One of the major cons of cryptocurrency is how costly mistakes can be. The losses caused by forgotten passwords and misplaced private keys can be catastrophic. According to BitcoinCasino.com, BTC that is lost due to these forgotten passwords and private key loss stands at around $24 billion. This is equivalent to about 1.45 million BTC.
There is no way to recover these lost funds, so crypto owners must take the necessary steps to protect their wallets and private keys from loss and theft. With today’s technology, there are several ways to store your crypto safely, including hot and cold wallets. Hot wallets are online-based, making them vulnerable to hacking and other cyber threats. In contrast, cold wallets offer a higher level of security as they are not connected to the internet. Additionally, it’s essential to use strong passwords and two-factor authentication (2FA) to keep your funds secure.
BitcoinCasino Financial analyst Edith Reads commented on the data saying, “This is a huge amount of money, and it’s an unfortunate reminder to all crypto owners that they need to take extra precautions when it comes to protecting their digital assets. The only way to guarantee your funds won’t be lost is by taking the necessary steps to secure them.”
Locked out of Bitcoin Fortunes
What do you do when your hard-earned digital wealth is locked away due to a forgotten password? For many, hiring a specialist to help them recover their lost funds is the answer. Unfortunately, this process is not only expensive but often fruitless, as there is no guarantee of success.
As such, owners of lost BTC are left with few options and must rely on luck and the goodwill of others to regain access to their funds. For the Bitcoin owners who have been locked out of their wallets, frustration has become an omnipresent state. They’ve owned these coins since the early days – when nobody would’ve believed that they’d be worth anything – and despite all that time spent waiting for it to pay off, they now find themselves unable to access their fortunes.
Unfortunately, there is no easy answer for those who have lost access to their wallets. What we can learn from this situation, however, is that it’s better to be safe than sorry when it comes to protecting your digital wealth. Crypto owners should make sure to back up their private keys and passwords in multiple secure locations and to always keep their software up to date. This way, you can ensure that your hard-earned digital wealth will remain safe and secure.
No Company to Provide or Store Passwords
Bitcoin is a decentralized, non-corporate entity – it operates entirely independent of any organization, so it’s up to the user to protect their digital wealth. Unfortunately, many crypto owners forget about this fact and end up losing access to their funds due to lost passwords and misplaced private keys.
With more people entering the crypto space daily, these tales of lost BTC should serve as a reminder to take the necessary steps to protect your digital assets. By taking these precautions, crypto owners can rest assured that their funds will remain safe and secure.