How A Man Lost $150.000 Value Of Bitcoin Because Of A Horrible Mistake
Jacob, (now 29) was what you'll call an "early adopter" of cryptocurrency. He bought his 2.5 Bitcoins back in 2018 for round $20,000. He didn’t think quite a bit about it, he just thought this new blockchain technology and cryptocurrencies are the future. He wanted to get his arms on Bitcoin - the digital gold, as it is usually called by people.
Jacob has read on some bitcoin forums about buying and setting up a hardware wallet for his newly acquired Bitcoins. Folks have said it is a good idea to set up a hardware wallet and write down his recovery phrase on a chunk of paper. He was advised that he can hold his Bitcoins long run this way. The seed recovery phrase is a set of words used as an access key to the wallet and all coins inside. The recovery phrase (typically called mnemonic phrase) permits additionally you to recover your wallet with all accounts utilizing software or hardware wallets. Hardware and software wallets are sometimes protected by a password or a Pin code. They erase everything inside if you happen to put your pass fallacious few times. Hardware wallets are also protected from hackers, viruses, malware and other electronic threats.
Jacob did as was advised. He has bought and set up a new, absolutely secure hardware wallet. In the end, he was asked to write down his seed recovery phrase which was 12 words long on a piece of paper. He was advised that if his hardware wallet is misplaced or broken, he may put the seed recovery phrase in a new system so he was a hundred% safe. Jacob switchred his Bitcoins from the trade where he purchased it to his new account secured by a hardware wallet. He was now safe in case the trade goes bankrupt or gets hacked, which happened within the past. He put the hardware wallet in his socks drawer and a paper backup with his recovery phrase on the bottom of his desk drawer with some other papers for disguise.
Just a few months after he purchased his Bitcoins, on the finish of 2018, the value of Bitcoin plummeted. Jacob lost more than 50%, and his coins were price less than $10.000 and he lost interest in his coins for a while after that.
Fast forward to the end of 2021. Bitcoin’s worth is hovering reaching all-time high of $sixty seven,000, making Jacob’s 2.5 Bitcoins value around $one hundred seventy,000. He hasn’t been really checking the value of Bitcoin for a few years now, however he heard about it on the TV news. He realized this is some huge cash, money that might assist him pay out the remainder of his mortgage.
Jacob did some digging, found his hardware wallet and plugged it into his laptop. He realized he forgot his Pin code that secured the device. He tried his phone pin, credit card pin and his birthdays. Nothing worked and the machine locked itself on the third attempt. The hardware wallet then proceeded with erasing procedure and did a factory reset. All accounts stored on his hardware wallets were irreversibly erased.
After a couple of hours of disaster, he realized he had made a backup for situations like this. He jumped to his attic to search for this single piece of paper, price now over $one hundred fifty,000. He quickly realized however that he had thrown out some old boxes a couple of months ago with his spouse to make a room for their child’s stuff.
They had been devastated. Jacob has checked all the information online and confirmed that his coins are misplaced forever, nobody in the whole world may assist him.
Jacob told the reporter that he was silly to trust a chunk of paper with his seed recovery phrase. He was mad at himself to now knowing better. Jacob said that he ought to have used a reliable backup instrument like a steel crypto wallet. I've seen online metal crypto backups before, but I assumed this was something for a paranoid. Now he would for certain get himself a strong stainless metal crypto wallet. This way his precious recovery seed phrase can be safe from fire, water and he wouldn’t lose it with other papers.
Paper can be destroyed by fire or even by water from a leaking roof. Worse, you could just stick it with another papers and throw it out by accident just like he did.
Jacob hopes his story would convince every cryptocurrency holder to safe their private keys or seed (mnemonic) phrases with a proper metal crypto wallet, so they will be smarter than he had been.
Jacob has read on some bitcoin forums about buying and setting up a hardware wallet for his newly acquired Bitcoins. Folks have said it is a good idea to set up a hardware wallet and write down his recovery phrase on a chunk of paper. He was advised that he can hold his Bitcoins long run this way. The seed recovery phrase is a set of words used as an access key to the wallet and all coins inside. The recovery phrase (typically called mnemonic phrase) permits additionally you to recover your wallet with all accounts utilizing software or hardware wallets. Hardware and software wallets are sometimes protected by a password or a Pin code. They erase everything inside if you happen to put your pass fallacious few times. Hardware wallets are also protected from hackers, viruses, malware and other electronic threats.
Jacob did as was advised. He has bought and set up a new, absolutely secure hardware wallet. In the end, he was asked to write down his seed recovery phrase which was 12 words long on a piece of paper. He was advised that if his hardware wallet is misplaced or broken, he may put the seed recovery phrase in a new system so he was a hundred% safe. Jacob switchred his Bitcoins from the trade where he purchased it to his new account secured by a hardware wallet. He was now safe in case the trade goes bankrupt or gets hacked, which happened within the past. He put the hardware wallet in his socks drawer and a paper backup with his recovery phrase on the bottom of his desk drawer with some other papers for disguise.
Just a few months after he purchased his Bitcoins, on the finish of 2018, the value of Bitcoin plummeted. Jacob lost more than 50%, and his coins were price less than $10.000 and he lost interest in his coins for a while after that.
Fast forward to the end of 2021. Bitcoin’s worth is hovering reaching all-time high of $sixty seven,000, making Jacob’s 2.5 Bitcoins value around $one hundred seventy,000. He hasn’t been really checking the value of Bitcoin for a few years now, however he heard about it on the TV news. He realized this is some huge cash, money that might assist him pay out the remainder of his mortgage.
Jacob did some digging, found his hardware wallet and plugged it into his laptop. He realized he forgot his Pin code that secured the device. He tried his phone pin, credit card pin and his birthdays. Nothing worked and the machine locked itself on the third attempt. The hardware wallet then proceeded with erasing procedure and did a factory reset. All accounts stored on his hardware wallets were irreversibly erased.
After a couple of hours of disaster, he realized he had made a backup for situations like this. He jumped to his attic to search for this single piece of paper, price now over $one hundred fifty,000. He quickly realized however that he had thrown out some old boxes a couple of months ago with his spouse to make a room for their child’s stuff.
They had been devastated. Jacob has checked all the information online and confirmed that his coins are misplaced forever, nobody in the whole world may assist him.
Jacob told the reporter that he was silly to trust a chunk of paper with his seed recovery phrase. He was mad at himself to now knowing better. Jacob said that he ought to have used a reliable backup instrument like a steel crypto wallet. I've seen online metal crypto backups before, but I assumed this was something for a paranoid. Now he would for certain get himself a strong stainless metal crypto wallet. This way his precious recovery seed phrase can be safe from fire, water and he wouldn’t lose it with other papers.
Paper can be destroyed by fire or even by water from a leaking roof. Worse, you could just stick it with another papers and throw it out by accident just like he did.
Jacob hopes his story would convince every cryptocurrency holder to safe their private keys or seed (mnemonic) phrases with a proper metal crypto wallet, so they will be smarter than he had been.
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