Forgotten wallet password: This is how crypto investors can recover their passwords

In a study by the online portal CryptoVantage, many of the crypto investors surveyed stated that they had already lost their access data to their wallet. However, this doesn’t always mean the worst. Passwords can often be saved using a recovery service.

• 61 percent of investors surveyed consider their passwords to be kept safe
• Over 39 percent of crypto investors have already forgotten their passwords
• Recovery services can rescue some passwords

This is how crypto investors keep their passwords

In CryptoVantage’s “Coin Storage Security” study, 1,021 crypto investors from the USA were surveyed about their experiences with cryptocurrencies and their storage. The most used wallet was Coinbase with 34.7 percent, followed by Robinhood with 26.4 percent and Binance with 24.4 percent. Password protection plays a crucial factor in the crypto world. Because without a password there is no access to the wallets and therefore no access to the money. Most of the investors surveyed (26.6 percent) use a password manager to keep their passwords safe. 18.6 percent of investors use a handwritten note and 15 percent use a password safe. 10.3 percent choose to take a screenshot on their smartphone and only 9.9 percent rely purely on their memory. A note on the cell phone is used by 4.8 percent of those surveyed. In addition, 6 percent of respondents said they share their password with family or friends to keep the password secure.


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So many investors have forgotten the wallet passwords

As Business Insider reports, James Howell threw away a hard drive containing 7,500 Bitcoins in 2013. At the time he thought he had backed up the hard drive – but that wasn’t the case. Today, if he had the hard drive, he would be several million richer. However, Howell hasn’t given up looking for the hard drive yet. The German programmer Stefan Thomas also no longer has access to his 7,002 Bitcoins in his wallet because he forgot his password. He has already entered the wrong password eight times to access the hard drive that contains the keys to his wallet. The tenth time, access to the hard drive would be blocked forever. But Stefan Thomas hasn’t given up on getting the keys either.

However, the German programmer is not alone in losing his password. The study also asked investors whether they had ever forgotten or lost the passwords to their wallets. A total of 39.7 percent of those surveyed answered this question with a “yes”. However, not all of these investors lost access to the wallet forever. A total of 95.6 percent of those who had already lost a password were able to regain their access.

This is how forgotten passwords can be recovered

Once the password is lost, it is difficult to get the access data again. That’s why 85.7 percent of those who regained access used a recovery service. These are companies that have specifically focused on this service. One example is the Berlin company ReWallet. The company helps people restore access to their wallets. If access to the wallet is restored, the company receives a commission of 20 percent of the wallet contents.

E. Schmal / editorial team

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