How to Recover a Crypto Wallet

Cryptocurrency is well known and highly regarded for its security. That being said, it can also be a struggle when you lose access, or worse yet, lose your crypto wallet. So, how can it be recovered?

Generating a recovery phrase, check for a wallet backup file, and using a recovery tool or service are only a few options for recovering your crypto wallet. The exact tool you need, and its success, will depend on your wallet type. Read on to learn more about how to recover a crypto wallet.

1. Generate a Recovery Phrase

This is the easiest of all recovery methods, but it is important to note that it will only work with software wallets or hot wallets run by a large company. Examples include Binance, Coinbase, and Kraken, just to name a few. And note that the recovery phrase must be acquired from them and may have already been provided when you opened the account.

Now, while this is easy for users, it is also a common scam. If you get an email saying you need to generate one, do not do it. Additionally, if you receive one and a message from “customer service” asking you to provide one, do not send it. These are both scams.

In fact, unless you personally have requested one, never click on any email that discusses a recovery phrase. Rather, you should report it to the website the email says it belongs to—but again, do not click anything. Go to your browser and visit the site you always visit to interact with that company and report it there.

In general, once you are provided with a recovery phrase, it is fairly easy to access your account once more. You will likely have to provide personal information (such as your ID) or your password in order to generate one of these. There may also be KYC checks.

2. Check for a Wallet Backup File

Additionally, for software wallet (hot wallet) users, many of these services allow you to create backup files to recover your wallet in cases such of these. First, check that this is a service that your wallet offers, and then see if you have taken the steps to do so.

Unfortunately, if you haven’t created a backup file while using the wallet (and if you don’t remember if you did or not, you probably didn’t) then this tip won’t work for you. Don’t waste your time and try step one, or proceed with the rest of the list.

3. Use a Password Recovery Tool

If you are using a cold wallet, good, these are much safer than software wallets. However, before you get too excited, know that it is much harder to recover your wallet in case of loss.

One of your options is to use a password recovery tool, but like option one, this is unfortunately where many scams are born. Before you even consider using a particular tool, do a little research to find out who made it, how it works, and whether or not any of your data will be exposed. If you can’t find the answers, it is probably a scam.

4. Hire a Recovery Service

Like option three, this is unfortunately one of the many scams that are out there, though there are a few reputable companies that do good work. It is critical, though, to hire someone you trust, as they will have access to your information if they are able to recover it.

In our experience, most of these companies use one of the tools we mentioned above. Therefore, it isn’t always worth it to hire one, as it is even riskier than trying it yourself with a tool you’ve vetted. But for those who have considerable sums to recover, it might be an idea; just vet the company thoroughly before giving them any access to your cold wallet device.

We do want to mention that Ledger does offer its own recovery service (via their website), which is well vetted if you happen to have a Ledger device. Unfortunately, this does not help those who own other device types. It is also worth noting that Ledger will require a KYC check before they help you recover your wallet.

5. Hire a Technician

If you are unable to access your wallet due to hardware damage (such as the device went through the wash or was broken) but you do have your seed phrase, you are in luck.

A technician can take apart the device and remove the part of the device where the actual memory is stored. Then they can insert that part into a new device, and there’s a chance your information is still securely stored.

Of course, there are also some risks—such as the actual memory being damaged. But in general, if you can find a knowledgeable technician, this is nowhere near as dire as some of the other situations on this list, as it doesn’t require turning over your information to a service or company that may expose or steal your information. But of course, if it is damaged and you have also lost your seed phrase…well then you still have an issue and will have to try other options on this list.

Overall, recovering a cryptocurrency wallet is a challenge, whether it’s a software or hardware wallet. While there are a few more options for software wallets, there is still no guarantee you will ever regain access. So, when you set up your cryptocurrency wallet, ensure you store your seed phrase in a safe place—multiple places is honestly best, so you will never be in this situation in the first place.

If you are here because you are already in this situation, then we are sorry we don’t have better news for you. But we do wish you the best and hope that you are able to someday recover access to your cryptocurrency.