Keyless Crypto Wallets – How To Use Seed Phrase To Recover Lost Wallet?
Losing hardware wallet or mobile phone where the private key to access your cyrptocurrency residing on the blockchain network is stored can cause inconvenience. Nevertheless, if you have a backup, recovering your digital asset is simple.
If you are new to cryptocurrency landscape then choose to go for a keyless crypto wallet design available on ZenGo.
What is keyless design for crypto wallets?
Keyless design does not rely on the use of private keys to access and manage cryptocurrency funds. Instead, a keyless wallet uses advanced security protocols, such as multi-party computation (MPC) and threshold signatures, to secure the wallet and enable transactions without the need for a private key.
With keyless wallets, the user’s private key is never stored on a device, making them less susceptible to hacking and theft. Instead, the wallet relies on a network of distributed nodes to securely manage and authorize transactions. These nodes work together to generate a shared key that can be used to sign transactions, eliminating the need for a single point of failure.
Keyless wallets offer several benefits, including increased security, ease of use, and the ability to recover funds without a private key. However, they are still relatively new and have not yet been widely adopted in the crypto community. As with any new technology, it’s important to carefully evaluate the security and reliability of keyless wallets before using them to store or transact cryptocurrency funds.
Recovering a lost wallet using a seed phrase can be done safely by following these steps:
- Find a trusted wallet provider that supports the same seed phrase format as your lost wallet. For example, if your lost wallet was a Bitcoin wallet that used a BIP39 seed phrase, look for another Bitcoin wallet that supports BIP39.
- Download and install the wallet software on a secure device, such as a computer that is not connected to the internet or a hardware wallet.
- Choose the option to restore or recover a wallet using a seed phrase.
- Enter your seed phrase in the correct order. Make sure to double-check the spelling and order of each word to avoid any mistakes.
- Set a strong password and enable any other security features offered by the wallet.
- Once the wallet is restored, transfer any funds to a new wallet address that you control.
- Keep your seed phrase and password safe and secure, ideally in a hardware wallet or other secure storage.
It is important to note that restoring a wallet using a seed phrase should only be done on a trusted and secure device. Scammers may create fake wallets that steal your seed phrase and password, so always verify that you are using an authentic wallet provider. Additionally, be cautious about entering your seed phrase on a device that may be compromised or infected with malware, as this could put your funds at risk.
If you are not using a keyless crypto wallet then there are two main options for recovering the lost or stolen funds: sweeping or importing.
The main difference between sweeping and importing is that sweeping involves transferring the funds to a new wallet, while importing involves restoring the wallet’s contents to a new hardware device. Both sweeping and importing should only be done by individuals who understand the risks and have the necessary technical knowledge to perform the process correctly.