The Best Data Recovery Software for Losing Your Crypto Wallet and Keys
Last week, we introduced you to the world of cryptocurrency security and how you can use data backup to protect your blockchain assets, but when disaster eventually strikes or you lose your crypto wallet, what happens then?
Crypto is dominating the fintech space, and it seems like the COVID-19 pandemic has only fueled its skyrocketing popularity with at-home retail investors clamoring for anything with the word “coin” on the end.
So, you may be familiar (or even be an investor), but we’ll give you a short background on cryptocurrency anyway.
Cryptocurrency is a digital medium of exchange that allows users to exchange coins, products, and more on a virtual ledger called the blockchain.
The possibilities unlocked by cryptocurrency and the blockchain are virtually (no pun intended) endless. We’ve even started to see an example of that: you can now buy a Tesla with Dogecoin.
However, the simultaneously biggest benefit and detriment of crypto is the deregulated aspect.
When not overseen by any central authority, transactions are performed person-to-person and result in little to no transaction fees… but it leaves your crypto, as well as the blockchain, susceptible to hacking and ransomware attacks–and that’s where we begin to run into some issues.
Just when crypto started to make sense, we throw another actor into the mix that obscures our understanding and makes us revisit that integral question: who’s providing for cryptocurrency security?
A Little More About Crypto Wallets
People’s main form of cryptocurrency security comes not from regulation or a government agency but from their own “crypto wallets.”
And what is a crypto wallet again?
Well, a crypto wallet is basically any device or program designed to protect the keys that allow you to access your coins.
However, if anything happens–you lose access to your wallet, you misplace the physical drive, you forget your password, etc.–your crypto is gone and unrecoverable (and that’s where data backup came in).
While it may seem absurd that someone could lose thousands or millions of dollars of precious cryptocurrency because of their choice of wallet or recovery phrase, it happens more often than you think!
How Do You Lose Crypto?
Do you ever get delayed leaving your house because you can’t find your car keys, or do you sit your phone somewhere and forget where it is?
The same thing happens with cryptocurrency!
You can easily lose your hardware wallet, get locked out after too many password attempts, or lose it to a malicious hacker (to mention only a few ways).
For such a new and innovative technological breakthrough for the world of finance, you would think someone would’ve also developed a complementary product that secures your cryptocurrency and relies on something better than a password.
What Happens If I Lose My Wallet?
The Atlantic Blockchain Company phrased it perfectly when they said that losing access to your wallet and crypto is like “a sinking ship full of gold.”