With digital assets in a state of emergency, you don’t need to worry about carrying cash, which might be stolen or damaged during disasters.
Digital assets are becoming more and more popular in the modern financial world. The combination of the traditional assets and the digital ones can be beneficial for you in a multitude of ways. It is no surprise that people all over the world use them more often these days.
If you are reading this, then you probably have some experience with investing already. However, you might be wondering how to combine your wealth management strategy with digital assets. If this is the case, then let me be the first one to tell you that digital assets can be extremely useful when it comes to emergencies.
In this article, we will show you how to make sure that during a state of emergency, your assets are safe and sound.
Having a financial digital asset can be a great way to send or receive money in a state of emergency.
In recent years, we’ve seen the destructive power of natural disasters like Hurricane Maria. These disasters can be widespread, devastating and leave the people who are affected in desperate need of aid. The most difficult thing for any family is to not be prepared for an emergency like this.
When Hurricane Maria devastated Puerto Rico, many people suffered from power outages as well as damage to their homes and businesses. The destruction also affected basic services like gas stations, running water and grocery stores, making it difficult for people to get the money they needed to survive.
The Puerto Rican government was already struggling with mounting debt even before the storm hit, so it was unable to provide much help for its citizens and the aid that did arrive took weeks to reach the areas most in need.
Financial digital assets are the only thing that can carry exchange value in a state of emergency. They can be transferred to wherever you want, and there is no need for trust or supervision from the government. It is because of this characteristic that financial digital assets have become a tool for survival during the COVID-19 pandemic.
Financial digital assets have been around for over a decade, but they have not gained wide adoption. However, countries around the world have started to recognize financial digital assets as an asset class and are working on national regulations. In addition, financial institutions around the world have begun to start using financial digital assets in their business activities, including JP Morgan Chase & Co., Goldman Sachs Group Inc., and Morgan Stanley.
The COVID-19 pandemic has laid bare the weaknesses of our economic system and increased people’s interest in financial digital assets.
Many people have asked us how they could use financial digital assets during a state of emergency. Here’s our answer:
You can use your financial digital assets to send money to family or friends who are affected by an emergency or natural disaster, or you can donate them directly to organizations that can help those in need.
It seems like every day we are confronted with new evidence that the world is becoming an increasingly dangerous place. Whether it’s terrorism, natural disaster, or any other type of emergency situation, we need to be prepared for anything and everything.
The key to managing your money during a state of emergency is planning ahead. That way, you’ll have a plan in place for any type of situation and won’t waste precious time trying to figure out what to do when disaster strikes.
In a state of emergency, the use of digital assets is extremely beneficial. There are many reasons for this.
Firstly, should your home be destroyed or damaged, you will have access to your financial accounts from anywhere in the world. You can log on to see if you have any remaining funds available to you and withdraw them where necessary.
Secondly, should you not be able to get to an ATM during a crisis, you can still access your funds at most retailers via debit cards. This allows you to buy food, clothing, etc. with ease and without needing to worry about whether or not there will be cash available at a later date.
Finally, depending on what KYC/AML regulations apply to the digital assets in question, they may be untraceable by authorities who are struggling to keep track of all their citizens during a crisis situation. This means that if the money is frozen in a bank account (as happened with some bank accounts during Hurricane Katrina), it won’t be lost forever!
In any emergency, it is important to know how to access your digital assets, especially if you are unable to get to your home. If you have created a digital asset inventory, it will be helpful if you can locate the list of digital assets and contact information for service providers and other necessary information.
If you created an inventory of your digital assets, keep it in a safe place where it will be available to you or your loved ones when needed.
For example, if you created your list on a computer at home and keep a copy of the document on an external hard drive in a fireproof safe at home, what would happen if there is a fire? Or if you keep your inventory on the computer at work – what would happen if the building burned down?
What happens if the power goes out and your computer is inaccessible?
If you have written down contact information for service providers and user ID/passwords in one place and stored them in your home or office, they may not be accessible during an emergency where you need them most.
Many people use their cell phone as their primary phone and may not have landlines at their home or office. If the cell phone is lost or damaged during the emergency, how would someone contact service providers for assistance?
The pandemic has given rise to a new appreciation of the advantages and features of financial digital assets.
The pandemic has given rise to a new appreciation of the advantages and features of financial digital assets.
Digital assets are a great way to meet the needs of surviving in an emergency. With digital assets, you don’t need to worry about carrying cash, which might be stolen or damaged during disasters. Also, you can keep track of your payment history and credit scores while on the go.
