Cryptocurrency owners find it increasingly difficult to keep track of all their passwords, according to a recent study on crypto-asset storage and passwords. The survey that polled over 1,000 digital currency owners in the US shows 39.7% have forgotten their passwords. The study produced by cryptovantage.com indicates that users unable to recover their passwords lost an average of $2,134.
If you use cryptocurrency, you may be in danger of forgetting more passwords than you realize! After all, your digital wallet has just as many passwords as your web browser does, and each one functions in essentially the same way.
Why is this happening?
As there are so many different accounts and passwords that we have to remember every day, our brains can’t handle remembering them all, and it is inevitable that some of them will slip our minds.
Most people tend to use weak, easy-to-guess passwords. That’s a recipe for trouble if you lose your password and don’t remember it, or forget which crypto wallet or account it was tied to.
While it may be tempting to write down your password somewhere for safekeeping, don’t do it. If you lose your list of passwords or get into a situation where someone has access to your account because they know what your password is (for example, if they were watching over your shoulder when you typed it in), you will not be able to access any of those accounts.
It is critical for users to keep their passwords secure and private. That way, only they have access to their accounts, and no hacker can get in and steal everything.
Is it possible to recover forgotten passwords?
There is no easy way to recover a forgotten password. If you forget your password, it’s pretty much impossible for anyone else to recover it. According to a recent report by MarketWatch, only 3% of crypto owners had ever tried using a tool that can recover their password.
However, there are ways you can recover it.
The easiest way to recover your password is a backup of your wallet. Just restore your wallet using your backup and use its new password instead. It is recommended that you move any cryptocurrencies off of that account and onto another digital wallet or print out and save your recovery phrases so that you can use them later when moving crypto assets back onto your main account.
Another way is to use an encryption recovery tool for cryptocurrency wallets like MyEtherWallet. These tools use something called a seed phrase which is a bunch of words used to encrypt your wallet—these words also serve as a private key in case you forget your password. By entering a seed phrase into one of these tools, they should be able to give back access to your account without knowing your old password.
Your last option will be to pull up your password manager, which stores all of your passwords in one secure location where you can access them with a single master password or key. Password managers are useful as you don’t have to remember each individual password separately, reducing both your chances of forgetting and being hacked.
How to keep your passwords safe
You should create complex passwords and not reuse them on multiple sites (since if one site gets hacked it puts all of your accounts at risk). Making sure you have different passwords for every account you have is also a good idea because if someone manages to compromise just one of your accounts, they could theoretically gain access to all of them without needing another password.
It can help if you use a phrase instead of a single word. We are much better at remembering information we understand or find memorable (such as names of celebrities). We tend to forget things that are complicated (like random strings of letters), involve numbers, have special characters in them, or occur infrequently (like birthdays). So it may be wise not to include those in your password.
Do not store your password anywhere on your computer—this includes things like autofill features in web browsers. If someone gains access to your computer, they can grab that data just as easily as any other file on your hard drive.
You should keep a digital copy of all your crypto-related passwords in a secure location like a hardware wallet. However, don’t keep all your eggs in one basket, as they say. If someone does manage to hack into your digital copies of all your accounts, they will have access to everything – not just part of your crypto portfolio.
Crypto owners today are well-educated, tech-savvy individuals, but they struggle with password security and frequently forget their passwords.
At UKISS, we understand you’re busy, and that means you probably have a handful of different logins floating around for all of your accounts. We believe that everyone should have peace of mind over their digital assets and data. And we want to allow users to easily and effectively protect them.
That’s why we are working on a next-generation hardware wallet, named UKISS HUGWARE.
Our hardware wallet stores all your passwords on a single device and uses some of the best encryption methods available today to protect your crypto. You will never worry about forgetting your passwords! The device is portable and easy to use, making it ideal for people who wish they could bring their cryptocurrency with them everywhere. Stay tuned for more information on how you can purchase your very own UKISS HUGWARE!
About UKISS Technology
UKISS Technology is pioneering the next-generation cryptosecurity wallet that is simple, safe, and secure to use. Their technology has also been granted patents in most major markets including China, the United States, Europe, Asia, and India. Their clients include government ministries, leading medical healthcare providers based in the APAC region, and major FinTech players. Stay tuned for more information.