Updated: Sep 22, 2020
In the case of hot wallets, users usually set them up with cryptocurrency exchanges. Chances are that it might get hacked in case of a breach. In this case, the exchange is responsible for its recovery but there is no guarantee that you will get your coins back.
When Bithumb was hacked in June 2018, it was later reported that the company managed to recover almost 50% of the hacked coins.In most cases, and this is the reality of these exchanges — retrieving stolen coins is close to impossible, in which case the coins are lost. In recent times, however, people have found techniques and methods to recover stolen coins. A zero-knowledge proof is one such method where one party (the prover) can prove to another party (the verifier) that something is true, without revealing any information apart from the fact that a certain specific statement is true. In regular blockchain transactions, the details of a particular transaction are visible to every other party in the network. In contrast to this, zero-knowledge transactions only let others on the network know that a transaction has taken place but the details of the sender, recipient, asset class and quantity are unknown.
The ways in which you can recover from cold wallets are:
Paper Wallets: Storing your key information in paper wallets is a very traditional concept which is now defunct. Misplacing or losing these papers without accurately remembering the details (Which is nigh impossible for any individual without photographic memory) will cause you to permanently lose your coins. The best way to safeguard your coins would be to store your paper wallet into a vault or safety deposit box.Pen drives, Hard drives: These devices are the most secure way to store your coins. One of the ways that you could lose your coins in these devices is if they get damaged or corrupted. Retrieving your data from these damaged or corrupted devices by professionals can prove to be an expensive affair. The other way to lose your coins is by losing or misplacing your device altogether.
Encrypted Devices: Encrypted laptops and phones work like hardware wallets, where you can store and access your private key information. Like hardware wallets, you can retrieve deleted or lost information through professional help in a nutshell, coins stored in hot wallets can be subject to hacks and theft resulting in the loss of your coins — unless your designated exchange takes some measures to restore them or tries to retrieve them from hackers. Using cold storage wallets is at the user’s discretion where you are completely responsible for the safety of your wallet, and subsequently your coins. It’s situations such as these that have led to companies looking to create products, such as Cryptocurrency theft insurance to protect your crypto and safeguard your digital assets. Once products like these are successfully released, this will certainly boost the value and adoption of cryptocurrencies. Lost your bitcoin to conmen or hackers? visit Flashassetrecovery. C O M to connect with recovery agents who will surely get back your lost coin.