How do you avoid Bitcoin or Ethereum wallet loss? Wallet Recovery Expert Advice

1. Mnemonic phrases are the most important.

When you create a new wallet on your phone or laptop, at the initial stage, you need to generate a private key, which is a seed phrase, usually in the BIP39 standard. (Older wallets may generate keys in other formats, but these days, mnemonic words are typical).

You need to ensure that the generated words are correctly written down on paper or that we recommend using the CryptoSteel wallet. (A dedicated steel wallet for storing mnemonic words). Also, take care of the environment where you create the new wallet; do not do it in public places, and ensure you are the only person with visual access to the generated words.

You need to understand that the wallet is your words and not an interface in the app that only allows you to communicate with the blockchain and sign transactions. In other words, you can import your funds into any wallet and use them.
The next important step is storing your words. You should find a place accessible only to you, and you can always go back to it to read your words when your phone or laptop on which you have an imported wallet breaks down or when your hardware wallet breaks down.

2. Consider using Passphrase

The moment of generating the wallet is behind us; let’s also assume that we have found a safe place to store our words. This is essential because fulfilling these conditions allows us to use the wallet safely. Also, if the wallet is lost or stolen, we can import the funds indecently into a new Trezor device or any other software wallet.

An additional safeguard that only some are aware of is Passphrase. This is otherwise known as the 13th or 25th word. If we have 12 seed phrases, we can set the 13th word (or the 25th word if we have 24 phrases) as our password. If we have all the words, we must enter an additional word to import our funds. If a thief steals our seed, he can import the wallet without a Passphrase, which will be empty! Only with the knowledge of Passphrase is access to the funds possible.

3. Keep your mnemonic words in a place other than your wallet with funds! (Whether you use a Trezor or use a software wallet).

Keeping everything in one place can lead to a complete loss of the wallet and our words. In the event of a fire or theft, it may be impossible to recover the funds, so it’s a good idea to keep the backup (i.e., mnemonic words) in a different place than we keep the wallet we use every day.

4. Consider giving information about your crypto holdings to someone close to you, such as a family member.

Consider whether your loved ones could access your crypto holdings if you run out today. If you would like to pass it on to them, it is essential to think about instructions for them on how they can access the funds when the worst happens. This will save them stress, and there will be no need for a Wallet Recovery Service company.

By following the above tips, you can be sure you are better protected than most crypto users. First, you benefit from the properties that cryptography and blockchain provide by using non-custodial wallets. Thanks to this, you are the actual owner of your crypto assets, not just a virtual one, as when you keep your funds on the exchange and have no control over them.

A follow-up article will appear soon, and we will discuss even more advanced methods to secure your funds.