TLDR
- Jake Claver believes the most successful XRP holders will focus on establishing strong security structures before problems arise.
- Claver warns that many retail investors fail to recognize the risks of holding crypto in personal wallets without proper protection.
- XRP holders can use trusts, LLCs, and institutional custody to protect their assets from legal risks and potential lawsuits.
- Estate-planning tools like revocable trusts and tax exemptions can help XRP holders pass on wealth while minimizing taxes.
- Wealth strategist Armando Pantoja agrees that unstructured crypto investors often lose their wealth quickly.
Jake Claver, CEO of Digital Ascension Group, recently shared his perspective on which XRP investors will be the most successful in the long term. According to Claver, the investors who thrive will not necessarily be those who bought XRP at the lowest prices or accumulated the most considerable amounts. Instead, he believes that the true winners will be those who focus on establishing strong security structures before problems arise.
Importance of Security Measures for XRP Holders
Claver stressed the importance of proactive security planning for XRP holders.
“No one can predict events such as lawsuits, audits, accidents, or even divorce,” he said.
However, he added that investors can prepare for these unforeseen circumstances well in advance through proper structuring.
He explained that many retail investors fail to recognize how exposed their cryptocurrency holdings are when held personally. Since the IRS classified digital assets as property in 2014, crypto is subject to the same legal frameworks as real estate. This makes trusts, LLCs, and institutional custody valuable tools for protecting holdings from legal risks.
Crypto stored in a personal wallet is easily discoverable in a lawsuit, Claver pointed out. A judge could order access to private keys, which exposes investors to potential losses.
“Proper structuring through trusts, LLCs, and secure custody helps shield assets,” Claver emphasized.
Claver highlighted how many XRP holders overlook basic estate-planning tools. Wealthy families commonly use trusts and other strategies to minimize taxes and protect assets. By establishing a revocable trust, XRP holders can bypass probate and ensure their assets are transferred smoothly to heirs.
A key advantage of using these strategies is the step-up in basis for assets passed on to heirs. This means that large unrealized gains could be wiped out, reducing potential tax liabilities. Claver pointed out that this is a routine strategy for wealthy families but is rarely utilized by everyday crypto holders.
XRP holders also have the opportunity to transfer up to $13.6 million per person tax-free. This can be done through lifetime exemptions and annual gifting. These methods, if used correctly, allow XRP holders to protect wealth and pass it on without incurring substantial taxes.
Preparing for Long-Term Success in Crypto Investments
Claver noted that many XRP holders still treat their investments like a lottery ticket, hoping for wealth without planning for its protection. However, he warned that the real threat lies not in market volatility but in a lack of preparation. Even if the XRP price rises to $100 or more, unstructured investors may fail to preserve their gains.
Wealth strategist Armando Pantoja echoed this sentiment, emphasizing that many individuals who gain sudden wealth from crypto fail to maintain it. “Many lose their newfound wealth within two years,” he said. Claver believes that XRP holders who plan properly now will be the ones to achieve long-term success.
Claver frequently recommends using Wyoming digital-asset LLCs for their strong legal protections. These LLCs provide charging-order protection, meaning creditors can’t seize assets inside the LLC unless there are distributions. This robust legal structure makes it more difficult to challenge the liability shield.
XRP holders who prioritize security and wealth management strategies are likely to outperform those who only focus on price. By taking steps to protect their assets now, investors can avoid the pitfalls that often lead to wealth loss.
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