You should also teach wallet recovery to your close family members or trusted people and share the link to this step with them, so they can refer to this guide whenever needed.
Before entering the main topic of this step—recovering a cryptocurrency wallet—it is necessary to improve our general knowledge about creating and managing wallets and online user accounts in today’s digital and cyber world.
Imagine that the Instagram app installed on your mobile phone is deleted for any reason, or your mobile phone or computer becomes damaged in a way that you can no longer access the stored data. In such situations, some or all of your information may be lost forever—or you may be able to recover part or all of it on another device.
Think about the recovery day from the very beginning
To be able to recover and restore your social media accounts, email accounts, or cryptocurrency wallets in the future—especially during critical situations—you must plan for that day starting today.
For email accounts or social media platforms such as Instagram, Facebook, Twitter, and messengers like WhatsApp or Telegram, you can usually log in again on a new device using one or more of the following methods:
- Username and password
- Your personal mobile phone number (registered under your name)
- Two-factor authentication (2FA) or one-time password (OTP)
- Mnemonic phrase (recovery phrase)
- In some cases, official identification (national ID, residency card, passport, etc.)
- A combination of the above methods
As you can see, from the very first day of creating a wallet or online account, you must memorize or securely store your mnemonic phrase, username, and password so that you do not face problems when recovery is required.
You should also use a SIM card registered in your own name. If that SIM card is lost or inaccessible, you can retrieve it from the mobile operator using valid identification documents and regain access to accounts linked to it.
At the same time, you must be extremely careful with two-factor authentication data. If you lose access to your 2FA tools or information, you may permanently lose access to your account.
When activating or using two-factor authentication (2FA), always consult a specialist.
For bank accounts or accounts that require identity verification, even if you forget your username or password, you can usually regain access by visiting the bank or official website/app and completing identity verification again using valid identification documents.
Identity verification is typically performed using government-issued identification such as national ID cards, passports, residency cards, or driver’s licenses.
Some accounts, such as internet banking accounts, rely heavily on identity verification. Unlike most cryptocurrency wallets, these accounts can usually be recovered even if you forget your login credentials.
However, many websites and applications are restricted by international or local regulations and may not provide services to certain countries or nationalities due to sanctions, anti-money laundering rules, or similar reasons. You must be extremely careful when creating such accounts to avoid having your assets frozen or restricted in the future.
For email accounts, cryptocurrency wallets, social media accounts, and messaging apps, identity verification is often not required. Billions of people worldwide can create multiple such accounts without any identity verification. In these cases, full responsibility for safeguarding usernames, passwords, mnemonic phrases, and recovery data lies entirely with you. If you lose them, no individual or company can restore your account.
Some recommendations for creating and managing wallets and accounts
Email and social media services
Preferably, do not use your mobile phone number for account registration, login, or two-factor authentication. If you have already added your phone number, first enable 2FA using Google Authenticator or Microsoft Authenticator, then remove your phone number from the account.
Always consult a specialist before activating or relying on two-factor authentication.
Messaging applications
Most messaging apps require a mobile phone number for registration. Make sure the number is registered under your own name. Enable password or PIN login and two-step verification. If you prefer, use messaging platforms that allow account creation without a phone number.
Cryptocurrency wallets
In addition to the security points mentioned in Step 14:
- Inform trusted individuals about where your mnemonic phrase is stored.
- Teach trusted individuals how to create and recover a cryptocurrency wallet.
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This ensures that, if necessary, they can recover your wallet for you or on your behalf. Otherwise, neither you nor your loved ones may ever gain access to your crypto assets.
Recovering a cryptocurrency wallet
If your wallet app, mobile phone, computer, or even hardware wallet is lost or damaged, there is no need to panic—provided you planned ahead.
To recover your wallet:
- Install the wallet application.
- Select “I already have a wallet,” “Recover wallet,” “Import wallet,” or “Import via mnemonic phrase.”
- Enter the mnemonic words exactly in the same order as originally written.
- In some wallets, typing the first three letters of each word automatically completes the rest—researching why this works can be an interesting exercise.
- Ensure no cameras or recording devices are focused on your screen while entering the phrase.
- Make sure no application is recording your screen.
- Use a secure keyboard. On mobile devices, use the original default keyboard installed with the phone.
Some third-party keyboards may act as keyloggers and secretly transmit typed information to attackers.
If you encounter errors during recovery, check the following:
- Correct word order
- No missing words
- No spelling mistakes
- Only one space between each word
After successful recovery, some wallets will ask you to set a wallet name and password. If you forget these later, you can reinstall the app and recover the wallet again using the mnemonic phrase.
The most important recovery information is the mnemonic phrase itself. Wallet passwords only add an extra layer of local security and should not be confused with account usernames and passwords.
After recovery, wait for the wallet to rescan blockchains and display your balances.
Additional important recovery notes
Some custom tokens you previously added manually may not appear automatically. These must be re-imported manually. This topic goes beyond the scope of this step and requires further study or guidance.
You may also see tokens you never purchased. Many of these are junk tokens or airdrops sent randomly. Some are legitimate rewards, such as the APENFT (NFT) token distributed to Tron (TRX) holders.
Airdrops can be risky. Selling or swapping unknown tokens may lead to asset loss. Always perform proper fundamental analysis.
As mentioned in the additional wallet notes in Step 14, you may have stored notes related to each mnemonic phrase that include websites, exchanges, and linked wallets. Consider these notes during recovery.
Now that you know how to create, protect, use, and recover a cryptocurrency wallet, in Steps 18 to 21 we will learn how to buy Bitcoin and other cryptocurrencies.
Worth Noting
Wallet recovery failures are one of the most common reasons for permanent crypto loss. Educating trusted individuals, testing recovery periodically, and maintaining secure recovery environments significantly reduce long-term risk.
How AI Helps
AI-powered cybersecurity tools can detect keyloggers, screen recorders, and malicious keyboards. AI assistants can guide users through recovery steps, validate mnemonic integrity, and flag phishing or fake wallet apps. Advanced blockchain-security platforms use AI to monitor wallet exposure and recovery risks.
FAQ
What is wallet recovery in cryptocurrency?
Wallet recovery is the process of restoring access to a crypto wallet using its mnemonic phrase.
Can a wallet be recovered without the mnemonic phrase?
No. Without the mnemonic phrase, wallet recovery is impossible.
Is it safe to teach others how to recover my wallet?
Yes, if they are trusted individuals and do not have direct access to the mnemonic phrase.
Why do some tokens not appear after recovery?
Custom tokens must often be re-added manually after wallet recovery.
What are airdropped tokens?
Airdrops are free token distributions, some of which may be scams or low-quality assets.
Should I test wallet recovery in advance?
Yes. Testing recovery ensures your mnemonic phrase works and reduces risk during emergencies.