Cryptocurrencies like Bitcoin, Ethereum, Litecoin, etc. are gaining quite the popularity as the most preferred form for online transactions. The incorporation of a blockchain system makes cryptos safe and secure. While other types of cryptocurrencies are also gaining recognition, it is Bitcoin that was the first-ever digital currency that paved the way for the other cryptos collectively known as Altcoins.
An Overview on Bitcoins
Bitcoin – A New Age Savior is a digital currency, but unlike the FIAT currency, there is no physical form. Bitcoins are stored on a public ledger where every time you make a transaction, the information is stored in this ledger known as the blockchain. Typically, each block depicts a transaction that gets linked to the information data referred to as the chain. Thus, Bitcoins paved the way for secure and safe transactions backed by decentralized and open-source blockchain technology.
Where are Bitcoins stored?
Technically, Bitcoins are not stored anywhere. Then how does one send or receive Bitcoins? While Bitcoins are not stored, Bitcoin users can certainly store the Bitcoin address in their Bitcoin wallet. And, using these wallets, one can send or receive Bitcoins.
Storing Bitcoin in Wallet
While a Bitcoin is a digital currency, a Bitcoin wallet is a digital wallet. However, unlike a physical wallet, a Bitcoin wallet is a software program where you can store your secure private key using which you can access Bitcoin addresses for Bitcoin transactions.
Bitcoin wallets are highly encrypted for safekeeping. Typically, are four main types of Bitcoin wallets; they are desktop, mobile, web, and hardware wallets. As the name suggests, a desktop Bitcoin wallet is installed in desktops while the mobile wallet is installed on mobile devices. Web wallets can be accessed online on any number of devices. A hardware wallet is physical equipment that can be connected to desktops via USB port.
What Happens When Bitcoin Wallet Passwords Are Lost or Forgotten?
Basically, the Bitcoin wallet password is the most critical aspect of your digital wallet. The password enables you to unlock the Bitcoin address for facilitating Bitcoin transactions where you send or receive these addresses.
A very important feature of the Bitcoin wallet password is that it cannot be reset or changed. Thus, when your password is lost or forgotten, your Bitcoins are locked away while you can never use the Bitcoin addresses for sending or receiving Bitcoins.
How to Recover Your Lost Bitcoin Wallet Password?
While it is impossible to reset your Bitcoin wallet’s password, there are ways to retrieve the lost or forgotten password.
- Try out all the possible passwords. Start with the passwords that you probably use or have used in the past.
- Make use of the Wallet Recovery Phrase which is a 12-word phrase used for recovering your funds and addresses by creating a new wallet.
- You may also make use of password cracker software to hack your own Bitcoin wallet.
Apart from the possible recovery methods listed above, there is also the option of saving your password in password-protected folders at the time of creating the Bitcoin wallet password.
It is impossible to reset your Bitcoin wallet password once it is created but not impossible. While there are means for retrieving the lost passwords using hacking tools, one can also rely on password manager software. However, the best means of remembering the password is by noting it down in your password-protected folders.