Five ways to protect your digital assets

August 11, 2021

Online assets make up the majority of finances today, with digital versions of funds representing the money owned by you, your family, and even your business. Whether you’re investing in cryptocurrency, trading stocks or saving in fiat, the majority of your money lives online unless you deal with cash only (which is very unlikely the case).

It is crucial to make sure you’ve got the right protection to make sure your funds are safe and secure from hackers, scammers, or malicious parties online looking to get their hands on your money.

1. Locate and list

Make a comprehensive list of your assets, looking at all digital assets from finances to apps to any sort of collateral held in the cloud. Think of anything you own, that belongs to you and that no one else has the right to take or claim. Anything valuable that lives online can be considered a digital asset.

2. Establish ownership and value

Consider the listed digital assets and find out who owns them. If it’s you, specific ownership must be established before you can protect them as yours. For example, if you own a domain with numerous people operating on it, can you prove that it belongs to you? If needs be, check with a legal attorney to draw up policies to help establish ownership.

3. Assess encryption

If you have any digital assets that are passive or in transit, look to encrypt them safely and securely. This could be encrypting your cryptocurrency private key, for example, or securing important files that live online. The more securely encrypted your digital data is, the safer you are from losing it.

4. Consider a protection manager

There are firms designed to help secure your funds and digital assets. Cook Island Trust is an example of an effective means to create security, safe distance and confidentiality with your assets. Offshore protection is a fully lawful way to protect your digital assets and online funds while offering legal benefits and asset management.

With an asset protection manager that you trust, you don’t have to worry about the complex legal aspects of digital ownership.

5. Plan for the future

Protecting your digital assets requires contingency planning if something should happen. Start the way you mean to finish; if you store correctly, your asset management will be easier to maintain, which will make protecting those assets easier. Use tools to help manage and audit your digital assets. It doesn’t ever hurt to have a secure backup system in place – consider backing up your digital assets both online and with a hard drive just in case.