What happens if you lose the key to the cold wallet?
You can request access to it from your custodian, that is, the crypto exchange. The administration, of course, will request additional information and verification. Those being:
- scans of a passport or other identification document
- a password phrase for recovery
- information about recent transactions, etc.
If you are not trying to access someone else’s funds, this procedure will not be extended and problematic.
What happens if you lose the key to a hot wallet?
It is impossible to recover it if we are talking about simple methods. However, on some services, you can:
- Contact the tech support service and restore it by sending messages to an authorized phone number/email, secret phrase, fingerprint, multi-signature.
- Access the “guardian account” function (the person is assigned to restore access directly by the wallet owner, and in case of any problems, they can get access).
Short Conclusion
Simply put, which wallet you choose depends on your needs. Generally speaking, hardware-based, standalone wallets are great for long-term storage. Universal ones are efficient for traders because they allow you to own different types of cryptocurrencies simultaneously. Finally, it is recommended to contact more well-known companies.
The above types of wallets are partially the same. For example, Coinbase Wallet is a semi-multi-asset software wallet with an Ethereum web browser.
