In today’s financial world, “digital assets” are more than just buzzwords—they’re real, valuable, and increasingly important in estate planning, investing, and everyday life. But what are digital assets, exactly? And how do you manage them wisely?
Let’s break it down.
1. What Are Digital Assets?
A digital asset is anything of value that exists in a digital format and has the right to be used. This includes:
- Cryptocurrencies like Bitcoin and Ethereum
- NFTs (Non-Fungible Tokens)
- Online accounts with financial value (PayPal, Venmo, trading apps)
- Domain names and websites
- Digital content (photos, videos, music)
- Cloud-stored business data or intellectual property
- Social media accounts (especially for influencers or businesses)
Even reward points and digital wallets fall under this umbrella.
2. Why Digital Assets Matter
Digital assets can have both financial and emotional value. Losing access to them—or not planning for them—can lead to:
- Financial loss
- Identity theft
- Legal complications for heirs
- Broken business continuity
As more of life moves online, these assets need the same attention as your physical property or bank accounts.
3. How to Protect and Manage Digital Assets
To stay ahead, you should:
- Keep a secure, up-to-date inventory of all your digital assets
- Use strong passwords and two-factor authentication
- Back up important data to secure locations
- Name a digital executor in your estate plan
- Include instructions in your will for accessing and transferring digital accounts
- Review your terms of service agreements—some platforms don’t allow accounts to be passed on
4. Digital Assets and Your Financial Plan
Whether you own cryptocurrency, run a digital business, or have valuable domain names, your digital assets should be integrated into your larger financial picture. That includes:
- Tax planning
- Insurance
- Asset valuation
- Succession planning
Need Help Managing Digital Assets?
At Diligent Financial Strategies, we help clients account for their digital property—just like we do with traditional assets. If you’ve got crypto, online income, or cloud-based assets, we’ll help you build a strategy to protect them, grow them, and pass them on securely.