10th Nov2022

A Guide for Investing Your Bitcoin in a Trust

by James Smith

Despite earlier criticism and qualms about Bitcoin’s future, it is increasingly becoming clear that it is here to stay and an excellent store of value. While most people engage in short-term trading and investment in Bitcoin to date, the number of people and institutions investing in the long term is growing. This trend is driven mainly by the realization that Bitcoin is a secure store of value and hedge against inflation. If you are new in Bitcoin trading, you can improve your trading strategies by using a reputable platform such as biticode.org

The growing confidence in Bitcoin as a long-term store of value is making investors consider investing their Bitcoin in trusts. By doing so, they are sure that their investments have a future. Their future generations, including children and grandchildren, will benefit from the Bitcoin invested in the trust. As we get to the details of investing Bitcoin in a trust, you may consider adding Ethereum trading into your investment portfolio. The platform provides all information and support to trade successfully in Ethereum.

Prudent Investor Rule

Investing your Bitcoin in trust requires the application of the prudent investor rule. This rule holds that as the fiduciary or managing investor, you are supposed to monitor assets like your own while bearing in mind the needs of the beneficiaries and avoiding unnecessary risk. Therefore, you should avoid engaging in risky behavior, especially since Bitcoin is a highly volatile asset. You don’t want your investment in the trust not to benefit the beneficiaries when the time comes. Essentially, you should be an investor with a more significant and long-term outlook beyond your immediate or short-term objectives or interests.

Prioritize Bitcoin Storage and Security

Investing your Bitcoin in a trust is a long-term strategy. Therefore, ensure that your Bitcoin is secure and not vulnerable to attacks or other issues that may lead to loss or inability of the beneficiaries to access them. Please understand that criminals are constantly looking for gaps to attack and steal Bitcoin. Your storage and security priorities should be custodial cold storage or non-custodial storage. The idea is to use a more secure wallet that is less vulnerable to attacks. The security of your private keys should be a top priority.

Develop Clear Instructions about Access and Transfer of Bitcoin

The beneficiaries of your trust can only benefit if they access the Bitcoin in it. To do so, they will need private keys. Private keys guarantee ownership of Bitcoin; if they are lost, then it will be difficult to prove ownership, let alone access the Bitcoin. So, develop clear plans for sharing your private keys with your beneficiaries even before you die. For example, you can clearly instruct your trust to transfer your account ownership and control after you die or within a specified period. You can also plan how your beneficiaries will access the private keys if you use a non-custodial wallet.

Benefits of Investing Bitcoin in a Trust

Investing your Bitcoin in trust has several benefits. To begin with, it provides a way of protecting and securing Bitcoin. Trust documents are private, meaning there is little chance of them becoming public. And this provides some enhanced privacy and security since not many people will know about it. Additionally, investing in a trust can help avoid the lengthy, costly, and often complex probates that arise after the death of someone. While a will may be subject to prolonged court cases, investing in a trust will ensure that beneficiaries can easily and quickly access Bitcoin.


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