Once your original hardware wallet has been destroyed, you can simply buy a new one. At the initial configuration, you will enter your recovery phrase consisting of 24 words. And then your Bitcoins will be back in your possession. All of this makes it clear why you need to secure your Bitcoins properly.
Frequently Asked Questions
How do I retrieve my crypto if I lose/break my cold storage device?
What is the importance of a crypto recovery phrase?
12, 16 or 24-word backup phrase – also known as a recovery phrase or seed – is a unique, randomly generated set of words, that are given to you when you create a wallet. The recovery phrase is used to protect your private key, which is encrypted directly on your device. In the event that your device is lost, stolen or destroyed, your recovery seed can be used to recover all funds stored with that private key on that device.
What is the best way to securely store my crypto?
The safest and most effective way to store and keep your crypto funds safe is using a physical cold storage device known as a hard wallet. This device will keep your private key safe and off the web thus ensuring the safety and security of your funds.
Why is a cold storage device important?
There is a well-known saying in the crypto space that says: “not your keys, not your coins” – this means that if you do not have control of your private key, your coins technically don’t belong to you; thus by keeping your funds on an exchange or a similar platform, your crypto, in reality, is in the possession and control of the operators of that platform and are at risk of theft. A cold storage device stores your private key to which the ownership of your crypto is linked, thus your crypto funds truly belong to you and are safe from hackers or general scammers.
