Lost your hardware wallet? Here’s your action plan!
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If you lose your hardware wallet, you might feel a direct punch in the gut! You might feel an instant panic attack as your heart starts racing and you need to retrace your steps like a detective on a mission. However, what if I told you that there is still hope? You have not lost your funds forever and there is still a high chance of regaining access and protecting your assets before it is too late. When your wallet goes missing, there are certain steps that you must take, and we will discuss all of them here! From a lost wallet to a stolen or misplaced wallet, there is a way to again gain access to your wallet. Here’s how.
Step 1: Quit panicking and start assessing the situation
Staying calm in such situations is the key to success! When you lose your hardware wallet, you don’t lose your funds. The private keys you have are safely stored inside the hardware device and without the PIN you had set, there is no chance that anyone can access that information. Besides, there are additional layers of protection in certain hardware wallets, which makes it impossible to barge in.
It becomes impossible for anyone to drain you of your funds with all the protection measures that your wallet has in place. Think back about the last whereabouts of your wallet and where you last used it. Besides, try to remember whether someone borrowed it from you or not. Retracing can be a beneficial way of finding out your wallet.
Step 2: Secure your recovery seed
Your wallet comes with a recovery seed phrase, which is a 12- or 24-word backup that can be used to restore your wallet. Have you secured it? If not, act fast and secure your recovery phrase as fast as possible. A lost wallet or a stolen wallet can be easily restored using this seed phrase, as you will get complete access to your funds using this phrase.
When you buy a new hardware wallet or use any compatible software wallet, this seed phrase will help you out! If you lose the recovery phrase, things start getting tricky for you. Your funds will become permanently inaccessible if you lose the security phrase, as you will not be able to recover your wallet at all. Search thoroughly and find out whether you have written that phrase somewhere or not.
Step 3: Consider the possibility of theft
If you are suspicious of any kind of possible theft of your wallet, then it is time to act fast. Even with a PIN lock and protection, a determined hacker will attempt to crack it open. This can compromise all your funds and can result in unwanted loss of funds as well.
In the case of a theft, the optimum route to take is to first move your funds as soon as possible! Restore your wallet on a new device or software wallet and immediately transfer your funds using the seed phrase that is available to you. Transferring your assets to a safe address can be extremely beneficial here.
Have the same PINs or passwords across multiple accounts? Then it is time to act swiftly and update them ASAP! The same PINs and passwords leave you vulnerable, and therefore, diversification of the same can be a beneficial step.
Finally, continuously monitor all your addresses using a blockchain explorer to check for any kind of transactions made using your wallet!
Step 4: Restore your wallet on a new device
Are you sure that your wallet is gone? If you are, then use the recovery phrase to set up a new wallet. However, for this step, having the recovery seed phrase is a must! Get a new hardware wallet, an official replacement from the same manufacturer. Do not use any third-party sellers as it might result in tampering of devices.
Select the ‘Recover Wallet’ option and enter the 12- or 24-word seed phrase that you have. Double-check all the details after your funds appear and make any transactions only after you have verified everything.
Step 5: Strengthen your security for future
Tighten your security further as losing your wallet can result in loss of funds, which is pathetic! Isn’t it? The first thing to do is store your recovery phrase in a safe and secure manner. You can use a fireproof, waterproof metal backup or store it in a safe location as well. Avoid keeping it in your phone, computer or any cloud-based application, as this makes them susceptible to hacking.
Using a strong PIN is another important step that you must take. Avoid using the same PIN everywhere and make sure that your PIN is not an obvious number like your birthday, anniversary, or similar event. Some hardware wallets come with passphrase protection feature, which is an additional layer of security. Use it to avoid any kind of issues! Finally, make sure that you have a backup wallet with a small portion of your funds.
What if you can’t recover your wallet?
Have you lost both your hardware wallet and your recovery seed phrase? It is the worst-case scenario, wherein, you have lost your crypto. You cannot recover it anymore! Blockchain transactions are completely irreversible and this makes them different from bank transfers. No customer support can help you out in such a situation, where you have lost your seed phrase and your wallet.
So, what should you do? The first thing to do is to protect your seed phrase properly and consider splitting it into multiple safe locations. This can help you to get access to your seed phrase with ease and can enable you to attain enhanced security as well.
Final thoughts
If you think that losing your hardware wallet is the end of the world for you, you are wrong! You can still retrieve your funds. However, be cautious as this might also mean that you need to strengthen your wallet security measures further. In case such a situation arises, you need to act fast and recover your wallet. The only thing that can make this possible is your seed phrase. Store it effectively and in a secure manner to ensure that you don't lose it! Without your seed phrase, it is likely impossible to recover your wallet anymore!