m divorced but have a daughter, so, in the event I get hit by a bus I want to make sure if this whole thing takes off, she could inherit. I don’t have a crazy amount, but rather a little squirrel stash. But, that could be worth a lot here #soon (or much later). I don’t have any ‘crypto’ friends. No one really knows I mess with this stuff. Kind of shameful and it’s hard to explain to normies ‘this one’s different’ and it’s the ‘real bitcoin.’ And, I don’t like to suggest or push it as an investment anyways because of the risks - don’t want to feel accountable if tanks / goes to 0.

Anyways, that’s the background. So, here’s the catch 22. I want to keep this safe and secure but also retrievable if I bite the dust. I’m going to keep the majority in cold storage. I’m getting an ELLIPAL Titan. I’m a little nervous about it, but a little excited too (strangely).

How do you suggest I share this information with a trusted individual, that doesn’t know much about ‘crypto’ to recover in the event I die?

I know I can generally give them the pubic key and seed word phrase? Along with the log-in information on the device? Would all of this be enough for them to retrieve?

Any and all suggestions welcome. Any procedures to keep it safe, but not so safe that it couldn’t be recovered. Trust is a tricky thing too. Even though I have maybe 3 people I completely trust, that wouldn’t do anything nefarious, you never know. Things happen, people change. Life. I’m auditor and think usually in terms of controls and risk adverse procedure. So, what’s best practice in this circumstance?

Thanks in advance for everyone’s help and engagement here on the board. We have a good balance of supporters here but enough healthy friction to avoid groupthink (sock-puppetism). Grateful for y’all (as we say in the south).


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