Cryptocurrency theft is real, but what happens if you fall victim to it or lose your crypto by mistake?
Since the first crypto coin launched, cryptocurrency has been gaining an edge over regular fiat currency as a medium of exchange due to some of its benefits.
Nowadays, people prefer to store their valuables in crypto rather than as fiat currency in banks.
There are many reasons for this, but some of them include the anonymity crypto transactions offer, the fast and easy transactions, privacy, and most importantly, security.
The security aspect is a major factor that swayed a lot of people because your crypto is well-secured, in contrast to storing your money in banks.
This is not to say banks or financial agencies do not do enough to keep your fiat currency safe, but because fiat currencies are physical currencies, they are more susceptible to physical thefts like robbery attacks.
In crypto, however, there is nothing like that because every cryptocurrency is a digital currency without a physical equivalent. These currencies are secured by advanced cryptography that makes them impossible to counterfeit.
But having said that, does it mean your money is 100% safe if stored in crypto? The answer is no, even though security is one of the selling points of cryptocurrency.
There are many ways you can lose your crypto coin, but these are just some of the few.
Using Untrusted Exchanges
These are mediums that help you store your crypto, which only you can access by providing your password.
However, the issue here is that not all exchanges are trustworthy. In fact, every crypto exchange is at risk of a cyber attack.
But if you store your crypto on an exchange that is not trustworthy, you could lose your crypto coins.
While it may be hard to trade in crypto without using this exchange medium, especially if you are a beginner, it is important that you use a trusted exchange medium.
Losing your Private Key or Seed Phrase
If you have a private key, it means you don’t want to go through a crypto exchange and have a hardware wallet. You want to be in control of your destiny and not have to rely on an exchange to have access to your digital assets.
You install apps like Metamask to avoid all the delays of an exchange medium. During this installation of these apps, you will be given a private key or seed phrase which allows you to access your digital assets.
However, it is important to save your private key or seed phrase in a place where you know you cannot lose it.
This is because your seed phrase or private key allows you to have access to your funds if you lose your phone or device.
Sending money to the wrong address
This is a common mistake people make when trading on a crypto exchange. It is important to copy the right address and choose the right network before sending money on a crypto exchange.
If you fail to copy the right address or the right network and you send your coins without properly checking, you are likely going to lose your coins.
Failure To Use Offline 2FA
When you store your digital assets with a trusted exchange, it is important to activate a two-factor authentication.
This adds another layer of security before you can access your assets. Failure to use a two-factor authentication makes it easy for hackers to break into your account and steal all your assets.
Okay, the deed is done. You have lost your crypto by being careless. Can you recover it? It’s not a straightforward answer, but you might just be able to recover it if you follow this process.
Contact your wallet provider or exchange
The first thing to do is to collect your wallet provider or exchange, informing them that you have lost your assets. You will also need to provide the necessary details they need to assist you.
Contact Your Law Enforcement Office
Although they may not be able to solve the issue immediately, you must contact the law enforcement officers in your area and explain your situation to them.
Reach out to recovery specialists
There are some specialists in the crypto world who deal with the recovery of lost coins. You can also reach out to them for help.
Speak to your crypto community members
You can also share your travails with your crypto community. While they might not be able to offer an immediate solution, they might be able to help you with steps to take.
Having said that, it is important to note that this does not guarantee recovery as the chance of recovering a lost crypto coin is really slim.
This is why you must ensure you secure your coins by ensuring you employ extra security measures.
Do not share your password, private keys or seed phrase with anyone. Save it in a place where it cannot be corrupted. Also, used a trusted exchange.
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