If you are new to cryptocurrencies, the prospect of losing your wallet can be very scary. After all, it’s not like losing a credit card: in cryptocurrencies there is no third party you can appeal to, no central office with whom you can arrange a shiny new replacement. With freedom comes great responsibility, and we’re here to help you from the start.
The responsibility to protect your digital assets is yours and yours alone.
The truth is, though, losing your crypto wallet isn’t the end of the world. As long as you’ve backed up your all-important seed phrase (also called Private Key), you can regain access to your funds in no time.
If you landed on this page, chances are you’ve recently lost your crypto wallet or are cynically worried about such an event. Don’t worry, we’ve got you covered.
What happens if I lose my wallet?
Crypto wallets come in different forms. In the case of Zumo, we are talking about a non-custodial wallet where the user controls their private keys. Essentially, this means that Zumo cannot access your funds. Losing your Zumo digital wallet, therefore, simply means losing the smartphone on which you downloaded the Zumo wallet app.
Of course, if you’re using another wallet — a hardware wallet like Trezor, let’s say — it’s possible to lose the device itself. However, this does not mean that you have lost funds. After all, digital assets are not stored on the hardware wallet: they live on the blockchain and you access them via your private key (or the biased phrase presenting the private key). The wallet is simply the interface through which you can send and receive funds.
Whether it’s a hardware wallet or an application accessed through a smartphone or laptop, losing access to your funds can be a stress. Especially if you have disabled PIN access on the first or password protection on the second. Theoretically, this would mean that a thief could open your wallet and, provided they know what they are doing, send your crypto assets to a different address.
When you set up your Zumo wallet, you will be asked to take note of your seed phrase. Most people write it down in a notebook that they then keep in a safe place, although there are other techniques: memorize it, for example, stencil it on a piece of fire- and flood-resistant metal, or write it down on separate pieces of paper and then store them in different places. The choice is yours: know that there is no “reset my seed phrase” option like when you forget an email password.
In any case, armed with your seed phrase you can set up a replacement wallet – all you have to do is import your seed phrase into the backup wallet and hey soon, you’ll see your balance. You can do this in advance or after losing your smartphone/hardware wallet.
Importing your recovery phrase to recover your wallet
If you have definitely lost your smartphone/laptop/hardware wallet, you will probably replace it as soon as possible. Not least to regain access to your cryptocurrency, as well as your transaction history recorded on the blockchain.
The process by which you import a recovery phrase and resurrect a lost wallet is quite typical regardless of the platform. You should go to the Settings menu and find the option “Import a key/wallet”. Just type in the recovery phrase, click Import and you’re done.
Some users choose to save their key as a file or text backup, but the re-import process is almost exactly the same. Instead of typing the recovery phrase, there is an option to choose File/Text, after which the seed phrase is imported from the document in question.
You may be wondering what happens to your old wallet when you insert your private key into a replacement. Isn’t it possible, theoretically, for someone to interact with your funds from the stolen device? Well, yes. That’s why you might want to sweep your private key to a new public address in your replacement wallet. Apparently, this involves creating a transaction that drains the balance from the lost wallet, sending the cryptocurrency to a brand new private/public key pair that only you have access to.
Losing your crypto wallet is not a catastrophe. Make sure you have enabled PIN access on your hardware wallet and have a strong password for your smartphone or laptop. The most important thing is to keep your private key safe, as losing it will really cause you headaches. Incidentally, there are dozens of dedicated wallet recovery services out there that help people recover access to password-protected wallets. But even these specialists will not be able to help you if you forgot your private key. Keep a backup in a safe place and you’ll be fine, even if you lose your crypto wallet.
How to transfer cryptocurrencies if you have lost your hardware wallet but have access
The answer is absolutely yes, this is what it was designed for, the recovery phrase is everything. The password you had was only needed to access your ledger.
Just enter your recovery phrase when prompted. To make sure you follow the instructions that come with your nano s or the ledger website.
Then, you can create a crypto wallet for your coins or get another ledger and choose *reset wallet* and enter your seed phrase and re-make it and it will ask you for a new password.
If it was stolen, until they have your recovery phrase or password, they will never hack it. Unless your password was super simple.
It is good to remember that anyone who offers a service for something so simple is a scammer.