The introduction of cryptocurrencies raised the sphere of online payments to a higher level, simplifying online shopping and enabling the opportunity to transfer money wherever you need it across the globe within a few seconds. Nowadays, the crypto world is a deep industry with favorable terms for work and leisure.
Crypto wallets are a popular way to keep and transfer money online. The popularity of crypto accounts is due to enhanced security, easy control, and 100% confidentiality. Thus, more and more users create accounts for quick and safe transactions.
If you plan to deal with cryptocurrencies (whatever you wish, be it trading or money transfers for performed works), you need a crypto wallet. Below, we’re going to consider how to recover a crypto wallet and what to do if you can’t recall a seed phrase.
What Is a Crypto Wallet and What Are Seed Phrases?
Obviously, a wallet is a physical thing where people keep their cash, cards, and business cards. By analogy, a crypto wallet is a similar digital thing for storing a user’s money. Crypto accounts are used to keep NFTs, cryptocurrencies, and other tokenized assets.
Like any other platform, the crypto wallet service requires a login and a password when creating a crypto account. But, in addition to this classic datum, users also get a “seed phrase”. Quite frequently, users wonder why they need this phrase. So, let’s clarify this point.
The seed phrase is a kind of PIN code for a digital crypto wallet; it is a combination of 12 or 24 unrelated words. They are randomly generated by the system.
Why do users need them? This phrase is required if a user forgets a password or loses his device. The phrase serves as a tool to restore access to your wallet. The main task of the user is to remember or write down this phrase not to forget it.
Such phases are generated using a standardized algorithm (BIP-39) to ensure uniqueness. This approach is used to guarantee that words are not interconnected with each other, making it hard to guess and, accordingly, eliminating the risk of picking the right combination and breaking the wallet.
Yet, great responsibility comes with great power. Although the phrase is hard to break, it’s still hard to believe even for the account owner. Are there ways to store the phrase reliably? If you inform other people, even friends or relatives, it can put your wallet under threat.
Keeping phrases offline on sheets of paper is also doubting since you can easily lose them. Keeping the seed key in online notes is rather insecure in the case when someone gets your gadget. It’s possible to encrypt the phrase on other hardware, such as a hard disk. But, anyway, the risk of losing or forgetting this phrase is very high.
How Users Can Lose Their Crypto Wallets?
Although crypto platforms feature a high level of security and privacy, users can lose access to their wallets and, accordingly, funds, due to the following reasons:
- Poor understanding of the working principles of custody. When dealing with storing crypto funds, it’s essential to understand how custody works. Your crypto assets can be stored through a trading firm or in your wallet.
In the first case, funds are not actually in your account, and if you forget the password, you can ask the firm to resend it. After an identity check, the company sends you a new password. In the second case, you lose funds together with access to the account.
- Losing the seed phrase. As we stated above, the phrase is needed to restore access to the wallet if you forget the password. Losing this phrase is a bit of a problem.
- Self-sabotaging. Statistics show that 30–40% of the cases when users lose their wallets occur when they try to figure out the case themselves. Do not try to re-guess the password or re-install the app. Just contact a support team and ask for an effective solution.
Although being highly secure and reliable, nothing (including crypto wallets) is 100% protected from loss or break. Thus, you should keep in mind how to restore a crypto wallet in the case when you can’t access it and get your funds.
How to Recover a Lost Crypto Wallet?
The inability to access your crypto wallet is a stressful experience. Fortunately, it’s a reversible process. There are several ways of crypto account recovery. Here they are:
- With the seed phrase. It’s the easiest way to restore access to your account. In this case, you need to open the app and select the “Recover wallet” option.
- By clicking on this button, an entry space line will appear.
- Enter the seed phrase exactly how it is stored. Pay particular attention to capitalization and the correct order.
- Recheck the phrase once again and confirm account recovery.
- Create a new password for further entries to your wallet.
- Your wallet will be restored in a few minutes. Wait for its synchronization with the blockchain and feel free to use it.
Now, you can realize the importance of the seed phrase for your wallet’s well-being. Sill, you may ask what if you lost your seed phrase? Does it mean that your account with all crypto assets is lost irrevocably?
Is it possible to restore the account without the seed phrase? Note that crypto wallet recovery without the seed phrase is almost impossible, which is why you should approach seed phrase storage responsively. There are several tips that can help try to recover your account. These are:
- Contact the support team of the wallet provider. In some cases, providers can help unfortunate users regain access through a list of personal information. Email, phone number, and other information are required. Some providers manage to restore accounts, but it’s not guaranteed to work each time.
- Hire a data recovery specialist. Some agencies offer wallet recovery services (such as Recovery Wizards). Wallet recovery services are renowned for their swift and efficient operations, ensuring clients regain access to their digital assets promptly.
With a focus on quality and expertise, these services deploy advanced techniques to restore access to wallets while maintaining the highest security standards.
Clients can trust in their reliability and professional approach to handling even the most complex recovery scenarios.
Note that due to seed phrase vulnerability to accidental deletion or loss, alternative security measures start to appear. Some crypto platforms introduce new methods of account recovery instead of seed phrases.
These include hardware security modules, multi-signature accounts, biometrical authorization, and social recovery systems. These solutions help develop effective systems of access control and prevent account loss due to poor memory or inattentiveness.
To sum up, note that the seed phrase is the key tool for ensuring the security of your crypto account. It’s important to keep it in a safe, unavailable place to prevent unauthorized access to your account.
Loss of this key can lead to irrevocable loss of funds. Thus, find the best place to store this phrase and do not forget it. Alternatively, if you’re just thinking about creating a new account, you can find a platform that uses other security means for access recovery.