1. Move Your Crypto Elsewhere
If your wallet has been lost or stolen, the first thing you need to do is move your private keys (or your funds) to another wallet so that a malicious individual cannot drain your crypto. To do this, you’ll need your seed or recovery phrase, the 12-24 word password you’re given when you open a cryptocurrency wallet (be it software or hardware). You also need to do this if your hardware wallet is broken, though there is no risk of theft in this case.
You can also use your seed phrase to transfer your funds to another wallet, therefore cloning it. But, if you don’t have another hardware wallet spare, moving your crypto to a trusted software wallet while you wait for your new hardware wallet to arrive is also a good idea. Of course, you can always buy two hardware wallets upon your initial purchase so that you have an immediate backup if your original wallet is lost, damaged, or stolen.
You’ll also need to ensure that the wallet you’re moving your funds to is reputable, secure, and compatible with the crypto keys you’ll be storing before making the transfer.
2. Order a New Wallet
If you’re big on hardware wallets and don’t want to keep your funds in a software wallet, you must order a new hardware wallet if your previous wallet has been lost, stolen, or damaged. Some crypto wallet providers offer a free replacement, and some don’t, so keep this in mind before making your first hardware wallet purchase, as replacing one at full price can be quite expensive.
3. Take Extra Precautions
It’s important to note here that, even if your hardware wallet is stolen, it will be very difficult for the thief to break into it, even if they’ve hacked devices before. Without your seed phrase, infiltrating a wallet becomes very complicated, so make sure you keep your seed phrase super safe at all times to avoid anyone getting their hands on it.
You can do this using a flash drive, seed phrase capsule, or something as simple as a piece of paper (so long as it’s hidden well). Check out our piece on how to securely store your seed phrase if you’re still figuring out how to keep it safe.
You should also ensure that your hardware wallet is being kept in a very safe location, or it becomes fair game for malicious individuals if they can access your home. Simply keeping it in your bedside drawer or in your office can be very risky, so it’s always worth taking that extra step to make your chosen hiding place a little less obvious.
You can even buy a secure case to store your wallet in. Some cases available out there are waterproof, some come with a lock, and some come in the form of regular cases that can simply prevent damage. Opting for a case can give your wallet an extra layer of protection, be it from criminals or knocks, bumps, and scratches.
Your Hardware Crypto Wallet Is Secure—But Not Impenetrable
Hardware crypto wallets are designed to be durable and tough to crack. But, like any other small physical object, they’re always at risk of being misplaced or falling into the wrong hands. So, if you lose or damage your hardware crypto wallet, follow the steps above to ensure that your funds are kept safe.
