​Cryptocurrency (also known as "crypto") is digital money in which transactions are verified and records maintained by a decentralized system, known as the "blockchain," using cryptography, rather than by a centralized authority.

Although cryptocurrency is a relatively new asset class, with the first cryptocurrency, Bitcoin, emerging in 2008 as a direct response to the U.S. financial crisis caused by the banks and the government, cryptocurrency has exhibited remarkable growth and stability as part of the global financial landscape. Even though the value of individual coins (units of cryptocurrency) has been notoriously volatile, with the overall market rising from just under $148 billion in 2020 to $3 trillion in value in 2021, only to then lose $2 trillion in value in 2022, Bitcoin has been the best performing asset class of the decade.
On an annualized scale, Bitcoin returned 230% - 10x higher than the Nasdaq 100, which was the second-best performing asset class.
Given that Bitcoin and other cryptocurrencies are dependent only on the supply and demand in the market and are not subject to centralized bank or government control and manipulation, have publicly verifiable transactions and no third-party vendor to verify and validate transactions, and have a maximum limit to how much can be produced, it is no surprise that public trust and demand for cryptocurrencies is rising at a rapid pace and cryptocurrencies are likely to retain their status as a mainstream investment option.

A 2020 study by the Tokenist, which surveyed 4,852 participants ranging in age from 18 to 65 from seventeen countries, concluded:
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  • Over 45% of respondents preferred Bitcoin over stocks, real estate, and gold.
  • 61% of the total respondents (and 78% of millennials) are now somewhat familiar with BTC.
  • Trust in Bitcoin has grown across generations since 2017, with 47% of respondents trusting Bitcoin over big banks, an increase of 29% in the past three years. 51% of millennials now trust Bitcoin over big banks.
  • 44% of millennials report that they are likely to buy BTC in the next five years.
With the increasing popularity of cryptocurrencies as self-custodied assets, before even including your cryptocurrencies in your estate plan, it is critical that you understand how to manage (buy, sell, send, & receive) cryptos and have an effective strategy for hanging on to your cryptocurrencies. This involves preserving the passwords and digital wallets (storage units) connected to your cryptocurrency. This will avoid a disastrous situation like the one that befell a Welsh man who accidentally threw away half a billion dollars’ worth of Bitcoin.

​Consider the following options to preserve your cryptocurrency:

  • Ideally, store your cryptocurrencies on private wallets, including hardware wallets, software wallets, and paper wallets.
  • Though more risky (prone to hacking and theft), you may also store your cryptos on a reputable cryptocurrency exchange.