Lost your Bitcoins? If you think your Bitcoins are lost forever, here are ways to recover lost cryptocurrencies.
There are two reasons for losing access to Bitcoins.
1.Sending to an uncontrolled address.
2. Losing the private keys of the wallet.
According to an analysis by blockchain analytics company Glassnode, BTCs that have not been moved for more than 10 years amount to 10 percent of Bitcoin’s total supply and are considered lost. One million BTC of Satoshi Nakamoto, which emerged shortly after the launch of the Bitcoin blockchain, is also considered lost.
In addition, there are losses due to loss of private keys and loss of access to wallets. For example, James Howells lost half a billion worth of Bitcoin in a dumpster. Realized losses reduce the supply of Bitcoin. It will not affect prices in the short run, but in the long run it will likely appear that there are fewer coins on the market than expected.
The first answer to the question of how to recover lost cryptocurrency is to understand how Bitcoin storage works and the coins will not disappear on their own.
Bitcoins should be stored on the blockchain, not in the wallet. The wallet is an access point to the blockchain. However, coins cannot be removed from the wallet. If the blockchain is a string of lockers containing coins, the wallet is a key, and the recovery words can be thought of as a cipher for that key. To move coins to another address, both the private key and the password are needed. If the private key is still available even if the password is lost while the coins are in the locker, the new key can be obtained with the password and the coins can be accessed because the coins are in the locker, not the password. If someone else gets your password but doesn’t know the private key, it could mean they can’t access the coins.
The primary reason for lost cryptocurrencies is that they are sent to an unchecked address. Bitcoins can only be sent to valid addresses, if the written address is invalid with a typo, the transaction will not be processed. But if it’s an address controlled by scammers, the Bitcoins are likely to go. Or, by accidentally sending Bitcoin to a forked Bitcoin blockchain such as Bitcoin Cash, the coins are lost if the recipient address is not checked. In short, as a result of unchecked addresses, the money goes forever. The address sent should be checked at least twice.
The second reason for lost cryptocurrencies is losing the Bitcoin wallet. If a Bitcoin node is running, the Bitcoin blockchain copy may be out of sync. In such a case, it should be expected to synchronize with the rest of the network and download the latest block. This is one reason why Coins are not visible in the wallet. Another reason is the accidental deletion of data. If the wallet.dat file has been deleted, it should first be searched in the recycle bin or trash folder. On Linux this file can usually be found under the ‘.bitcoin/wallets’ directory. The file browser should show hidden files because the Bitcoin directory is hidden.
Best Practices to Recover Lost Crypto
To recover lost cryptocurrencies and not lose them in the first place;
- Several copies of the recovery words should be kept in a safe place.
- The address to which the coins are sent should always be double checked.
- The entire alphanumeric address should never be written by hand, use QR codes and double-check again.
- Make sure it is sent to a known and trusted address. Not all coins should be kept in one wallet and the hardware wallet should be kept in a safe place.
- If coins are lost, the transaction ID should be double checked. Don’t be fooled by the recovery service scam, help is not possible if there are no recovery words.
