People locked out of their cryptocurrency wallets are becoming desperate as they calculate how much wealth they would have if only they remembered their passwords. The price of Cardano has increased greatly in recent months as some look to recover from losing access to their wallets. In fact, data has revealed that around 20% of the existing 18.5 million Bitcoin - worth over $200 billion - are in lost wallets.
You could be unlucky if you lose your crypto wallet's private keys. All major cryptocurrencies are based on public-key cryptography, which is a cryptographic system that employs two types of keys: public keys, which are widely known and used for identification, and private keys, which are kept private and used for authentication and encryption.
You won't be able to prove that you are the owner of the wallet if you lose your private keys, and you won't be able to move or sell your cryptocurrency.
You won't be able to prove that you are the owner of the wallet if you lose your private keys, and you won't be able to move or sell your cryptocurrency. With Cardano prices on the rise, no one would want to be locked out of their wallet. However, below are the stories of two people who lost their private keys and how much it has cost them.
Stefan Thomas has amassed a fortune in bitcoin. Or, at the very least, he would have if he could remember his password. The San Francisco software developer and CEO was an early adopter of bitcoin. He created an animated video in 2011 to demonstrate how digital money works and a bitcoin enthusiast rewarded him with 7,002 bitcoins for his efforts.
Later that year, he forgot the password to his IronKey, a USB hard drive that houses his bitcoin digital wallet. Since then, the value of the cryptocurrency has soared, other cryptocurrencies like Cardano have been launched and Cardano price has soared as well. Thomas' assets are now valued at $220 million.
The IronKey allows users ten password tries before permanently encrypting its contents and erasing Thomas' bitcoin. He only has two more guesses.
In 2009, James Howells, a Welsh I.T. employee, started mining Bitcoin on his computer. By 2014, he had mined 7,500 Bitcoins which are now worth several millions of dollars, while Cardano price has continued to rise as well. He quit mining in 2013 and sold the computer on eBay. However, he kept the hard disk in the hopes that the value of Bitcoin would rise. When he was cleaning his house in 2013, he accidentally disposed of the drive, and it was hauled to the local landfill in Newport, South Wales, where it was buried with the rest of his trash.
The landfill is said to hold around 350,000 tons of garbage, with 50,000 tons added each year. A council spokeswoman claimed their offices have been "contacted in the past regarding the prospect of searching for a piece of IT hardware said to hold bitcoins," but digging up, storing, and processing the garbage may have a "great environmental impact on the surrounding area," according to the spokesperson. He still hadn't received approval from the local council till date.
The Importance of Reliable Wallet Recovery Services
With the current price of Cardano, nobody would want to lose their Cardano or other cryptocurrencies. To ensure you don't end up in the shoes of those above, make sure you have PIN codes, recovery codes, seed phrases, or private keys wherever you store your cryptocurrencies, and back them up.
As much as it is important to safeguard assets, many wallet recovery services are springing up and their importance cannot be overemphasized. If you've forgotten or misplaced your crypto-currency wallet's password, passphrase, or seed words, wallet recovery firms can help you regain access to your cash. As long as you remember certain portions of your password or patterns, they can assist you by compiling all potential combinations and permutations of words that you may have used to create your password or seed phrase using specialized and proprietary software and technology.
The proprietary program simply performs a brute force attack on your cryptocurrency wallet, attempting millions of passwords in rapid succession. The algorithms used by the software, which are run on Linux nodes hosted on AWS, try a variety of permutations of any probable password clients think might be connected with the wallet. This frequently works because, despite numerous reasons not to, people have a tendency to reuse passwords.
Which wallets can be recovered? Most software and hardware wallets can be recovered from. BIP38 paper wallets, brain wallets, and incomplete seed phrases can all be used to recover your crypto assets.