Is It Possible To Lose Bitcoins Forever?

March 10, 2023 · by · in

In recent years, cryptocurrency users have forgotten their private keys, leading to the loss of countless coins, including Bitcoin, Ethereum, Litecoin, Dogecoin, and Solana. 

Losing private keys could result in losing 20% of Bitcoin’s supply and that in turn can influence Bitcoin Price.

Can you get back your lost Bitcoins or cryptocurrencies?

Bitcoin or any other crypto is often impossible to recover in many cases. Crypto wallets and the crypto they contain can be recovered in some ways. If you can do this – and if it works – it depends on how you lost the wallet.

Here’s a guide to finding lost crypto.

The Loss of Cryptocurrency: What Does It Mean?

The term “lost crypto” refers to cryptocurrency that is missing, unrecoverable, or otherwise out of circulation.  

Lost Keys

Crypto is typically lost when people lose the “keys” to their wallets. They may still have their coins, but they forgot their seed phrase or other tools to access them, and they can’t get their crypto out of their wallets.

The private key — a string of 256-bit numbers — should be stored along with a backup seed phrase (like a secret password).

If you find or remember your keys, you can access your wallet. Scammers may try to take advantage of you, but some services can help.

The wrong address

The wrong address can also lead to the loss of a coin. For example, Bitcoin (BTC) can sometimes be sent to Bitcoin Cash (BCH) addresses, which often leads to permanent losses of funds.

The number of wallets validating the recipient’s address has decreased significantly (read about a Bitcoin address here).

Forgot password

Finally, if you forget your crypto exchange account password, you can lose your crypto. You can, however, change your password on most crypto exchanges.

Investing in a crypto exchange has the advantage of helping you reclaim your wallet if you lose your password. You can do the same if you lose your hardware wallet, as long as you safely store your backup seed phrase.

Crypto Wallet Loss: What Should You Do?

It isn’t easy to retrieve unclaimed crypto. There are a lot of people out there who have lost millions of dollars in Bitcoin. There’s still hope for some people who lost Bitcoin, though, since the coins might still be recoverable.

Hacking private keys

It is possible to recover private keys for Bitcoin wallets using software programs, and it only works when the person who lost their keys has deleted some or all of them. The software can only help people who remember their passwords, PINs, or backup seed phrases.

However, users may be able to recover files that contain information if they delete them accidentally. If you have a piece of the private key, you can locate the remaining files.

Lost Wallet Asset Recovery

If you use a wallet, you can use your seed phrase to unlock it and its cryptocurrency. If you lose your crypto assets, you can still retrieve your assets by entering the backup recovery seed.

However, whether you can recover assets from a lost wallet will ultimately depend on how they were lost.

Scammers

There are a lot of bitcoin scams out there, but if you lose anything, you can get it back. When you give scammers your seed phrase or wallet password, they can access it, change it, and take over your money.

The wallet’s support team can assist you if this is the case. It’s up to users to keep passwords and seed phrases secure so that no one can help.

You should also be aware that scammers may pose as crypto recovery specialists to gain access to your wallet. Ensure the company you hire to recover your lost Bitcoin wallet is legit before you hire them.

The loss of cold wallets

In most cases, you can recover your assets from your cold wallet if you lose it. It depends on whether you have your recovery phrase. If you do, you’ll be able to retrieve your assets safely and securely and store them in a new wallet.

However, it depends on whether you kept and stored your keys safely.

The Takeaway

If you lose cryptocurrency, it is almost impossible to recover it – particularly if you lose the private keys. To prevent this from happening, ensure your private keys and passwords are protected, set up a secure wallet, and be cautious when sending money.

Some services claim to help you retrieve lost crypto but beware of scams and high fees. You can invest in crypto without worrying about losing your wallet by trading crypto through a reliable platform.