Bitcoin is the world’s largest decentralized digital currency by market cap. However, what happens when you lose your cryptocurrency wallet.
The results are not so damaging as there are ways in which you can reclaim your money back. Here are some ways in which you can recover your funds on losing the bitcoin wallet. First is the most appropriate method to use. If you have stored your bitcoins in a noncustodial wallet then you may have also taken a backup of the same.
Just enter the seed password that you had kept safe for this purpose only and enter into your replacement wallet. Automatically all your coins would have come back to you. However, this rule may not be applicable to all the wallets. Not all of them offer a seed phrase to get to your wallet. Like Hash wallet has a unique recovery key that is needed to reach the wallet.
There is a recovery seed too and both of them, when entered, would help you access the same. On the other hand, if your phone or hardware wallet has been stolen someone may be able to get access to your private key. You would have been given a seed phrase while setting a new wallet. To keep it safe you should sweep your key into a public address for the new wallet.
When you do that a new transaction is generated that takes out the balance of the old wallet and all the funds are now transferred to your new one. In case you know that no one can access the old wallet you might just import the private key into a new wallet. In case you are importing a private key into hardware wallets like Ledger you would need an extra step.
You will first have to import the key into the Electrum wallet and only after that you can transfer your coins to the same. Lastly, there is one more thing that you have to do. In case you are importing the seed phrase into a wallet like EXODUS you would have to keep the derivation path in mind. This path is different for different wallets and should be set accurately when you start importing.
So, if you have lost your bitcoin wallet all you have to do is to sweep the private key into a new wallet and mention the derivation path if they ask for it. Though you would need to buy a new hardware wallet the money would be safe and that is what matters.
Blockchain Magnets provides general information about financial products and services that should not be construed as financial advice or recommendations of particular financial products or services. It is advisable to obtain appropriate advice from an appropriately authorised financial planner or investment adviser before making any investment decisions or before purchasing financial products or services. Read more here .