For payment networks, the advantages are clear: no fees for sending money, no chargebacks, and no need to trust anyone else. What’s more, these transactions are almost instant, so it’s an ideal solution for emergencies.
For people in India and Venezuela, this is a life saver. In 2017 and 2018, India experienced a period of demonetization. The country abruptly decided to remove high-value currency bills from circulation, which caused chaos.
Many people had no access to cash whatsoever and were unable to buy food or basic supplies. Cryptocurrency was one of the few ways to get money when banks were closed and ATMs were empty.
Venezuela is another country that suffers from hyperinflation. Cryptocurrencies have become a lifeline for many residents over the past few years as their national currency loses value rapidly.
It may seem like a stretch that you’d need crypto during an emergency, but there are plenty of reasons why you might be glad you have some in your portfolio during a state of emergency.
Here are some advantages of using digital assets in a state of emergency.
– Digital assets can be easily transmitted across borders, at no cost. Financial institutions have long been aware of the risks associated with money transfers; they set limits on cross-border transfers, check their clients’ identities, and require additional paperwork. In addition, many countries charge commissions for cross-border transactions. Currency controls mean that individuals often encounter problems when transferring funds to other jurisdictions. Digital assets make such transfers easy, safe, inexpensive and convenient: provided that you have access to the Internet and comply with applicable regulations governing KYC (know your customer) and AML (anti-money laundering), you can send any amount in any currency worldwide, with no delays and at minimal cost.
– Digital assets are independent from banks. The COVID-19 pandemic has shown that when demand for cash grows significantly, banks may not be able to meet it. In this situation, those who possess crypto assets have an advantage compared to those who only have bank deposits and do not have time or opportunity to withdraw money from their accounts.
Flexible Payment Options: Digital assets give you multiple options for paying bills and receiving money. For example, you can use mobile payment apps to pay for goods and services at retail locations. Or you can use peer-to-peer (P2P) apps to send money to family members. You can also pay bills from your smartphone or computer.
Easy Access: Digital assets offer convenient access to your financial records. For example, you can access your account information from any device that has internet connection and some products allow you to access your accounts at ATMs or via text message. Some products also allow you to check your balance by phone with no fees for checking balances and transactions.
Protection against Fraud: Most digital asset providers offer protection against fraudulent activity on your accounts if a thief steals your identity or steals your debit card number or other account information—you have only minimal liability for unauthorized transactions
While financial digital assets are an exciting new technology, it is very important to know how to properly secure your funds in case of a state of emergency. You should have multiple backups of your private key and not store all your crypto in one location.
You can use the same security principles when it comes to your physical valuables. For example, you might put some cash in a safe deposit box, some in a fireproof safe at home, and some hidden under a loose floorboard. If a fire destroys the house, you could still access the safe deposit box.
The same logic applies to your crypto. If something happens to one backup or storage device, you will still be able to access your crypto from another device.
Here are some of the best ways to secure your crypto:
– Cold Storage (Hardware Wallets). Hardware wallets are devices that were designed specifically for securing cryptocurrency. They store private keys separate from vulnerable, internet-connected devices and only transact when user confirmation is given via their hardware buttons. These devices are generally considered one of the safest ways to hold cryptocurrency.
– Paper Wallets. Paper wallets are simply documents with public and private addresses that can be printed out on paper or written down on any material with a pen or marker. This is a simple way to safeguard your funds, but it is also very easy to lose if they fall into the wrong hands
– Hardware Wallets – Software wallets like Exodus and Ledger hardware wallets are another secure way to store cryptocurrencies such as Bitcoin and Ethereum safely offline without exposing them online where hackers can steal them using phishing attacks or malware (malicious software). These wallets are extremely hard to compromise and do not require internet access for their security features, meaning you do not need to worry about losing them in a computer hack.
The most important thing is that you have a plan in place for your digital assets, so you can rest assured that they’ll be taken care of when the time comes.
In order to do this, follow these simple steps:
Make an inventory of all your online accounts and services.
Update your will to include your digital assets (and make sure the executor knows what to do with them).
Choose a successor to take care of your digital assets.
Write down your passwords and store them somewhere safe where only you can access them.
If you want someone else to access these passwords, write down their names as well, along with instructions on how to use them.
The initial panic and uncertainty of the COVID-19 pandemic is over. Now is the time to look forward.
It’s not too soon to start thinking about what phase two might look like for your business or personal finances.
If you’re looking for a way to improve your financial situation during a crisis, the answer lies in better understanding how you can use digital assets to help you through this pandemic and beyond.