Cryptocurrency has changed the life of many people in many ways. Over the course of time, as crypto has risen in popularity and more people have shown interest there are other aspects of crypto which have emerged. Whilst some of these aspects are positive for the people and generally good, others however are not and pose a threat to the crypto holders, such as scams and volatility etcetera.
However, there is one matter regarding crypto, about which you would certainly have an idea if you have been in the crypto market for a while now. The issue that we are talking about here is the loss of crypto. Crypto is a virtual asset and is therefore quite exposed to the threat of being lost. Over the time, there have been many investors and traders who have lost their crypto either by the misplacement of their private keys or by getting the key stolen.
In order to emphasize the importance of this aspect and highlight this issue of losing your bitcoins, we have discussed some of the most common ways through which people lose their digital currencies. The purpose of this article is to therefore raise awareness regarding this issue and help our readers if they are looking how to buy digital yuan and to invest in crypto in the near future or already hold crypto. These common ways of people losing their crypto are as follows:
- The most common way – Losing your Private Key
Many people all around the world, who had their crypto holdings kept inside a wallet have lost the private keys to their wallets over the years. It is indeed one of the most common and foolish ways to lose access to your crypto holdings. It should be known that if you do not have access to this key, well, you don’t have access to the respective wallet as well. It is as simple as that.
We recommend our readers to have a redundant quantity of the copies of private keys. You should output the private key to a file, print that file and consequently have a paper wallet consequently. In short, you should do anything that can be done in order to make sure that you would not lose your private key or forget them and thereafter lose them. We are repeating ourselves; your crypto is absolutely lost if you do not have access to your private keys, whatever may be the reason i.e., whether it got stolen or forgotten. Unlike a door lock, this issue cannot be resolved by a goldsmith.
- Crypto holders also lose their recovery seeds
For those who do not know what a recovery seed is, it is a mix of 12 to 24 characters which is used to gain access to your BTC or digital currency wallet in the case your laptop or your phone is lost or even if you accidentally remove the wallet application from your smartphone. In simple words, you should know that given you lose your device such as the laptop or smartphone before you get a chance to back up your recovery seed, you should know that the crypto holdings in that wallet whose recovery seed you did not back up will be pretty much lost forever.
In case you are preparing to keep your bitcoin or other virtual currencies for a long while, backing up your recovery seed properly and correctly is heavily advised. Back them up as quickly as you can in order to avoid future issues when anything unfortunate occurs with your device. We strongly advise our readers to not procrastinate in this case and use the excuse of doing it later. Again, store your recovery seed on a physical medium such as a paper or a hard copy document.
- People tend to use their old passwords and also set weaker password
For those who think that by weak passwords we are implying character combinations or passwords which are relatively simpler and easier to guess, well they are not totally right.
Our advice for the readers would be to not use the same passwords again for any account which has been previously compromised. Also, your passwords should not be simple but rather complex and should include both uppercase and lowercase letters. Also, use special characters in your passwords and a combination of letters, symbols and numbers. Other than the complexity, the length of your passwords is also important and it should be known that the recommended length is more than 8 characters at least. It is important to know that the minimum amount of time hackers require in order to crack an 8-character password is just two and a half hours.